- 1Coast FIRE = the point where compounding alone will get you to your retirement number
- 2Once you reach it, you only need to earn enough to cover current expenses — no more saving
- 3The earlier you start, the lower your Coast FIRE number (time is the key variable)
- 4It provides a psychological safety net and career flexibility years before full FIRE
- 5Many people use Coast FIRE to switch to lower-paying but more fulfilling work
- 6At age 25, you only need ~$96K saved to Coast FIRE to $1.25M by 60
#What Is Coast FIRE?
Coast FIRE is the amount you need saved today so that, even without any additional contributions, your portfolio will grow to your full retirement target by the time you reach traditional retirement age (typically 60–65).
In other words: save hard now, then coast.
This is the most psychologically liberating milestone on the FI journey — the moment you know your future self is taken care of, regardless of what you do with your career.
The Formula
Coast FIRE Number = FI Number ÷ (1 + Real Return)^Years Until Retirement
Where: - FI Number = 25× annual expenses (4% rule) - Real Return = nominal return minus inflation (~5–7%) - Years = until your target retirement age
Example
Sarah is 28, wants $1.5M by age 60, and expects 7% real returns:
Coast FIRE Number = $1,500,000 ÷ (1.07)^32 = $171,000
If Sarah has $171,000 saved at age 28 and never saves another dollar, compound growth alone will bring her to $1.5M by age 60.
#Coast FIRE Numbers by Age
For a $1.25M Target ($50K/year at 4% SWR)
| Current Age | Years to 60 | Coast FIRE Number (7% real) | Coast FIRE Number (6% real) | Coast FIRE Number (5% real) |
|---|---|---|---|---|
| 22 | 38 | $96,000 | $128,000 | $170,000 |
| 25 | 35 | $117,000 | $152,000 | $197,000 |
| 28 | 32 | $144,000 | $181,000 | $227,000 |
| 30 | 30 | $164,000 | $203,000 | $250,000 |
| 32 | 28 | $188,000 | $228,000 | $275,000 |
| 35 | 25 | $230,000 | $272,000 | $319,000 |
| 40 | 20 | $323,000 | $367,000 | $413,000 |
| 45 | 15 | $454,000 | $495,000 | $538,000 |
For Different FI Targets (at 7% real returns, retirement at 60)
| Current Age | $750K Target | $1.25M Target | $1.75M Target | $2.5M Target |
|---|---|---|---|---|
| 25 | $70,000 | $117,000 | $164,000 | $234,000 |
| 30 | $98,000 | $164,000 | $230,000 | $328,000 |
| 35 | $138,000 | $230,000 | $322,000 | $461,000 |
| 40 | $194,000 | $323,000 | $452,000 | $646,000 |
The pattern is clear: every year you wait, your Coast FIRE number increases because there's less time for compounding to work. Starting at 25 vs. 35 can mean needing half as much.
Calculate your exact Coast FIRE number →
#Why Coast FIRE Matters
1. Career Flexibility
Once you hit Coast FIRE, you can switch to any job that covers your current expenses. The income bar drops dramatically:
| Situation | Monthly Income Needed | Viable Options |
|---|---|---|
| Saving 50% on $100K | $8,333/month | High-income career required |
| After Coast FIRE ($50K expenses) | $4,167/month | Teacher, writer, part-time, freelance |
| Coast FIRE + partner income | $2,000–$3,000/month | Nearly anything |
Teacher? Writer? Barista? Startup founder? All become viable because you no longer need to save.
2. Reduced Burnout Risk
The pressure of "saving enough" disappears. Your future self is already taken care of. Research from the American Psychological Association shows financial stress is the #1 stressor for American adults. Coast FIRE eliminates this for your retirement horizon.
3. Geographic Freedom
If your only requirement is covering expenses (not maximizing income), you can live anywhere — including lower-cost areas or abroad:
| Location | Monthly Cost of Living | Feasible Income Sources |
|---|---|---|
| Rural US | $2,000–$3,000 | Remote work, local employment |
| Medium US city | $3,500–$5,000 | Part-time professional work |
| Portugal/Spain | $1,500–$2,500 | Remote freelance, teaching |
| Thailand/Mexico | $1,000–$2,000 | Online work, small business |
4. Psychological Safety Net
Even if you don't change anything about your career, knowing you've reached Coast FIRE provides profound peace of mind. You're working because you choose to, not because you have to for your future security.
#The Coast FIRE Journey: A Realistic Timeline
Phase 1: Sprint (Years 1–7)
Save and invest aggressively. Target 40–60% savings rate.
| Year | Age | Annual Savings | Portfolio Value | Coast FIRE % |
|---|---|---|---|---|
| 0 | 25 | — | $10,000 | 9% |
| 1 | 26 | $30,000 | $42,700 | 37% |
| 2 | 27 | $30,000 | $77,700 | 66% |
| 3 | 28 | $30,000 | $115,100 | 98% |
| 4 | 29 | $30,000 | $155,200 | 133% ✅ |
| 5 | 30 | $30,000 | $197,900 | 169% |
Assumes 7% real returns. Coast FIRE target: $117,000 (at age 25) for $1.25M by 60.
By age 28–29, with $115K–$155K saved, compounding alone brings this to $1.25M+ by age 60 — Coast FIRE achieved! ✅
Phase 2: Coast (Years 7+)
- Stop mandatory saving
- Cover only current expenses from income
- Pursue meaningful work, not highest-paying work
- Your portfolio compounds silently in the background
What the Portfolio Does Without You
After reaching Coast FIRE at $150K at age 29, here's what happens even if you never invest again:
| Age | Portfolio Value | Annual Growth |
|---|---|---|
| 30 | $160,500 | +$10,500 |
| 35 | $225,000 | +$15,000 |
| 40 | $316,000 | +$20,600 |
| 45 | $443,000 | +$29,000 |
| 50 | $621,000 | +$40,600 |
| 55 | $871,000 | +$57,000 |
| 60 | $1,222,000 | +$79,800 |
7% real returns. Notice how the annual growth accelerates — by age 55, the portfolio grows by $57,000/year without a single contribution. That's the magic of compounding.
The Decision Point
Most Coast FIRE achievers don't actually stop saving entirely. Instead, they: - Reduce savings rate from 50% to 10–20% - Switch to a passion career (often lower pay) - Work part-time - Take mini-retirements or sabbaticals - Start a business without financial pressure
#Real-World Coast FIRE Case Studies
Case Study 1: The Teacher
- Sprint phase: Software engineer, 24–30, saved $200K
- Coast phase: Became a high school math teacher at 31 ($52K salary)
- Expenses: $42K/year (comfortable in mid-sized city)
- Result: Portfolio on track for $1.7M by 60 without additional contributions
- Happiness: "I wake up excited to work. I couldn't say that before."
Case Study 2: The Freelancer
- Sprint phase: Corporate finance, 25–32, saved $250K
- Coast phase: Freelance financial writer, works 20 hours/week
- Expenses: $36K/year (relocated from NYC to Portland, Maine)
- Result: Portfolio on track for $2.1M by 60
- Happiness: "I work half the hours and enjoy every one of them."
Case Study 3: The Entrepreneur
- Sprint phase: Tech sales, 22–28, saved $130K
- Coast phase: Started a small bakery with partner
- Expenses: $48K/year (split with partner from bakery income)
- Result: Portfolio on track for $1.4M by 60
- Happiness: "If the bakery fails, my retirement is still secure."
#Coast FIRE vs. Other FIRE Variants
| Variant | What You Need | After Reaching | Risk Level |
|---|---|---|---|
| Coast FIRE | Enough that compounding reaches FI | Earn just enough for expenses | Low — retirement secured |
| Barista FIRE | Enough for partial expenses from portfolio | Part-time work covers the gap | Moderate |
| Lean FIRE | 25× minimal expenses (~$750K) | Fully retired, frugal lifestyle | Higher — tight margins |
| Traditional FIRE | 25× normal expenses (~$1.25M) | Fully retired, comfortable | Moderate |
| Fat FIRE | 25× generous expenses (~$2.5M+) | Fully retired, affluent lifestyle | Low — generous buffer |
Coast FIRE is unique because it's a milestone within the journey, not the final destination. Many people hit Coast FIRE and then decide to keep pushing toward full FIRE — but with much less pressure. It's the point where the game changes from "must save" to "choose to save."
#Risks and Considerations
1. Market Returns May Differ
If the next 30 years return 5% real instead of 7%, your Coast FIRE number is significantly higher:
| Real Return Assumption | Coast FIRE Number ($1.25M target, 30 years) | Risk Level |
|---|---|---|
| 5% (conservative) | $289,000 | Safest assumption |
| 6% (moderate) | $218,000 | Reasonable baseline |
| 7% (historical) | $164,000 | Historical average |
| 8% (optimistic) | $124,000 | Aggressive assumption |
Recommendation: Build in a margin of safety by targeting 5–6% real returns. If markets do better, you're ahead; if they don't, you're still on track.
2. Lifestyle Inflation
Your expenses at 30 may be very different at 50. Marriage, children, healthcare, and housing can significantly increase costs — raising your FI target. Review your Coast FIRE number every 2–3 years and adjust if your lifestyle changes.
3. Early Withdrawal Penalties
Money in 401(k) and Traditional IRA is penalty-locked until age 59.5 (with some exceptions like 72(t) distributions and the "Rule of 55"). Plan your account structure accordingly:
| Account Type | Early Access? | Strategy |
|---|---|---|
| Roth IRA contributions | Yes, penalty-free | Good for pre-59.5 access |
| Roth conversions | After 5 years | Roth conversion ladder |
| 401(k) | Age 55 if separated from employer | "Rule of 55" |
| Traditional IRA | 72(t) SEPP payments | Complex but viable |
| Taxable brokerage | Anytime | Most flexible, LTCG rates |
4. Sequence of Returns Risk
Even though you're not withdrawing, major early losses can delay your timeline. A 40% crash in year 1 after achieving Coast FIRE extends the timeframe. However, since you're not withdrawing, this risk is far lower than for someone who is already retired.
#How to Accelerate Your Coast FIRE Timeline
| Strategy | Impact |
|---|---|
| Max 401(k) + employer match | $25K–$35K/year invested |
| Side hustle income (invest 100%) | +$500–$2,000/month |
| Tax-loss harvesting | Saves $1K–$5K/year in taxes |
| Negotiate salary increase | 10–20% more to invest |
| Relocate to lower-cost area | Free up $500–$1,500/month |
| House hack | Eliminate housing cost entirely |
#How to Calculate Yours
Our FIRE calculator includes Coast FIRE calculations. Enter your current savings, expenses, expected return, and target retirement age — and it shows your Coast FIRE number and the age at which you'll reach it.
Calculate your Coast FIRE number →
Last updated: February 13, 2026