Coast FIRE Explained: When Can You Stop Saving

Coast FIRE means you have saved enough that compound growth will reach your retirement target without additional contributions. You can stop saving for retirement and just cover your current expenses.

How Coast FIRE Works

The math relies on compound growth. If you have $200,000 invested at age 30, assuming 7% real returns, that money grows to approximately $1.5 million by age 60 without adding another dollar.

If $1.5 million is your FIRE number, you have reached Coast FIRE. You could switch to a lower-paying job you love, work part-time, or just spend your entire paycheck because retirement is already funded.

The Coast FIRE Formula

To calculate your Coast FIRE number at your current age:

Coast FIRE Number = Target FIRE Number / (1 + growth rate) ^ years until retirement

For example, if your target is $2 million at age 60, you are currently 35, and you assume 7% real returns:

$2,000,000 / (1.07) ^ 25 = approximately $368,000

If you have $368,000 invested at 35, you can coast to $2 million by 60.

The Appeal of Coast FIRE

Career flexibility. Once retirement is secured, you can pursue passion projects, creative work, or lower-paying meaningful careers.

Reduced stress. Knowing retirement is handled removes a major source of financial anxiety.

Present enjoyment. You can spend more on life now without compromising future security.

The Risks

Market assumptions. 7% real returns is a historical average, not a guarantee. Poor decades happen.

Inflation uncertainty. Over 25+ years, inflation could exceed expectations.

Temptation to withdraw. Having a large sum sitting there while you work a lower-paying job requires discipline.

Healthcare gap. If you leave traditional employment before 65 in the US, healthcare costs fall entirely on you.

Coast FIRE Variations

Early Coast FIRE: Reach Coast FIRE in your 20s or early 30s with aggressive early saving. Maximum career flexibility.

Partial Coast: Reduce but do not eliminate retirement contributions. Balances growth assumptions with ongoing saving.

Coast to FatFIRE: Coast to a larger target number while enjoying the journey.

Is Coast FIRE Right for You

Coast FIRE suits people who value career flexibility over early full retirement, enjoy some form of work, started saving young, and are comfortable with market uncertainty.

It may not suit those who hate all forms of work, started saving late, or are highly risk-averse about retirement.