Coast FIRE is a financial milestone where you’ve saved enough for retirement that you can stop contributing and let compound interest grow your nest egg to your target amount by traditional retirement age. Once you reach Coast FIRE, you only need to earn enough to cover current expenses—no more saving required.
This approach offers a middle path between aggressive early retirement and the traditional work-until-65 model. Let’s explore how Coast FIRE works and whether it might be right for you.
What Does Coast FIRE Mean?
FIRE stands for Financial Independence, Retire Early. If you’re new to these concepts, read our complete guide on what the FIRE movement is. Coast FIRE is a variant where you’ve invested enough money that, even without additional contributions, your portfolio will grow to support retirement through compound interest alone.
The key concept: Time + compound interest can do the heavy lifting.
If you’re 30 years old with $200,000 invested, assuming a 7% annual return, that money would grow to approximately $1.5 million by age 65—without adding another dollar.
At Coast FIRE, you’ve essentially “front-loaded” your retirement savings. You can then:
- Switch to a lower-paying but more fulfilling career
- Work part-time
- Take extended breaks between jobs
- Pursue passion projects without financial stress
- Start a business with lower pressure
How Coast FIRE Differs From Other FIRE Types
| FIRE Type | Definition | Work After Achieving |
|---|---|---|
| Traditional FIRE | 25x annual expenses invested | Optional |
| Lean FIRE | 25x minimal expenses invested | Optional, frugal lifestyle |
| Fat FIRE | 25x comfortable/luxury expenses | Optional, higher spending |
| Barista FIRE | Partial FIRE + part-time income | Part-time for benefits/income |
| Coast FIRE | Enough invested to coast to retirement | Full or part-time for expenses only |
Coast FIRE is unique because it doesn’t mean you stop working—it means you stop saving. You still earn income, but that income only needs to cover current costs.
Calculating Your Coast FIRE Number
Your Coast FIRE number depends on four variables:
- Target retirement nest egg (usually 25x expected annual expenses)
- Years until traditional retirement
- Expected rate of return
- Current age
The Coast FIRE Formula
Coast FIRE Number = Target Nest Egg ÷ (1 + return rate)^years until retirement
Example Calculation
Sarah’s situation:
- Age: 32
- Target retirement age: 60
- Expected annual expenses in retirement: $50,000
- Target nest egg: $1,250,000 (25x expenses)
- Expected return: 7%
- Years until retirement: 28
Calculation: $1,250,000 ÷ (1.07)^28 = $1,250,000 ÷ 6.65 = $188,000
If Sarah has $188,000 invested at age 32, she’s reached Coast FIRE. That money will grow to approximately $1.25 million by age 60 without additional contributions.
Coast FIRE Numbers by Age
Assuming a $1.25 million target nest egg at age 60 with 7% returns:
| Current Age | Years to 60 | Coast FIRE Number |
|---|---|---|
| 25 | 35 | $117,000 |
| 30 | 30 | $164,000 |
| 35 | 25 | $230,000 |
| 40 | 20 | $323,000 |
| 45 | 15 | $453,000 |
| 50 | 10 | $635,000 |
Key insight: The earlier you start, the lower your Coast FIRE number. Time is your greatest asset.
The Benefits of Coast FIRE
1. Reduced Financial Pressure
Once you hit Coast FIRE, the retirement anxiety disappears. You know future-you is taken care of, which allows present-you to make different choices.
2. Career Flexibility
You can:
- Take a lower-paying job you actually enjoy
- Start a business without betting your retirement on it
- Accept jobs based on interest rather than salary
- Take sabbaticals without derailing your future
3. More Achievable Than Full FIRE
Full FIRE might require $1-2 million invested. Coast FIRE could require $150,000-$300,000 depending on your age—a much more reachable goal.
4. Gradual Transition
Coast FIRE doesn’t require dramatic lifestyle changes. You still work, still earn, and still live normally—you just remove the pressure of constant saving.
5. Built-In Safety Buffer
If you continue investing even occasionally after reaching Coast FIRE, you build additional cushion. Many people find they naturally save some money even when not required to.
The Limitations of Coast FIRE
1. Market Uncertainty
The 7% return assumption is a historical average, not a guarantee. A decade of poor returns could require you to resume saving.
2. Inflation Risk
Your target nest egg needs to account for inflation. $1.25 million in 30 years won’t have the same purchasing power as today.
3. Healthcare Gaps
If you work less or take non-traditional jobs, health insurance becomes complicated and potentially expensive—especially in the US.
4. Lifestyle Creep
It’s easy to let expenses rise when you’re “done” saving. But higher current expenses might mean your coast number is actually insufficient.
5. Delayed Gratification
You still need to work for decades, just without the saving pressure. If early retirement is your goal, Coast FIRE may feel like a half-measure.
Who Should Consider Coast FIRE?
Coast FIRE works well for people who:
- Love their work but want less pressure
- Value flexibility over complete freedom from work
- Started saving early and already have significant investments
- Want to pursue lower-paying passions (teaching, nonprofits, creative work)
- Find full FIRE unrealistic given their income or location
- Prefer gradual life changes over dramatic shifts
Coast FIRE may not suit you if:
- You want to stop working entirely as soon as possible
- You’re starting late and need to maximize contributions
- Your career has a short window (professional athletes, etc.)
- You value certainty and want more buffer
How to Reach Coast FIRE
Step 1: Define Your Target
Calculate your expected retirement expenses and multiply by 25 (based on the 4% rule). Be realistic—account for healthcare, hobbies, and potential long-term care.
Step 2: Calculate Your Number
Use the formula above or a Coast FIRE calculator. Know your current age, target retirement age, and expected return.
Step 3: Maximize Early Career Savings
The earlier you invest, the more compound interest works in your favor:
- Max out 401(k) matching immediately
- Open a Roth IRA
- Live below your means in your 20s using the 50/30/20 budget
- Use the pay yourself first approach to automate savings
- Avoid lifestyle inflation with raises
Step 4: Track Your Progress
Check your invested assets against your Coast FIRE number annually. Knowing you’re at 60%, 80%, or 95% maintains motivation.
Step 5: Plan Your Coast Life
Before reaching Coast FIRE, decide what changes you want to make. What would you do differently if you only needed to cover current expenses?
Coast FIRE in Action: Two Scenarios
Scenario 1: The Career Changer
Marcus, 34, Software Engineer
- Current salary: $150,000
- Current investments: $280,000
- Coast FIRE number: $210,000
Marcus has already passed Coast FIRE. He decides to:
- Leave big tech for a nonprofit coding bootcamp
- Accept $70,000 salary (enough to cover expenses)
- Work with mission alignment instead of stock options
- Stop contributing to retirement accounts
Outcome: Marcus enjoys his work, lives comfortably, and knows his retirement is secure.
Scenario 2: The Parent
Jessica, 29, Marketing Manager
- Current salary: $85,000
- Current investments: $95,000
- Coast FIRE number: $145,000
Jessica is two years from Coast FIRE. Her plan:
- Continue aggressive saving until 31
- Start a family, then work part-time
- Cover family expenses with part-time income
- Let retirement accounts grow untouched
Outcome: Jessica has flexibility during prime parenting years without sacrificing long-term security.
Frequently Asked Questions
What rate of return should I assume?
7% is commonly used (10% average market return minus 3% inflation). More conservative planners use 5-6%.
Should I include Social Security in my calculations?
Social Security provides a buffer but shouldn’t be your primary plan. Consider it a bonus rather than a requirement.
Can I reach Coast FIRE in my 40s or 50s?
Yes, but the numbers are higher. The closer you are to traditional retirement, the less time compound interest has to work.
What if I overshoot my Coast FIRE number?
Great—you have options. You could coast earlier, increase your retirement target, or continue working toward full FIRE.
How does Coast FIRE interact with Roth vs Traditional accounts?
Both work for Coast FIRE. Roth accounts grow tax-free, which simplifies projections. Traditional accounts require tax planning at withdrawal.
Key Takeaways
Coast FIRE offers a balanced approach to financial independence:
- Stop saving, not working—let compound interest fund retirement
- Achievable earlier than traditional FIRE
- Provides flexibility to pursue lower-paying or more meaningful work
- Requires early action—the younger you start, the lower your number
- Not without risks—market returns aren’t guaranteed
- Fits people who value work but want reduced financial pressure
Next Steps
- Calculate your target retirement nest egg (25x expected expenses)
- Determine your Coast FIRE number using the formula
- Compare to your current invested assets
- Create a timeline to reach Coast FIRE
- Plan what changes you’d make after reaching it
Coast FIRE isn’t about escaping work—it’s about having the freedom to choose work on your own terms.
Written by Maira Azhar. Fact-checked by Usman Saadat.