What Is Coast FIRE? The Easiest Path to Financial Independence

What Is Coast FIRE?

Coast FIRE is the point where you've saved enough for retirement that you no longer need to save more. Your existing investments will grow on their own to reach your retirement goal—you just need to cover your current living expenses.

It's called "coasting" because once you hit this number, you can take your foot off the gas and let compound interest do the heavy lifting.

Coast FIRE vs. Traditional FIRE

The beauty of Coast FIRE is that it's much more achievable than traditional FIRE. You don't need millions—you just need enough invested that it will grow to millions by the time you retire.

How to Calculate Your Coast FIRE Number

The formula:

Coast FIRE Number = Target Retirement Amount ÷ (1 + growth rate)^years until retirement

Example Calculation: - **Target at retirement:** $1,500,000 - **Current age:** 35 - **Retirement age:** 65 - **Years to grow:** 30 - **Expected return:** 7%

Coast FIRE Number = $1,500,000 ÷ (1.07)^30 = $197,000

That's right—if you have $197,000 invested at age 35 and never add another dollar, it should grow to $1.5 million by age 65 at 7% annual returns.

Why Coast FIRE Is So Powerful

1. Freedom to Choose Your Work Once you hit Coast FIRE, you no longer need to chase high-paying jobs. You can: - Take a lower-paying job you love - Start a business without financial pressure - Work part-time - Take a sabbatical - Switch careers without fear

2. Reduced Stress Knowing your retirement is "handled" removes enormous pressure from your daily life. Your current income only needs to cover current expenses.

3. More Achievable Than Full FIRE While traditional FIRE might require $2 million+, Coast FIRE might only require $200-400K. That's a target you can hit in your 30s or 40s.

4. Compound Interest Does the Work Time + invested money = exponential growth. The math is on your side.

Coast FIRE by Age

Here's how much you'd need invested to coast to $1.5M by age 65 (assuming 7% returns):

The earlier you start, the less you need! A 25-year-old needs just $100,000 to coast. A 50-year-old needs over $500,000.

Coast FIRE Calculator

Use our free Coast FIRE calculator to find your personal coast number based on: - Your current age - Target retirement age - Current savings - Expected annual spending in retirement - Investment growth assumptions

Try it now with the calculator above!

Steps to Reach Coast FIRE

Step 1: Define Your Target Retirement Amount How much will you need at retirement? Use the 25x rule: Annual expenses × 25 = Target amount.

Example: $60,000/year × 25 = $1,500,000

Step 2: Calculate Your Coast Number Use the formula above or our calculator. This is your magic number.

Step 3: Save Aggressively Until You Hit It - Max out your 401(k): $24,500/year in 2026 - Contribute to IRAs: $7,000/year - Invest extra in taxable accounts

Step 4: Coast! Once you hit your number, you can: - Keep saving (reach traditional FIRE faster) - Reduce savings to zero (true coast mode) - Something in between

What Happens After You Hit Coast FIRE?

Option A: True Coasting Stop all retirement contributions. Work just enough to cover living expenses. Take a lower-stress job.

Option B: Barista FIRE Work part-time, often in a job that provides health insurance (like Starbucks—hence the name).

Option C: Keep Building Continue saving but with less pressure. You're ahead of schedule, so any extra is bonus.

Option D: Career Experimentation Try that startup idea, freelance, or switch to a passion career without financial stress.

Coast FIRE Risks to Consider

Market Volatility 7% returns aren't guaranteed every year. Your investments might drop 30% in a bad year. However, over 30+ years, the market has historically recovered and grown.

Inflation Your target amount should account for inflation. $1.5M in 30 years won't buy what it does today.

Lifestyle Creep As your income grows, your expenses might too. Make sure your "coast" lifestyle matches your calculations.

Healthcare Until you're 65 and eligible for Medicare, health insurance can be expensive. Factor this into your "current expenses" calculation.

Coast FIRE vs. Other FIRE Types

Lean FIRE Retire early with minimal expenses ($40K/year or less). Requires extreme frugality.

Fat FIRE Retire early with a luxurious lifestyle ($100K+/year). Requires $2.5M or more.

Barista FIRE Work part-time primarily for health insurance benefits while coasting.

Coast FIRE Stop saving for retirement but continue working to cover current expenses.

Frequently Asked Questions

Is Coast FIRE actually achievable? Yes! It's one of the most achievable FIRE variations. Reaching $200-400K in your 30s is challenging but realistic with disciplined saving.

What if I want to retire before 65? Adjust your coast number accordingly. Retiring at 55 instead of 65 means less time for compound growth, so you need more saved.

Does Coast FIRE include Social Security? Usually no—Social Security is a bonus on top of your calculations. This makes your projections more conservative.

What investments should I use? Most Coast FIRE practitioners use low-cost index funds (like VTI, VXUS, or target-date funds) for reliable long-term growth.

The Bottom Line

Coast FIRE is the most achievable path to financial freedom for most people. You don't need millions—you need enough invested that compound growth will create millions.

Calculate your coast number using our free calculator, then make a plan to hit it. Once you're there, you can work on your own terms, knowing your retirement is secured.

Use the Coast FIRE calculator above to find your number today!