If you’re tired of the relentless grind of saving 20-50% of your income for retirement, Coast FIRE might be the financial strategy you’ve been searching for. Unlike traditional FIRE (Financial Independence, Retire Early), Coast FIRE allows you to stop saving for retirement while still working—giving you financial breathing room decades before your retirement age.

What Does “Coast FIRE” Mean?

Coast FIRE (also called “Coast FI”) is when you’ve saved enough money that compound interest alone will grow your investments to your retirement goal—no additional contributions needed. You’ve crossed a threshold where you can “coast” to traditional retirement age without saving another dollar.

Here’s the powerful part: You still work, but your paycheck only needs to cover living expenses. No more pressure to maximize retirement contributions. No more sacrificing present happiness for future security.

How Coast FIRE Works

The magic of Coast FIRE is compound interest. Here’s a real example:

Traditional Path

• Age 30: $50,000 saved
• Ages 30-65: Save $1,500/month
• Age 65: $2.1 million

Coast FIRE Path

• Age 30: $200,000 saved
• Ages 30-65: Save $0/month
• Age 65: $2.1 million

Same result. Zero additional savings.

The Coast FIRE Formula

Your Coast FIRE number depends on three variables:

1. Target retirement amount - How much you need at retirement age
2. Years until retirement - Time for compound interest to work
3. Expected return rate - Average investment growth (typically 7-10%)

The formula:

Coast FIRE Number = Retirement Goal / (1 + Return Rate)^Years

For a $2 million retirement goal in 30 years at 8% return:

$2,000,000 / (1.08)^30 = $198,700

Once you hit $198,700, you can stop saving and let it grow to $2 million.

Who Should Consider Coast FIRE?

Coast FIRE makes sense if you:

• Want more financial flexibility now - Take a lower-paying but more fulfilling job
• Need to reduce working hours - Spend more time with family without retirement anxiety
• Want to pursue passion projects - Start a business or creative work without income pressure
• Are burned out on saving - Ready to enjoy more of your income today

Coast FIRE is particularly attractive for people in their 30s and early 40s who have been aggressive savers and are ahead of traditional retirement targets.

Coast FIRE vs. Traditional FIRE

Traditional FIRE	Coast FIRE
Save aggressively until you can retire early	Save aggressively until you can stop saving
Typically need 25-30x annual expenses	Need enough to grow to retirement goal
Often retire in your 30s-40s	Continue working, but with less financial pressure
Requires $1-3 million+ to start	Can start with $100k-$300k depending on age

Benefits of Coast FIRE

1. Career Freedom

Stop chasing the highest salary. You can:

• Take a pay cut for better work-life balance
• Switch to part-time work
• Pursue meaningful work that pays less
• Start a risky business venture

2. Reduced Financial Stress

No more guilt about:

• Not maxing out your 401(k)
• Spending money on experiences
• Taking vacations
• Upgrading your lifestyle

3. Earlier Achievement

Coast FIRE is achievable 10-20 years before full FIRE, making it a realistic goal for most aggressive savers.

4. Safety Net Maintained

You’re still building wealth—just passively. If your circumstances change, you can always resume contributions.

Risks and Considerations

Market Volatility

Your Coast FIRE number assumes consistent returns. Market crashes can delay your timeline. Build in a safety margin (use 6-7% instead of 8-10% returns).

Lifestyle Inflation

Just because you can spend all your income doesn’t mean you should. Maintain some saving habits for emergencies.

Healthcare Costs

If you’re in the U.S., you’ll still need employer health insurance or purchase private coverage. Factor this into your “living expenses” budget.

Opportunity Cost

What if you could reach full FIRE with just 5 more years of saving? Run the numbers both ways.

How to Calculate Your Coast FIRE Number

Rather than doing complex math, use our Coast FIRE Calculator to instantly see:

• If you’ve already reached Coast FIRE
• How much more you need to save
• When you’ll hit your Coast FIRE number
• How much your current savings will grow to by retirement

Real Examples

Example 1: Sarah, Age 32

• Current savings: $150,000
• Retirement goal at 65: $1.5 million
• Coast FIRE number: $141,000
• Status: Already coasting!

Sarah can stop contributing to retirement accounts. She takes a 20% pay cut to work remotely and have more time with her kids.

Example 2: Mike, Age 28

• Current savings: $80,000
• Retirement goal at 65: $2 million
• Coast FIRE number: $156,000
• Needs: $76,000 more

Mike continues aggressive saving for 3 more years. At 31, he reaches Coast FIRE and switches to freelance writing—his passion with uncertain income.

Example 3: Jennifer, Age 45

• Current savings: $400,000
• Retirement goal at 65: $1.8 million
• Coast FIRE number: $418,000
• Needs: $18,000 more

Jennifer is almost there. One more year of normal contributions and she can coast. She plans to go part-time at 46.

Getting Started with Coast FIRE

Step 1: Define Your Retirement Goal

How much do you need at retirement age? Use the 4% rule as a starting point:

Annual expenses × 25 = Retirement goal

Example: $60,000/year × 25 = $1.5 million

Step 2: Calculate Your Coast FIRE Number

Use our calculator or the formula above. Be conservative with your return assumptions (6-7%).

Step 3: Track Your Progress

Check quarterly. Market gains might mean you’re closer than you think.

Step 4: Make the Transition

Once you hit your number:

• Stop or reduce retirement contributions
• Redirect that money to present-day goals
• Maintain an emergency fund
• Enjoy the freedom

Common Questions

Q: Can I still contribute to retirement if I want to? Yes! Coast FIRE is a minimum threshold, not a mandate. Many people hit Coast FIRE and continue light contributions for extra safety margin.

Q: What if I want to retire earlier than 65? Use your target retirement age in the calculation. Want to retire at 55 instead of 65? Your Coast FIRE number will be higher since there’s less time for growth.

Q: What if the market crashes? This is why we recommend conservative return estimates and safety margins. A severe crash might mean working a few extra years or resuming contributions temporarily.

Q: Is Coast FIRE different from Barista FIRE? They’re related but different. Coast FIRE means you’ve saved enough to stop contributing. Barista FIRE is a lifestyle choice to work part-time for health insurance and basic expenses. You might do both!

Is Coast FIRE Right for You?

Coast FIRE makes sense if: ✅ You’ve been a consistent, aggressive saver ✅ You have 15+ years until retirement ✅ You value present freedom over early retirement ✅ You’re open to career changes or reduced hours ✅ You have stable health and family situation

Coast FIRE might not work if: ❌ You have high debt that needs aggressive payoff ❌ You’re within 10 years of retirement ❌ You have inconsistent income or employment ❌ You prefer to retire as early as possible

Take the Next Step

Ready to see if you’ve reached Coast FIRE? Our calculator takes 2 minutes:

Calculate Your Coast FIRE Number →

You might be closer than you think. Many people in their 30s and 40s who’ve been diligent savers have already crossed the Coast FIRE threshold without realizing it.

The freedom to stop saving for retirement while still working is one of the most underrated financial milestones. It’s not full financial independence, but it’s a powerful middle ground that can dramatically improve your quality of life today while still securing your future.