Coast FIRE is a savings milestone, not a lifestyle change. When you reach it, your current portfolio will grow to fund your full retirement — without another dollar in contributions. You can keep working, but you can breathe.
The Coast FIRE Concept
Compound interest does the heavy lifting in a long retirement portfolio. The earlier you accumulate a certain amount, the less you need to contribute because time amplifies growth. Coast FIRE calculates: what amount, saved today, will grow to your target retirement number without additional contributions?
Once you hit that number — you are coasting.
The Coast FIRE Formula
$$\text{Coast FIRE Number} = \frac{\text{Retirement Target}}{(1 + r)^n}$$
Where:
- Retirement Target = how much you want at retirement (your annual spending × 25 using the 4% rule)
- r = assumed annual return (commonly 7% inflation-adjusted)
- n = years until retirement
Example — Target $1,500,000 at age 65, currently age 35:
$$\text{Coast Number} = \frac{$1{,}500{,}000}{(1.07)^{30}} = \frac{$1{,}500{,}000}{7.61} = $197{,}000$$
With $197,000 invested at 35, the account grows to $1,500,000 by 65 at a 7% return — with zero additional contributions.
Coast FIRE Numbers by Age and Target
Assuming 7% annual return, retirement at 65:
| Current Age | Target $1M | Target $1.5M | Target $2M | Target $2.5M |
|---|---|---|---|---|
| 25 | $13,100 | $19,600 | $26,200 | $32,700 |
| 30 | $18,400 | $27,700 | $36,900 | $46,100 |
| 35 | $25,800 | $38,800 | $51,700 | $64,600 |
| 40 | $36,200 | $54,400 | $72,500 | $90,600 |
| 45 | $50,800 | $76,300 | $101,700 | $127,100 |
| 50 | $71,300 | $107,000 | $142,600 | $178,300 |
These are the amounts you need NOW to coast to those retirement targets without further contributions.
What Happens After You Hit Coast FIRE
You have options — none of which require you to quit your job:
- Keep your current savings rate — you will accumulate more than your target, providing a larger cushion or earlier retirement
- Reduce savings, increase spending — free up the savings you were making for current lifestyle goals
- Career pivot — take a lower-paying job you actually enjoy; income no longer needs to support aggressive saving
- Pay off mortgage aggressively — redirect savings to home equity
- Travel, education, or business — invest in experiences or opportunities rather than retirement accounts
Coast FIRE Does Not Require Early Retirement
Unlike other FIRE variants, Coast FIRE does not mean stopping work. Many Coast FIRE practitioners continue working in their primary career — the milestone simply removes the pressure of retirement savings from their financial plan. The phrase “coasting” captures the feeling: still moving, still working, but no longer climbing.
The Sequence Risk for Coast FIRE
The coast calculation assumes a constant return. In reality, if markets decline significantly in the early years after reaching Coast FIRE, the portfolio may not recover to the target by retirement. Conservative approach: Use a slightly lower return assumption (5–6% instead of 7%) when calculating your Coast FIRE number to build in a buffer.
For a $1,500,000 retirement target at 65 from age 35:
- At 7%: Coast Number = $197,000
- At 6%: Coast Number = $261,000
- At 5%: Coast Number = $346,000
Choosing a lower assumed return gives you a more conservative — and more resilient — Coast FIRE number.
For more on FIRE strategies and numbers, see the FIRE hub.
For more on FIRE strategies and numbers, see the FIRE hub.
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