What Is Coast FIRE?
Coast FIRE is a financial milestone where you have saved and invested enough money that, even without any additional contributions, compound growth alone will build your portfolio to your target retirement amount by your desired retirement age. Once you reach Coast FIRE, you only need to earn enough to cover your current living expenses; you no longer need to save for retirement. This can be incredibly liberating, allowing you to take a lower-paying but more fulfilling job, work part-time, or reduce financial stress.
Coast FIRE is often the most achievable FIRE variant because it requires a smaller portfolio than full FIRE and allows you to continue working (at reduced capacity) until traditional retirement age. The earlier you reach Coast FIRE, the more powerful compound growth becomes. Someone who reaches Coast FIRE at 30 has 35 years for their money to grow before retirement at 65, meaning a relatively modest sum can grow into a substantial retirement fund.
Full FIRE means you never need to work again. Coast FIRE means you never need to SAVE again. You still work to cover current expenses, but all retirement saving is done. This is a much more achievable milestone and can dramatically improve quality of life by removing the pressure to maximize savings.
Coast FIRE Formula
| Current Age | Years to Grow | Coast FIRE Number | Monthly Savings at $50K/yr Expenses |
|---|---|---|---|
| 25 | 40 | $83,451 | $0 (just cover expenses) |
| 30 | 35 | $117,048 | $0 after reaching Coast |
| 35 | 30 | $164,147 | $0 after reaching Coast |
| 40 | 25 | $230,173 | $0 after reaching Coast |
| 45 | 20 | $322,779 | $0 after reaching Coast |
| 50 | 15 | $452,692 | $0 after reaching Coast |
- 1Retirement portfolio target: $50,000 / 0.04 = $1,250,000
- 2Years of growth: 65 - 30 = 35 years
- 3Coast FIRE number: $1,250,000 / (1.07)^35
- 4Coast FIRE number: $1,250,000 / 10.677 = $117,048
- 5Current savings: $80,000
- 6Additional needed: $117,048 - $80,000 = $37,048
- 7At $500/month savings + 7% return, reach Coast FIRE in ~4.5 years
Benefits of Coast FIRE
- Reduced financial pressure: No more need to maximize savings rate
- Career flexibility: Take a lower-paying but more fulfilling job
- Part-time work: Cover expenses with part-time or freelance income
- Reduced stress: Knowing retirement is already funded
- Earlier achievability: Coast FIRE requires far less savings than full FIRE
- Geographic freedom: Move to a lower-cost area since you only need to cover expenses
- Exploration: Try new careers, start a business, or pursue passion projects
Achieving Coast FIRE
Reach Coast FIRE
Coast FIRE in Canada
Canadian Coast FIRE planners should account for CPP and OAS benefits, which provide a guaranteed income floor starting at age 60-65. These government benefits effectively reduce your target retirement portfolio. If CPP and OAS together provide $25,000/year, and you need $50,000/year in retirement, your portfolio only needs to cover $25,000/year, cutting your required savings in half. Keep Coast FIRE investments in a TFSA (tax-free growth and withdrawals) or non-registered account for accessibility. RRSP is useful but locked in until age 55 (RRIF conversion) with tax implications.
Coast FIRE relies heavily on the assumed rate of return. If actual returns are lower than projected, your portfolio may fall short. Consider using a conservative return assumption (5-6% instead of 7%) and plan to reassess your Coast FIRE status periodically. Having a small ongoing savings habit (even after reaching Coast FIRE) provides additional safety margin.