Summary: FIRE movement gaining popularity for early retirement, with savings goal of $2.55 million.

From Nasdaq: 2025-06-15 18:00:00

The FIRE movement is gaining popularity among those looking to retire early, with some aiming to retire in their 50s, 40s, or even 30s. To achieve this goal, individuals need to save a significant amount of money. Traditional retirement savings rules suggest saving 25 times annual expenses, but for early retirees, it may be closer to 33 times annual expenses. The average U.S. household spent $77,280 in 2023, meaning a savings goal of $2.55 million may be necessary for early retirement. To achieve FIRE, individuals often save at least 50% of their income and may follow different approaches like Lean FIRE, Fat FIRE, Coast FIRE, or Barista FIRE.

If you want to retire early, you may need to save a significant nest egg, with different variations of the FIRE movement offering different lifestyle options in retirement. Each approach has its own benefits and drawbacks, so it’s essential to choose one that aligns with your income and lifestyle choices. Additionally, maximizing Social Security benefits could provide a significant boost to retirement income, potentially adding up to $23,760 more each year. Learning how to optimize Social Security benefits can help you retire with confidence and peace of mind.



Read more at Nasdaq: FIRE Fundamentals: How Much Do You Really Need to Retire Early?