Can I retire early?
Early retirement is an arithmetic question before it is a lifestyle one. Three inputs settle it: what you spend, what you invest each month, and what rate you assume. Enter yours below.
Open an investment account
We explain exactly what to compare before you open anything - costs, protection and the traps.
The savings rate does almost all the work
For early retirement, the percentage of income you keep matters more than the size of the income. A household saving half of what it earns is buying two years of freedom for every year worked; a household saving a tenth is buying a few months.
This is because spending less does two jobs at once. It raises the amount invested and lowers the pot required, since the pot is a multiple of annual spending.
Test the plan against a weaker market
Run your figures a second time with the expected return two points lower and the withdrawal rate at 3.5%. If the date moves by a couple of years, the plan is robust. If it disappears, it was relying on optimism.
Sequence risk - a poor run of returns in the first few years of retirement - is the specific danger for anyone retiring early, because there is no salary to stop the withdrawals.
Frequently asked questions
What savings rate do I need to retire early?
Very roughly: 25% of income points at a working life of around 30 years, 50% at around 17, and 65% at around 11, assuming a 5% real return and a 4% withdrawal rate.
Is early retirement risky?
The main risks are a bad sequence of early returns, healthcare costs, and underestimating spending. Most plans manage them with a lower withdrawal rate, a cash buffer, and willingness to earn something in the early years.
Do I have to stop working entirely?
No, and most people do not. Reaching financial independence changes work from an obligation to a choice, which is the part that matters.
What is Coast FIRE?
The point where your existing investments alone will grow into your full number by traditional retirement age, so further contributions become optional. There is a dedicated calculator for it.
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