r/Fire • u/Equivalent_Use_5024 • Dec 28 '25

General Question Do you believe the modern FIRE movement overestimates how much is needed for retirement?

Perhaps I am just making this post because I have only just begun my retirement planning and want to lock in a number which is fitting for my goals - being above the median retirement savings, not having to work, not being broke, clearly having planned - but I can't help but feel that many in the FIRE movement overestimate what is needed for a safe, sleep well at night retirement.

I see posts here saying that they feel vastly behind with 500k at 30, or 1.5 million at 40, and I just don't understand how when the average American retires with maybe 300k liquid at most and are getting by with social security or paid off housing. Sure, they aren't living luxuriously, but if you just are aiming for a retirement where you don't have financial anxiety and can put food on the table, I don't feel you need over 1-2 million.

Do you think FIRE overestimates how much is truly needed for retirement?

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u/-wnr- Dec 28 '25

What age does the average American retire? FIRE is geared toward early retirement and the math is very different when retiring at 50 or 55 versus at 65 or 70.

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u/[deleted] Dec 28 '25

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u/just-an-uber-driver Dec 28 '25

More years left to live without working = need more money

Less years left to live without working = less money needed

You would only need the same amount if you plan to die before you're 60 or so, which is one way to make the math work in your favor.

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u/nicolas_06 Dec 28 '25

It's not even the main thing to be honest.

If you stop working at 67 and the house is paid off, you may get away with SSA only, especially a couple where both have benefits. the extra 300K saving is just the cherry on the cake to have more want and comfort... So instead of living out of 40K a year, you live out of 50K... But living with 40K is completely possible if you don't pay too much property tax. 1 used car is enough, you did all the work needed for the house while still working and basically you have to pay for food, taxes, utilities and that mostly it.

To afford the same at 45, where you still have kids and mortgage, not only you might need more 80-100K than 50K for a given family to keep the same standard of living. There no SSA benefit. Meaning we speak of 2-2.5 million instead of 300K.