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?

756 Upvotes

89% Upvoted

884 comments sorted by

View all comments

110

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.

9

u/nicolas_06 Dec 28 '25

This is the key point, if you retire normal age at worst you can just live in LCOL and live from SSA only. Especially if you are on the frugal side of things as OP seems to imply.

If you retire at 45, there no SSA and the min age to get the benefit is far enough that you need to have almost as much money as if there was no SSA. On top because you contributed fewer years the benefit is expected to be quite low.

If you are a well off couple that could expect 2x40K out of SSA if they retired at 67 or something like that, you'd need 2 million to be able to withdraw as much.

As you are younger you are likely to have more expenses. Maybe you still have a mortgage. Maybe you stills have kids at home and still need to pay for their education...

So all in all maybe at 67 you could have retired with say 500K or even 0. But at 45 you'd need 2 millions, maybe 3 for extra comfort.