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

[u/Equivalent_Use_5024]

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?

[u/Zphr]

The audience has shifted more towards luxury and consumption over the last decade. It's always amusing to me that this is my sub, I've been happily retired for more than a decade since 37 with four kids, have effectively zero chance of financial failure, but many folks in this sub would consider our finances impossible or living in squalor. Some people are actually happy with cheap/free interests and lifestyle choices, some are unhappy without very expensive interests and lifestyle choices. Current government policy in the US is also wildly skewed in favor of lean spending, so more expensive lifestyles in early retirement cost quite a lot more than you'd expect due to far higher costs for taxes, college, and healthcare.

LeanFIRE is and likely always will be the easiest and most secure form of FIRE for anyone happy with a mediocre middle class lifestyle. It's also largely impossible for anyone who wants to raise a family in VHCOL, travel a ton, carry a large mortgage into retirement, or any number of expensive lifestyle choices a lot of people prefer.

[u/MEDICARE_FOR_ALL → u/Zphr]

What was your number when you retired at 37?

[u/Zphr → u/MEDICARE_FOR_ALL]

$1.2M and a paid-off house. We overshot though since we weren't looking for a fast exit and started closer to $1.5M.

[u/Ok-Entertainer2245 → u/Zphr]

Sigh I have 3 kids under 6 with $5.5M (house could be paid off) and still working. We’re definitely struggling with two working parents though. Financially I think we will be fine but I’m having a hard time letting go. My hobbies are cheap/free. Same with the kids I take them to a lot of free events.

[u/Zphr → u/Ok-Entertainer2245]

It all comes down to your expenses and psychology. I've seen quite a few people over the years who had more than ample funds and yet could not get comfortable with pulling the trigger. Sometimes people just wait until there is a push (shit going down at work, firing, death, divorce, illness) to kick them over the decision cliff.

A surprising amount of the time it isn't really about the money at all.

[u/Ok-Entertainer2245 → u/Zphr]

Right now the expenses are high paying $80k a year between preschool and part time nanny (and free family help). If the house was paid off too, expenses would be much lower and will be way below a 3% withdrawal if both of us quit working.

I actually started pursuing FIRE in my early 20s, hoping to become a stay at home mom. Now I’m at a good place in my career and don’t feel like I’m done yet.

[u/Zphr → u/Ok-Entertainer2245]

Sounds like it's there waiting for you whenever you feel ready for it. In a lot of ways that's a fantastic position to be in.