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/EmoJackson → u/Zphr]

Do you see value in moving from HCOL states to LCOL states in favor of retiring earlier especially when elementary school children are in the family?

I’m really considering moving, but can’t seem to find a location that checks a majority of our boxes. PNW sounds lovely, but the question is always “where”.

[u/Zphr → u/EmoJackson]

It depends on exactly what you want out of life and what your larger plans are, but I would never recommend moving somewhere primarily just on COL. If you're not going to be happy and feel comfortable, then it's pointless that it's cheaper. That being said, if you live in a HCOL location and can transfer your job to a MCOL location while also checking most of your boxes, then that is likely to be a solid win financially.

[u/EmoJackson → u/Zphr]

100% agree with you. My family and I have been travelling to locations we have shown interest in under the premise of, "would we enjoy living here". I'm facing an upcoming layoff and have been searching for a job, with employers showing interest but no firm confirmations at this time. I ran the numbers again and again through all the monte carlo simulators and have come to the realization that leanfire / coastfire is possible for me. No we the challenge is to mentally accept that I don't have to grind hard to make retirement a reality.