Breakdown
How it works
FIRE number = annual spending ÷ safe withdrawal rate (25× spending at 4%). Your savings rate drives the timeline far more than returns do: saving 50% of income gets you there in roughly 17 years from zero; 25% takes about 32 years.
Formula
Worked example
Spending 40,000 at 4% → 1,000,000. With 100,000 invested and 30,000 a year at 5% real: about 17 years, FIRE at 49.
Frequently asked questions
Is 4% safe?
It comes from US data for 30-year retirements. For 40–50 year horizons many use 3.25–3.5%, which raises the target to 29–31× spending.
What are Lean, Fat and Coast FIRE?
Lean: minimal spending (≈25× a frugal budget). Fat: comfortable spending (≈25× a generous budget). Coast: you have enough invested that growth alone reaches FIRE by normal retirement age, so you only need to cover current spending.
Does GCC tax-free income help?
Enormously — no income tax means a 50%+ savings rate is achievable on a professional salary, which is why so many expats pursue FIRE. Beware lifestyle inflation in Dubai/Doha.
Does this include pensions or the State Pension?
Only if you include accessible pensions in current assets. Money locked until 57 (UK) needs a bridge from accessible savings.