One of the biggest misconceptions about semi-retirement is that it requires a huge amount of money. Many people assume it’s only possible for high earners or extreme savers.
In reality, semi-retirement often costs far less than people expect — especially when flexible income is part of the plan.
In this post, I’ll break down the realistic cost of semi-retirement, show example budgets, and explain why this approach can be more achievable than full FIRE.
What Do We Mean by “Semi-Retire FIRE”?
Semi-retire FIRE doesn’t mean never working again. It means:
- Stepping away from full-time work
- Earning some flexible or part-time income
- Using investments to cover the remaining expenses
- Gaining more control over your time
Because you’re not replacing 100% of your income, the overall cost is lower than traditional early retirement.
The Main Costs of Semi-Retirement
Most semi-retirement budgets include the same core categories, regardless of location.
Housing
Housing is usually the largest expense and can vary widely depending on:
- Renting vs owning
- Location
- Downsizing or relocating
Many people reduce housing costs by:
- Moving to a lower-cost area
- Paying off a mortgage
- Renting part-time or seasonally
Food and Everyday Living
Food, utilities, and basic household expenses are often lower in semi-retirement due to:
- More time to cook
- Less convenience spending
- Reduced commuting costs
These savings add up over time.
Transport
With fewer workdays:
- Fuel costs drop
- Public transport usage decreases
- Car wear and maintenance is reduced
Some semi-retirees even go down to one vehicle or no car at all.
Insurance and Healthcare
Insurance and healthcare costs vary by country, but semi-retirees often manage this by:
- Using part-time work benefits
- Choosing higher-deductible plans
- Building healthcare costs into their budget early
This is an important category to plan carefully.
Travel and Leisure
One of the biggest benefits of semi-retirement is time flexibility.
Travel costs can actually be lower by:
- Traveling off-peak
- Taking longer, slower trips
- Using house sitting or long-term rentals
Leisure spending is often intentional rather than impulsive.
Example Semi-Retirement Budgets
Below are three illustrative scenarios to show how costs can vary. These are examples only — your numbers will be different.
| Lifestyle | Estimated Annual Cost |
|---|---|
| Lean semi-retirement | $30,000/ £22,000 |
| Moderate semi-retirement | $40,000/ £30,000 |
| Comfortable semi-retirement | $55,000/ £40,000 |
The key point is that semi-retirement doesn’t require luxury — it requires alignment between spending and values.
How Part-Time Income Reduces the Cost
One of the biggest advantages of Semi-retire FIRE is that you don’t need investments to cover everything.
For example:
- Annual expenses: $40,000
- Flexible/part time income: $25,000
- Investments cover: $15,000
Using a conservative withdrawal rate, the required investment portfolio is significantly lower than for full FIRE.
This flexibility reduces pressure and risk.
Semi-Retire FIRE vs Full FIRE: Cost Comparison
Full FIRE often requires:
- Covering 100% of expenses indefinitely
- Large investment portfolios
- Long accumulation timelines
Semi-retire FIRE:
- Requires less invested
- Can be reached sooner
- Allows adjustment if markets change
For many people, this makes semi-retirement a more realistic goal.
Why Semi-Retirement Is Cheaper Than People Think
Semi-retirement works because:
- You reduce big fixed costs
- You maintain some income
- You gain flexibility
- You can adapt spending over time
It’s not about extreme frugality — it’s about intentional living.
Common Cost Mistakes to Avoid
- Overestimating future expenses
- Ignoring the impact of flexible income
- Treating semi-retirement like full retirement
- Not adjusting spending as life changes
Semi-retirement is dynamic, not fixed.
Is Semi-Retire FIRE Affordable for You?
Semi-retire FIRE may be affordable if:
- You’re open to part-time or flexible work
- You’re willing to adjust lifestyle slightly
- You value time over maximum income
For many average earners, it’s a realistic and motivating path.
Final Thoughts
So, how much does semi-retirement really cost?
For most people, the answer is less than expected.
By combining investments with flexible income and thoughtful spending, semi-retire FIRE offers a sustainable way to gain freedom — without waiting decades to stop working completely.
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Semi-Retire FIRE 