personal finance – Semi-Retire FIRE

How Much Do You Need to Semi-Retire? A Realistic Example

One of the most common questions people ask when exploring semi-retirement is:

“How much do you actually need to semi-retire?”

Unlike full FIRE, Semi-Retire FIRE doesn’t require replacing 100% of your income forever. Instead, it combines investments with flexible or part-time work, which can dramatically reduce the amount of money you need before stepping away from full-time employment.

In this post, I’ll walk through a realistic semi-retire FIRE example, explain the numbers behind it, and show why semi-retirement can be achievable without extreme saving or very high income.

What Semi-Retire FIRE Really Means

Semi-retirement is not about never working again. It’s about:

Reducing working hours
Regaining control over your time
Working by choice rather than necessity

Most people who semi-retire:

Work part-time or seasonally
Freelance or consult
Combine income with investment withdrawals

The exact mix will look different for everyone — flexibility is the core feature.

Step 1: Understand Your Annual Expenses

The first step is knowing how much you need to live comfortably each year.

For this example, assume:

Your annual living expenses equal 100% of your lifestyle costs
Housing, food, transport, and leisure are all included
Your lifestyle is stable and realistic

Your number may be higher or lower, but the process remains the same.

Step 2: Decide How Much Income You Want in Semi-Retirement

Next, decide how much income you’re comfortable earning once you reduce work.

Example:

Flexible or part-time work covers 40% of your annual expenses

This could come from:

Part-time employment
Freelancing or self-employment
Seasonal or contract work

The goal is not maximum income — it’s sustainability and balance.

Step 3: Calculate What Your Investments Need to Cover

Now calculate the gap:

100% total expenses
40% covered by flexible income
60% covered by investments

This is the key difference between semi-retire FIRE and full FIRE.

Step 4: Estimate the Investment Portfolio Needed

Many people use a 3–4% withdrawal rate as a rough guideline. See my previous post on this.

Using a conservative 3.5% withdrawal rate:

60 ÷ 0.035 = ~17

This means you need investments worth roughly 17 times your annual expenses.

By comparison, full FIRE often requires 25–33 times expenses.

Semi-Retire FIRE vs Full FIRE: A Quick Comparison

Scenario	Portfolio Needed
Full FIRE	25–33× expenses
Semi-Retirement	~17× expenses

This difference alone can reduce your timeline by many years.

What About Pensions and Future Income?

Most people don’t need their investments to last forever without support.

Later in life, additional income sources may reduce portfolio withdrawals, such as:

Government retirement benefits
Workplace or private pensions
Reduced living expenses

This layered approach makes semi-retirement more flexible and resilient over time.

Why Semi-Retirement Is More Achievable for Most People

Semi-retirement works because:

You don’t need perfect market timing
You don’t need extreme savings rates
You can adjust income and spending as life changes
There are many benefits to still doing some sort of work

Common Mistakes When Estimating Semi-Retirement Numbers

Assuming income must stay fixed forever
Ignoring future retirement benefits
Treating semi-retirement like full FIRE
Underestimating lifestyle flexibility

Adaptability is one of the biggest strengths of semi-retire FIRE

Is Semi-Retire FIRE Right for You?

Semi-retire FIRE may suit you if:

Full FIRE feels too extreme or distant
You value time freedom over complete work exit
You’re open to flexible or part-time income

If reclaiming time sooner matters more than a hard retirement date, semi-retirement is worth exploring.

Final Thoughts

So, how much do you need to semi-retire?
For many people, the answer is far less than expected.

By combining investments with flexible income, semi-retire FIRE creates a realistic and sustainable path to financial independence — without putting your life on hold.

Semi-Retire FIRE vs Coast FIRE: What’s the Difference?

As the FIRE (Financial Independence, Retire Early) movement has grown, so have the different paths people take to reach more freedom. One of which you may have heard of is Coast FIRE, but another similar path is the focus of this website Semi-Retire FIRE.

At first glance they can sound similar — both involve stepping away from the traditional full-time grind before normal retirement age. But in practice there are a few differences.

In this post, I’ll explain the difference between Semi-Retire FIRE and Coast FIRE, how each works, and which might be the better fit depending on your goals and lifestyle.

What Is Coast FIRE?

Coast FIRE means you have already saved and invested enough that, if you never added another pound, your investments would still grow to support you at traditional retirement age.

At that point, you can:

Stop aggressive saving
“Coast” in a lower-stress job
Use your income only to cover current living expenses

Key idea:

You are still working in some form, but you no longer need to save for retirement.

What Is Semi-Retire FIRE?

Semi-Retire FIRE is about reducing how much you work by combining investment income with ongoing work income.

Instead of waiting for your portfolio to cover all future expenses, you:

Build enough assets to partially support your lifestyle and expenses
Work part-time, freelance, or seasonally
Use flexible income to top up investment withdrawals

Key idea:

You work less, maybe for longer but with a better work life balance.

Semi-Retirement vs Coast FIRE: A Side-by-Side Comparison

Feature	Semi-Retirement FIRE	Coast FIRE
Main goal	Reduce working hours	Stop retirement saving
Work required	Part-time / flexible	Full time then flexible
Investment withdrawals	Yes (partial)	At full retirement
Lifestyle change	Flexible	Delayed
Time freedom	Medium	Medium
Best for	People wanting some time freedom sooner but willing to work part time for longer	People happy working and saving hard to begin with and then ‘coasting’ to their desired retirement age

The Biggest Difference: Time Freedom vs Financial Momentum

The biggest difference between semi-retire FIRE and Coast FIRE is when you get your freedom.

With Coast FIRE, freedom comes later — you reduce financial pressure, but your day-to-day life may look very similar to before.
With semi-retirement, freedom can come sooner — for example if you are happy to reduce just one or two days a week working, you may not need such a substantial investment portfolio to make the change.

How Much Do You Need for Each?

Coast FIRE

You need enough invested early for compound growth to do the rest of the work.

This usually requires:

High savings in your 20s or 30s
A long investment runway
Stable employment for many years

Semi-Retire FIRE

You need less invested upfront because you’re not relying on your portfolio alone.

Instead:

Investments cover part of your expenses
Flexible work covers the rest
The total “number” is much lower

This makes semi-retirement more achievable for average earners.

Risk Considerations

Coast FIRE Risks

You’re still dependent on full-time work whilst accumulating investments and savings
Job loss or burnout can derail plans
You don’t reduce lifestyle stress immediately

Semi-Retire FIRE Risks

Investment withdrawals introduce sequence-of-returns risk
Income may be less predictable
Requires flexibility and adaptability

Neither approach is risk-free — they just carry different types of risk.

Which Is Better: Semi-Retire FIRE or Coast FIRE?

There’s no universal answer, but here’s a simple way to decide:

Choose Coast FIRE if:

You don’t mind working full-time and saving hard to begin with
You have investments and savings but not yet compounded enough to retire completely
You value long-term security over immediate freedom

Choose Semi-Retire FIRE if:

You feel burnt out by full-time work and would like a better work life balance
You have investments and savings but not enough to quit work entirely
You’re open to doing part-time or flexible work, possibly until your regular retirement age

Many people also blend the two — reaching Coast FIRE first, then transitioning into semi-retirement later.

For me, though both paths are very similar, semi-retire FIRE felt like a more balanced and realistic approach. It allowed me to reclaim time without waiting decades or sacrificing too much of the present.

That doesn’t make it better for everyone — I’d love to hear what you think.. And if you would like some more inspiration and ideas of how to get started then you can read some more posts here.

Semi-Retire FIRE in 2026

Semi-Retire FIRE: Financial Independence Without Quitting Life

When most people hear FIRE—Financial Independence, Retire Early—they picture extreme frugality, 70-hour workweeks, and retiring in their 30s to never work again.

For some, that’s the dream.
For many others, it sounds… stressful, unrealistic, or just not that appealing.

That’s where Semi-Retire FIRE comes in.

What Is Semi-Retire FIRE?

I have been running this website for a year or two now and have written a post on what it is all about; but decided in this new year, and for all the new visitors I would summarise again the life style choice that may be just what you are looking for as a way out of the full time rat race. Semi-Retire FIRE is a more flexible version of traditional FIRE. Instead of working full-time until you hit a massive number and then fully retiring, you:

Build investments and savings
Reach partial financial independence
Reduce work instead of eliminating it
Use flexible income to support a better, more balanced lifestyle

Think of it as buying back your time, not escaping work entirely.

You might:

Work part-time
Freelance or consult
Run a small online business
Take seasonal or passion-based work
Take long breaks between jobs

The goal isn’t to never work—it’s to never have to work full time.

Why Traditional FIRE Isn’t for Everyone

Traditional FIRE often requires:

Extremely high savings rates (50–70%)
Long periods of sacrifice
A “one day my life will start” mindset

That can lead to burnout or regret.

Semi-retire FIRE solves this by letting you:

Enjoy life before full retirement
Reduce stress earlier
Stay mentally and socially engaged
Adapt as your goals change

Life isn’t a straight line. Your financial plan shouldn’t be either.

The Core Idea: Partial Financial Independence

Instead of asking:

“How much do I need to retire forever?”

Semi-Retire FIRE asks:

“How much do I need so my investments cover a good portion of my expenses?”

For example:

Your yearly expenses: £40,000
Your investments generate: £20,000
You only need to earn: £20,000

That £20,000 can come from low-stress, flexible work instead of a demanding full-time job.

That’s freedom.

A summary of the key strategies that will help you get there

1. Lower Your Cost of Living (Without Hating Life)

You don’t need to be extreme—but being intentional matters.

Focus on:

Housing costs
Transportation
Subscriptions
Lifestyle inflation

Every dollar or pound you don’t need is one less you have to earn in the future.

2. Invest Early and Consistently

Time is your biggest advantage.

Most semi-retire FIRE paths rely on:

Broad index funds – see my previous post How do I buy an index fund?

Long-term compounding – Unlocking the power of compound interest.

Consistency – Its all about the habits – part one You don’t need to pick stocks or chase trends—consistency beats complexity.

3. Redesign Work Instead of Eliminating It

Work doesn’t have to be:

40+ hours
Year-round
Stressful
Soul-crushing

Semi-retire FIRE lets you ask:

When do I want to work?
How much do I want to work?
What kind of work actually feels worth it?

The Lifestyle Benefits of Semi-Retire FIRE

People who semi-retire often report:

Better mental health
More time for fitness and relationships
Freedom to travel slowly
Ability to say “no” to bad opportunities
Less fear around money decisions

You’re not waiting until 65 to enjoy your life.

Is Semi-Retire FIRE “Cheating” FIRE?

No.

There’s no trophy for suffering the most on the way to independence.

Semi-Retire FIRE is:

Sustainable
Flexible
Realistic
Human

It recognizes that most people want balance, not extremes.

Who Is Semi-Retire FIRE For?

Semi-retire FIRE is a great fit if you:

Like the idea of FIRE but not the pressure
Want more time freedom sooner
Enjoy some form of work
Value lifestyle design over labels
Want a plan that adapts as you grow

Final Thoughts

Financial independence isn’t about escaping life—it’s about owning it.

Semi-Retire FIRE gives you permission to:

Move at your own pace
Enjoy the journey
Redefine what “retirement” means
Build a life you don’t need to escape from

That’s what Semi Retire FIRE is all about. I hope you enjoy looking around this website and do get in touch if you have any questions,

Semi-Retire FIRE: Financial Independence Without Quitting Life

Boosting your wealth can improve your health

In today’s fast-paced world, we often prioritize immediate gratification over long-term well-being. With constant advertisements, impulsive purchases, and a lifestyle driven by the latest trends, saving money might not seem like it has much to do with health. However, the act of managing your finances can significantly improve your overall well-being—both mentally and physically. Here’s how saving money can help you lead a healthier life:

1. Less Stress, Better Health

One of the most significant ways that saving money positively impacts your health is by reducing stress. Financial worries are a major source of anxiety for many people. Constantly thinking about how to pay bills, manage debt, or cover unexpected expenses can take a huge toll on your mental health. Studies have shown that chronic stress can contribute to various health issues, including high blood pressure, heart disease, and sleep disturbances.

When you create a savings cushion, whether it’s an emergency fund or simply setting aside money each month, you are proactively reducing this financial stress. Knowing that you have a financial safety net allows you to feel more secure and at ease, which can translate into better mental and physical health.

2. More Time for Self-Care and Healthy Habits

Saving money can encourage you to prioritize activities that improve your health. When you reduce your spending on non-essential things (like dining out, impulse purchases, or frequent shopping), you may find that you have more time and energy for healthier habits. For instance, you might choose to prepare meals at home, which can be both cost-effective and better for your nutrition. You may also decide to engage in free or low-cost activities like hiking, jogging, or yoga—activities that are beneficial for both your body and your wallet.

Additionally, having extra funds saved up can give you more flexibility to invest in activities that boost your mental well-being, such as therapy, hobbies, or vacations that provide relaxation and rejuvenation.

3. Better Sleep and Mental Clarity

Financial strain can lead to sleepless nights, whether from anxiety about upcoming bills or from the constant pressure of living paycheck to paycheck. Poor sleep is linked to a variety of health problems, including weight gain, weakened immune function, and decreased cognitive performance.

When you save money, you reduce the anxiety around financial instability, which can improve the quality of your sleep. A good night’s rest not only helps your body recover but also boosts your mental clarity and focus during the day. With better sleep, you’re more likely to feel energized and motivated to take on the challenges of everyday life, which can have a positive impact on both your work and personal life.

4. Increased Access to Health Care and Wellness Services

If you’re saving money, you may be in a better position to invest in your health long-term. This could include preventative care, health screenings, or treatments that you might otherwise delay due to cost concerns. Having a financial cushion means you can afford health insurance premiums, medications, or therapy sessions without compromising your well-being.

Additionally, saving money might free up funds to invest in things like gym memberships, fitness classes, or wellness retreats—things that can significantly improve your physical and mental health.

5. Healthier Relationships and Lifestyle Choices

When you’re less financially stressed, you’re likely to have healthier relationships. Financial troubles can cause tension in relationships, leading to arguments, misunderstandings, and even breakups. By managing your finances wisely, you help create a more peaceful environment at home, which can improve your emotional health.

Moreover, saving money often leads to smarter lifestyle choices. It can help you prioritize the things that truly matter—like spending quality time with loved ones or focusing on long-term goals. These lifestyle changes are not only good for your finances but also for your overall well-being.

6. The Psychological Benefits of Accomplishing Financial Goals

When you set savings goals—whether it’s for a vacation, a new house, or semi-retire FIRE—you get a sense of accomplishment as you meet them. This feeling of achievement boosts your self-esteem and confidence, which are crucial components of mental health. The act of saving itself can give you a sense of control over your life, which helps reduce feelings of helplessness or anxiety.

Moreover, accomplishing savings goals can help you develop a healthier mindset toward money. You’ll start to think of money as a tool for creating stability and freedom, rather than a source of stress and worry. This shift in mindset can have long-term benefits for your mental health.

7. Preventing Financial Burnout and Overwork

When people live paycheck to paycheck, they often feel forced to overwork themselves just to stay afloat. This constant grind can lead to burnout, which is detrimental to both physical and mental health. By saving money, you give yourself the flexibility to take breaks, reduce your workload, or even explore new career opportunities that align with your passions—without the constant pressure to make ends meet.

Overworking can lead to a variety of health issues, from exhaustion to more serious conditions like heart disease. Saving money allows you to take better care of yourself by ensuring that you don’t have to sacrifice your health just to pay the bills.

Conclusion

While it may seem like finances and health are separate entities, they are deeply interconnected. Saving money can have a direct and positive effect on your mental and physical health, reducing stress, improving sleep, enabling healthier habits, and even enhancing your overall quality of life. So, the next time you set a savings goal, remember that it’s not just about securing your future financially—it’s also about investing in your health and well-being today.

By taking small steps toward financial security, you’re paving the way for a healthier, happier life.

If you order take aways you can build an emergency fund!

Last Friday me and my partner splashed out and ordered a take away. It cost around £40 ($49). It arrived really quick which was great, but to be honest, I could have cooked something more tasty (and warmer!) for a lot less money.

This got me thinking. As a ‘now and again’ purchase its not really going to change my financial life, but, if this became a weekly habit it certainly could.

You may be wondering how is this one weekly indulgence going to change mine or anyone else’s financial future?

Well, be patient, I’m about to tell you!

When you write blogs like this there will always be some people that will push back on some of the ideas in the previous posts such as how to build an emergency fund or save a freedom fund. They will state they just about have enough to cover all their bills let alone start saving.

If this means absolute essential bills such as rent, energy and food then yes, building an emergency fund will be tricky. However, if these bills also include regular expenses such as take aways, eating out, alcohol or extra clothes shopping then its time to get honest with ourselves.

How much are we spending on these not so essential essentials?

Having an emergency fund, a savings buffer to sleep easy at night is an essential to start your positive financial future. So if you don’t have one but are spending on take aways and alcohol then I have a challenge for you which could change your life!

I challenge you to give these non essential essentials up for just 10 months. That is the beauty of this challenge. Its not permanent, its just for 10 months. After that you can go back to them if you want to but just going without for 10 months will give you a life time of sounder sleep. You will know that any surprise expense that pops up you can deal with. You will also know if you need to use the emergency fund (for an emergency) you can soon build it up again after another 10 month challenge. Win win.

Still not convinced? Here’s the maths to tempt you.

If you are spending say $200 a month on take aways, $100 on alcohol or drinking out and $150 a month on non essential clothes (do you need that 10th pair of jeans?) Over a ten month period of cutting these out (and also benefiting your health!) you would have accumulated a mighty $4500 (£3600). You may then realise you don’t really miss the above and would rather save $4500 every year! To me sacrificing a luke warm Chinese each week and 15th pair of jeans is worth it to know I have that buffer in the bank for any unexpected expenses. For those still not convinced, even cutting these expenses by half would save you an impressive $2250 (£1800)

So if you’re ordering pizza and dough balls there’s no excuse for not having that emergency fund. Let me know if you are willing to take up the challenge!

Make every weekend a long weekend.

Take more time to relax with semi-retire FIRE

What is better than having a long weekend off from work?

Having every weekend as a long weekend off from work!

Imagine having a 3 day weekend, or maybe even a 4 day weekend every week, not just when we have the occasional bank holiday here in the UK (or a public holiday elsewhere in the world).

An extra day to do as you please. Get all the chores out the way so you can relax and do fun stuff on the other 2 days. More quality time with family and friends, more adventures with your pet dog or more hours to work out or chill out, whatever floats you boat, your free time is yours!

Well, that is the idea of semi FIRE. Why do we have to follow the norm and work 5 days a week until retirement at some long distant date in the future, by which time we probably aren’t at our most healthy and active to enjoy all the free time.

Why can’t we do things a bit differently and on our own terms? Well you can!

Many work places will now try to accommodate more flexible working patterns so dropping a day a week in most industries shouldn’t be too hard. I think the number one reason most people don’t do this is the money.

So to do this we need to be able to take a drop in income. And that is why we are doing all the ground work on this blog so we can provide ourselves an additional income stream to make up for the reduced hours and reduced salary. This includes steps such as building your emergency fund, starting to invest and then growing your freedom fund. None of it is hard to do but also not necessarily easy! There have to be sacrifices along the way, things we may do without, budgets to follow. But building up your vision of your long weekends, more time spent with people and pets you love, more fun and time to relax on your terms will hopefully help you stay on the semi FIRE path and realise what you are doing it all for.

Its all about the habits – part 2

Following on from Its all about the habits part one here are a few more useful financial habits to try in order to secure a happy financial future.

Switch, switch, switch!

Recently I had my car insurance renewal quote come through, it was double that from the previous year. If I had just left it to auto renew I would be around £400 down now. Instead, I got another quote, put this to my insurance company via their app ( I didn’t even have to call them up) and they halved it just like that! It all took about 30 minutes. I just made £400 in 30 minutes not bad! This is the same for other expenses such as mobile phones, house insurance, broadband, TV package etc. A few hours spent getting some quotes and switching providers could save you thousands over a year. That will probably be the most profitable couple of hours of your whole year!

Regularly audit your bank statements.

Its a good idea to get into the habit of checking your bank statements on a regular basis. One reason to do this is to check what regular payments are going out and if they are correct. You don’t want to be paying twice for something or paying for services you no longer use because you forgot to cancel a direct debit. Another reason is so you can also check where your money has actually gone each month. You can then decide if you are happy with your spending decisions or if maybe the budget needs tweaking a little.

Create a budget

This one maybe should be top of the list but I think most people are aware they need a budget. However, we often put it off as it sounds too boring or restrictive. If this sounds like you then please read my post budgeting can be fun! to hopefully give you some inspiration to create and stick to a budget. We all need a plan for where we are going and why, this is all a budget is. It helps us reach our goals and make sure we are spending on things that align with our values and plans for the future.

And finally, Treat yourself

I know this can sound counter intuitive when discussing good financial habits, however money is there to enjoy. There is no point amassing a big number of digits in your bank account if you don’t actually do anything with it. If you have put the previous 6 habits in place, you should hopefully now be saving more and more each month. This maybe for future goals like retirement or a house purchase but we also have to enjoy the here and now as discussed in getting the balance right. So do remember to use some of the money to enjoy your life now. If there is a trip you want to make or a restaurant you really want to visit, do it! You are working hard to get your financial life in order so you should also enjoy the benefits!

Its all about the habits – part one

Following on from my last post about the benefits of a regular meditation practice, I realised that life really is all about the habits we develop. Good habits generally equals a good life and bad habits can equal a not so good one. Our life is the sum of our habits. Whether these be healthy habits, work habits, self care habits or financial habits. They all shape our life accordingly. However, as this is a financial blog I will focus on the good financial habits.

Getting into good financial habits, especially when we are younger, will pay dividends (literally!) as we get older.

Below I explore some of the good habits to get into now, so that the future you will be more wealthy and extremely grateful to the current you for getting your financial habits in order!

1. Set up automatic savings each month.

We all know we should save, but many people don’t. Often we wait until the end of the month to see what is left to save, usually not much! Instead, get into the habit of setting up an automatic transfer to a savings account at the start of each month. By paying yourself first and having it go out automatically each month, you are more likely to stick to this habit. This will then accumulate and compound over months and years into a very nice nest egg for the future you, hopefully enabling you to semi-retire FIRE.

2. Try not to emotionally spend

Sometimes we can get into the habit of spending to feel better, or emotional spending. We’ve had a bad day so treat ourselves to a new pair of shoes. We are feeling low so splash out on a luxury spa break to lift up our spirits. This isn’t wrong or bad, but its good to get into the habit of being more conscious about spending. Will this purchase actually help me feel better or would I be better calling a friend for a chat or taking some time out to exercise or meditate? Just getting into the habit of questioning our reason for the purchases can cut down our emotional spending.

3. Avoid all high interest debt

This is a super important habit to get into if you do want to become wealthy. Once you have high interest debt, the interest will compound against you and your outgoings will increase, making it even more hard to save for the future you. Some debt is useful debt, for example taking a mortgage to buy a home, but this is usually lower interest. High interest debt are things such as payday loans, credit cards and store cards. Once you start to accumulate this type of debt it is often very hard to find enough room in the budget for saving. If you already have such debt then the best thing you can do is pay this off as quickly as you can and then cut up those cards. Building an emergency fund should then help you to avoid having to take any further high interest debt out. If you have alot of debt you are struggling with do contact one of the many free debt advice organisations for advice. Here in the UK Stepchange is a good one to try.

These 3 financial habits are a great way to start getting on top of finances and building your wealth. In the next post we will look at a few more but do let me know in the comments below your number one good financial habit!