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 