What is FIRE (Financial Independence, Retire Early)?

FIRE stands for Financial Independence, Retire Early. It's a movement focused on aggressive saving and investing — typically 50-70% of income — to build a portfolio large enough to fund your living expenses indefinitely. Once you reach your 'FIRE number', work becomes optional. In Australia, FIRE planning must account for superannuation preservation rules, since you can't access super until preservation age (60 for most people).

What is a good FIRE number in Australia?

Your FIRE number depends on your annual spending and chosen safe withdrawal rate. Using the 4% rule, multiply your desired annual spending by 25. For example, if you want to spend $60,000 per year, your FIRE number is $1,500,000. In Australia, the median household spends around $55,000-$70,000 per year, so most Australians targeting FIRE aim for $1.4M to $1.75M in invested assets. Remember to account for the split between super and non-super assets.

What is the 4% rule and does it work in Australia?

The 4% rule (also called the Trinity Study rule) states that you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, and your money should last at least 30 years. It was based on US market data. In Australia, it broadly holds, though some financial planners recommend a more conservative 3.5% rate for early retirees who may need their money to last 40-50 years. The Australian share market has historically delivered similar long-term returns to the US market.

Coast FIRE is the point where your existing investments, with no further contributions, will grow to your FIRE number by your target retirement age thanks to compound returns. Once you reach Coast FIRE, you only need to earn enough to cover your current living expenses — you don't need to save anything extra. For example, if your FIRE number is $1.5M and you have 20 years until retirement with a 4.5% real return, your Coast FIRE number is about $620,000.

How does super affect FIRE planning in Australia?

Superannuation is a major factor in Australian FIRE planning because you can't access it until preservation age (60 for most people born after 1964). If you want to retire at 45, you need enough money outside super to cover 15 years of expenses — this is called the 'bridge' amount. Your super then kicks in at preservation age. The upside is that super is tax-advantaged: contributions are taxed at 15% and earnings in retirement phase are tax-free. A good FIRE plan splits savings between accessible investments and super to optimise tax while ensuring you can fund the bridge period.

FIRE Calculator

Calculate your path to Financial Independence, Retire Early. See your FIRE number, years to FIRE, bridge amount for the super preservation gap, Coast FIRE, and Barista FIRE — tailored for Australians.

Last verified: 5 May 2026

What is my FIRE number in Australia?

The 4% rule says your FIRE number is annual spending × 25. Spending $50,000/year → need $1.25M; $60,000/year → $1.5M; $80,000/year → $2.0M; $100,000/year → $2.5M. In Australia the wrinkle is preservation age 60 — super is locked up, so retiring earlier means building enough outside super to bridge the gap. Conservative planners use 3.5% (÷ 0.035 or × 28.6) if they need the money to last 40-50 years. Source: Trinity Study (Cooley, Hubbard & Walz, 1998); ATO (preservation age).

Worked example. Age 35, $80k salary, $50k non-super savings, $90k super, saving $30k/year outside super and sacrificing $10k into super, 7% real return. Reaches ~$1.5M total around age 50, but most of it is super — need about$600k bridge outside super (10 years of $60k spend) to retire at 50 and have super kick in at 60. Coast FIRE (stop contributing, just let super compound to $1.5M by 60): only ~$520k needed today.

Current age*

years

Your current age in years.

Target retirement age*

years

The age you want to achieve financial independence and retire early.

Current savings (non-super)*

Savings and investments outside of superannuation (shares, ETFs, savings accounts, etc.).

Current super balance*

Your total superannuation balance across all funds.

Annual salary*

Your gross annual salary before tax.

Annual savings amount*

$/year

How much you save or invest per year outside of super.

Employer super rate

The Super Guarantee rate is 12% for 2025-26. Some employers contribute more.

Salary sacrifice into super

$/month

Extra pre-tax contributions you salary sacrifice into super each month.

Pre-retirement return (nominal)

Expected annual investment return before retirement. 7% is a common long-term assumption for a growth portfolio.

Post-retirement return (nominal)

Expected annual return after retirement. Typically lower (5%) as you shift to more conservative investments.

Inflation rate

Expected annual inflation rate. The RBA targets 2-3% over the cycle.

Super preservation age

Born before 1 July 1960

Born 1 July 1962 - 30 June 1964

Born after 30 June 1964 (most people)

Desired annual spending*

$/year

How much you want to spend per year in retirement, in today's dollars.

Safe withdrawal rate

The percentage of your portfolio you withdraw each year. 4% is the traditional rule; some prefer 3.5% for extra safety.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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What is my FIRE number in Australia?

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