Many people aspire to achieve “Financial Independence, Retire Early” (FIRE) in their 40s. With the average lifespan of a Singaporean at 83, those committed to early retirement (FIREers) typically need about 40 years of accumulated wealth (the FIREpower) to sustain a life without a recurring paycheck. We check out what it takes to achieve that.

The Core Idea of FIRE

At its heart, it is a voluntary transition from trading your time and labour for money to one where you live entirely off your own accumulated resources. It usually starts with a rigorous savings regime of approximately 70% or more of your income, way above the national savings rate of 36.4%. To turbo-charge your savings, you often need to invest them in assets that appreciate beyond the inflation rate to maximise portfolio longevity. Once you reach your target amount, you can draw from it at a sustainable rate that secures your lifestyle for the rest of your days....