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What percentage of the population do you think is pursuing financial independence/early retirement (FIRE). I don't necessarily mean going all frugalwoods so they can retire at 35, but I mean people consistently saving 20% or 35% or whatever of their net income on top of maxing out 401ks/IRAs etc. with the hope of being done at 50 or 57. Obviously this applies more to white collar professionals bc if you don't know how you're paying electric next month, it's hard to worry about saving for 20 yrs from now. While there are constantly articles about how more than half of households couldn't pay a $500 unexpected bill etc., I feel like every time I turn around I'm reading about some "ordinary" professional who has been saving 25% of their net income since age 25 and at age 45 is already sitting on $1.5+ in net worth and is considering "downsizing" to a lower paid/lower stress job for 10 yrs and then retiring by 55. And yet I don't know if I know any of these people in real life bc I don't talk about financial things with coworkers etc. So has the goal of financial independence become more common in the last few yrs or am I just being self selective in what I'm reading and who I'm talking to?
There are a lot more wealthy households in America than one is led to believe.
For us we are looking to become financially independent by 40. This has nothing to do with not wanting to work, but the benefits of being financially free are quite high. I personally work on average of 10 days less a month than most people in my job at my age, that translates into 120 days a year or four months additional time off work from the others. Overall, a conservative estimate is 245 days spent at home which is over eight months time off. That leaves a lot of time to do whatever you wish to do with your life.
The other side is having the money to enjoy your time off, which is just as an important part of the equation as the actual time off.
The reality is the 99% or at least 95% won't be able to.
I have had a rough life, and baring our POTENTIAL pending inheritances, will never be FIRE, though we may be able to retire later in life.
Even though I am actually disabled, I now know my SSDI isn't paying the bills now, and whether it becomes my permanent SS or whether they recalculate at FRA, still won't be enough. MOH is in the same boat, though for the reason of not working for many years.
I have been as low as homeless living under a bridge next to the RR tracks, to being on welfare to being ok.
But now we are scrambling to set up for retirement and I have gone back to work a steady 24 hours a week (all I can physically manage). That should boost my SS and our savings for retirement.
Not every one has a bed of roses, even those who work hard at two or more jobs.
My medical issues have plagued me most of my life.
Now I am back working as hard as I am physically able to to make retirement at least secure.
Saving 10 or 20% of little, still leaves little. But it's 10% more than I would have if I didn't save it.
That's all I can ask.
If inheritance comes it will make it easier, but not counting on it.
When life hands you lemons, you have little choice but to make lemonade. If you can sell your lemonade at a profit, so much the better!!
I have no clue, but I'm going to go with 1.5% (5 million) that are actively pursuing FIRE. Mr. Money Mustache once wrote a post about readership and I think he included some random number like 5 million.. but that number probably includes those that are interested in it, but no where near meeting the terms to reach FIRE and those that have already reached FIRE. I'm sure there are those reaching FIRE outside of his readership too, so I'm just going to keep 5 million to account for those who have reached it and those that can't.
Yes I have not quite, but almost, pulled that number out of my a$$. Can anyone do better than that though?
5 million is a LOT of people and yet as a percentage it's not much at all... sorta depends how you look at it...
"trying to" is probably too nebulous a definition to even start trying to estimate a number, hell even "early retirement" is hard to pin down since some people would consider anything younger than full social security age as early retirement while others might be thinking in the 50s or younger.
There are a lot more wealthy households in America than one is led to believe.
Nope. 70th percentile median household net worth for the 55 to 64 age bracket is less than $400K. For most, much of that net worth is home equity. If you live in a leafy suburb, you get a false sense of the financial state of the average person.
Unless you're a federal/state/local worker or one of those rare union workers with the big pension none of the rest of us get, you need to be around 95th percentile household net worth to retire in your 50's. 95th percentile household net worth for age 55 to 59 is about $2 1/2 million. Even then, you're going to take a big cash flow hit since most who have accumulated that kind of wealth made 5%er income. If you're making $250K to accumulate that kind of wealth, the thought of living on $80K probably pushes a lot of those people to work a few more years.
There was survey I've read recently, only 6% in my age range from 50-55 retire. I believe younger than 45 is 3%. The biggest group is 65 35% and 70and above is 30%. I try to find the link, but this is going by memory.
I think it ends up being about 5% of people who reach their 60s without really needing Social Security to maintain their lifestyles. There is another tier, about 25%, who are "financially comfortable". These are people who lived reasonably sane financial lives, didn't go crazy with debt, and saved consistently throughout their working lives, but still have some level of dependency on a pension or Social Security.
I personally find it tragic that even the majority of the top 33% of earners can't be financially independent by their 60s without Social Security. I think a majority of people should be able to do this, or at least a near majority. Certainly, I think a majority should be able to reach "financially comfortable" status with only moderate dependence on Social Security.
But people mess up their lives right out of the starting gate by doing stuff such as having kids out of wedlock.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by galaxyhi
100%of the population would like to FIRE.
The reality is the 99% or at least 95% won't be able to.
I have had a rough life, and baring our POTENTIAL pending inheritances, will never be FIRE, though we may be able to retire later in life.
Even though I am actually disabled, I now know my SSDI isn't paying the bills now, and whether it becomes my permanent SS or whether they recalculate at FRA, still won't be enough. MOH is in the same boat, though for the reason of not working for many years.
I have been as low as homeless living under a bridge next to the RR tracks, to being on welfare to being ok.
But now we are scrambling to set up for retirement and I have gone back to work a steady 24 hours a week (all I can physically manage). That should boost my SS and our savings for retirement.
Not every one has a bed of roses, even those who work hard at two or more jobs.
My medical issues have plagued me most of my life.
Now I am back working as hard as I am physically able to to make retirement at least secure.
Saving 10 or 20% of little, still leaves little. But it's 10% more than I would have if I didn't save it.
That's all I can ask.
If inheritance comes it will make it easier, but not counting on it.
When life hands you lemons, you have little choice but to make lemonade. If you can sell your lemonade at a profit, so much the better!!
Or learn to like lemons or at least tolerate them.
Sorry you've had a hard life. Keep fighting the good fight!
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