FIRE number
Your FIRE number is the portfolio size you need to cover annual spending at a safe withdrawal rate.
FIRE stands for Financial Independence, Retire Early. Your FIRE number is the amount of invested capital you would need to stop relying on a salary.
The most common shortcut is annual spending divided by a withdrawal rate. At 4%, a household spending £40,000 a year would need £1,000,000 invested. At 3.5%, the same spending needs roughly £1,140,000.
The right withdrawal rate depends on your age, mix of assets, flexibility, and how long the money must last. A higher number is safer for longer retirements.
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