How part-time work lowers the target
Part-time income does two things in early retirement. It covers part of your spending, so you draw less from savings, and it gives your investments extra years to grow before they have to support you fully. The calculator adds up what you need for the part-time years plus what you will need for full retirement afterwards, discounted for the growth in between.
With $50,000 of yearly spending, $25,000 of part-time income for ten years and a 4% return after inflation, you need about $1,055,000 instead of $1,250,000 for full retirement under the 4% rule, a saving of nearly $200,000. Fifteen years of part-time work at the same pay brings it down to about $983,000.
Making it work
Part-time retirement works best with work you enjoy and can keep up as you age, such as consulting in your old field, teaching or seasonal work. Health insurance before Medicare is often the deciding factor, so check whether the part-time role or a marketplace plan covers it.
Common questions
How much do I need to semi-retire?
Less than for full retirement; use your spending, part-time income and years of part-time work to see the exact figure.
Is this the same as Barista FIRE?
Very close. Barista FIRE usually means part-time work mainly for health insurance and some income.
Does Social Security count?
Not here. Subtract expected benefits from yearly spending to include it.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.