Answers · UK 2025/26
What is my FIRE number if I want to retire early in the UK?
Roughly 25 times your annual spending, based on the 4% safe withdrawal rule. If you spend £30,000 a year, your FIRE number is about £750,000; at £40,000 a year it is around £1,000,000. This is invested capital, separate from any State Pension you receive later.
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FIRE (Financial Independence, Retire Early) commonly uses the 4% rule: a portfolio is considered able to sustain withdrawals of 4% per year, so the target is 25 times your annual spending. Worked example: if you want £30,000 a year, you need about £750,000 invested (£30,000 / 0.04). For £40,000 a year the FIRE number is £1,000,000. A more cautious 3.5% withdrawal rate raises the multiple to about 28.5 times, or roughly £857,000 for £30,000 a year. Where you hold the money matters in the UK. ISAs (£20,000 a year allowance) can be drawn fully tax-free at any age, which suits early retirees before pension access age. Pensions, accessible from age 55 (rising to 57 in 2028), give 20% basic-rate tax relief on contributions and allow 25% to be taken tax-free, but the rest is taxed as income on withdrawal. Many FIRE savers use a bridge of ISA money for the years before they can touch a pension. Remember the new State Pension of £241.30 a week (about £12,548 a year) starts later and reduces how much private capital you need from State Pension age. Use the FIRE calculator to set a target and timeline, and the ISA and pension calculators to plan the mix of tax wrappers. This is general information, not advice; check current rules on gov.uk.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.