“Fire” movement: Retreat too far? Take it at 40

“Fire” movement

Retirement seems too far away? So take it at 40

While Western countries tend to push back the retirement age, a community is doing everything to leave the world of work much earlier.

PostedMay 22, 2023, 6:03 p.m

A simple life and a mastery of investments: some aspire to be able to slam the door of the world of work well before their time.

20 minutes/Simon Glauser

The retirement age is rising again. The number of hours worked in Switzerland too. More and more people are working beyond the age of 65. But there is a part of the population who must look at all these statistics with a hint of distance. They are the supporters of the “Fire” movement, for “financial independence, retire early” (“financial independence, early retirement”). Monday’s “NZZ” devotes a file to them.

Ces «frugalistsare pros in controlling expenses on the one hand and optimizing their capital on the other (see box). The German-speaking newspaper interviews a 30-year-old Romand who keeps a blog where he gives his advice for “enjoying his life while becoming rich to achieve financial independence at 40”. Latest article: “Car leasing? A total scam, avoid the funding trap and regain control of your budget. The “NZZ” notes, however, that only fairly well-off people can afford to aim for a rate of 40% or even 60% of their income that can be saved.

Followers of the movement follow the “4% rule”. “It assumes that an investor is able to generate a 4% return over the long term through smart investments. This money can thus be used without affecting the basic capital,” explains the Yuh bank. “Most members don’t complicate their lives: they define the amount they need to cover their annual expenses and multiply it by 25. To retire at 40 and live another 50 years by spending around 80,000 francs per year, so you have to save 2 million francs,” adds PostFinance, for whom the thing could only work if “you start to lead a frugal life and focus all your energy on reaching your goal in your twenties.”

You should start early

The banks, in any case, are not indifferent to the movement. PostFinance, Raiffeisen, Banque Migros: several of them explain on their sites what it is, also mentioning what to pay attention to. The Yuh neobank does not hesitate to appeal to people who might be interested. “Whatever your financial dreams and aspirations are, Yuh is the perfect app to set up the corresponding plan and allow you to achieve your goals,” reads its site.

“Retirement at age 40 is unthinkable without a rigorous savings plan. You will have to make sacrifices and not spend your money unnecessarily”, warns the bank. And even those who achieve their goals are not sure to find happiness there. The Romand to whom the “NZZ” spoke mentions the case of an American who fell into depression once his goal was achieved.

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#Fire #movement #Retreat
2023-05-22 16:03:17

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