Independence
FIRE Number and Safe Withdrawal
Annual spend divided by a withdrawal rate is the target. Savings rate sets the date.
Financial independence is a funded spending rate, not a job title. The FIRE number is annual spend divided by a safe withdrawal rate.
Target = annual spend / SWR e.g. £32,000 / 0.04 = £800,000
Lean 3.5%
More conservative. Larger target, more shock absorption, later date.
Standard 4%
The Trinity-study shorthand. Not a law of nature — sequence risk still exists.
Fat 5%
Higher lifestyle, smaller target, more chance of cutting spending in a drawdown.
Savings rate
The date is set more by how much you keep than by the last 1% of return.
Takeaway
The FIRE Matrix uses a real (inflation-adjusted) return so the date is in today’s pounds. Pair it with the Runway Matrix so the last years of work are not fragile.
Run the numbers