Coast FIRE in Australia: Let Compounding Do the Work
Coast FIRE is the point at which you have invested enough that — even without investing another dollar — compound growth alone will fund your retirement at a traditional age. You can stop aggressive saving and simply coast.
Using 7% average annual growth, money roughly doubles every 10 years. A 35-year-old Australian who wants $1,000,000 at 60 needs approximately $340,000 invested today to coast there through compounding alone (accounting for the 25-year horizon).
Super makes Coast FIRE particularly relevant for Australians. If you have $200,000 in super at age 35, compounding at 7% per annum means it grows to roughly $1,085,000 by age 60 — without any additional contributions. Add the ongoing employer SG contributions, and you may be further along than you think.
Coast FIRE represents a genuine inflection point — the moment where aggressive savings pressure can meaningfully ease. Many Australian achievers shift from stressful corporate careers to lower-paying but more fulfilling roles, part-time work, or study — knowing their retirement is mathematically secured by compounding.
It is particularly relevant for young Australians who start early. A 25-year-old investing $500 per month for five to seven years into VDHG or a similar diversified ETF could potentially hit Coast FIRE before 35 — giving them decades of reduced financial pressure ahead.
The key risk is underestimating inflation or overestimating returns. Build in conservative assumptions (5-6% real return rather than 7% nominal) and review annually. Coast FIRE is one of the most psychologically powerful milestones — the moment you realise your future is funded and your present is yours to design.
Richify Tip
Richify calculates your personalised Coast FIRE number including super projections — showing exactly when you can stop aggressive saving and let compound growth carry you.
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