Retire In 10 Years

While most Australians soldier on working, earning – and spending – well into their 60s, a growing number are deciding that there's more to life. By saving hard and investing wisely they are retiring early, even in their 30s, and following their interests and passions. Our cover story, with seven case studies, shows how it can be done.

- Susan Hely

If you believe retirement only happens when you reach your 60s – and you want to retire earlier – then read on. There is a growing band of retirees in Australia and overseas who are hitting retirement in their 30s or 40s. No, they aren’t rich kids living on an inheritance or technology whizzes who have sold an app. They are followers of the FIRE movement – that stands for “financial independence, retire early” – who rigorously save, invest sensibly and enjoy a modest, agreeable life.

It is the opposite of working flat out throughout your life, piling on debt, living beyond your means and consuming voraciously.

While most Australians rely on compulsory superannuation and its 9.5% contribution rate (capped at $25,000 a year) to fund their retirement, FIREs don’t want to wait until they are in their mid to late 60s. They want to pursue interests, have a more balanced life and enjoy more family time.

For example, Pat Seyrak has an ambitious plan: he wants to have $1 million in 10 years. At 30 he is half way there and aims to reach his goal in the next five years.

Our other case studies include:

Kate Campbell, 19, plans to save $1 million over the next 20 years and live on $40,000pa;

Alisha and Leo want to retire at 32 and 34 with $2 million, giving them $80,000pa;

Tom is 32 and aims to retire at 42 to 48;

Serina Bird, 45, plans to retire at 50 on $40,000pa;

Jason, 45, wants to retire in the next few years, generating income of $58,000pa rising to $80,000pa in later years; and

Joanna Jones, 60, retired at 51 with $1 million in super and lives on $18,000pa.