Forget 9-to-5 till 60: Can you really retire at 40? Expert decodes the trend

The Financial Independence, Retire Early (FIRE) movement is gathering momentum globally, with significant uptake in India. This initiative encourages individuals to manage their finances proactively, aiming to break free from the traditional work-until-60 model. Instead of pursuing higher incomes for lifestyle upgrades, FIRE followers focus on aggressive saving, strategic investing, and crafting a purposeful existence. "The goal isn’t more money. The goal is living life on your terms," remarks Chris Brogan.

More Indians are shifting away from traditional retirement goals, choosing instead to prioritise freedom in how they live and work. This signifies a fundamental rethinking of life goals, prioritising autonomy over mere financial gain.

Jitendra Kumar, CFA, notes that FIRE doesn’t mean giving up work entirely—it means not being forced to work for money. “In a world where AI is disrupting careers and burnout is common, financial freedom isn’t just desirable—it’s necessary,” he says.

Can FIRE work in India? Yes—and it already is.

The essence of FIRE is captured in its formula: multiplying annual expenses by 25 to determine one's FIRE goal. For instance, with monthly expenses of ₹1 lakh, the goal would be ₹3 crore, adjusted for inflation and other factors such as education and healthcare.

Siddarth, along with his wife in Hyderabad, exemplifies this trend. They built a ₹4.5 crore portfolio, living on an annual expense of ₹15 lakh, enabling them to semi-retire at 41. "There are no shortcuts—just disciplined investing and conscious spending," says Kumar. This narrative reflects the growing appeal of FIRE, driven not by income levels but by financial discipline and deliberate lifestyle choices.

In an era dominated by artificial intelligence and automation, FIRE offers not just a lifestyle choice but a necessary safety net. Kumar pointed out, "In a world where AI is disrupting careers and burnout is common, financial freedom isn’t just desirable—it’s necessary." This underscores the importance of financial independence as a buffer against job insecurity and professional burnout.

There are practical examples of FIRE's feasibility in India. Mohit from Bengaluru saved 45% of his income, invested wisely, and built a ₹3.1 crore portfolio by 39. This financial independence allows him to choose projects at will and fund his lifestyle through passive income, showcasing that FIRE is achievable and sustainable.

FIRE's formula—annual expenses multiplied by 25—remains central to planning a secure financial future. The movement empowers individuals to change careers without anxiety, take guilt-free sabbaticals, and focus on work they genuinely enjoy. This focus on autonomy and purpose is redefining how many approach their careers and personal lives.

Life after achieving FIRE is often vibrant and dynamic, as many choose to reinvent themselves rather than stop working. Examples include an ex-CFO managing an organic farm and a former lawyer becoming a financial coach. These stories highlight the flexibility and freedom FIRE offers, moving beyond the confines of traditional employment.

Kumar encapsulated the spirit of FIRE, stating, "FIRE isn’t about being rich. It’s about time, autonomy, and purpose. Ask yourself—what’s your freedom number, and how will you use it? That’s real wealth." This reflection urges individuals to consider their own path to financial independence, emphasising personal fulfilment over mere financial accumulation.