More and more people want to retire early, assuming they can afford to. But will this shift from a consumer must lifestyle to a minimalist one without working hurt the US economy? I have noticed in my interactions that more and more people don't care to have luxury items but would prefer more free time to do things. Given the population decline and boomers dying off I can't help but think this isn't sustainable. Love to hear any opinions on the subject

Yes.

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I don't think the FIRE population is big enough. The people in big jobs making the money to FIRE will usually stay, the people who don't make decent money can't, and most people like to keep up with the Jones'. Worst case is it lowers price of certain luxury items because demand will decrease slightly for junk items. FIRE ers also find other ways to add value to the economy or spend their time. Maybe they take more time with their grandchildren which frees up time for parents to work, etc.

gordo6 said:

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More and more people want to retire early, assuming they can afford to. But will this shift from a consumer must lifestyle to a minimalist one without working hurt the US economy? I have noticed in my interactions that more and more people don't care to have luxury items but would prefer more free time to do things. Given the population decline and boomers dying off I can't help but think this isn't sustainable. Love to hear any opinions on the subject

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I would love to retire early. I might be able to if not for inflation reducing the value of what I've saved. Ditto with the current horrible stock market.

Most people are drowning in debt to keep the latest phone and newest car. I don't see much changing.

I see the opposite, lot of people buying crap but they can afford it or people just being frugal

gordo6 said:

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I see the opposite, lot of people buying crap but they can afford it or people just being frugal

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Well you wrong as usual.

" The Federal Reserve Bank of New York reported an increase in the total amount of debt in the American household, rising by $27 billion to $15.85 trillion, in the first quarter of 2022. Mortgage debt rose by $250 billion during this period, and car loan debt increased $11 billion"

https://www.firstrepublic.com/insights-education/average-american-debt?bodylink=average-american-debt

gordo6 said:

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I see the opposite, lot of people buying crap but they can afford it or people just being frugal

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If this is true, your circle is a very small minority of the population. Look at the statistics. It's good to surround yourself with financially literate people, it's just not representative of the actual economic situation in this country.

The amount of people who actually can retire early is much smaller than those who want to.

I was thinking i might be able to pull something off in a few years, but the last six months have sure blown that in the water. I'm sick of the rat race, and it has me thinking about how much it would take for me to be happy and what I could give up.

New World Ag said:

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The amount of people who actually can retire early is much smaller than those who want to.

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Agree. But there is an opportunity for many people to leave the rat race and hit the gig economy to supplement their income and permit them to downsize and work less. The Van Life community is a great example of people downsizing to an extreme level.

These are small communities that can retire early but you can be sure that if these groups grow into sizable groups, Democrats will see these lifestyles as the epitome of privilege and oppression and tax or inflate them out of existence.

lb3 said:

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New World Ag said:

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The amount of people who actually can retire early is much smaller than those who want to.

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Agree. But there is an opportunity for many people to leave the rat race and hit the gig economy to supplement their income and permit them to downsize and work less. The Van Life community is a great example of people downsizing to an extreme level.

These are small communities that can retire early but you can be sure that if these groups grow into sizable groups, Democrats will see these lifestyles as the epitome of privilege and oppression and tax or inflate them out of existence.

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You mean by doing things like passing legislation preventing people from voluntarily working as independent contractors and artificially inflating prices to crush small businesses?

gordo6 said:

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More and more people want to retire early, assuming they can afford to. But will this shift from a consumer must lifestyle to a minimalist one without working hurt the US economy? I have noticed in my interactions that more and more people don't care to have luxury items but would prefer more free time to do things. Given the population decline and boomers dying off I can't help but think this isn't sustainable. Love to hear any opinions on the subject

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The number of people who want to retire early is far different from the number who will be able to afford to, if they can at all. I actually think there's a different problem that's going to balance it out, the number of people who can't afford to retire at all. The days of the retiree that lives comfortably on a pension drop every day due to the transition to 401k's and IRA's. Most people that have access to those retirement tools don't understand how much they actually need to be saving vs what they do save. There are still places that retirees have pensions like the public sector, but defined benefit plans have been replaced with defined contribution plans. Of those that take advantage there's a lot that only contribute the minimum to get the full company match. People on defined contribution plans are going to start discovering they don't have enough money, they'll be working longer than expected and it will offset those that actually can retire early.

I am 67 and could but do not want to retire.

I hope Americans keep working.

The beaches at Puerto Vallarta are crowded enough.

Woke corporations are making it more and more painful to continue working after your retirement nest egg has reached 'critical mass', especially if you don't fit the desirable demographics. I can't blame them for bugging out.

dermdoc said:

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I am 67 and could but do not want to retire.

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God bless you sir, you're a better man than I.

I'm fingers crossed at 52 I can double bird it, tell everyone what I think about DEI, and walk away to do what ever I want.

I am sure I will spend less money after retirement than before by necessity. I think most people will be in a similar situation therefore I think the answer is clearly a yes to OP's hypothesis . There
Will be less spending due to early retirements and it will not be good for the economy.

hangman said:

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I don't think the FIRE population is big enough. The people in big jobs making the money to FIRE will usually stay, the people who don't make decent money can't, and most people like to keep up with the Jones'. Worst case is it lowers price of certain luxury items because demand will decrease slightly for junk items. FIRE ers also find other ways to add value to the economy or spend their time. Maybe they take more time with their grandchildren which frees up time for parents to work, etc.

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I never put it together that FIRE meant Financially Independent / Retire Early.

I always thought it was "F** It, Retire Early"

The FIRE movement is mostly hustle porn, not people not actually doing real work. It is not actually a threat in any way to the economy. Issues:
1. Most people don't want to live in an airstream on $15,000 a year
2. Most people aren't willing to or capable of building a business that can actually allow one to retire early having a comfortable life.
3. The kind of people who fit the profile of point two are generally the kind of people who enjoy the FI part of FIRE and not the RE.

gig em 02 said:

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lb3 said:

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New World Ag said:

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The amount of people who actually can retire early is much smaller than those who want to.

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Agree. But there is an opportunity for many people to leave the rat race and hit the gig economy to supplement their income and permit them to downsize and work less. The Van Life community is a great example of people downsizing to an extreme level.

These are small communities that can retire early but you can be sure that if these groups grow into sizable groups, Democrats will see these lifestyles as the epitome of privilege and oppression and tax or inflate them out of existence.

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You mean by doing things like passing legislation preventing people from voluntarily working as independent contractors and artificially inflating prices to crush small businesses?

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More likely they would spend like even drunker sailors to diminish savings and apply a minimum tax on savings or assets above say $1m dollars. Then 20 years of inflation later, that becomes chump change. It's a simple yet formidable class trap preventing upward mobility. Just like progressive income tax rates are designed to prevent lower classes from challenging the upper class who actually live off capital gains, not income.

Take a look at the rate of savings for retirement for most Americans and you'll notice that most people will be working for a long time ...or eating dog food purchased with their social security.

I'm pretty high

I think 10%+ annual inflation is going to kill the retire early movement over the next couple of years.

Ol_Ag_02 said:

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dermdoc said:

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I am 67 and could but do not want to retire.

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God bless you sir, you're a better man than I.

I'm fingers crossed at 52 I can double bird it, tell everyone what I think about DEI, and walk away to do what ever I want.

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I think if DermDoc wants to double bird the boss, he'll need a mirror. That could be the difference in your situation.

gordo6 said:

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I see the opposite, lot of people buying crap but they can afford it or people just being frugal

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Lol

Ol_Ag_02 said:

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dermdoc said:

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I am 67 and could but do not want to retire.

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God bless you sir, you're a better man than I.

I'm fingers crossed at 52 I can double bird it, tell everyone what I think about DEI, and walk away to do what ever I want.

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please film the double bird exit and post on texas ags

nothing like a good who is coming with me moment.

gordo6 said:

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I see the opposite, lot of people buying crap but they can afford it or people just being frugal

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This depends on where you are in your earnings cycle. Many people spend some part of their career in each of the earning quintiles. But its what you manage to save/invest while in each quintiles that determines if you can retire early. Just because you can afford to buy crap doesnt mean its in your long-term best interest.

"The things you own end up owning you." Chuck Palahniuk (made famous by his character Tyler Durden)

Rocky Rider said:

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Ol_Ag_02 said:

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dermdoc said:

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I am 67 and could but do not want to retire.

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God bless you sir, you're a better man than I.

I'm fingers crossed at 52 I can double bird it, tell everyone what I think about DEI, and walk away to do what ever I want.

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I think if DermDoc wants to double bird the boss, he'll need a mirror. That could be the difference in your situation.

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Very true.

I really meant that I'm impressed by the dedication that some have to truly helping others in their careers, working way longer than they need / have to.

I'm in audit. What I do is important but let's be honest I'm not exactly saving the children here.

I get that, I just bought a tv, haven't had one in about 7 years. I love it but it wasn't necessary

unmade bed said:

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hangman said:

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I don't think the FIRE population is big enough. The people in big jobs making the money to FIRE will usually stay, the people who don't make decent money can't, and most people like to keep up with the Jones'. Worst case is it lowers price of certain luxury items because demand will decrease slightly for junk items. FIRE ers also find other ways to add value to the economy or spend their time. Maybe they take more time with their grandchildren which frees up time for parents to work, etc.

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I never put it together that FIRE meant Financially Independent / Retire Early.

I always thought it was "F** It, Retire Early"

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Right. The best examples is actually found among doctors bowing out -- (more because of insane protocols) and closing their practices though they would prefer to continue. Or in some cases they close to switch to a boutique approach, but it is scaled down and somewhat a semi-retirement.

MGS said:

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I think 10%+ annual inflation is going to kill the retire early movement over the next couple of years.

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You really think so? Most of these FIRE types depend almost entirely from living off of the inflation in the stock market.

Max Power said:

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gordo6 said:

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More and more people want to retire early, assuming they can afford to. But will this shift from a consumer must lifestyle to a minimalist one without working hurt the US economy? I have noticed in my interactions that more and more people don't care to have luxury items but would prefer more free time to do things. Given the population decline and boomers dying off I can't help but think this isn't sustainable. Love to hear any opinions on the subject

---

The number of people who want to retire early is far different from the number who will be able to afford to, if they can at all. I actually think there's a different problem that's going to balance it out, the number of people who can't afford to retire at all. The days of the retiree that lives comfortably on a pension drop every day due to the transition to 401k's and IRA's. Most people that have access to those retirement tools don't understand how much they actually need to be saving vs what they do save. There are still places that retirees have pensions like the public sector, but defined benefit plans have been replaced with defined contribution plans. Of those that take advantage there's a lot that only contribute the minimum to get the full company match. People on defined contribution plans are going to start discovering they don't have enough money, they'll be working longer than expected and it will offset those that actually can retire early.

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And don't forget that every wild market swing scares the *&$% out of a lot of those people who are near retirement. Even those who are depending on a pension usually have some sort of savings plan that's tied to the market.

gordo6 said:

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More and more people want to retire early, assuming they can afford to. But will this shift from a consumer must lifestyle to a minimalist one without working hurt the US economy? I have noticed in my interactions that more and more people don't care to have luxury items but would prefer more free time to do things. Given the population decline and boomers dying off I can't help but think this isn't sustainable. Love to hear any opinions on the subject

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Yes the economy will continue to shrink for the domestic market

with the strong dollar around the world, that shrinks the export market as well

this all equals = pain.