Coast FIRE in Canada: The Number That Lets You Stop Saving (Not Stop Working)
By Jordan Ellis · Published · Reviewed
Quick Answer
Coast FIRE is the point where your existing investments, growing untouched, reach your full retirement target by your retirement age — so you never need to save another dollar, only earn enough to cover current life. The coast number is your retirement nest egg discounted by years to grow: targeting $1.25 million at 65 (which supports roughly $50,000/year by the 4% rule), a 30-year-old needs about $227,000 already invested at a 5% real return; at 40, about $369,000. CPP and OAS cut the required nest egg further — often by a quarter or more.
FIRE gets the headlines, but the milestone that changes a normal life is earlier and quieter: the day your existing investments can finish the job without another contribution. That’s Coast FIRE — and it’s closer than most people think, especially once Canadian benefits enter the math.
The three-step calculation
Step 1 — the nest egg. Annual retirement spending × 25 (the 4% rule). Spending $50,000/year → $1,250,000.
Step 2 — subtract CPP + OAS. Combined, these deliver roughly $20,000/year to an average senior — that’s $500,000 of nest egg you don’t need. Target drops to $750,000. (Check your real numbers with the CPP & OAS calculator — most coast calculators online ignore this and overshoot Canadian targets badly.)
Step 3 — discount by growth years. Coast number = target ÷ (1.05)^years, at a 5% real return:
| Your age | Years to 65 | Coast number (for $750k target) |
|---|---|---|
| 25 | 40 | ~$107,000 |
| 30 | 35 | ~$136,000 |
| 35 | 30 | ~$174,000 |
| 40 | 25 | ~$221,000 |
| 45 | 20 | ~$283,000 |
A 30-year-old with $136,000 already invested is coasting to a $50k/year retirement with CPP/OAS in the picture — contributions optional from here. Model your exact version with the retirement calculator.
Why coast changes behaviour before it changes your bank balance
The value isn’t stopping saving — it’s knowing you could. That knowledge is what powers the career moves: the lower-paying dream job, the sabbatical, the startup attempt, going part-time while kids are small. Your retirement is already handled by past you; present you only needs to cover rent and groceries. That’s a fundamentally different negotiation with the world.
Getting there faster (the levers that actually move it)
- The early dollars are the whole game. Money invested at 25 compounds for 40 years — and at a 5% real return each dollar ends up worth about 2.7 times as much as a dollar invested at 45. Front-load the TFSA and RRSP in your 20s even if it means saving less later.
- Fees are a coast-killer. A 2% MER instead of 0.2% can push the coast date back most of a decade — the ETF vs mutual fund math is brutal on this.
- The mortgage counts, carefully. A paid-off home cuts the spending target itself — our rent vs buy math and pay off mortgage faster guides both feed the same number.
The honest caveats
Coast math assumes the next 30 years rhyme with the last 100 — 5% real returns, stable benefits, a target that doesn’t inflate with your lifestyle. Hedge all three: keep a token contribution running (even 5% of income), re-run the number annually, and treat hitting coast as permission to relax the throttle, not to kill the engine. And if the whole idea appeals, retire at 55 is the version where the throttle stays pinned a few more years.
Official sources
Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed .
- CPP retirement pension: how much you could receive (Employment and Social Development Canada)
- Canada Pension Plan: monthly payment amounts (Employment and Social Development Canada)
- Old Age Security payment amounts (Employment and Social Development Canada)
- GetSmarterAboutMoney investor education (Ontario Securities Commission)