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Many people asked me the same question: what is a good age to semi retire if you’re raising a family — and how do you do it with three kids?
After six years of pursuing financial independence, Marc and I have asked ourselves the same question many times.
When we first discovered the FIRE movement back in 2020, our initial goal was full early retirement. But over time — and especially after welcoming our third child — our perspective evolved. Our goal is no longer to retire as early as possible. And that’s not just because of rising costs. It’s because work itself became the main reason we decided to change our plan. I explain this in more detail in my previous post, “Why Our Family Chose Freedom Now”.
However, what is our exact Semi-FI strategy that could bring us closer to freedom in the next few years?
Let’s take a look at our plan, and answer the question: what is a good age to semi retire, especially when you’re raising kids.
What Is a Good Age to Semi Retire? (A Rule of Thumb)
As a mom or dad, you may have wondered what is a good age to semi retire with kids. Because even if we live an intentional and frugal life, we all know that the older our children get, the more costs may arise. So, is there even a universal answer?
The truth is that it depends heavily on personal circumstances. Factors such as savings rate, investment returns, housing costs, and family situation all play an important role.
Even though there is no universal age recommendation, the FI community generally agrees that certain milestones should be reached before entering semi-retirement. Those milestones often determine when semi-retirement becomes realistic.
By that point:
- your investment portfolio has grown substantially
- your mortgage is significantly reduced — or even gone
- your children are still young enough for you to enjoy more time together (This is the main reason why many parents choose to take early semi-retirement.)
Why We Aim to Semi-Retire Between 45 and 50
After running the numbers many times, it became clear that ages 45 to 50 offer the right balance between financial security and time freedom for our family. That means roughly 4–9 years from now, as we’re about to turn 41 this summer.
We’ve purposefully avoided setting a fixed date because it ultimately depends on how the market performs and how our family size, expenses, and income evolve.
At that point, we hope to reach all three milestones listed above.
That will allow us to shift from our current work situation — about 30 hours per week in our corporate jobs plus additional hours for this blog — toward more flexible work and time freedom.
We want the flexibility to pursue meaningful projects we enjoy while spending more time with our family. At the same time, we’ll allow our investments to keep growing toward full financial independence — and may eventually start withdrawing a small amount.
What matters most is that semi-retirement gives us the freedom to design our work around our lives — instead of the other way around.
Our Semi-FI Strategy: Barista-Coast FIRE
I always knew that I still wanted to reach full financial independence by the time traditional retirement begins (earliest 62, latest 67). That’s why I didn’t want to risk our long-term portfolio during semi-retirement by withdrawing too early and slowing down the compounding that should fund our later retirement years.
I didn’t want to touch the investment portfolio that is supposed to support our lifestyle in traditional retirement. The risk of interrupting compounding and not reaching our full FI number felt too high. That perfectly illustrates the Coast FIRE idea.
On the other hand, I believe we need at least some passive income so we can confidently step away from our current work situation and replace part of the income we would lose by reducing our working hours or eventually leaving the corporate world. That’s exactly what Barista FIRE is all about.
Marc and I ran the numbers back and forth many times, but they never quite worked. Until we discovered a rather niche semi-retirement strategy that seems to fit our situation perfectly.
Right now, our plan is closest to what is often called Barista-Coast FIRE.
For families like ours who ask what is a good age to semi retire, this strategy offers a realistic middle ground.
Next in Our Journey: The Exact Semi-FI Path We Chose
In the next post, I’ll share the real numbers behind our Barista-Coast FIRE plan and explain how we’re approaching it while raising three kids — so we can still reach full financial independence by traditional retirement age with confidence.
Frequently Asked Questions About When to Start Semi-Retirement
What is a good age to semi retire comfortably?
There is no universal answer to what is a good age to semi retire comfortably because it depends on personal circumstances such as family situation and lifestyle.
In this context, comfortably usually means having enough investments, income flexibility, and financial security so that reducing work hours does not create financial stress. In other words, your investments can cover a meaningful part of your living expenses while work becomes more of a choice rather than a necessity.
For some people, semi-retirement may become realistic in their late 30s or early 40s. For others, it may be closer to traditional retirement age. However, it ultimately depends on how you define comfortably.
How much savings is recommended for semi-retirement?
Unlike traditional retirement, semi-retirement does not require a portfolio large enough to cover all expenses. Because many people continue working part-time or earning flexible income, investments only need to cover part of the lifestyle costs. The goal is usually to reach a portfolio size that provides a financial cushion, while work income covers the remaining expenses.
The exact amount depends on your withdrawal strategy, semi-retirement path, healthcare coverage, income levels, and spending habits.
A simple rule of thumb is to have 25–50% of your traditional FIRE number saved before entering semi-retirement.
For example, if your full financial independence number is 800,000, you might aim for 200,000–400,000 before reducing your working hours — which is similar to our current situation. At that point, your investments could generate 8,000–20,000 in passive income per year using a 4–5% withdrawal rate.
Another practical guideline is to have investments that could generate roughly 20–40% of your annual spending. For instance, if your expenses are about €6,500 per month, you might aim for €1,300–€2,600 per month in passive income from your investments. That’s roughly where we find ourselves today.
What is the ideal age to start semi-retirement for financial security?
The ideal age to start semi-retirement is typically when your investments provide enough stability that work becomes a choice rather than a necessity. For many people exploring what is a good age to semi retire, this moment happens when their portfolio, income flexibility, and living costs align.
What happens after semi-retirement?
Semi-retirement is usually not the final destination but a transition phase. Instead of stopping work completely, many people reduce their working hours while their investments continue compounding. Over time, those investments may grow large enough to support full financial independence later in life.
Want to explore your own path to financial independence today? Start here with our “Financial Freedom Pathfinder” to compare different Semi-FI paths side by side.
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