Coast FIRE means existing investments are projected to grow to a later retirement target without new contributions, while work pays current expenses. Barista FIRE combines work income with portfolio withdrawals. Both can support a conversation about working less; they ask different questions of your savings.
Coast FIRE: let existing investments work toward a later target
The basic Coast FIRE question is whether the money already invested could reach a future retirement target without additional deposits. You still need income to cover the years until that retirement. The label does not require a particular job or number of working hours.
In a simplified example, a target of €750,000 in today’s purchasing power, 25 years away, discounted at a constant 3% real annual return gives a Coast target today of €750,000 ÷ 1.03²⁵, or about €358,204. The example ignores taxes and assumes smooth growth. At a different return or retirement date, the answer changes substantially.
Keep the units consistent. A target expressed in today’s money needs a real return in this shortcut. A nominal return includes inflation and cannot be substituted without changing the target too. The inflation guide explains the difference.
Barista FIRE: fund part of life with work and part with assets
Barista FIRE usually describes working for some income while investments cover the remaining gap. It does not require working in a café. What matters is the after-tax income, its reliability and the benefits or costs attached to the job.
Suppose annual spending is €30,000 and part-time work provides €18,000 after tax. Investments would need to supply €12,000. Dividing that gap by 3.5% gives about €342,857 before withdrawal taxes. This is an illustrative ratio, not a complete plan: the work may stop later, pensions may begin and expenses may change.
The difference shows up in cash flow
Under a simple Coast plan, work covers current spending and the investment portfolio is left to grow. Under a Barista plan, the household may start drawing from investments now. Those early withdrawals expose the plan to a different sequence of market returns.
Do not assume a job will provide healthcare, pension contributions or other benefits because of the label. Check the actual employment terms and local rules. Give temporary work an end date rather than allowing an optimistic income line to continue indefinitely.
How to model both in Zenarios
Keep the current plan as a baseline and make a separate scenario for each approach. Set the work change, the month it starts and the later retirement date. Check spending, pension timing and whether current costs require withdrawals.
The Barista or Coast FIRE milestone reduces pay and stops investing leftover money. Review existing scheduled savings transfers separately, because they may still be active. For a Coast scenario, check that contributions stop as intended and that earnings cover current costs. For a Barista scenario, inspect when investments are drawn down.
Zenarios models those cash flows; it does not display a separate analytical Coast FIRE number. The shortcut above is useful context, while the monthly forecast checks the more detailed household plan.
Test the work income as well as the market
Compare lower pay, a later return to work, a period without earnings and weaker investment returns. If the plan only works with uninterrupted part-time income for decades, that is a dependency to discuss. If it works by cutting expenses, decide whether those cuts are realistic.
Read how to test part-time work for the monthly checks, and how to estimate an early retirement target for the later years.
Common questions
What is the difference between Coast FIRE and Barista FIRE?
Coast FIRE means existing investments are projected to reach a later retirement target without further contributions, while work pays current costs. Barista FIRE combines ongoing work income with portfolio withdrawals. Neither label guarantees that the plan is sustainable.
Does Zenarios have a dedicated Coast FIRE calculator?
Zenarios has a Barista or Coast FIRE milestone that reduces pay and stops investing leftover money. You can model a Coast FIRE scenario by checking income, expenses and scheduled transfers. It does not produce a separate analytical Coast FIRE number.
Explore Zenarios
See the Zenarios financial planning features, explore life scenarios and financial decisions, or read about how Zenarios calculates your forecast and how your financial data stays private.
Try Zenarios in your browserWritten by the maker of Zenarios, a software engineer. These guides explain planning concepts and the product; they are not a personalized financial recommendation. Illustrative calculations are not results from your plan.