Coast FIRE Calculator with Pension: How Pension Income Changes Your Number

Quick Answer

Pension income can lower your Coast FIRE number by reducing the annual spending your portfolio must cover. Subtract reliable annual pension income from expected retirement spending, then calculate the FIRE number on the remaining portfolio-funded spending.

A pension works like a retirement income offset. If you expect $65,000 in yearly spending and a $25,000 annual pension, your portfolio may need to cover about $40,000 per year instead of the full amount.

Example

At a 4% withdrawal rate, $65,000 of spending requires a $1,625,000 FIRE number. With a $25,000 annual pension, the portfolio-funded spending falls to $40,000, which implies a $1,000,000 FIRE number before Coast FIRE discounting.

Pension Start Age Matters

If the pension starts after your target retirement age, you may need bridge assets to cover the gap. If the pension is not inflation adjusted, test a more conservative spending offset.

Use the free Coast FIRE calculator

Educational content only. Not financial advice.