Coast FIRE Calculator for Government Employees
Government Employees earn a median salary of $70k/year in the United States. With a 18% savings rate - achievable for most government employees who are intentional about their spending - that's approximately $1,050/month ($13k/year) going toward Coast FIRE.
Why This Matters
Government work offers stability, benefits, and often pensions that can dramatically accelerate Coast FIRE. The 457 plan allows contributions beyond your 401k/403b limit with no early withdrawal penalty - a huge advantage for early retirement. FERS pension plus TSP matching creates a powerful combination. Many government employees reach Coast FIRE faster than private sector peers earning higher salaries.
Key Considerations for Your Situation
A $60-80k salary puts you in a strong position for Coast FIRE. You likely earn enough to cover expenses comfortably while saving meaningfully. The key is avoiding lifestyle inflation - the silent killer of FIRE dreams that makes higher earners not feel wealthy.
At this income level, aim for a 20-30% savings rate. That's $1,000-2,000/month toward your Coast FIRE goal. Invested consistently, this amount can reach $300,000+ in just 10-12 years, potentially enough to Coast FIRE if you start in your early 30s.
Max out your 401k employer match first - it's literally free money. If your employer matches 50% up to 6% of salary, that's an immediate 50% return on your first 6% contribution. No investment strategy beats guaranteed returns.
Beware of the middle-class trap: earning enough to afford nice things but not enough to afford nice things AND financial independence. Every upgrade to your car, home, or lifestyle extends your working years. Be intentional about which upgrades truly matter to you.
Federal Employee Financial Advantages
FERS pension provides 1% (or 1.1% if retiring at 62+) × years × high-3 salary. A 30-year career ending at $120k yields $36,000-40,000/year guaranteed income.
457 plans are the secret weapon: contributions don't count against 401k/403b limits, and there's NO early withdrawal penalty. You could save $46,000/year tax-advantaged.
FEHB health insurance can continue into retirement if you were enrolled for 5+ years. This benefit alone is worth $15-20k/year in retirement.
TSP G Fund provides unique guaranteed returns tied to long-term bonds but with no principal risk. Consider this for the bond allocation of your portfolio.
Healthcare Planning for Early Retirement
ACA marketplace plans become affordable below ~400% FPL ($62,400 single, $129,280 family of 4 in 2025). "MAGI engineering" - controlling your adjusted gross income - can secure subsidies worth $10,000+/year.
The ACA subsidy cliff at ~225% FPL is critical: staying below ~$35,000 AGI (single) can reduce premiums to under $200/month. Roth conversions and capital gains timing affect your MAGI.
COBRA bridges the gap if you leave employer coverage but only lasts 18 months and costs full premium plus 2% admin. Budget $1,500-2,500/month for family coverage.
Healthcare Sharing Ministries (HSMs) offer lower monthly costs but aren't insurance - they can deny claims and have lifestyle requirements. Use only as a last resort.
Healthcare costs vary significantly by state, age, and family size. Factor in premium subsidies, deductibles, and out-of-pocket maximums when planning your Coast FIRE budget.
The Psychology of Coast FIRE
"One More Year" syndrome is real: the temptation to keep working "just one more year" can trap you indefinitely. Set a specific Coast FIRE date and honor it.
Identity beyond work is essential. Many Coast FIRE achievers struggle when they define themselves by their job title. Cultivate interests, relationships, and purpose outside of work before transitioning.
The "permission to spend" mindset shift is difficult. After years of aggressive saving, many Coast FIRE people feel guilty spending money. Remember: the point was freedom, not deprivation.
"Die With Zero" perspective: you can't take it with you. Coast FIRE should enable experiences now, not just security later. Balance future safety with present fulfillment.
How Coast FIRE Works
Compound Growth
Your investments grow exponentially over time. Einstein called compound interest the 8th wonder of the world.
The Coast Strategy
Once you hit your Coast number, you never need to save for retirement again. Work for passion, not survival.
Freedom Date
Discover when you can switch to part-time work or pursue your dreams without financial anxiety.
Frequently Asked Questions
When can government employees reach Coast FIRE?
With a $70k salary and 18% savings rate, government employees can typically reach Coast FIRE in 8-12 years starting from zero, assuming they target $1M FI number at retirement. Your exact timeline depends on your age (which affects how long your investments can compound), your actual spending (which determines your FI number), and your actual savings rate. Use our calculator with your specific numbers for a personalized projection.
What's a good savings rate for government employees?
We recommend 18% or higher for government employees, which translates to about $1,050/month on a median salary. Start with your 401k match (free money), then work toward maxing your IRA ($7,000/year), and increase 401k contributions as you can. Each 1% increase in savings rate adds roughly $58/month to your investments.
Do government employees have special retirement options?
Yes! Government Employees often have access to pensions and 403(b) or 457 plans. Pensions are essentially forced savings that can dramatically reduce your Coast FIRE number since they provide guaranteed retirement income. 457 plans are especially powerful - no early withdrawal penalty, which is perfect for early retirement strategies.
How does a government salary compare for Coast FIRE?
Government Employees earn a median of $70k/year in the US. This is a solid income for Coast FIRE. With intentional saving and avoiding lifestyle inflation, you could reach Coast FIRE in 8-12 years. The key is widening the gap between income and expenses.
Your Next Steps
Maximize your 457 plan contributions - early withdrawal advantages are huge.
Understand your FERS pension and how it affects your needed savings.
Consider the value of your benefits (healthcare, job security) in your calculations.
Model different retirement ages and how they affect your pension.
Related Tools & Resources
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Use our free calculator above to see exactly when you could stop saving and let compound interest carry you to retirement.
Use Calculator NowSources
- [1]Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable(1998)
- [2]Determining Withdrawal Rates Using Historical Data(1994)
- [3]Historical Returns on Stocks, Bonds and Bills
- [4]Bureau of Labor Statistics Occupational Outlook
- [5]Safe Withdrawal Rate Series
- [6]Healthcare.gov Marketplace
- [7]TSP.gov - Thrift Savings Plan
- [8]IRS Publication 571