Coast FIRE Calculator for Military Personnel
Military Personnel earn a median salary of $55k/year in the United States. With a 20% savings rate - achievable for most military personnel who are intentional about their spending - that's approximately $917/month ($11k/year) going toward Coast FIRE.
Why This Matters
Military careers come with exceptional retirement benefits that make Coast FIRE potentially easier than many civilian paths. A 20-year pension is worth $750k+ in civilian savings terms. TSP matching is among the best in any employer. Housing and healthcare benefits reduce current expenses. Many service members reach Coast FIRE before their military retirement, giving them complete freedom for their second career.
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.
Military-Specific Retirement Benefits
High-3 pension formula: 2.5% × years of service × average of highest 36 months pay. A 20-year O-5 could receive ~$50,000/year - equivalent to $1.25M in civilian investments.
TSP is the best retirement plan in the world: 0.04% expense ratios and up to 5% matching. Max it every year ($23,000) regardless of other financial goals.
VA disability benefits are tax-free income that continues for life. Even a 10% rating provides monthly income and healthcare access. Document everything during service.
Blended Retirement System (BRS) participants get matching TSP but smaller pension. Model both scenarios to understand your actual benefit.
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 military personnel reach Coast FIRE?
With a $55k salary and 20% savings rate, military personnel can typically reach Coast FIRE in 12-18 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 military personnel?
We recommend 20% or higher for military personnel, which translates to about $917/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 $46/month to your investments.
Do military personnel have special retirement options?
Absolutely! Military personnel have access to TSP (similar to 401k but with even lower fees and excellent matching), military pensions after 20 years of service, and VA benefits. A military pension paying $2,500/month is worth $750,000 in civilian savings terms. Many service members reach Coast FIRE well before their military retirement.
How does a military salary compare for Coast FIRE?
Military Personnel earn a median of $55k/year in the US. This is a modest salary that requires discipline, but many people have reached Coast FIRE on similar incomes through consistent saving and low-cost index investing. Focus on savings rate (percentage) rather than dollar amounts.
Your Next Steps
Understand exactly what your pension will provide at 20 years (or your vesting point).
Max your TSP - the matching is among the best available.
Factor in VA benefits and reduced healthcare costs in retirement.
Model your Coast FIRE date relative to your military retirement date.
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