‘FIRE' paints an attractive picture of achieving financial freedom early in life, but retirement shouldn't be the end goal

CNA

07-06-2025

Over the past decade, the FIRE movement (Financial Independence, Retire Early) has been gaining widespread popularity online, inspiring and motivating more people to manage their money better in order to retire sooner.
Some fantasise about how they can 'fire' their boss once they retire early. Others dream of being able to stop working entirely to spend time on family or passion projects.
There's nothing wrong with FIRE as a goal, but true financial freedom can look very different from the picture this ethos paints.
NO LONGER TRAPPED BY OUR NEXT PAY CHEQUE
The relationship between our work and finances is a tightly entwined one – most of us need our next pay cheque in order to cover our living expenses and bills, so we keep working. As such, it can be easy to equate the idea of 'financial freedom' with that of 'freedom from work'.
But in reality, financial independence and early retirement are two distinct, different things.
Not everyone wants to stop working. Studies show that purpose and productivity are essential for our long-term happiness – even post-retirement.
Many who reach financial independence continue working, not because they have to but because they want to. But what financial freedom really gives us is the power to make decisions about how we work without worrying too much about financial repercussions. It allows us to choose roles that align with our values, take breaks when needed, or say no to toxic work environments.
When we're no longer trapped by the need to rely heavily on our next pay cheque, we gain the freedom to work for our own growth and purpose.
WHAT IS YOUR VERSION OF FIRE?
The original FIRE ethos called for saving aggressively (usually more than half your income) and investing wisely so you can retire early. It sounded great in theory, but for most, it often required high income and extreme frugality.
Today, the FIRE movement has evolved to encompass varying definitions of financial independence. It is no longer about reaching an end goal, but more about the type of lifestyle we desire and the level our finances will need to hit in order to support our aspirations.
For instance, 'Lean FIRE' refers to a minimalist lifestyle where you retire with a lower budget. There's also 'Barista FIRE', describing a point where withdrawing from your savings and investments can cover your major expenses and bills, while you supplement the shortfall with part-time or passion-based work (such as being a barista).
These newer variations of FIRE may seem like dilutions or compromises – but in reality, they are just as true to the core essence of financial freedom.
True financial freedom empowers us with choice rather than demanding retirement. It should mean more options, not less.
This shift in mindset can be liberating. Instead of chasing a retirement date or age, we can focus on building a lifestyle where money supports flexibility, purpose, and well-being rather than escape.
Perhaps you might decide to stay in your current job, but negotiate fewer work hours that would allow you to care for your children or ailing parents. You might explore part-time roles, start a small business, or pull a Jeremy Tan and pursue advocacy for change (even if it's not as an independent candidate in a general election).
ARE WE LOOKING FOR ESCAPE, OR A BETTER BALANCE?
Out of all the people I know who've successfully achieved financial independence, the happiest ones are those who never quit working – but it's not because they particularly love slogging.
A friend downsized his role to two days a week to spend more time looking after his mother after her cancer diagnosis. Another stopped chasing yearly pay increments and started mentoring juniors instead, finding deeper fulfilment in growing the next generation than a fatter pay cheque.
Clearly, the real problem isn't work itself – many people find meaning, identity, and purpose through their work. Rather, it is the lack of control over what, how, when, and why we work that has us dissatisfied.
Financial freedom can still mean not working at all, but it's important for us to understand that this isn't the only version of true freedom.
Maybe it'll mean a smaller pay cheque, but while it may look to others like you're settling for less, you're in fact gaining more in time, autonomy, and peace of mind.
Ironically, when we do work that we're passionate about – work that energises us instead of draining us – we are much more likely to stay the course.
WE DON'T HAVE TO WAIT
Even so, I get why FIRE remains so popular not just in Singapore but around the world.
Trying to achieve financial security is getting trickier and trickier, especially in a world where inflation only seems to keep climbing and job stability is quickly vanishing in the face of repeated layoffs and the proliferation of artificial intelligence.
That's why the FIRE movement appeals to millions of people around the world, because it seems to offer a solution. A way to regain control.
But the core tenet of financial independence was never about never working again – it about never needing to work out of fear or survival.
So instead of running towards an arbitrary finish line, consider the path you're on instead. Is there a way to redesign the way work fits into your life now?
We don't have to wait until we retire, whether it's early or not.