My experience of early retirement
February 24, 2026
Early retirement was a popular topic during friends’ gatherings this Chinese New Year.
Many of my friends are in their mid-50s to 60s. Although they are older than me, I was the first one to stop working full-time at age 45. Hence when they mentioned three highs and work stress, or whether they should retire now and what things to do after retirement, I was grateful that I don’t have those problems and doubts.
Early retirement and financial independence
I don’t agree with Investopedia’s definition of FIRE (financial independence retire early). FIRE is not about accumulating wealth 25 times of annual expenses. Nor is it being able to withdraw 4 percent of savings (adjusted for inflation every year after first year) without running out of money for 30 years.
For one thing, after retirement there is a big difference between with or without outstanding mortgages and loans. Also, annual expenditure tends to decrease with age, until one has a serious illness that incurs high medical costs.
On the other hand, good investments provide positive passive incomes. Value of good assets appreciates over time. The amount of savings is not the main factor determining whether one has achieved FIRE. Instead, one should check how far the amount of passive income and increase in asset value can cover future expenses.... read more