3 Steps To Your Coast FI Target (And Why 2026 Is the Year To Start)
If you’re Gen Z, retirement can feel ridiculously far away. But that distance can actually work in your favor.
Coast FI is a way to save aggressively earlier, then let compound growth do more of the work later.
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Reach your target soon enough, and you may eventually be able to save less for retirement and use more of your paycheck for the life you’re living now.
Coast FI, Explained
Coast FI stands for Coast Financial Independence.
It’s the point where you have enough invested that, if your money keeps growing, it could reach your retirement goal without additional contributions. You still need to work and cover today’s bills.
“Unlike traditional FIRE, the goal isn't necessarily to stop working early,” said Christopher Stroup, president and founder at Silicon Beach Financial.
Stroup said that flexibility can let you redirect money toward other goals, reduce retirement savings or pursue work that feels more meaningful.
Step 1: Find Your Number
“How much money will I need to live in retirement?” is the first question you should ask.
Mark Clark, a certified financial planner at Prestige Advisors, said to start by estimating your annual spending for housing, healthcare, taxes, and everything else.
Then subtract income you may receive from sources such as Social Security. From there, work backward to the amount you would need invested today.
Clark said that retirement age, inflation and investment returns can all move that number. Your Coast FI number is a checkpoint to revisit as your life and plans change.
“Use ranges, not a single number,” he said.
Step 2: Build It Early
Nick Romito reached Coast FI in his 20s before leaving a six-figure corporate career. He said the biggest levers were starting early, growing his income and investing more.
“In my own case, I was able to keep my expenses relatively flat for about five years while my total compensation grew from $65,000 to $150,000,” Romito said.
That widened the gap between what he earned and spent, leaving more money to invest.
Romito recommends keeping lifestyle inflation as low as possible as your income grows, so more of that extra money can go toward your Coast FI target.
“This means automating your contributions, maxing out tax-advantaged accounts and capturing any employer match offered,” he said.
Step 3: Stay With It
Getting money invested is one thing. Leaving it there when markets get ugly can be another.
Michael Schramm, chartered financial analyst (CFA), who specializes in behavioral finance, said staying invested can be harder than saving in the first place.
“You also want to plan for behavioral risks,” he said. “Coast FI only works if your money stays invested for decades, and market downturns can make people panic.”
That’s why he recommends making some decisions before a downturn hits, including how often you’ll check your accounts and how long you’ll wait before making a trade.
Schramm also suggests recognizing financial anxiety before acting on it. Coast FI depends on giving investments years to grow, so your behavior during a rough market can matter just as much as the math.
Why Start Now?
While financial experts say the sooner you start, the better, 2026 also brings new concerns about how much today’s workers may need to save for retirement.
“AI is making the job market harder to predict, so front-loading savings while your income is solid is probably good insurance,” said David Landholm, founder of the personal finance blog The Good Life Journey.
Uncertainty about what Social Security may look like decades from now is another reason Landholm said young workers may benefit from starting early.
“It's like planting a tree,” he said. “The best time was 20 years ago, the second best is today.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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