What a financial independence target means
A FIRE target converts an annual spending gap into an illustrative investment balance. The gap is the spending you expect investments to fund, after reliable income that is available at that time. Financial independence is not simply reaching a round portfolio value: access dates, tax and spending flexibility matter.
Worked example
If investments need to provide £24,000 a year, dividing by a 4% withdrawal assumption gives £600,000. At 3%, the same gap gives £800,000. This comparison shows how strongly a target depends on the withdrawal assumption. Neither figure establishes a safe withdrawal level for you.
Interpreting the result
The progress estimate compares the assets included with that target. Check whether the return input represents growth after fees and how inflation is handled. Do not count a home as an income-producing asset unless the plan explicitly includes selling it or releasing money from it.
Checks before relying on the numbers
A fixed withdrawal percentage is not a promise that money will last. Early losses, a long retirement and unexpected spending can undermine a plan. Also consider the bridge before pension access and State Pension age. Test lower growth, higher spending and a later income start date.
Understand retirement projection assumptions →
Personal Fortune · Updated 25 September 2026. Educational illustrations, not personal financial advice. Our approach and corrections.