The FIRE Movement in Canada: Plan to Retire Early and Live Financially Free

Once seen as the fast track to freedom, the FIRE (Financial Independence, Retire Early) movement promised a way out of the 9-to-5 grind. But, with sky-high housing costs, inflation, and economic uncertainty, the classic FIRE blueprint, which includes saving 70 percent of your income and retiring in your 30s, feels increasingly out of reach for most Canadians today.

Still, the core idea behind FIRE, which really means gaining control over your finances to live life on your own terms, is very much alive. The new wave of FIRE-minded Canadians is reworking the model to fit modern realities.

Let’s look at how the principles of FIRE are all about flexibility, reducing financial stress, and creating options.

Why Traditional FIRE Feels Broken

For younger Canadians staring down student loans, expensive rent, and a volatile job market, the traditional FIRE formula can feel impossible. Saving aggressively while paying off debt and affording city life is nearly impossible.

A Healthcare of Ontario Pension Plan survey found that 69 percent of Canadians under age 35 are most concerned about the costs of day-to-day expenses, while 51 percent report living beyond their means—and not by choice.¹

Meanwhile, the idea of never working again is losing appeal. Many now see purpose and fulfillment in their careers, but what they want is freedom from needing to work, not from working entirely.

Enter: Flexible FIRE

Instead of chasing early retirement as the goal, more Canadians are adopting the mindset of building enough financial independence to have choices. That might mean:

Taking a sabbatical without financial stress
Working part-time while raising a family
Switching to a lower-paying but more meaningful job
Starting a business without fearing short-term losses

How Canadians Are Redefining FIRE

With goals like these in mind, there are a few ways to approach FIRE without just sticking to the traditional principles.

Coast FIRE

Coast FIRE involves minimizing spending and saving enough early so that compound interest can carry you to retirement, even if you stop contributing later.² Once you've hit your "coast number," you only need to cover current expenses. This means you can reduce your working hours while letting your savings and investments grow until they can fully fund your retirement.

Barista FIRE

Barista FIRE involves saving and investing enough to cover most of your expenses, then supplementing your income with part-time or lower-stress work.³ You can also think of it as a semi-retirement with a safety net.

The difference between Barista FIRE and Coast FIRE is that with Coast FIRE, you rely on past savings for future growth, but with Barista FIRE, you combine ongoing part-time income with savings to cover your living expenses.

Slow FIRE

For those who can’t or don’t want to save aggressively, slow and steady wins the race. This strategy means gradually increasing your savings rate and building wealth over a longer horizon while also living a fulfilling life. With Slow FIRE, the journey to financial independence can be just as enjoyable as the destination because you’re living the life you want right now.

Hybrid Approaches

Some people mix traditional employment with freelance or contract work, while others move to lower-cost regions in Canada (or internationally) to reduce living expenses without sacrificing quality of life.

FIRE in 2025 doesn’t look like it did in 2015, and that’s okay. The economic landscape has changed—and so have our values. But the spirit of FIRE remains: independence, intentionality, and control over how you spend your time.

Whether you're saving to retire early, coast into retirement, or just buy some breathing room, the tools and mindset of FIRE can still lead to financial freedom.

LET'S TALK

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Ivy Pierson, CEP, MBA Investment Advisor Representative Securities and advisory services offered through Cetera Advisors LLC (doing insurance business in CA as CFGA Insurance Agency LLC), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. Pierson Wealth Management is located at 28368 Constellation Rd., Ste. 396, Santa Clarita, CA 91355. CA Insurance Lic#0C92500. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful