What is the FIRE movement?
FIRE stands for Financial Independence, Retire Early. The aim is to build enough invested wealth that work becomes optional. For most people, that means increasing the savings rate, investing consistently, and keeping lifestyle costs intentional.
What is the 4% rule?
The 4% rule estimates that a diversified portfolio can support annual withdrawals of around 4% of its starting value. That is why a common FIRE number is annual spending multiplied by 25. A 3% withdrawal rate is more conservative and uses roughly 33 times annual expenses.
UK FIRE strategy: ISAs and SIPPs
UK investors often combine stocks and shares ISAs for flexible, tax-free access with SIPPs or workplace pensions for tax relief and later-life retirement income. A practical FIRE plan usually needs both: ISA money to bridge the years before pension access, and pension money for later retirement.