Why do many people’s plans to retire early fail? Know the reason

Updated: 09-02-2026, 04.04 PM

What is the news?

Nowadays, many youth are choosing the path of Financial Independence, Early Retirement (FIRE) with the dream of becoming rich quickly and retiring early. This thinking has become quite popular on social media, but it is risky. The real problem is not that this thinking is wrong, but that people plan it hastily and with incomplete estimates. Without proper preparation and patience, this dream often falls apart midway.

Why does the plan falter as soon as the market falls?

Many people start FIRE with full enthusiasm, but as soon as the market falls, their confidence starts shaking. In panic, people sell investments and the entire plan goes haywire. A strong plan is one that lasts in both good and bad times. Retirement plans made just keeping in mind the boom times often do not last long and fail midway.

Miscalculations and excessive pressure

In order to get early retirement, many youth try to save almost half of their salary. This seems possible in the beginning, but after a few months, fatigue and stress increases. At the same time, considering only 25 times the annual expenditure as sufficient for retirement is also not right in today’s time. In view of longer life span and increasing expenses, more secure estimates have become necessary.

Importance of cost, security and proper sequence

As the income increases, the expenses also silently increase, this is the biggest danger for anyone. Apart from this, many people invest all the money without creating an emergency fund. They have to withdraw money in case of loss of job or medical need. The right way is to do security first, then savings and finally retirement planning, only then the FIRE plan can be successful.