The idea of early retirement has gone from a niche goal to a viral financial movement. The FIRE (Financial Independence, Retire Early) trend has proven that leaving the workforce before 65 isn’t just for lottery winners or Silicon Valley tech wizards. Still, many people never even try—because they’ve been fed outdated, outright false narratives for decades.
What if most of what you believe about early retirement isn’t just wrong? It’s costing you years of freedom. Let’s cut through the noise. These are the seven biggest, most outrageous lies that stop people from retiring early—and what you should believe instead.
1. You Need a Million Dollars (Or More) Before You Can Retire Early
This is the most persistent myth out there: that you need to hit the mythical $1 million mark to quit your job. But here’s the truth—how much you need to retire depends far more on your spending than your savings.
A person who only needs $30,000 per year to live can retire with far less than someone spending $100,000 annually. The 4% rule, often cited in retirement planning, says you can withdraw 4% of your portfolio annually without running out of money. That means someone with a modest $750,000 nest egg could reasonably pull $30,000 a year in retirement.
It’s not about the size of your pile. It’s about how fast you’re burning through it. Lower your expenses, and the early retirement door opens a lot wider, a lot sooner.
2. Only Rich People or High Earners Can Afford to Retire Early
This myth holds people back more than almost any other. But the early retirement crowd is full of teachers, IT professionals, and even baristas who simply decided to live differently. They didn’t wait for a raise. They changed their habits.
The truth? It’s not how much you earn but how much you keep. Many high-income earners live paycheck to paycheck because they scale their lifestyle with their income. Meanwhile, savvy savers who live on 50–60% of their income, invest the rest, and avoid debt are buying freedom in 10–15 years. Early retirement is a lifestyle strategy, not an income bracket.
3. You’ll Be Bored Without a Full-Time Job
People imagine early retirement as sitting on the couch all day watching reruns and shudder at the thought. But ask anyone who’s retired early, and they’ll tell you that they’ve never been busier or more fulfilled.
That’s because early retirement isn’t about doing nothing. It’s about doing only what you choose. People take on passion projects, volunteer, start side businesses, learn new skills, travel, and finally give time to the things that matter.
If you’ve built a life that requires your job to distract you from it, that’s not a retirement problem. It’s a lifestyle problem. The myth of boredom is a defense mechanism to justify staying stuck.
4. Early Retirees Don’t Pay Taxes Or Can’t Afford Healthcare
This one comes from both ends of the fear spectrum: some believe early retirees live tax-free, while others assume medical bills will bankrupt them by 45. Neither is true.
Yes, early retirees still pay taxes, but they often pay far less than when working full-time. With no W-2 income and careful planning (like Roth IRA conversions or long-term capital gains), some retirees live almost tax-free, legally and ethically.
As for healthcare, early retirees can use the ACA marketplace, health-sharing ministries, COBRA extensions, or even geo-arbitrage (living abroad where healthcare is cheaper). Many actually spend less on medical costs because they reduce work-related stress, sleep better, and prioritize their health.
5. You Have to Give Up Everything Fun to Retire Early
Early retirement doesn’t require a vow of poverty. But yes, it does involve choosing intentional spending over impulse spending.
Retiring early isn’t about never going out to dinner again. It’s about asking yourself if every dollar spent is moving you closer to freedom or away from it. That may mean cutting out some wasteful habits like subscriptions you don’t use, eating out five nights a week, or buying cars you can’t afford.
But guess what? You can still travel, go to concerts, and enjoy life because you’re no longer paying interest on debt or living for a paycheck. Most early retirees say their lives got richer, not poorer, once they started living with purpose.
6. Early Retirement Means You’ll Never Work Again
Another common misconception is that early retirement means never working again. But early retirement isn’t about refusing to earn money. It’s about never having to work for survival again.
Many early retirees still earn income through freelance work, real estate, creative projects, or passion-driven businesses. The difference is they do it because they want to, not because they’re stuck on the hamster wheel.
Some even go back to part-time jobs in retirement, but now it’s on their terms. The moment you no longer need the paycheck is the moment you truly have freedom.
7. If You Have Kids, Early Retirement Is Off the Table
Raising kids is expensive, yes. But early retirement isn’t exclusive to child-free couples. In fact, plenty of families are reaching financial independence with two or three kids in tow.
How? They’re budgeting intentionally, living below their means, and involving their kids in financial conversations early. Instead of spending thousands on every toy and trend, they invest in experiences and education.
Plus, retiring early gives parents more time with their kids, not just the hours after dinner. That’s priceless. Family and freedom can go hand in hand. You just have to design it that way.
Break the Lies, Buy Back Your Life
These myths exist because the traditional retirement narrative serves someone else’s agenda. If everyone believes they need to work 40+ years to earn their rest, more workers stay in the system longer—spending more, consuming more, and questioning less.
But you’re not stuck. Once you shed these seven lies, you can begin building a path toward freedom that fits your goals, not society’s outdated playbook. Early retirement isn’t a fantasy. It’s a plan. And it’s a plan that thousands of “regular” people are executing every day.
Which of these myths about early retirement held you back the most, and which one did you realize was false too late?
Read More:
What You’re Not Being Told About Early Retirement Penalties
8 Pros and Cons of Early Retirement
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
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