Why a couple who retired at 31 has financial planners worried – Financial Post

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Priced out of the housing market, dissatisfied with the regular nine-to-five and yearning for experiences, some younger people are simply opting out of the rat race by pursuing retirement as young as in their 30s.

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That’s the case for Kristy Shen and Bryce Leung, a couple from Toronto who retired at 31.

Shen and Leung are followers of the financial independence, retire early (FIRE) movement. Popular with millennials, this lifestyle encourages people to live frugally and save and invest the lion’s share of their income in order to retire early.

“For me, going towards financial independence was going towards security and not relying on a job,” says Shen.

But the couple’s approach is controversial with many financial planners, who warn early retirement may only end up tarnishing your golden years.

Not a new movement

By saving up to 70 per cent of their income some years, Shen and Leung grew their portfolio to a tidy $1 million in less than 10 years and decided to officially retire in 2015.

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They live off $40,000 a year and spend their time travelling and writing. Although they’ve spent the pandemic in Toronto, the couple says they’re eager to get back on the road, where retirement is often cheaper — especially compared to one of Canada’s most expensive cities.

However, proponents of the FIRE movement weren’t the first to spark the idea of early retirement. Many Canadians over the age of 30 will remember insurer London Life’s “Freedom 55” commercials, which featured miserable office workers visiting their future selves in an idyllic setting.

London Life’s …….

Source: https://financialpost.com/moneywise-pro/future-money/why-a-couple-who-retired-at-31-has-financial-planners-worried