If your dream version of early retirement is to stop working completely, spend your days fishing, sitting on beaches, traveling endlessly, or playing video games, this post isn’t for you.
But if you’re like what I believe most of us are—people who want meaning and fulfillment even after we leave traditional work—then it’s time to rethink how we decide when to retire and how much money is really “enough.”
I want to propose something simple: use whatever mechanism you prefer to calculate your retirement number. That might be the famous 4% safe withdrawal rule, or some other formula that makes sense to you. Pick a number.
Now here’s the twist: don’t wait until you reach 100%. Retire when you hit 80% of that number.
The 80% Rule
I know what you’re probably thinking: Wait, what? Won’t 80% fall short?
I’m going to argue that it won’t. In fact, for most people, 80% will be plenty. Life is long, unpredictable, and surprisingly abundant when you fill it with things that light you up.
Let me explain with my own story.
My Shift in 2018
I made the decision to step away from making money in 2018. That was the moment I moved from “earning a living” to simply “living.”
At the time, I was at about 80% of my financial independence target. Why did that feel safe enough? A few reasons.
First, I still loved doing hospice work. It filled me with purpose—and I happened to get paid for it. That’s a key point: when you do work that excites you, opportunities to earn money tend to follow, even if you’re not actively chasing them. You might be asked to serve on a board. You might start a project that unexpectedly generates income. Or you might consult here and there. Retirement doesn’t usually mean income drops to zero.
Second, my wife wasn’t ready to retire. While I stopped working, she chose to continue. Her income bridged the gap for several years. If you’re partnered, there’s a real chance your timelines won’t perfectly align—and that can work to your advantage.
The Market and the Math
There’s also the reality of investing. Since 2018, the stock market has delivered strong returns. Of course, it won’t always perform like this year after year, but history shows that staying invested over the long term tends to yield solid growth.
If you look back at the Trinity Study or Bill Bengen’s research on safe withdrawal rates, you’ll notice something interesting: a good percentage of people didn’t just maintain their portfolios—they ended retirement with double or triple what they started with. That means even if you follow a conservative plan, the odds are good that you’ll have more cushion than you expected.
And then there’s Social Security. I find it fascinating that so many people in the financial independence community ignore it completely in their projections. Yet if you’ve worked for 10, 15, or 20 years, Social Security can still provide a meaningful supplement. Even a modest monthly check reduces how much you need to draw from your portfolio.
Add it all up, and suddenly 80% doesn’t seem so risky.
Why Waiting Can Hurt
Here’s the truth: waiting for the full 100% might mean spending extra years in a job you dislike. That’s time you can’t get back.
At 80%, you unlock options. You gain flexibility. You can step away from work you hate, and still trust that one (or more) of these things will happen:
You’ll earn some money, even without trying.
A partner, inheritance, or some other windfall will help bridge the gap.
The stock market will likely provide more growth than you’ve accounted for.
Social Security will be there to supplement your income down the line.
I’m not saying to be reckless. I’m saying that the safety nets are stronger and more varied than most people admit. And that extra 20% you’re holding out for might not actually add security—it might just steal years of freedom.
Living by the 80% Rule
So what’s the takeaway?
Stop obsessing over hitting your exact “number.” Once you’ve run the math, take a breath. When you’re at 80%, you probably have more than enough to walk away—especially if you’re doing things you enjoy, things that might continue to generate value (and yes, even income).
The 80% Rule is about choosing life earlier, rather than delaying it for an illusion of perfection.
The Real Question
So here’s what I want to leave you with:
If you’re close to your financial independence number—say, at 80%—and you dread going to work, what’s holding you back?
Because odds are, you’re already in a better position than you think. And if you lean into the things that light you up, chances are you’ll find that 80% is more than enough.
Did you catch this week’s episode of Earn & Invest (Click to listen)?
The Purpose Code is Now Available!
Hey Jordan,
Great article as always! I know that you, Carl, Pete, Brandon, and Paul, who commented above (Just finished the Pathless Path this week) have all expressed similar feelings regarding 1 more year syndrome and instead advocate for 1 year less.
Personally, I struggle a bit as I'm working a job that is tolerable and compensates me well (golden handcuffs). For context, I'm a near-single earner for a family of 5 (my wife has a business that she is just getting off the ground).
Therefore, I guess my question is how best to determine the line between reckless and ensuring that you aren't stealing years away from yourself while having unknowns such as expenses that could swing?
This is the way!!!