Definition
The point where your current investments, left untouched, will compound into a full retirement portfolio by traditional retirement age. After that, work only has to cover today's living costs.
Why it matters
It splits retirement saving from retirement itself: hit the coast number early and the hardest part of retirement planning is finished decades ahead, freeing income for nearer goals or lighter work.
Example
Needing $1.25M at 65 and assuming 5% growth after inflation, a 30-year-old coasts at about $217,000 invested. Compounding alone covers retirement from there; work only funds the present.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.