Why are young millionaires afraid of retiring early?

Jace Mattinson of Austin, Texas, retired at 36. Four years ago, he sold his logging company for a seven-figure sum, enough for his family to live comfortably for the rest of their lives without having to work. The decision was appealing at the time because running a business is always difficult and tiring.

Since retiring, Mattinson has played golf three to four times a week, doing things he had to put off during his 10 years of work because of his busy schedule.

But after just eight months, Mattinson realized early retirement wasn't as perfect as he'd imagined. The 36-year-old went back to his lumber distribution job and started a financial advice podcast.

Mattinson is a typical representative of the FIRE (financial independence, retire early) movement. People who pursue this lifestyle often work hard, maximize their income, live frugally, and even delay important milestones like marriage or children, hoping to save enough money to quit their jobs before retirement age (average age is 64).

FIRE consists of two parts: FI (Financial Independence) and RE (Retire Early). But many young people, including Mattinson, are no longer interested in retiring early, despite owning multi-million dollar assets. Now, they focus more on FI.

Early retirees make up only a small fraction of the U.S. population. An analysis ofBusiness InsiderIn terms of the number of Americans who are retired, only 2.2% are under the age of 50. And less than 1% of those under 35 are retired.

To better understand the level of interest in FIRE, theBusiness Insiderspoke to dozens of young people who have or are working toward financial independence. Some retirees say they enjoy a leisurely lifestyle. But most say retirement is meaningless, and they want to continue building their careers and contributing to their communities.

Scott Rieckens, producer of the film Playing With FIRE, says many young people are focusing more on achieving financial freedom (FI) and less on retiring early (RE).

“I’m glad this shows that financial independence is an important dimension for people to move forward. Retiring early without a plan or goal can be a bad idea,” Scott said.

Brad Barrett, host of the ChooseFI podcast, says that few people are in a position to achieve financial independence and retire early. According to him, financial freedom allows a person to live the life they want, but retirement means giving up all the hard work and effort they have put in over the years.

For many people, financial freedom goes beyond quitting a job they don’t love. Some say it’s the ability to spend money on travel or entertainment without feeling stuck. But others say financial freedom gives them purpose and helps them prove their worth.

According to a study by Bill Schaninger, an expert in management and strategic thinking at McKinsey, 70% of respondents said they could define their goals through their work.

Mitch (37 years old) in Minnesota, currently vice president of a building maintenance company in the US, is also preparing to leave his stressful job and retire for a short time. Despite owning assets of about 2 million USD, the 37-year-old man only plans to take a few months off. He has planned a long trip to relax, before looking for a new job.

Mitch joined the online personal finance community in his early 30s, which inspired him and his wife to increase their savings to at least 75% of their total income by tightening their spending and achieving their goal of financial independence early.

Brian Luebben, a millennial who is also financially independent, said he became anxious about quitting his job to enjoy early retirement.

“The hardest part is finding something to do, even when there's nothing to do,” he says.

Instead of a traditional retirement, some financially independent people are looking for a balance between work and play. For Sabina Horrocks, 41, being a millionaire is boring.

She and her husband both work in executive positions and earn six figures. They recently reached a net worth of around $2 million. They invested their money early, kept their daily expenses low, and chose to invest in real estate.

After amassing a fortune, Horrocks has left her management job but has no plans to retire. She will continue to blog and hopes to become a financial professional or planner in the future.

Lauren and Steven Keys, 33, who became financially independent and quit their full-time jobs in their 20s, have similar thoughts.

Steven said he will continue to freelance for his old company and run an online construction teaching software from 2023. His wife will run a blog sharing financial experiences and increase income from real estate rentals.

“We will never stop making money,” said the 33-year-old.