Suze Orman Says If You're Rich 'Like Her' Then You Can Retire Early – But If You Only Have $2 Million Saved: 'You'll Burn Up Alive'

The Financial Independence Retire Early (FIRE) movement has captured attention across generations. It promises a life where financial independence allows you to retire early and focus on what you love. But not everyone is a fan. Financial expert Suze Orman has been famously critical of FIRE, labeling it dangerous for those without substantial wealth.

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The FIRE movement is rooted in two main ideas: extreme saving and early retirement. By saving 50% or more of their income, followers of FIRE aim to accumulate a large retirement fund to live off investment returns, often before age 40. While some adhere to "lean FIRE," maintaining a modest lifestyle with a smaller retirement fund, others pursue "fat FIRE," accumulating more to enjoy a comfortable lifestyle. The concept has gained significant traction, especially among millennials seeking alternatives to traditional career paths.

However, orman believes that FIRE oversimplifies the financial risks involved. In a 2018 interview on the Afford Anything podcast, she warned that even a seemingly substantial nest egg, like $2 million, might not be enough. 

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"$2 million is nothing. It's nothing. It's pennies in today's world, to tell you the truth," she stated, expressing her concern that even millions could fall short in the face of life's uncertainties. Orman explained, "If a catastrophe happens … what are you going to do? You are going to burn up alive." For her, retirement requires far more planning than what many anticipate. 

Orman's perspective is deeply rooted in the belief that financial independence requires a far larger cushion than most people realize. She even made a clear distinction between average savers and the ultra-wealthy. "If you have $20 [million], $40 [million], $50 [million] or $100 million, be like me, okay," Orman said. "If you have that kind of money … and want to retire, fine." But for the vast majority, she warns, retiring without that level of wealth is risky and could lead to financial disaster. Her message was simple: early retirement might not be safe unless you’re extraordinarily wealthy.

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Orman's core criticism revolves around FIRE's approach to risk. She points out that unexpected expenses – like major health issues or long-term care – can devastate savings, especially for those who retire decades early. Orman illustrated the potential costs by suggesting that supporting a disabled family member could easily require $250,000 a year. Coupled with living expenses, she argues that maintaining a safe, sustainable retirement could require as much as $10 million in savings to ensure a comfortable life through any storms that might come.

With inflation steadily increasing, her projections from 2018 seem even more relevant now. Living costs, health care expenses and potential tax hikes have all risen, making financial independence harder to achieve than just a few years ago.

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Ultimately Orman advises that the risk of retiring early outweighs the reward if you're not financially equipped for unforeseen hardships. "If you don't have at least $5 million or $10 million, don't retire early," she emphasized. In her view, early retirement might work for those with vast resources – people who, like herself, have tens of millions to safeguard against all possibilities – but for everyone else, it's a path that could lead to financial ruin rather than freedom.

So, is FIRE worth pursuing? It depends on your risk tolerance, lifestyle goals and financial resilience. 

The average retirement age is 62, but Orman strongly advocates working longer and delaying Social Security until 70 to maximize those benefits. Consulting with a financial advisor could be one of the smartest moves for anyone eyeing an early exit from work. An advisor can help you stress-test your retirement plan, look at real-life scenarios and ensure you're prepared for whatever may come.

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