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What If Everyone Retired Early?

What happens when everyone learns about the FIRE movement and achieve early retirement?  Would people continue to work, what happens to the economy that is driven by 70% consumerism, what might governments and politicians do, and how might things change.  Lets explore this further.

In a previous post/video linked below, I made a connection between the Great Resignation and the FIRE movement.  Please check that out if you have not already.


Lets face it.  The reason why a lot of people pursue fire is because many workplace culture are toxic, inflexible, and offer crap for compensation relative to the productivity of each worker contributes. 

You will likely spend 3 Hours a day in traffic, work long hours, spend less time with love ones, sacrifice your body & mind, and there is little guarantee when you can longer perform your duties you would be care for or even merely supported by the company you were so loyal to for years.

So, for this post, I did some research to help answer the question of what would happen if a huge majority of people retired early.  Essential as you reflect on this against the background of the Great Resignation & an increase membership of r/financialindependence.

Because there are different types of FIRE, lean, regular FIRE, fat FIRE, and many others, some basic assumptions are needed to carry out this thought experiment. 
  • Majority of people are regular FIRE
  • Individuals continue to reduced excessive consumerism
Lets get Started. 

Real & Purposeful Work

To be realistic, early retirement does not necessary mean that people will choose to stop working.  While some people will definitely no longer work period, a lot of people will continue to work, maybe not in their familiar industry, but will do work which they find personally enriching, regardless of the pay.

Real Labor Shortage & Inflation

In 2021 and 2022, there is the perpetual cry of "labor shortage", which if we are honest would be more aptly called "wage shortage".  However, in a situation where everyone is retiring, business will truly have a painful time locating workers or producing at their prior levels - which is to say we would then really have a labor shortage.

This would have the consequence of inflating prices of goods and services, not to mention making some essential goods and services difficult or impossible to receive due to lack of workers.

Many business, especially if heavy tourism, consumerism based, would fail and new business would be harder to start due to hard time finding workers and having to pay increase wages.

Business Culture Would Change

Corporations and all business sizes would significantly change their approach to employees.  In the short term, business will be aggressive and punitive to try to keep workers in their jobs for as long as possible.  

Examples will include dangling health care, or increasing prices on things above and beyond profit margins. This would help force workers to think twice about whether or not they can really afford to walk away from their job.

Long term, business will learn to be flexible with work, be more open to reduced work days, retrain mangers.

Environmental Changes

If everyone was able to leave their jobs and had more leisure time, this would drastically change the flow of a typical day.   

Think about traffic.  While rush hour traffic would "solved" traffic congestion would be the norm through out the majority through 9 AM to 6 PM - daily.

Economic Collapse

With labor shortage, increasing prices, decreased consumerism, and mass business failures, the economy will go into tailspin.  

The stock market will enter a depression.  As a result, workers who invested in stocks will see their portfolio tanks.  Many red days in Main & Wall street.

However, those who invested in real estate will fair a lot better because their assets are backed by a tangible structure.  Because no matter how bad things, get, people will continue to need a place to live.

Hint: use real estate as your FIRE "engine" - that is pun.

New Technology & Industries

If the majority majority of us retired, then advancement in robotics would likely accelerate as a means to replace labor and to make labor more cost effective.  

Government Reform

To restore order & tax revenue in the long-term, government would like adopt reform that includes, reduced work week ( 4 day work week), parental leave, and mandatory leaving wage that keeps pace with inflation,

What do you think would happen?

Surely there are a lot more devastation and chaos that would ensue.  I invite you to name those.


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