Can I retire at age 40 with 623,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $623,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$51,447$50,988$50,541$50,105$49,679$49,366
2 years$25,469$24,994$24,535$24,089$23,657$23,341
3 years$16,810$16,334$15,876$15,434$15,009$14,700
4 years$12,482$12,007$11,553$11,119$10,704$10,405
5 years$9,886$9,414$8,966$8,541$8,137$7,848
6 years$8,156$7,687$7,246$6,830$6,439$6,160
7 years$6,920$6,456$6,021$5,615$5,236$4,969
8 years$5,994$5,534$5,106$4,711$4,344$4,087
9 years$5,274$4,818$4,398$4,012$3,658$3,412
10 years$4,698$4,247$3,834$3,459$3,117$2,882
11 years$4,228$3,781$3,376$3,010$2,681$2,456
12 years$3,836$3,393$2,996$2,640$2,323$2,109
13 years$3,504$3,067$2,677$2,331$2,026$1,821
14 years$3,221$2,787$2,405$2,069$1,776$1,581
15 years$2,975$2,546$2,171$1,845$1,564$1,379
16 years$2,760$2,336$1,969$1,652$1,382$1,206
17 years$2,571$2,152$1,791$1,485$1,225$1,059
18 years$2,403$1,988$1,635$1,338$1,089$931
19 years$2,252$1,843$1,497$1,209$971$821
20 years$2,117$1,712$1,374$1,095$867$726
21 years$1,995$1,595$1,264$994$776$643
22 years$1,885$1,489$1,165$903$696$570
23 years$1,784$1,392$1,075$823$625$506
24 years$1,691$1,305$995$750$561$449
25 years$1,606$1,224$921$685$505$400
26 years$1,528$1,151$854$627$455$356
27 years$1,456$1,083$793$574$410$317
28 years$1,389$1,020$738$526$370$283
29 years$1,326$963$686$482$334$252
30 years$1,268$909$639$442$302$225
31 years$1,214$859$596$406$273$201
32 years$1,163$813$556$373$247$180
33 years$1,116$770$519$343$224$161
34 years$1,071$730$485$316$202$144
35 years$1,029$692$454$291$183$129
36 years$989$657$424$268$166$115
37 years$952$624$397$247$151$103
38 years$917$593$372$227$136$92
39 years$883$564$348$210$124$83
40 years$852$537$327$193$112$74
41 years$822$511$306$178$102$66
42 years$793$486$287$165$92$59
43 years$766$463$270$152$84$53
44 years$740$442$253$140$76$48
45 years$716$421$238$130$69$43
46 years$692$402$223$120$63$38
47 years$670$384$210$111$57$34
48 years$648$366$197$102$52$31
49 years$628$350$185$94$47$28
50 years$608$334$174$87$43$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $623,000, adding $6,801 every year, while hoping to spend $22,377 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 37/40/23 Blend
39$623,000$623,000$623,000$623,000
40$693,561$660,542$650,886$714,219
41$740,496$669,100$648,881$738,475
42$791,467$677,327$646,060$762,088
43$846,864$685,183$642,371$787,146
44$907,114$692,627$637,759$813,791
45$972,686$699,612$632,171$842,183
46$1,044,097$706,090$625,546$872,499
47$1,121,917$712,010$617,823$904,935
48$1,206,770$717,317$608,938$939,706
49$1,299,347$721,952$598,824$977,055
50$1,400,406$725,852$587,410$1,017,247
51$1,510,781$728,953$574,622$1,060,577
52$1,631,392$731,183$560,383$1,107,372
53$1,763,250$732,467$544,612$1,157,994
54$1,907,469$732,726$527,224$1,212,845
55$2,065,276$731,875$508,132$1,272,367
56$2,238,022$729,824$487,242$1,337,051
57$2,427,194$726,479$464,458$1,407,443
58$2,634,430$721,739$439,679$1,484,142
59$2,861,533$715,495$412,800$1,567,814
60$3,110,490$707,634$383,709$1,659,196
61$3,383,488$698,037$352,291$1,759,101
62$3,682,938$686,575$318,427$1,868,430
63$4,011,493$673,112$281,990$1,988,178
64$4,372,076$657,506$242,848$2,119,447
65$4,767,909$639,605$200,864$2,263,452
66$5,202,538$619,248$155,896$2,421,539
67$5,679,871$596,265$107,792$2,595,195
68$6,204,212$570,476$56,397$2,786,061
69$6,780,303$541,691$1,548$2,995,953
70$7,413,368$509,708$0$3,226,875
71$8,109,162$474,314$0$3,495,028
72$8,874,025$435,284$0$3,790,189
73$9,714,943$392,381$0$4,114,724
74$10,639,612$345,351$0$4,471,665
75$11,656,509$293,930$0$4,864,358
76$12,774,977$237,837$0$5,296,494
77$14,005,308$176,775$0$5,772,144
78$15,358,843$110,430$0$6,295,800
79$16,848,075$38,471$0$6,872,418
80$18,486,772$0$0$7,507,463
81$20,290,102$0$0$8,224,331
82$22,274,778$0$0$9,032,027
83$24,459,217$0$0$9,921,126
84$26,863,709$0$0$10,899,899
85$29,510,614$0$0$11,977,463
86$32,424,567$0$0$13,163,859
87$35,632,715$0$0$14,470,156
88$39,164,972$0$0$15,908,549
89$43,054,296$0$0$17,492,474
90$47,337,008$0$0$19,236,738
91$52,053,129$0$0$21,157,659
92$57,246,758$0$0$23,273,215
93$62,966,490$0$0$25,603,219
94$69,265,872$0$0$28,169,501
95$76,203,911$0$0$30,996,118
96$83,845,626$0$0$34,109,580
97$92,262,667$0$0$37,539,099
98$101,533,988$0$0$41,316,865
99$111,746,589$0$0$45,478,349
100$122,996,344$0$0$50,062,640