Can I retire at age 40 with 625,000?

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 $625,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.9%
1 years$51,612$51,152$50,704$50,266$49,838$48,437
2 years$25,550$25,075$24,613$24,166$23,733$22,332
3 years$16,864$16,387$15,927$15,484$15,057$13,700
4 years$12,522$12,046$11,590$11,155$10,739$9,436
5 years$9,918$9,444$8,995$8,568$8,163$6,919
6 years$8,182$7,712$7,269$6,852$6,459$5,274
7 years$6,942$6,476$6,041$5,633$5,253$4,127
8 years$6,013$5,551$5,123$4,726$4,358$3,291
9 years$5,291$4,834$4,412$4,025$3,670$2,660
10 years$4,714$4,261$3,847$3,470$3,127$2,174
11 years$4,241$3,793$3,387$3,020$2,689$1,791
12 years$3,848$3,404$3,006$2,649$2,331$1,485
13 years$3,516$3,076$2,685$2,338$2,032$1,238
14 years$3,231$2,796$2,413$2,076$1,782$1,036
15 years$2,984$2,555$2,178$1,851$1,569$870
16 years$2,769$2,344$1,975$1,658$1,386$733
17 years$2,579$2,159$1,797$1,489$1,229$619
18 years$2,410$1,995$1,641$1,342$1,093$524
19 years$2,260$1,849$1,502$1,213$974$444
20 years$2,124$1,718$1,378$1,098$870$377
21 years$2,002$1,600$1,268$997$779$320
22 years$1,891$1,494$1,168$906$698$273
23 years$1,789$1,397$1,079$825$627$232
24 years$1,697$1,309$998$753$563$198
25 years$1,611$1,228$924$688$507$168
26 years$1,533$1,154$857$629$456$144
27 years$1,460$1,086$796$575$412$123
28 years$1,393$1,024$740$527$371$105
29 years$1,330$966$689$483$335$89
30 years$1,272$912$641$444$303$76
31 years$1,218$862$598$408$274$65
32 years$1,167$816$558$375$248$56
33 years$1,119$773$521$344$224$48
34 years$1,074$732$487$317$203$41
35 years$1,032$695$455$292$184$35
36 years$993$659$426$269$167$30
37 years$955$626$398$248$151$25
38 years$920$595$373$228$137$22
39 years$886$566$350$210$124$19
40 years$854$538$328$194$113$16
41 years$824$512$307$179$102$14
42 years$796$488$288$165$93$12
43 years$768$465$270$153$84$10
44 years$743$443$254$141$76$9
45 years$718$423$238$130$69$7
46 years$694$403$224$120$63$6
47 years$672$385$210$111$57$5
48 years$650$367$198$103$52$5
49 years$630$351$186$95$47$4
50 years$610$335$175$88$43$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $4,839 every year, while hoping to spend $43,057 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: 42/48/10 Blend
39$625,000$625,000$625,000$625,000
40$693,741$660,616$650,929$720,650
41$718,691$647,174$626,923$726,490
42$744,742$631,630$600,669$728,108
43$771,962$613,836$572,048$728,893
44$800,422$593,635$540,932$728,785
45$830,202$570,860$507,190$727,724
46$861,386$545,335$470,684$725,645
47$894,065$516,875$431,270$722,484
48$928,340$485,281$388,797$718,172
49$964,317$450,347$343,109$712,636
50$1,002,115$411,851$294,040$705,805
51$1,041,860$369,561$241,420$697,601
52$1,083,691$323,232$185,069$687,948
53$1,127,760$272,602$124,801$676,764
54$1,174,229$217,397$60,420$663,968
55$1,223,279$157,328$0$649,475
56$1,275,104$92,088$0$634,084
57$1,329,918$21,354$0$623,760
58$1,387,952$0$0$611,986
59$1,449,461$0$0$627,862
60$1,514,722$0$0$656,713
61$1,584,038$0$0$687,398
62$1,657,740$0$0$720,069
63$1,736,193$0$0$754,893
64$1,819,793$0$0$792,053
65$1,908,974$0$0$831,748
66$2,004,215$0$0$874,197
67$2,106,037$0$0$919,641
68$2,215,012$0$0$968,343
69$2,331,769$0$0$1,020,592
70$2,456,996$0$0$1,076,705
71$2,591,449$0$0$1,137,029
72$2,735,957$0$0$1,201,948
73$2,891,430$0$0$1,271,880
74$3,058,869$0$0$1,347,286
75$3,239,370$0$0$1,428,672
76$3,434,141$0$0$1,516,594
77$3,644,505$0$0$1,611,664
78$3,871,918$0$0$1,714,553
79$4,117,982$0$0$1,825,999
80$4,384,455$0$0$1,946,814
81$4,673,270$0$0$2,077,891
82$4,986,556$0$0$2,220,212
83$5,326,649$0$0$2,374,856
84$5,696,124$0$0$2,543,012
85$6,097,808$0$0$2,725,986
86$6,534,816$0$0$2,925,217
87$7,010,573$0$0$3,142,286
88$7,528,846$0$0$3,378,935
89$8,093,784$0$0$3,637,081
90$8,709,951$0$0$3,918,833
91$9,382,371$0$0$4,226,513
92$10,116,574$0$0$4,562,676
93$10,918,647$0$0$4,930,138
94$11,795,293$0$0$5,331,996
95$12,753,889$0$0$5,771,662
96$13,802,560$0$0$6,252,891
97$14,950,250$0$0$6,779,820
98$16,206,809$0$0$7,357,004
99$17,583,083$0$0$7,989,458
100$19,091,018$0$0$8,682,706