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%18.8%
1 years$51,612$51,152$50,704$50,266$49,838$48,070
2 years$25,550$25,075$24,613$24,166$23,733$21,970
3 years$16,864$16,387$15,927$15,484$15,057$13,355
4 years$12,522$12,046$11,590$11,155$10,739$9,111
5 years$9,918$9,444$8,995$8,568$8,163$6,614
6 years$8,182$7,712$7,269$6,852$6,459$4,989
7 years$6,942$6,476$6,041$5,633$5,253$3,862
8 years$6,013$5,551$5,123$4,726$4,358$3,045
9 years$5,291$4,834$4,412$4,025$3,670$2,434
10 years$4,714$4,261$3,847$3,470$3,127$1,965
11 years$4,241$3,793$3,387$3,020$2,689$1,599
12 years$3,848$3,404$3,006$2,649$2,331$1,309
13 years$3,516$3,076$2,685$2,338$2,032$1,077
14 years$3,231$2,796$2,413$2,076$1,782$890
15 years$2,984$2,555$2,178$1,851$1,569$738
16 years$2,769$2,344$1,975$1,658$1,386$613
17 years$2,579$2,159$1,797$1,489$1,229$511
18 years$2,410$1,995$1,641$1,342$1,093$426
19 years$2,260$1,849$1,502$1,213$974$356
20 years$2,124$1,718$1,378$1,098$870$298
21 years$2,002$1,600$1,268$997$779$249
22 years$1,891$1,494$1,168$906$698$209
23 years$1,789$1,397$1,079$825$627$175
24 years$1,697$1,309$998$753$563$147
25 years$1,611$1,228$924$688$507$123
26 years$1,533$1,154$857$629$456$104
27 years$1,460$1,086$796$575$412$87
28 years$1,393$1,024$740$527$371$73
29 years$1,330$966$689$483$335$62
30 years$1,272$912$641$444$303$52
31 years$1,218$862$598$408$274$44
32 years$1,167$816$558$375$248$37
33 years$1,119$773$521$344$224$31
34 years$1,074$732$487$317$203$26
35 years$1,032$695$455$292$184$22
36 years$993$659$426$269$167$18
37 years$955$626$398$248$151$15
38 years$920$595$373$228$137$13
39 years$886$566$350$210$124$11
40 years$854$538$328$194$113$9
41 years$824$512$307$179$102$8
42 years$796$488$288$165$93$7
43 years$768$465$270$153$84$5
44 years$743$443$254$141$76$5
45 years$718$423$238$130$69$4
46 years$694$403$224$120$63$3
47 years$672$385$210$111$57$3
48 years$650$367$198$103$52$2
49 years$630$351$186$95$47$2
50 years$610$335$175$88$43$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $4,160 every year, while hoping to spend $31,096 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: 41/43/16 Blend
39$625,000$625,000$625,000$625,000
40$693,041$659,916$650,229$718,027
41$730,645$659,166$638,925$735,361
42$771,043$657,337$626,201$750,756
43$814,486$654,343$611,976$766,755
44$861,252$650,094$596,165$783,429
45$911,644$644,493$578,681$800,857
46$965,996$637,437$559,431$819,129
47$1,024,674$628,819$538,319$838,346
48$1,088,083$618,523$515,244$858,621
49$1,156,664$606,428$490,102$880,083
50$1,230,906$592,404$462,782$902,874
51$1,311,341$576,315$433,168$927,157
52$1,398,561$558,017$401,142$953,111
53$1,493,210$537,356$366,577$980,941
54$1,596,002$514,171$329,341$1,010,872
55$1,707,719$488,290$289,299$1,043,159
56$1,829,222$459,532$246,306$1,078,085
57$1,961,458$427,705$200,213$1,115,967
58$2,105,471$392,607$150,865$1,157,160
59$2,262,408$354,023$98,097$1,202,058
60$2,433,531$311,727$41,740$1,251,101
61$2,620,229$265,480$0$1,304,781
62$2,824,033$215,029$0$1,366,785
63$3,046,626$160,107$0$1,442,389
64$3,289,861$100,432$0$1,525,170
65$3,555,780$35,706$0$1,615,915
66$3,846,628$0$0$1,715,497
67$4,164,880$0$0$1,841,154
68$4,513,259$0$0$1,997,279
69$4,894,765$0$0$2,168,331
70$5,312,701$0$0$2,355,801
71$5,770,705$0$0$2,561,332
72$6,272,782$0$0$2,786,732
73$6,823,346$0$0$3,033,993
74$7,427,255$0$0$3,305,310
75$8,089,863$0$0$3,603,100
76$8,817,065$0$0$3,930,024
77$9,615,356$0$0$4,289,017
78$10,491,889$0$0$4,683,307
79$11,454,546$0$0$5,116,455
80$12,512,006$0$0$5,592,380
81$13,673,835$0$0$6,115,402
82$14,950,566$0$0$6,690,280
83$16,353,807$0$0$7,322,254
84$17,896,344$0$0$8,017,102
85$19,592,266$0$0$8,781,185
86$21,457,091$0$0$9,621,514
87$23,507,922$0$0$10,545,814
88$25,763,596$0$0$11,562,593
89$28,244,872$0$0$12,681,229
90$30,974,620$0$0$13,912,052
91$33,978,038$0$0$15,266,445
92$37,282,891$0$0$16,756,950
93$40,919,771$0$0$18,397,387
94$44,922,385$0$0$20,202,982
95$49,327,871$0$0$22,190,512
96$54,177,155$0$0$24,378,466
97$59,515,328$0$0$26,787,214
98$65,392,076$0$0$29,439,202
99$71,862,146$0$0$32,359,162
100$78,985,867$0$0$35,574,349