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%13.8%
1 years$51,612$51,152$50,704$50,266$49,838$49,053
2 years$25,550$25,075$24,613$24,166$23,733$22,943
3 years$16,864$16,387$15,927$15,484$15,057$14,289
4 years$12,522$12,046$11,590$11,155$10,739$9,997
5 years$9,918$9,444$8,995$8,568$8,163$7,450
6 years$8,182$7,712$7,269$6,852$6,459$5,776
7 years$6,942$6,476$6,041$5,633$5,253$4,600
8 years$6,013$5,551$5,123$4,726$4,358$3,734
9 years$5,291$4,834$4,412$4,025$3,670$3,076
10 years$4,714$4,261$3,847$3,470$3,127$2,562
11 years$4,241$3,793$3,387$3,020$2,689$2,152
12 years$3,848$3,404$3,006$2,649$2,331$1,821
13 years$3,516$3,076$2,685$2,338$2,032$1,550
14 years$3,231$2,796$2,413$2,076$1,782$1,325
15 years$2,984$2,555$2,178$1,851$1,569$1,137
16 years$2,769$2,344$1,975$1,658$1,386$979
17 years$2,579$2,159$1,797$1,489$1,229$846
18 years$2,410$1,995$1,641$1,342$1,093$732
19 years$2,260$1,849$1,502$1,213$974$635
20 years$2,124$1,718$1,378$1,098$870$552
21 years$2,002$1,600$1,268$997$779$480
22 years$1,891$1,494$1,168$906$698$418
23 years$1,789$1,397$1,079$825$627$365
24 years$1,697$1,309$998$753$563$318
25 years$1,611$1,228$924$688$507$278
26 years$1,533$1,154$857$629$456$243
27 years$1,460$1,086$796$575$412$213
28 years$1,393$1,024$740$527$371$186
29 years$1,330$966$689$483$335$163
30 years$1,272$912$641$444$303$143
31 years$1,218$862$598$408$274$125
32 years$1,167$816$558$375$248$110
33 years$1,119$773$521$344$224$96
34 years$1,074$732$487$317$203$85
35 years$1,032$695$455$292$184$74
36 years$993$659$426$269$167$65
37 years$955$626$398$248$151$57
38 years$920$595$373$228$137$50
39 years$886$566$350$210$124$44
40 years$854$538$328$194$113$39
41 years$824$512$307$179$102$34
42 years$796$488$288$165$93$30
43 years$768$465$270$153$84$26
44 years$743$443$254$141$76$23
45 years$718$423$238$130$69$20
46 years$694$403$224$120$63$18
47 years$672$385$210$111$57$16
48 years$650$367$198$103$52$14
49 years$630$351$186$95$47$12
50 years$610$335$175$88$43$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $6,240 every year, while hoping to spend $56,051 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: 48/36/16 Blend
39$625,000$625,000$625,000$625,000
40$695,187$662,062$652,374$725,160
41$706,458$634,865$614,591$719,358
42$717,000$604,457$573,663$706,819
43$726,680$570,621$529,427$691,986
44$735,348$533,128$481,709$674,666
45$742,839$491,737$430,332$654,650
46$748,967$446,190$375,107$631,712
47$753,526$396,219$315,837$605,610
48$756,288$341,535$252,320$576,079
49$756,998$281,838$184,341$542,838
50$755,372$216,809$111,676$505,577
51$751,096$146,109$34,094$463,967
52$743,823$69,384$0$417,647
53$733,166$0$0$374,544
54$718,696$0$0$338,120
55$699,939$0$0$326,874
56$676,368$0$0$313,040
57$647,402$0$0$296,309
58$612,396$0$0$276,339
59$570,637$0$0$252,750
60$521,334$0$0$225,125
61$463,617$0$0$192,999
62$396,519$0$0$155,862
63$318,974$0$0$113,147
64$229,803$0$0$64,228
65$127,702$0$0$8,415
66$11,233$0$0$0
67$0$0$0$0
68$0$0$0$0
69$0$0$0$0
70$0$0$0$0
71$0$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0