Can I retire at age 40 with 625,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%11.6%
1 years$51,612$51,152$50,704$50,266$49,838$49,504
2 years$25,550$25,075$24,613$24,166$23,733$23,395
3 years$16,864$16,387$15,927$15,484$15,057$14,727
4 years$12,522$12,046$11,590$11,155$10,739$10,419
5 years$9,918$9,444$8,995$8,568$8,163$7,855
6 years$8,182$7,712$7,269$6,852$6,459$6,162
7 years$6,942$6,476$6,041$5,633$5,253$4,967
8 years$6,013$5,551$5,123$4,726$4,358$4,084
9 years$5,291$4,834$4,412$4,025$3,670$3,408
10 years$4,714$4,261$3,847$3,470$3,127$2,876
11 years$4,241$3,793$3,387$3,020$2,689$2,450
12 years$3,848$3,404$3,006$2,649$2,331$2,102
13 years$3,516$3,076$2,685$2,338$2,032$1,814
14 years$3,231$2,796$2,413$2,076$1,782$1,574
15 years$2,984$2,555$2,178$1,851$1,569$1,371
16 years$2,769$2,344$1,975$1,658$1,386$1,199
17 years$2,579$2,159$1,797$1,489$1,229$1,052
18 years$2,410$1,995$1,641$1,342$1,093$925
19 years$2,260$1,849$1,502$1,213$974$815
20 years$2,124$1,718$1,378$1,098$870$720
21 years$2,002$1,600$1,268$997$779$637
22 years$1,891$1,494$1,168$906$698$564
23 years$1,789$1,397$1,079$825$627$500
24 years$1,697$1,309$998$753$563$444
25 years$1,611$1,228$924$688$507$395
26 years$1,533$1,154$857$629$456$351
27 years$1,460$1,086$796$575$412$313
28 years$1,393$1,024$740$527$371$279
29 years$1,330$966$689$483$335$248
30 years$1,272$912$641$444$303$222
31 years$1,218$862$598$408$274$198
32 years$1,167$816$558$375$248$177
33 years$1,119$773$521$344$224$158
34 years$1,074$732$487$317$203$141
35 years$1,032$695$455$292$184$126
36 years$993$659$426$269$167$113
37 years$955$626$398$248$151$101
38 years$920$595$373$228$137$90
39 years$886$566$350$210$124$81
40 years$854$538$328$194$113$72
41 years$824$512$307$179$102$65
42 years$796$488$288$165$93$58
43 years$768$465$270$153$84$52
44 years$743$443$254$141$76$46
45 years$718$423$238$130$69$41
46 years$694$403$224$120$63$37
47 years$672$385$210$111$57$33
48 years$650$367$198$103$52$30
49 years$630$351$186$95$47$27
50 years$610$335$175$88$43$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $5,594 every year, while hoping to spend $21,914 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: 60/22/18 Blend
39$625,000$625,000$625,000$625,000
40$694,520$661,395$651,708$732,641
41$742,045$670,487$650,224$768,155
42$793,683$679,290$647,955$803,965
43$849,830$687,767$644,853$842,528
44$910,923$695,878$640,866$884,113
45$977,441$703,580$635,939$929,019
46$1,049,913$710,828$630,016$977,573
47$1,128,919$717,574$623,036$1,030,137
48$1,215,099$723,765$614,938$1,087,110
49$1,309,156$729,347$605,656$1,148,934
50$1,411,867$734,261$595,122$1,216,094
51$1,524,082$738,446$583,264$1,289,127
52$1,646,743$741,834$570,008$1,368,624
53$1,780,881$744,354$555,274$1,455,237
54$1,927,637$745,933$538,981$1,549,688
55$2,088,262$746,490$521,043$1,652,771
56$2,264,137$745,940$501,370$1,765,361
57$2,456,781$744,194$479,868$1,888,426
58$2,667,869$741,155$456,440$2,023,032
59$2,899,244$736,724$430,983$2,170,356
60$3,152,935$730,792$403,389$2,331,694
61$3,431,179$723,245$373,547$2,508,479
62$3,736,438$713,963$341,340$2,702,289
63$4,071,425$702,817$306,645$2,914,866
64$4,439,127$689,672$269,334$3,148,130
65$4,842,836$674,384$229,275$3,404,199
66$5,286,177$656,801$186,328$3,685,409
67$5,773,145$636,761$140,347$3,994,338
68$6,308,138$614,095$91,181$4,333,826
69$6,896,003$588,621$38,671$4,707,008
70$7,542,080$560,148$0$5,117,338
71$8,252,252$528,475$0$5,571,964
72$9,032,999$493,388$0$6,079,896
73$9,891,461$454,660$0$6,638,366
74$10,835,505$412,054$0$7,252,521
75$11,873,798$365,315$0$7,928,033
76$13,015,888$314,179$0$8,671,154
77$14,272,297$258,361$0$9,488,775
78$15,654,616$197,566$0$10,388,492
79$17,175,618$131,478$0$11,378,677
80$18,849,376$59,765$0$12,468,557
81$20,691,394$0$0$13,668,305
82$22,718,760$0$0$14,993,470
83$24,950,297$0$0$16,468,075
84$27,406,749$0$0$18,091,366
85$30,110,971$0$0$19,878,454
86$33,088,150$0$0$21,845,990
87$36,366,036$0$0$24,012,323
88$39,975,207$0$0$26,397,671
89$43,949,358$0$0$29,024,311
90$48,325,619$0$0$31,916,792
91$53,144,900$0$0$35,102,163
92$58,452,286$0$0$38,610,233
93$64,297,453$0$0$42,473,848
94$70,735,142$0$0$46,729,200
95$77,825,676$0$0$51,416,173
96$85,635,524$0$0$56,578,716
97$94,237,932$0$0$62,265,258
98$103,713,615$0$0$68,529,167
99$114,151,515$0$0$75,429,249
100$125,649,643$0$0$83,030,307