Can I retire at age 40 with 632,000?

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 $632,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.9%
1 years$52,190$51,725$51,272$50,829$50,397$48,397
2 years$25,837$25,355$24,889$24,437$23,998$22,009
3 years$17,053$16,570$16,105$15,657$15,226$13,308
4 years$12,663$12,181$11,720$11,280$10,859$9,029
5 years$10,029$9,550$9,095$8,664$8,255$6,516
6 years$8,273$7,798$7,350$6,929$6,532$4,886
7 years$7,020$6,549$6,108$5,697$5,312$3,759
8 years$6,081$5,614$5,180$4,779$4,407$2,944
9 years$5,350$4,888$4,462$4,070$3,711$2,337
10 years$4,766$4,308$3,890$3,509$3,162$1,874
11 years$4,289$3,835$3,425$3,054$2,720$1,514
12 years$3,891$3,442$3,039$2,678$2,357$1,230
13 years$3,555$3,111$2,715$2,365$2,055$1,005
14 years$3,267$2,828$2,440$2,099$1,801$824
15 years$3,018$2,583$2,203$1,872$1,586$677
16 years$2,800$2,370$1,997$1,676$1,402$559
17 years$2,608$2,183$1,817$1,506$1,243$461
18 years$2,437$2,017$1,659$1,357$1,105$382
19 years$2,285$1,869$1,519$1,226$985$316
20 years$2,148$1,737$1,394$1,111$880$262
21 years$2,024$1,618$1,282$1,008$787$218
22 years$1,912$1,510$1,182$917$706$181
23 years$1,809$1,413$1,091$835$634$151
24 years$1,716$1,323$1,009$761$569$125
25 years$1,629$1,242$935$695$512$104
26 years$1,550$1,167$867$636$462$87
27 years$1,477$1,099$805$582$416$72
28 years$1,409$1,035$748$533$376$60
29 years$1,345$977$696$489$339$50
30 years$1,286$922$649$449$306$42
31 years$1,231$872$605$412$277$35
32 years$1,180$825$564$379$251$29
33 years$1,132$781$527$348$227$24
34 years$1,087$740$492$320$205$20
35 years$1,044$702$460$295$186$17
36 years$1,004$667$430$272$168$14
37 years$966$633$403$250$153$12
38 years$930$602$377$231$138$10
39 years$896$572$353$213$126$8
40 years$864$544$331$196$114$7
41 years$834$518$311$181$103$6
42 years$805$493$291$167$94$5
43 years$777$470$273$154$85$4
44 years$751$448$257$142$77$3
45 years$726$427$241$132$70$3
46 years$702$408$226$121$64$2
47 years$679$389$213$112$58$2
48 years$658$371$200$104$52$2
49 years$637$355$188$96$48$1
50 years$617$339$177$89$43$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $632,000, adding $6,629 every year, while hoping to spend $41,532 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: 46/27/27 Blend
39$632,000$632,000$632,000$632,000
40$703,302$669,806$660,010$729,926
41$730,849$658,437$637,930$738,040
42$759,814$645,118$613,719$742,291
43$790,297$629,712$587,261$746,096
44$822,409$612,069$558,436$749,436
45$856,268$592,034$527,117$752,292
46$892,006$569,441$493,174$754,647
47$929,763$544,117$456,468$756,483
48$969,694$515,874$416,855$757,789
49$1,011,969$484,518$374,186$758,551
50$1,056,772$449,842$328,303$758,761
51$1,104,305$411,626$279,044$758,415
52$1,154,789$369,640$226,236$757,509
53$1,208,463$323,638$169,701$756,049
54$1,265,593$273,363$109,252$754,041
55$1,326,467$218,541$44,695$751,502
56$1,391,401$158,884$0$748,453
57$1,460,742$94,088$0$751,896
58$1,534,869$23,830$0$769,094
59$1,614,199$0$0$787,271
60$1,699,188$0$0$822,074
61$1,790,336$0$0$867,042
62$1,888,194$0$0$915,371
63$1,993,363$0$0$967,367
64$2,106,505$0$0$1,023,363
65$2,228,347$0$0$1,083,727
66$2,359,687$0$0$1,148,861
67$2,501,401$0$0$1,219,208
68$2,654,452$0$0$1,295,256
69$2,819,899$0$0$1,377,538
70$2,998,904$0$0$1,466,643
71$3,192,745$0$0$1,563,219
72$3,402,829$0$0$1,667,974
73$3,630,701$0$0$1,781,692
74$3,878,061$0$0$1,905,232
75$4,146,778$0$0$2,039,540
76$4,438,908$0$0$2,185,656
77$4,756,714$0$0$2,344,726
78$5,102,684$0$0$2,518,009
79$5,479,559$0$0$2,706,892
80$5,890,351$0$0$2,912,901
81$6,338,379$0$0$3,137,714
82$6,827,292$0$0$3,383,181
83$7,361,110$0$0$3,651,336
84$7,944,257$0$0$3,944,420
85$8,581,602$0$0$4,264,898
86$9,278,509$0$0$4,615,488
87$10,040,879$0$0$4,999,177
88$10,875,214$0$0$5,419,260
89$11,788,672$0$0$5,879,361
90$12,789,134$0$0$6,383,474
91$13,885,280$0$0$6,935,996
92$15,086,671$0$0$7,541,769
93$16,403,834$0$0$8,206,127
94$17,848,365$0$0$8,934,946
95$19,433,035$0$0$9,734,695
96$21,171,912$0$0$10,612,503
97$23,080,491$0$0$11,576,221
98$25,175,840$0$0$12,634,497
99$27,476,759$0$0$13,796,859
100$30,003,962$0$0$15,073,801