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%12.1%
1 years$52,190$51,725$51,272$50,829$50,397$49,953
2 years$25,837$25,355$24,889$24,437$23,998$23,552
3 years$17,053$16,570$16,105$15,657$15,226$14,789
4 years$12,663$12,181$11,720$11,280$10,859$10,437
5 years$10,029$9,550$9,095$8,664$8,255$7,848
6 years$8,273$7,798$7,350$6,929$6,532$6,140
7 years$7,020$6,549$6,108$5,697$5,312$4,936
8 years$6,081$5,614$5,180$4,779$4,407$4,047
9 years$5,350$4,888$4,462$4,070$3,711$3,367
10 years$4,766$4,308$3,890$3,509$3,162$2,833
11 years$4,289$3,835$3,425$3,054$2,720$2,405
12 years$3,891$3,442$3,039$2,678$2,357$2,057
13 years$3,555$3,111$2,715$2,365$2,055$1,770
14 years$3,267$2,828$2,440$2,099$1,801$1,531
15 years$3,018$2,583$2,203$1,872$1,586$1,329
16 years$2,800$2,370$1,997$1,676$1,402$1,158
17 years$2,608$2,183$1,817$1,506$1,243$1,012
18 years$2,437$2,017$1,659$1,357$1,105$887
19 years$2,285$1,869$1,519$1,226$985$779
20 years$2,148$1,737$1,394$1,111$880$685
21 years$2,024$1,618$1,282$1,008$787$604
22 years$1,912$1,510$1,182$917$706$533
23 years$1,809$1,413$1,091$835$634$471
24 years$1,716$1,323$1,009$761$569$417
25 years$1,629$1,242$935$695$512$369
26 years$1,550$1,167$867$636$462$327
27 years$1,477$1,099$805$582$416$290
28 years$1,409$1,035$748$533$376$257
29 years$1,345$977$696$489$339$229
30 years$1,286$922$649$449$306$203
31 years$1,231$872$605$412$277$180
32 years$1,180$825$564$379$251$160
33 years$1,132$781$527$348$227$143
34 years$1,087$740$492$320$205$127
35 years$1,044$702$460$295$186$113
36 years$1,004$667$430$272$168$101
37 years$966$633$403$250$153$90
38 years$930$602$377$231$138$80
39 years$896$572$353$213$126$71
40 years$864$544$331$196$114$63
41 years$834$518$311$181$103$56
42 years$805$493$291$167$94$50
43 years$777$470$273$154$85$45
44 years$751$448$257$142$77$40
45 years$726$427$241$132$70$36
46 years$702$408$226$121$64$32
47 years$679$389$213$112$58$28
48 years$658$371$200$104$52$25
49 years$637$355$188$96$48$23
50 years$617$339$177$89$43$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $632,000, adding $4,542 every year, while hoping to spend $58,102 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: 57/15/28 Blend
39$632,000$632,000$632,000$632,000
40$701,149$667,653$657,857$735,495
41$710,846$638,548$618,075$730,474
42$719,585$606,069$575,013$718,537
43$727,207$569,991$528,500$704,338
44$733,534$530,072$478,357$687,675
45$738,369$486,061$424,397$668,332
46$741,493$437,688$366,424$646,072
47$742,661$384,671$304,236$620,638
48$741,603$326,710$237,618$591,751
49$738,018$263,490$166,349$559,109
50$731,571$194,677$90,198$522,382
51$721,893$119,917$8,920$481,211
52$708,572$38,838$0$435,209
53$691,152$0$0$407,198
54$669,131$0$0$385,904
55$641,950$0$0$367,747
56$608,989$0$0$345,925
57$569,566$0$0$320,009
58$522,923$0$0$289,521
59$468,224$0$0$253,935
60$404,542$0$0$212,668
61$330,853$0$0$165,076
62$246,028$0$0$110,448
63$148,816$0$0$47,996
64$37,835$0$0$0
65$0$0$0$0
66$0$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