Can I retire at age 40 with 675,000?

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 $675,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17%
1 years$55,741$55,244$54,760$54,287$53,825$52,291
2 years$27,594$27,081$26,582$26,100$25,631$24,097
3 years$18,214$17,697$17,201$16,722$16,261$14,776
4 years$13,524$13,009$12,518$12,047$11,598$10,172
5 years$10,711$10,200$9,714$9,254$8,816$7,455
6 years$8,836$8,329$7,851$7,400$6,976$5,680
7 years$7,498$6,994$6,524$6,084$5,673$4,442
8 years$6,494$5,996$5,533$5,104$4,707$3,540
9 years$5,714$5,220$4,765$4,347$3,964$2,860
10 years$5,091$4,601$4,155$3,747$3,377$2,335
11 years$4,581$4,096$3,658$3,261$2,905$1,922
12 years$4,156$3,677$3,246$2,861$2,517$1,593
13 years$3,797$3,323$2,900$2,526$2,195$1,327
14 years$3,489$3,020$2,606$2,242$1,924$1,110
15 years$3,223$2,759$2,353$1,999$1,694$932
16 years$2,991$2,531$2,133$1,790$1,497$785
17 years$2,785$2,331$1,941$1,608$1,328$662
18 years$2,603$2,154$1,772$1,450$1,180$560
19 years$2,440$1,996$1,622$1,310$1,052$474
20 years$2,294$1,855$1,489$1,186$940$402
21 years$2,162$1,728$1,369$1,077$841$341
22 years$2,042$1,613$1,262$979$754$290
23 years$1,932$1,509$1,165$892$677$247
24 years$1,832$1,414$1,078$813$608$210
25 years$1,740$1,327$998$743$547$179
26 years$1,655$1,247$926$679$493$153
27 years$1,577$1,173$860$621$444$130
28 years$1,504$1,106$799$569$401$111
29 years$1,437$1,043$744$522$362$95
30 years$1,374$985$693$479$327$81
31 years$1,315$931$646$440$296$69
32 years$1,260$881$602$404$268$59
33 years$1,209$834$563$372$242$50
34 years$1,160$791$526$342$219$43
35 years$1,115$750$491$315$199$37
36 years$1,072$712$460$290$180$31
37 years$1,032$676$430$267$163$27
38 years$993$643$403$246$148$23
39 years$957$611$378$227$134$20
40 years$923$581$354$210$122$17
41 years$890$553$332$193$110$14
42 years$859$527$311$178$100$12
43 years$830$502$292$165$91$10
44 years$802$479$274$152$82$9
45 years$775$456$257$140$75$8
46 years$750$435$242$130$68$6
47 years$726$416$227$120$62$6
48 years$702$397$213$111$56$5
49 years$680$379$201$102$51$4
50 years$659$362$189$95$46$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $675,000, adding $4,228 every year, while hoping to spend $42,764 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: 61/16/23 Blend
39$675,000$675,000$675,000$675,000
40$748,211$712,436$701,974$789,061
41$779,028$701,845$679,989$806,651
42$811,555$689,302$655,835$820,781
43$845,922$674,665$629,393$835,256
44$882,268$657,786$600,541$850,116
45$920,749$638,508$569,149$865,408
46$961,533$616,662$535,082$881,186
47$1,004,803$592,072$498,201$897,509
48$1,050,760$564,550$458,358$914,446
49$1,099,624$533,900$415,399$932,076
50$1,151,635$499,910$369,164$950,487
51$1,207,056$462,360$319,486$969,778
52$1,266,176$421,016$266,189$990,064
53$1,329,310$375,630$209,091$1,011,470
54$1,396,805$325,941$148,000$1,034,142
55$1,469,039$271,672$82,718$1,058,239
56$1,546,428$212,531$13,036$1,083,944
57$1,629,428$148,210$0$1,111,459
58$1,718,541$78,383$0$1,156,064
59$1,814,314$2,706$0$1,207,355
60$1,917,352$0$0$1,262,474
61$2,028,316$0$0$1,335,742
62$2,147,933$0$0$1,415,278
63$2,277,002$0$0$1,501,139
64$2,416,400$0$0$1,593,916
65$2,567,092$0$0$1,694,256
66$2,730,138$0$0$1,802,869
67$2,906,702$0$0$1,920,539
68$3,098,065$0$0$2,048,125
69$3,305,637$0$0$2,186,573
70$3,530,965$0$0$2,336,924
71$3,775,753$0$0$2,500,320
72$4,041,875$0$0$2,678,022
73$4,331,393$0$0$2,871,413
74$4,646,576$0$0$3,082,018
75$4,989,918$0$0$3,311,512
76$5,364,167$0$0$3,561,741
77$5,772,346$0$0$3,834,736
78$6,217,782$0$0$4,132,732
79$6,704,137$0$0$4,458,190
80$7,235,442$0$0$4,813,817
81$7,816,136$0$0$5,202,597
82$8,451,106$0$0$5,627,812
83$9,145,731$0$0$6,093,077
84$9,905,934$0$0$6,602,372
85$10,738,240$0$0$7,160,082
86$11,649,831$0$0$7,771,033
87$12,648,617$0$0$8,440,540
88$13,743,310$0$0$9,174,458
89$14,943,505$0$0$9,979,235
90$16,259,768$0$0$10,861,972
91$17,703,739$0$0$11,830,491
92$19,288,238$0$0$12,893,407
93$21,027,385$0$0$14,060,212
94$22,936,735$0$0$15,341,359
95$25,033,423$0$0$16,748,363
96$27,336,322$0$0$18,293,910
97$29,866,226$0$0$19,991,976
98$32,646,041$0$0$21,857,955
99$35,701,000$0$0$23,908,808
100$39,058,906$0$0$26,163,220