Can I retire at age 40 with 694,000?

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 $694,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.3%
1 years$57,310$56,799$56,301$55,815$55,341$55,038
2 years$28,371$27,843$27,331$26,834$26,353$26,047
3 years$18,726$18,196$17,685$17,193$16,719$16,421
4 years$13,905$13,376$12,870$12,387$11,924$11,635
5 years$11,013$10,487$9,988$9,514$9,065$8,785
6 years$9,085$8,563$8,072$7,608$7,173$6,903
7 years$7,709$7,191$6,707$6,255$5,833$5,574
8 years$6,677$6,164$5,688$5,247$4,839$4,590
9 years$5,875$5,367$4,899$4,470$4,075$3,837
10 years$5,234$4,731$4,271$3,853$3,472$3,244
11 years$4,710$4,212$3,761$3,353$2,986$2,768
12 years$4,273$3,780$3,337$2,941$2,588$2,380
13 years$3,904$3,416$2,982$2,597$2,257$2,058
14 years$3,588$3,105$2,679$2,305$1,978$1,789
15 years$3,314$2,837$2,419$2,056$1,742$1,562
16 years$3,075$2,603$2,193$1,841$1,539$1,368
17 years$2,864$2,397$1,996$1,654$1,365$1,203
18 years$2,676$2,215$1,822$1,490$1,214$1,060
19 years$2,509$2,053$1,668$1,347$1,082$936
20 years$2,359$1,907$1,531$1,220$966$828
21 years$2,223$1,777$1,408$1,107$865$734
22 years$2,099$1,658$1,297$1,006$775$652
23 years$1,987$1,551$1,198$917$696$579
24 years$1,884$1,453$1,108$836$625$516
25 years$1,789$1,364$1,026$763$563$460
26 years$1,702$1,282$952$698$507$410
27 years$1,621$1,206$884$639$457$366
28 years$1,547$1,137$822$585$412$327
29 years$1,477$1,072$765$537$372$292
30 years$1,413$1,013$712$493$336$261
31 years$1,352$957$664$453$304$234
32 years$1,296$906$619$416$275$209
33 years$1,243$858$578$382$249$187
34 years$1,193$813$540$352$225$168
35 years$1,146$771$505$324$204$150
36 years$1,102$732$473$298$185$135
37 years$1,061$695$442$275$168$121
38 years$1,021$661$414$253$152$108
39 years$984$628$388$234$138$97
40 years$949$598$364$215$125$87
41 years$915$569$341$199$113$78
42 years$884$542$320$183$103$70
43 years$853$516$300$169$93$63
44 years$825$492$282$156$85$56
45 years$797$469$265$144$77$51
46 years$771$448$249$133$70$46
47 years$746$427$234$123$63$41
48 years$722$408$219$114$58$37
49 years$699$389$206$105$52$33
50 years$678$372$194$97$48$30

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $694,000, adding $2,881 every year, while hoping to spend $42,235 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: 62/28/10 Blend
39$694,000$694,000$694,000$694,000
40$767,760$730,978$720,221$813,463
41$801,134$721,858$699,410$835,284
42$836,496$710,876$676,487$853,963
43$874,005$697,895$651,336$873,297
44$913,834$682,773$623,837$893,346
45$956,172$665,355$593,862$914,185
46$1,001,226$645,482$561,281$935,892
47$1,049,223$622,982$525,955$958,558
48$1,100,410$597,675$487,741$982,285
49$1,155,059$569,369$446,488$1,007,187
50$1,213,469$537,861$402,039$1,033,393
51$1,275,965$502,939$354,230$1,061,044
52$1,342,905$464,374$302,888$1,090,302
53$1,414,682$421,930$247,836$1,121,347
54$1,491,727$375,351$188,885$1,154,378
55$1,574,512$324,372$125,842$1,189,621
56$1,663,555$268,710$58,501$1,227,326
57$1,759,427$208,066$0$1,267,772
58$1,862,753$142,126$0$1,312,699
59$1,974,220$70,556$0$1,367,781
60$2,094,583$0$0$1,427,182
61$2,224,671$0$0$1,493,516
62$2,365,396$0$0$1,588,831
63$2,517,760$0$0$1,692,072
64$2,682,864$0$0$1,803,991
65$2,861,920$0$0$1,925,414
66$3,056,261$0$0$2,057,251
67$3,267,350$0$0$2,200,502
68$3,496,800$0$0$2,356,267
69$3,746,383$0$0$2,525,757
70$4,018,051$0$0$2,710,303
71$4,313,949$0$0$2,911,370
72$4,636,439$0$0$3,130,571
73$4,988,121$0$0$3,369,682
74$5,371,856$0$0$3,630,655
75$5,790,793$0$0$3,915,642
76$6,248,398$0$0$4,227,009
77$6,748,488$0$0$4,567,362
78$7,295,263$0$0$4,939,572
79$7,893,350$0$0$5,346,796
80$8,547,842$0$0$5,792,514
81$9,264,347$0$0$6,280,556
82$10,049,041$0$0$6,815,140
83$10,908,726$0$0$7,400,912
84$11,850,891$0$0$8,042,987
85$12,883,786$0$0$8,747,001
86$14,016,495$0$0$9,519,158
87$15,259,024$0$0$10,366,293
88$16,622,397$0$0$11,295,937
89$18,118,753$0$0$12,316,381
90$19,761,464$0$0$13,436,760
91$21,565,262$0$0$14,667,137
92$23,546,373$0$0$16,018,598
93$25,722,674$0$0$17,503,353
94$28,113,856$0$0$19,134,854
95$30,741,614$0$0$20,927,924
96$33,629,847$0$0$22,898,887
97$36,804,888$0$0$25,065,733
98$40,295,743$0$0$27,448,278
99$44,134,373$0$0$30,068,358
100$48,355,991$0$0$32,950,026