Can I retire at age 40 with 695,000?

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 $695,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$57,392$56,881$56,382$55,896$55,420$54,819
2 years$28,412$27,883$27,370$26,873$26,391$25,785
3 years$18,753$18,222$17,710$17,218$16,743$16,152
4 years$13,925$13,395$12,889$12,404$11,941$11,370
5 years$11,028$10,502$10,002$9,528$9,078$8,527
6 years$9,098$8,576$8,083$7,619$7,183$6,654
7 years$7,720$7,202$6,717$6,264$5,842$5,334
8 years$6,687$6,173$5,697$5,255$4,846$4,360
9 years$5,884$5,375$4,907$4,476$4,081$3,617
10 years$5,241$4,738$4,278$3,858$3,477$3,034
11 years$4,716$4,218$3,766$3,358$2,991$2,569
12 years$4,279$3,786$3,342$2,945$2,592$2,190
13 years$3,909$3,421$2,986$2,600$2,260$1,878
14 years$3,593$3,110$2,683$2,308$1,981$1,619
15 years$3,319$2,841$2,422$2,059$1,744$1,401
16 years$3,079$2,606$2,196$1,843$1,542$1,217
17 years$2,868$2,400$1,998$1,656$1,367$1,060
18 years$2,680$2,218$1,824$1,493$1,215$925
19 years$2,513$2,056$1,670$1,349$1,083$809
20 years$2,362$1,910$1,533$1,221$968$710
21 years$2,226$1,779$1,410$1,109$866$623
22 years$2,102$1,661$1,299$1,008$776$548
23 years$1,990$1,553$1,200$918$697$482
24 years$1,887$1,455$1,110$837$626$425
25 years$1,792$1,366$1,028$765$564$375
26 years$1,705$1,284$953$699$508$331
27 years$1,624$1,208$885$640$458$292
28 years$1,549$1,138$823$586$413$258
29 years$1,479$1,074$766$538$373$228
30 years$1,415$1,014$713$493$337$202
31 years$1,354$959$665$453$305$179
32 years$1,298$907$620$416$276$158
33 years$1,245$859$579$383$249$140
34 years$1,195$814$541$352$226$124
35 years$1,148$772$506$324$204$110
36 years$1,104$733$473$299$185$98
37 years$1,062$696$443$275$168$87
38 years$1,023$662$415$254$152$77
39 years$985$629$389$234$138$68
40 years$950$599$364$216$125$60
41 years$917$570$342$199$114$54
42 years$885$543$320$184$103$48
43 years$855$517$301$170$94$42
44 years$826$493$282$157$85$37
45 years$798$470$265$145$77$33
46 years$772$448$249$134$70$30
47 years$747$428$234$123$64$26
48 years$723$408$220$114$58$23
49 years$700$390$207$105$52$21
50 years$679$373$194$97$48$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $695,000, adding $4,276 every year, while hoping to spend $50,530 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: 54/26/20 Blend
39$695,000$695,000$695,000$695,000
40$770,301$733,466$722,693$807,488
41$795,108$715,642$693,140$815,615
42$820,752$695,251$660,903$818,777
43$847,264$672,115$625,839$821,127
44$874,680$646,042$587,799$822,601
45$903,032$616,834$546,626$823,135
46$932,360$584,277$502,156$822,658
47$962,701$548,147$454,219$821,099
48$994,097$508,207$402,636$818,378
49$1,026,591$464,205$347,220$814,417
50$1,060,230$415,878$287,778$809,128
51$1,095,060$362,943$224,106$802,423
52$1,131,134$305,105$155,991$794,208
53$1,168,506$242,051$83,213$784,384
54$1,207,232$173,450$5,539$772,847
55$1,247,373$98,953$0$759,488
56$1,288,995$18,191$0$760,701
57$1,332,166$0$0$762,192
58$1,376,958$0$0$782,516
59$1,423,450$0$0$809,021
60$1,471,724$0$0$836,549
61$1,521,869$0$0$865,154
62$1,573,980$0$0$894,889
63$1,628,158$0$0$925,814
64$1,684,511$0$0$957,992
65$1,743,157$0$0$991,491
66$1,804,219$0$0$1,026,384
67$1,867,832$0$0$1,062,750
68$1,934,141$0$0$1,100,673
69$2,003,301$0$0$1,140,245
70$2,075,479$0$0$1,181,562
71$2,150,856$0$0$1,224,732
72$2,229,628$0$0$1,269,869
73$2,312,004$0$0$1,317,096
74$2,398,215$0$0$1,366,548
75$2,488,506$0$0$1,418,370
76$2,583,145$0$0$1,472,720
77$2,682,423$0$0$1,529,768
78$2,786,655$0$0$1,589,700
79$2,896,184$0$0$1,652,717
80$3,011,381$0$0$1,719,040
81$3,132,651$0$0$1,788,907
82$3,260,436$0$0$1,862,578
83$3,395,214$0$0$1,940,337
84$3,537,510$0$0$2,022,491
85$3,687,893$0$0$2,109,379
86$3,846,987$0$0$2,201,368
87$4,015,470$0$0$2,298,860
88$4,194,085$0$0$2,402,295
89$4,383,644$0$0$2,512,152
90$4,585,033$0$0$2,628,956
91$4,799,223$0$0$2,753,281
92$5,027,276$0$0$2,885,758
93$5,270,354$0$0$3,027,074
94$5,529,730$0$0$3,177,983
95$5,806,799$0$0$3,339,313
96$6,103,090$0$0$3,511,969
97$6,420,279$0$0$3,696,947
98$6,760,203$0$0$3,895,334
99$7,124,878$0$0$4,108,328
100$7,516,517$0$0$4,337,241