Can I retire at age 40 with 696,000?

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 $696,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.5%
1 years$57,475$56,963$56,464$55,976$55,500$54,027
2 years$28,453$27,923$27,410$26,912$26,429$24,955
3 years$18,780$18,248$17,736$17,243$16,767$15,339
4 years$13,945$13,414$12,907$12,422$11,959$10,586
5 years$11,044$10,517$10,016$9,541$9,091$7,779
6 years$9,111$8,588$8,095$7,630$7,193$5,943
7 years$7,731$7,212$6,727$6,273$5,850$4,661
8 years$6,696$6,182$5,705$5,263$4,853$3,725
9 years$5,892$5,383$4,914$4,483$4,087$3,019
10 years$5,249$4,745$4,284$3,864$3,482$2,473
11 years$4,723$4,224$3,771$3,363$2,995$2,042
12 years$4,285$3,791$3,347$2,950$2,595$1,698
13 years$3,915$3,426$2,990$2,604$2,263$1,419
14 years$3,598$3,114$2,687$2,312$1,984$1,191
15 years$3,324$2,845$2,426$2,062$1,747$1,004
16 years$3,084$2,610$2,199$1,846$1,544$848
17 years$2,872$2,404$2,001$1,659$1,369$718
18 years$2,684$2,221$1,827$1,495$1,217$609
19 years$2,516$2,059$1,673$1,351$1,085$518
20 years$2,365$1,913$1,535$1,223$969$441
21 years$2,229$1,782$1,412$1,110$867$376
22 years$2,105$1,663$1,301$1,009$777$321
23 years$1,993$1,556$1,201$919$698$274
24 years$1,889$1,458$1,111$838$627$234
25 years$1,794$1,368$1,029$766$564$200
26 years$1,707$1,286$954$700$508$171
27 years$1,626$1,210$886$641$458$147
28 years$1,551$1,140$824$587$414$126
29 years$1,482$1,075$767$538$373$108
30 years$1,417$1,016$714$494$337$92
31 years$1,356$960$666$454$305$79
32 years$1,300$908$621$417$276$68
33 years$1,246$860$580$384$250$58
34 years$1,197$815$542$353$226$50
35 years$1,150$773$507$325$205$43
36 years$1,105$734$474$299$186$37
37 years$1,064$697$444$276$168$31
38 years$1,024$663$415$254$152$27
39 years$987$630$389$234$138$23
40 years$952$599$365$216$125$20
41 years$918$571$342$199$114$17
42 years$886$543$321$184$103$15
43 years$856$518$301$170$94$13
44 years$827$494$283$157$85$11
45 years$799$471$265$145$77$9
46 years$773$449$249$134$70$8
47 years$748$428$234$124$64$7
48 years$724$409$220$114$58$6
49 years$701$391$207$106$52$5
50 years$680$373$194$98$48$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $696,000, adding $5,628 every year, while hoping to spend $44,364 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: 83/10/7 Blend
39$696,000$696,000$696,000$696,000
40$772,797$735,909$725,121$835,969
41$804,420$724,766$702,210$866,938
42$837,781$711,590$677,044$894,386
43$873,011$696,234$649,501$923,147
44$910,252$678,544$619,454$953,326
45$949,660$658,355$586,768$985,039
46$991,405$635,493$551,304$1,018,412
47$1,035,671$609,776$512,916$1,053,585
48$1,082,662$581,007$471,451$1,090,712
49$1,132,598$548,980$426,749$1,129,963
50$1,185,721$513,479$378,644$1,171,524
51$1,242,298$474,273$326,961$1,215,601
52$1,302,618$431,118$271,520$1,262,422
53$1,367,000$383,757$212,131$1,312,237
54$1,435,791$331,918$148,594$1,365,321
55$1,509,373$275,314$80,704$1,421,979
56$1,588,165$213,641$8,244$1,482,547
57$1,672,627$146,578$0$1,547,394
58$1,763,262$73,787$0$1,622,089
59$1,860,622$0$0$1,702,916
60$1,965,314$0$0$1,790,332
61$2,078,004$0$0$1,893,177
62$2,199,424$0$0$2,003,999
63$2,330,377$0$0$2,123,533
64$2,471,746$0$0$2,252,586
65$2,624,500$0$0$2,392,045
66$2,789,704$0$0$2,542,884
67$2,968,531$0$0$2,706,174
68$3,162,268$0$0$2,883,093
69$3,372,331$0$0$3,074,936
70$3,600,277$0$0$3,283,127
71$3,847,818$0$0$3,509,231
72$4,116,839$0$0$3,754,972
73$4,409,411$0$0$4,022,244
74$4,727,813$0$0$4,313,132
75$5,074,555$0$0$4,629,930
76$5,452,397$0$0$4,975,162
77$5,864,376$0$0$5,351,607
78$6,313,836$0$0$5,762,322
79$6,804,456$0$0$6,210,673
80$7,340,287$0$0$6,700,365
81$7,925,790$0$0$7,235,475
82$8,565,873$0$0$7,820,494
83$9,265,941$0$0$8,460,366
84$10,031,946$0$0$9,160,533
85$10,870,441$0$0$9,926,990
86$11,788,643$0$0$10,766,336
87$12,794,498$0$0$11,685,839
88$13,896,758$0$0$12,693,503
89$15,105,060$0$0$13,798,144
90$16,430,021$0$0$15,009,471
91$17,883,332$0$0$16,338,176
92$19,477,869$0$0$17,796,037
93$21,227,819$0$0$19,396,029
94$23,148,804$0$0$21,152,441
95$25,258,036$0$0$23,081,014
96$27,574,473$0$0$25,199,089
97$30,119,001$0$0$27,525,768
98$32,914,626$0$0$30,082,094
99$35,986,695$0$0$32,891,249
100$39,363,130$0$0$35,978,773