Can I retire at age 40 with 697,000?

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 $697,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.9%
1 years$57,558$57,045$56,545$56,056$55,580$53,801
2 years$28,494$27,963$27,449$26,950$26,467$24,691
3 years$18,807$18,274$17,761$17,267$16,791$15,074
4 years$13,965$13,434$12,926$12,440$11,976$10,331
5 years$11,060$10,532$10,031$9,555$9,104$7,535
6 years$9,124$8,600$8,106$7,641$7,204$5,712
7 years$7,742$7,222$6,736$6,282$5,858$4,445
8 years$6,706$6,191$5,713$5,270$4,860$3,523
9 years$5,901$5,390$4,921$4,489$4,093$2,831
10 years$5,257$4,751$4,290$3,870$3,487$2,299
11 years$4,730$4,230$3,777$3,368$2,999$1,881
12 years$4,291$3,796$3,352$2,954$2,599$1,550
13 years$3,921$3,431$2,995$2,608$2,266$1,283
14 years$3,603$3,119$2,691$2,315$1,987$1,067
15 years$3,328$2,849$2,429$2,065$1,749$890
16 years$3,088$2,614$2,203$1,849$1,546$744
17 years$2,876$2,407$2,004$1,661$1,371$624
18 years$2,688$2,224$1,830$1,497$1,219$524
19 years$2,520$2,062$1,675$1,353$1,086$441
20 years$2,369$1,916$1,537$1,225$970$371
21 years$2,232$1,784$1,414$1,112$868$313
22 years$2,108$1,666$1,303$1,011$778$264
23 years$1,995$1,558$1,203$921$699$223
24 years$1,892$1,460$1,113$840$628$189
25 years$1,797$1,370$1,031$767$565$160
26 years$1,709$1,287$956$701$509$135
27 years$1,628$1,212$888$642$459$114
28 years$1,553$1,142$825$588$414$97
29 years$1,484$1,077$768$539$374$82
30 years$1,419$1,017$715$495$338$69
31 years$1,358$962$667$454$305$59
32 years$1,301$910$622$418$276$50
33 years$1,248$862$581$384$250$42
34 years$1,198$817$543$353$226$36
35 years$1,151$775$507$325$205$30
36 years$1,107$735$475$300$186$26
37 years$1,065$698$444$276$168$22
38 years$1,026$664$416$254$153$18
39 years$988$631$390$235$138$16
40 years$953$600$365$216$126$13
41 years$919$571$343$200$114$11
42 years$887$544$321$184$103$10
43 years$857$519$302$170$94$8
44 years$828$494$283$157$85$7
45 years$801$471$266$145$77$6
46 years$774$450$250$134$70$5
47 years$749$429$235$124$64$4
48 years$725$410$220$114$58$4
49 years$702$391$207$106$53$3
50 years$681$374$195$98$48$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $697,000, adding $5,274 every year, while hoping to spend $54,583 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: 44/26/30 Blend
39$697,000$697,000$697,000$697,000
40$773,534$736,593$725,790$800,633
41$794,359$714,610$692,028$798,565
42$815,478$689,721$655,305$790,755
43$836,864$661,725$615,466$781,264
44$858,486$630,411$572,345$769,970
45$880,305$595,554$525,772$756,738
46$902,279$556,919$475,568$741,430
47$924,357$514,254$421,546$723,894
48$946,484$467,295$363,510$703,971
49$968,595$415,762$301,257$681,489
50$990,617$359,360$234,575$656,268
51$1,012,467$297,775$163,240$628,112
52$1,034,051$230,679$87,020$596,814
53$1,055,263$157,721$5,675$562,154
54$1,075,984$78,534$0$523,895
55$1,096,082$0$0$507,755
56$1,115,405$0$0$493,201
57$1,133,786$0$0$500,613
58$1,151,037$0$0$507,430
59$1,166,949$0$0$513,548
60$1,181,286$0$0$518,853
61$1,193,788$0$0$523,217
62$1,204,164$0$0$526,495
63$1,212,089$0$0$528,530
64$1,217,202$0$0$529,146
65$1,219,105$0$0$528,145
66$1,217,350$0$0$525,310
67$1,211,444$0$0$520,400
68$1,200,838$0$0$513,147
69$1,184,924$0$0$503,254
70$1,163,028$0$0$490,391
71$1,134,401$0$0$474,194
72$1,098,215$0$0$454,259
73$1,053,554$0$0$430,139
74$999,402$0$0$401,339
75$934,635$0$0$367,313
76$858,011$0$0$327,454
77$768,155$0$0$281,095
78$663,546$0$0$227,494
79$542,504$0$0$165,834
80$403,171$0$0$95,212
81$243,494$0$0$14,629
82$61,205$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