Can I retire at age 40 with 700,000?

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 $700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$57,805$57,290$56,788$56,298$55,819$55,167
2 years$28,617$28,084$27,567$27,066$26,580$25,924
3 years$18,888$18,353$17,838$17,342$16,864$16,224
4 years$14,025$13,491$12,981$12,494$12,027$11,408
5 years$11,108$10,577$10,074$9,596$9,143$8,547
6 years$9,164$8,637$8,141$7,674$7,235$6,662
7 years$7,776$7,254$6,765$6,309$5,884$5,335
8 years$6,735$6,218$5,738$5,293$4,881$4,356
9 years$5,926$5,414$4,942$4,508$4,111$3,609
10 years$5,279$4,772$4,308$3,886$3,502$3,024
11 years$4,750$4,248$3,793$3,382$3,012$2,557
12 years$4,310$3,813$3,366$2,967$2,610$2,177
13 years$3,938$3,446$3,008$2,619$2,276$1,865
14 years$3,619$3,132$2,702$2,325$1,995$1,605
15 years$3,343$2,861$2,440$2,073$1,757$1,387
16 years$3,101$2,625$2,212$1,857$1,553$1,203
17 years$2,889$2,418$2,013$1,668$1,377$1,046
18 years$2,700$2,234$1,837$1,503$1,224$912
19 years$2,531$2,070$1,682$1,358$1,091$797
20 years$2,379$1,924$1,544$1,230$975$698
21 years$2,242$1,792$1,420$1,117$872$612
22 years$2,117$1,673$1,309$1,015$782$537
23 years$2,004$1,565$1,208$925$702$472
24 years$1,900$1,466$1,118$843$631$415
25 years$1,805$1,376$1,035$770$568$366
26 years$1,717$1,293$960$704$511$322
27 years$1,635$1,217$891$645$461$284
28 years$1,560$1,147$829$591$416$251
29 years$1,490$1,082$771$542$376$221
30 years$1,425$1,021$718$497$339$196
31 years$1,364$966$670$456$307$173
32 years$1,307$914$625$419$278$153
33 years$1,254$865$583$386$251$135
34 years$1,203$820$545$355$227$120
35 years$1,156$778$510$327$206$106
36 years$1,112$738$477$301$187$94
37 years$1,070$701$446$277$169$83
38 years$1,030$666$418$256$153$73
39 years$993$634$391$236$139$65
40 years$957$603$367$217$126$58
41 years$923$574$344$201$114$51
42 years$891$547$323$185$104$45
43 years$861$521$303$171$94$40
44 years$832$496$284$158$86$35
45 years$804$473$267$146$78$31
46 years$778$452$251$135$70$28
47 years$753$431$236$124$64$25
48 years$728$411$221$115$58$22
49 years$705$393$208$106$53$19
50 years$683$375$196$98$48$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $700,000, adding $4,928 every year, while hoping to spend $28,266 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: 59/22/19 Blend
39$700,000$700,000$700,000$700,000
40$776,483$739,383$728,533$818,154
41$825,610$745,538$722,864$853,121
42$878,800$751,047$716,058$887,712
43$936,438$755,849$708,047$924,798
44$998,947$759,879$698,759$964,624
45$1,066,793$763,066$688,120$1,007,463
46$1,140,486$765,336$676,053$1,053,614
47$1,220,590$766,612$662,475$1,103,410
48$1,307,723$766,809$647,301$1,157,216
49$1,402,567$765,839$630,441$1,215,438
50$1,505,871$763,607$611,803$1,278,523
51$1,618,459$760,013$591,288$1,346,965
52$1,741,239$754,951$568,794$1,421,309
53$1,875,211$748,309$544,213$1,502,158
54$2,021,473$739,967$517,435$1,590,177
55$2,181,236$729,798$488,342$1,686,102
56$2,355,833$717,668$456,812$1,790,744
57$2,546,730$703,436$422,717$1,904,998
58$2,755,542$686,950$385,924$2,029,854
59$2,984,048$668,052$346,293$2,166,405
60$3,234,206$646,571$303,679$2,315,856
61$3,508,172$622,331$257,930$2,479,537
62$3,808,322$595,141$208,886$2,658,919
63$4,137,269$564,801$156,382$2,855,623
64$4,497,895$531,101$100,246$3,071,440
65$4,893,372$493,816$40,295$3,308,343
66$5,327,192$452,710$0$3,568,514
67$5,803,206$407,533$0$3,859,160
68$6,325,651$358,020$0$4,187,164
69$6,899,197$303,892$0$4,547,320
70$7,528,987$244,855$0$4,942,904
71$8,220,686$180,595$0$5,377,526
72$8,980,537$110,785$0$5,855,169
73$9,815,415$35,077$0$6,380,223
74$10,732,895$0$0$6,957,528
75$11,741,321$0$0$7,603,772
76$12,849,887$0$0$8,323,589
77$14,068,722$0$0$9,115,070
78$15,408,985$0$0$9,985,470
79$16,882,970$0$0$10,942,781
80$18,504,223$0$0$11,995,811
81$20,287,669$0$0$13,154,260
82$22,249,750$0$0$14,428,821
83$24,408,585$0$0$15,831,270
84$26,784,136$0$0$17,374,587
85$29,398,398$0$0$19,073,070
86$32,275,607$0$0$20,942,476
87$35,442,466$0$0$23,000,167
88$38,928,400$0$0$25,265,271
89$42,765,828$0$0$27,758,866
90$46,990,477$0$0$30,504,180
91$51,641,709$0$0$33,526,803
92$56,762,901$0$0$36,854,937
93$62,401,847$0$0$40,519,655
94$68,611,213$0$0$44,555,198
95$75,449,032$0$0$48,999,297
96$82,979,252$0$0$53,893,527
97$91,272,339$0$0$59,283,701
98$100,405,941$0$0$65,220,304
99$110,465,620$0$0$71,758,965
100$121,545,663$0$0$78,960,985