Can I retire at age 40 with 705,000?

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 $705,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$58,218$57,700$57,194$56,700$56,218$54,703
2 years$28,821$28,284$27,764$27,260$26,770$25,255
3 years$19,023$18,484$17,965$17,465$16,984$15,516
4 years$14,125$13,588$13,074$12,583$12,113$10,703
5 years$11,187$10,653$10,146$9,665$9,208$7,861
6 years$9,229$8,699$8,199$7,729$7,286$6,002
7 years$7,831$7,305$6,814$6,354$5,926$4,705
8 years$6,783$6,262$5,779$5,331$4,916$3,758
9 years$5,968$5,452$4,977$4,541$4,140$3,043
10 years$5,317$4,806$4,339$3,914$3,527$2,491
11 years$4,784$4,278$3,820$3,406$3,034$2,056
12 years$4,341$3,840$3,390$2,988$2,629$1,708
13 years$3,966$3,470$3,029$2,638$2,292$1,427
14 years$3,645$3,154$2,722$2,342$2,010$1,197
15 years$3,366$2,882$2,457$2,088$1,769$1,008
16 years$3,123$2,644$2,228$1,870$1,564$851
17 years$2,909$2,435$2,027$1,680$1,387$720
18 years$2,719$2,250$1,851$1,514$1,233$611
19 years$2,549$2,085$1,694$1,368$1,099$519
20 years$2,396$1,938$1,555$1,239$982$441
21 years$2,258$1,805$1,430$1,124$878$376
22 years$2,133$1,685$1,318$1,022$787$320
23 years$2,018$1,576$1,217$931$707$273
24 years$1,914$1,476$1,126$849$635$234
25 years$1,818$1,385$1,042$776$572$200
26 years$1,729$1,302$967$709$515$171
27 years$1,647$1,225$898$649$464$146
28 years$1,571$1,155$835$595$419$125
29 years$1,501$1,089$777$545$378$107
30 years$1,435$1,029$723$501$342$92
31 years$1,374$973$674$460$309$78
32 years$1,316$920$629$422$279$67
33 years$1,263$871$588$388$253$58
34 years$1,212$826$549$357$229$49
35 years$1,164$783$513$329$207$42
36 years$1,120$744$480$303$188$36
37 years$1,077$706$449$279$170$31
38 years$1,037$671$421$257$154$27
39 years$1,000$638$394$237$140$23
40 years$964$607$370$219$127$20
41 years$930$578$347$202$115$17
42 years$898$550$325$186$105$14
43 years$867$524$305$172$95$12
44 years$838$500$286$159$86$11
45 years$810$477$269$147$78$9
46 years$783$455$253$136$71$8
47 years$758$434$237$125$64$7
48 years$734$414$223$116$59$6
49 years$710$396$210$107$53$5
50 years$688$378$197$99$48$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $705,000, adding $4,806 every year, while hoping to spend $44,835 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: 38/35/27 Blend
39$705,000$705,000$705,000$705,000
40$781,867$744,502$733,575$805,137
41$813,914$733,279$710,446$811,403
42$847,726$720,003$685,039$813,696
43$883,437$704,526$657,231$815,309
44$921,192$686,692$626,892$816,210
45$961,149$666,335$593,888$816,365
46$1,003,481$643,280$558,078$815,745
47$1,048,375$617,340$519,313$814,318
48$1,096,038$588,319$477,439$812,055
49$1,146,697$556,009$432,295$808,930
50$1,200,596$520,189$383,714$804,919
51$1,258,007$480,629$331,518$799,999
52$1,319,224$437,080$275,525$794,155
53$1,384,572$389,284$215,542$787,371
54$1,454,406$336,966$151,369$779,640
55$1,529,113$279,836$82,798$770,961
56$1,609,121$217,586$9,611$761,338
57$1,694,897$149,894$0$750,785
58$1,786,954$76,416$0$759,058
59$1,885,855$0$0$770,694
60$1,992,217$0$0$784,277
61$2,106,720$0$0$830,652
62$2,230,108$0$0$880,698
63$2,363,199$0$0$934,756
64$2,506,893$0$0$993,201
65$2,662,177$0$0$1,056,445
66$2,830,136$0$0$1,124,941
67$3,011,965$0$0$1,199,188
68$3,208,974$0$0$1,279,731
69$3,422,607$0$0$1,367,174
70$3,654,449$0$0$1,462,179
71$3,906,245$0$0$1,565,474
72$4,179,915$0$0$1,677,861
73$4,477,568$0$0$1,800,222
74$4,801,528$0$0$1,933,527
75$5,154,351$0$0$2,078,845
76$5,538,848$0$0$2,237,350
77$5,958,114$0$0$2,410,336
78$6,415,556$0$0$2,599,226
79$6,914,924$0$0$2,805,590
80$7,460,343$0$0$3,031,151
81$8,056,358$0$0$3,277,811
82$8,707,972$0$0$3,547,661
83$9,420,691$0$0$3,843,004
84$10,200,578$0$0$4,166,377
85$11,054,313$0$0$4,520,572
86$11,989,246$0$0$4,908,666
87$13,013,475$0$0$5,334,046
88$14,135,918$0$0$5,800,442
89$15,366,394$0$0$6,311,965
90$16,715,721$0$0$6,873,138
91$18,195,810$0$0$7,488,948
92$19,819,783$0$0$8,164,885
93$21,602,094$0$0$8,906,998
94$23,558,662$0$0$9,721,949
95$25,707,025$0$0$10,617,078
96$28,066,500$0$0$11,600,470
97$30,658,368$0$0$12,681,032
98$33,506,073$0$0$13,868,576
99$36,635,441$0$0$15,173,914
100$40,074,925$0$0$16,608,955