Can I retire at age 40 with 707,000?

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 $707,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$58,383$57,863$57,356$56,861$56,377$55,858
2 years$28,903$28,364$27,843$27,337$26,846$26,323
3 years$19,077$18,536$18,016$17,515$17,032$16,522
4 years$14,165$13,626$13,111$12,619$12,148$11,653
5 years$11,219$10,683$10,175$9,692$9,234$8,758
6 years$9,255$8,724$8,223$7,751$7,307$6,848
7 years$7,853$7,326$6,833$6,373$5,942$5,503
8 years$6,802$6,280$5,795$5,346$4,930$4,508
9 years$5,985$5,468$4,991$4,553$4,152$3,749
10 years$5,332$4,819$4,351$3,925$3,537$3,152
11 years$4,798$4,291$3,831$3,416$3,042$2,675
12 years$4,353$3,851$3,400$2,996$2,636$2,287
13 years$3,977$3,480$3,038$2,645$2,299$1,966
14 years$3,655$3,163$2,729$2,348$2,015$1,699
15 years$3,376$2,890$2,464$2,094$1,774$1,474
16 years$3,132$2,651$2,234$1,875$1,568$1,284
17 years$2,917$2,442$2,033$1,685$1,390$1,121
18 years$2,727$2,256$1,856$1,518$1,236$982
19 years$2,556$2,091$1,699$1,372$1,102$862
20 years$2,403$1,943$1,559$1,243$984$757
21 years$2,264$1,810$1,434$1,128$881$667
22 years$2,139$1,690$1,322$1,025$790$588
23 years$2,024$1,580$1,220$934$709$519
24 years$1,919$1,481$1,129$852$637$459
25 years$1,823$1,389$1,045$778$573$406
26 years$1,734$1,306$970$711$516$360
27 years$1,652$1,229$900$651$466$319
28 years$1,576$1,158$837$596$420$283
29 years$1,505$1,092$779$547$379$251
30 years$1,439$1,032$725$502$343$223
31 years$1,378$975$676$461$310$198
32 years$1,320$923$631$424$280$176
33 years$1,266$874$589$390$254$156
34 years$1,215$828$551$358$230$139
35 years$1,168$786$515$330$208$123
36 years$1,123$746$481$304$188$110
37 years$1,080$708$451$280$171$98
38 years$1,040$673$422$258$155$87
39 years$1,003$640$395$238$140$77
40 years$967$609$371$219$127$69
41 years$932$580$348$203$116$61
42 years$900$552$326$187$105$55
43 years$869$526$306$173$95$49
44 years$840$501$287$159$86$43
45 years$812$478$270$147$78$39
46 years$785$456$253$136$71$34
47 years$760$435$238$126$65$31
48 years$736$415$224$116$59$27
49 years$713$397$210$107$53$24
50 years$690$379$198$99$48$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $707,000, adding $5,916 every year, while hoping to spend $43,098 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: 39/43/18 Blend
39$707,000$707,000$707,000$707,000
40$785,216$747,745$736,787$811,412
41$819,452$738,529$715,613$821,505
42$855,736$727,416$692,286$827,843
43$894,231$714,270$666,687$833,795
44$935,115$698,941$638,694$839,347
45$978,584$681,277$608,178$844,491
46$1,024,852$661,112$575,004$849,218
47$1,074,153$638,272$539,032$853,525
48$1,126,742$612,573$500,115$857,411
49$1,182,900$583,819$458,100$860,881
50$1,242,936$551,806$412,826$863,944
51$1,307,185$516,315$364,125$866,616
52$1,376,018$477,115$311,824$868,920
53$1,449,841$433,962$255,739$870,884
54$1,529,098$386,599$195,679$872,551
55$1,614,277$334,753$131,445$873,968
56$1,705,914$278,138$62,830$875,199
57$1,804,599$216,448$0$876,319
58$1,910,977$149,362$0$879,415
59$2,025,758$76,542$0$895,608
60$2,149,722$0$0$912,989
61$2,283,727$0$0$932,879
62$2,428,714$0$0$993,660
63$2,585,720$0$0$1,059,558
64$2,755,882$0$0$1,131,061
65$2,940,453$0$0$1,208,705
66$3,140,810$0$0$1,293,081
67$3,358,466$0$0$1,384,837
68$3,595,089$0$0$1,484,687
69$3,852,509$0$0$1,593,419
70$4,132,745$0$0$1,711,896
71$4,438,013$0$0$1,841,069
72$4,770,757$0$0$1,981,987
73$5,133,662$0$0$2,135,803
74$5,529,687$0$0$2,303,784
75$5,962,087$0$0$2,487,329
76$6,434,445$0$0$2,687,974
77$6,950,707$0$0$2,907,415
78$7,515,216$0$0$3,147,514
79$8,132,754$0$0$3,410,325
80$8,808,588$0$0$3,698,108
81$9,548,514$0$0$4,013,352
82$10,358,919$0$0$4,358,800
83$11,246,833$0$0$4,737,470
84$12,220,001$0$0$5,152,688
85$13,286,950$0$0$5,608,116
86$14,457,074$0$0$6,107,788
87$15,740,719$0$0$6,656,148
88$17,149,280$0$0$7,258,089
89$18,695,309$0$0$7,919,003
90$20,392,632$0$0$8,644,828
91$22,256,480$0$0$9,442,108
92$24,303,630$0$0$10,318,049
93$26,552,564$0$0$11,280,590
94$29,023,644$0$0$12,338,479
95$31,739,299$0$0$13,501,351
96$34,724,241$0$0$14,779,823
97$38,005,695$0$0$16,185,591
98$41,613,653$0$0$17,731,542
99$45,581,162$0$0$19,431,873
100$49,944,629$0$0$21,302,227