Can I retire at age 40 with 620,000?

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 $620,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$51,199$50,743$50,298$49,864$49,440$48,964
2 years$25,346$24,874$24,417$23,973$23,543$23,064
3 years$16,730$16,255$15,799$15,360$14,936$14,469
4 years$12,422$11,949$11,498$11,066$10,653$10,200
5 years$9,838$9,369$8,923$8,500$8,098$7,662
6 years$8,116$7,650$7,211$6,797$6,408$5,988
7 years$6,887$6,425$5,992$5,588$5,211$4,809
8 years$5,965$5,507$5,082$4,688$4,323$3,938
9 years$5,249$4,795$4,377$3,993$3,641$3,272
10 years$4,676$4,226$3,816$3,442$3,102$2,750
11 years$4,207$3,763$3,360$2,996$2,668$2,332
12 years$3,817$3,377$2,982$2,628$2,312$1,992
13 years$3,488$3,052$2,664$2,320$2,016$1,712
14 years$3,205$2,774$2,393$2,059$1,767$1,478
15 years$2,961$2,534$2,161$1,836$1,556$1,282
16 years$2,747$2,325$1,959$1,644$1,375$1,116
17 years$2,558$2,141$1,783$1,477$1,219$974
18 years$2,391$1,979$1,627$1,331$1,084$852
19 years$2,242$1,834$1,490$1,203$966$747
20 years$2,107$1,704$1,367$1,090$863$656
21 years$1,986$1,587$1,258$989$772$578
22 years$1,875$1,482$1,159$899$692$509
23 years$1,775$1,386$1,070$819$622$449
24 years$1,683$1,298$990$747$559$397
25 years$1,598$1,218$917$682$503$351
26 years$1,521$1,145$850$624$453$310
27 years$1,449$1,078$790$571$408$275
28 years$1,382$1,016$734$523$368$243
29 years$1,320$958$683$480$333$216
30 years$1,262$905$636$440$301$191
31 years$1,208$855$593$404$272$170
32 years$1,158$809$553$372$246$151
33 years$1,110$766$517$342$222$134
34 years$1,066$726$483$314$201$119
35 years$1,024$689$451$289$182$106
36 years$985$654$422$267$165$94
37 years$948$621$395$246$150$84
38 years$912$590$370$226$136$74
39 years$879$561$347$209$123$66
40 years$848$534$325$192$112$59
41 years$818$508$305$178$101$52
42 years$789$484$286$164$92$46
43 years$762$461$268$151$83$41
44 years$737$440$252$140$76$37
45 years$712$419$236$129$69$33
46 years$689$400$222$119$62$29
47 years$667$382$209$110$57$26
48 years$645$364$196$102$51$23
49 years$625$348$184$94$47$21
50 years$605$332$173$87$42$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $620,000, adding $5,934 every year, while hoping to spend $54,394 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: 54/26/20 Blend
39$620,000$620,000$620,000$620,000
40$689,361$656,501$646,891$722,535
41$701,801$630,795$610,687$720,212
42$713,687$602,006$571,447$711,459
43$724,905$569,926$529,012$700,753
44$735,327$534,334$483,216$687,927
45$744,811$494,998$433,885$672,794
46$753,199$451,670$380,837$655,158
47$760,314$404,090$323,884$634,801
48$765,958$351,983$262,827$611,491
49$769,914$295,057$197,459$584,976
50$771,936$233,006$127,565$554,983
51$771,754$165,505$52,919$521,215
52$769,068$92,209$0$483,351
53$763,544$12,758$0$446,750
54$754,811$0$0$417,751
55$742,459$0$0$405,646
56$726,033$0$0$394,732
57$705,029$0$0$381,057
58$678,887$0$0$364,288
59$646,991$0$0$344,057
60$608,655$0$0$319,954
61$563,123$0$0$291,527
62$509,556$0$0$258,278
63$447,029$0$0$219,654
64$374,517$0$0$175,043
65$290,889$0$0$123,771
66$194,893$0$0$65,092
67$85,146$0$0$0
68$0$0$0$0
69$0$0$0$0
70$0$0$0$0
71$0$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$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