Can I retire at age 40 with 623,000?

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 $623,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.1%
1 years$51,447$50,988$50,541$50,105$49,679$47,859
2 years$25,469$24,994$24,535$24,089$23,657$21,844
3 years$16,810$16,334$15,876$15,434$15,009$13,259
4 years$12,482$12,007$11,553$11,119$10,704$9,032
5 years$9,886$9,414$8,966$8,541$8,137$6,546
6 years$8,156$7,687$7,246$6,830$6,439$4,930
7 years$6,920$6,456$6,021$5,615$5,236$3,810
8 years$5,994$5,534$5,106$4,711$4,344$2,999
9 years$5,274$4,818$4,398$4,012$3,658$2,392
10 years$4,698$4,247$3,834$3,459$3,117$1,927
11 years$4,228$3,781$3,376$3,010$2,681$1,565
12 years$3,836$3,393$2,996$2,640$2,323$1,279
13 years$3,504$3,067$2,677$2,331$2,026$1,050
14 years$3,221$2,787$2,405$2,069$1,776$866
15 years$2,975$2,546$2,171$1,845$1,564$716
16 years$2,760$2,336$1,969$1,652$1,382$594
17 years$2,571$2,152$1,791$1,485$1,225$494
18 years$2,403$1,988$1,635$1,338$1,089$411
19 years$2,252$1,843$1,497$1,209$971$342
20 years$2,117$1,712$1,374$1,095$867$286
21 years$1,995$1,595$1,264$994$776$239
22 years$1,885$1,489$1,165$903$696$200
23 years$1,784$1,392$1,075$823$625$167
24 years$1,691$1,305$995$750$561$140
25 years$1,606$1,224$921$685$505$117
26 years$1,528$1,151$854$627$455$98
27 years$1,456$1,083$793$574$410$82
28 years$1,389$1,020$738$526$370$69
29 years$1,326$963$686$482$334$58
30 years$1,268$909$639$442$302$49
31 years$1,214$859$596$406$273$41
32 years$1,163$813$556$373$247$34
33 years$1,116$770$519$343$224$29
34 years$1,071$730$485$316$202$24
35 years$1,029$692$454$291$183$20
36 years$989$657$424$268$166$17
37 years$952$624$397$247$151$14
38 years$917$593$372$227$136$12
39 years$883$564$348$210$124$10
40 years$852$537$327$193$112$8
41 years$822$511$306$178$102$7
42 years$793$486$287$165$92$6
43 years$766$463$270$152$84$5
44 years$740$442$253$140$76$4
45 years$716$421$238$130$69$4
46 years$692$402$223$120$63$3
47 years$670$384$210$111$57$2
48 years$648$366$197$102$52$2
49 years$628$350$185$94$47$2
50 years$608$334$174$87$43$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $623,000, adding $4,629 every year, while hoping to spend $25,287 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: 20/50/30 Blend
39$623,000$623,000$623,000$623,000
40$691,321$658,302$648,645$698,497
41$734,930$663,653$643,470$711,051
42$782,141$668,420$637,273$722,082
43$833,292$672,545$629,995$733,311
44$888,759$675,972$621,571$744,770
45$948,954$678,635$611,935$756,498
46$1,014,329$680,470$601,017$768,536
47$1,085,382$681,405$588,743$780,936
48$1,162,663$681,365$575,037$793,754
49$1,246,773$680,271$559,819$807,057
50$1,338,375$678,036$543,005$820,921
51$1,438,201$674,571$524,507$835,432
52$1,547,054$669,781$504,234$850,688
53$1,665,817$663,564$482,090$866,803
54$1,795,465$655,813$457,974$883,902
55$1,937,068$646,414$431,782$902,130
56$2,091,807$635,246$403,404$921,650
57$2,260,979$622,181$372,727$942,646
58$2,446,015$607,084$339,629$965,324
59$2,648,488$589,811$303,986$989,917
60$2,870,133$570,211$265,669$1,016,689
61$3,112,858$548,122$224,540$1,045,932
62$3,378,765$523,375$180,457$1,077,977
63$3,670,168$495,790$133,272$1,113,193
64$3,989,618$465,177$82,830$1,151,996
65$4,339,923$431,334$28,968$1,194,848
66$4,724,174$394,049$0$1,242,266
67$5,145,779$353,096$0$1,303,956
68$5,608,489$308,239$0$1,381,926
69$6,116,438$259,226$0$1,467,670
70$6,674,178$205,791$0$1,562,055
71$7,286,724$147,654$0$1,666,036
72$7,959,601$84,520$0$1,780,676
73$8,698,894$16,076$0$1,907,152
74$9,511,309$0$0$2,046,767
75$10,404,232$0$0$2,232,884
76$11,385,800$0$0$2,447,325
77$12,464,979$0$0$2,683,220
78$13,651,646$0$0$2,942,743
79$14,956,683$0$0$3,228,291
80$16,392,079$0$0$3,542,506
81$17,971,045$0$0$3,888,295
82$19,708,135$0$0$4,268,865
83$21,619,385$0$0$4,687,748
84$23,722,466$0$0$5,148,837
85$26,036,844$0$0$5,656,418
86$28,583,972$0$0$6,215,219
87$31,387,485$0$0$6,830,446
88$34,473,427$0$0$7,507,836
89$37,870,494$0$0$8,253,711
90$41,610,306$0$0$9,075,038
91$45,727,705$0$0$9,979,492
92$50,261,083$0$0$10,975,534
93$55,252,744$0$0$12,072,482
94$60,749,302$0$0$13,280,609
95$66,802,125$0$0$14,611,233
96$73,467,811$0$0$16,076,823
97$80,808,732$0$0$17,691,124
98$88,893,613$0$0$19,469,280
99$97,798,187$0$0$21,427,978
100$107,605,907$0$0$23,585,607