Can I retire at age 40 with 625,000?

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 $625,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.2%
1 years$51,612$51,152$50,704$50,266$49,838$48,772
2 years$25,550$25,075$24,613$24,166$23,733$22,664
3 years$16,864$16,387$15,927$15,484$15,057$14,019
4 years$12,522$12,046$11,590$11,155$10,739$9,739
5 years$9,918$9,444$8,995$8,568$8,163$7,205
6 years$8,182$7,712$7,269$6,852$6,459$5,544
7 years$6,942$6,476$6,041$5,633$5,253$4,380
8 years$6,013$5,551$5,123$4,726$4,358$3,527
9 years$5,291$4,834$4,412$4,025$3,670$2,881
10 years$4,714$4,261$3,847$3,470$3,127$2,379
11 years$4,241$3,793$3,387$3,020$2,689$1,981
12 years$3,848$3,404$3,006$2,649$2,331$1,661
13 years$3,516$3,076$2,685$2,338$2,032$1,401
14 years$3,231$2,796$2,413$2,076$1,782$1,186
15 years$2,984$2,555$2,178$1,851$1,569$1,008
16 years$2,769$2,344$1,975$1,658$1,386$860
17 years$2,579$2,159$1,797$1,489$1,229$735
18 years$2,410$1,995$1,641$1,342$1,093$630
19 years$2,260$1,849$1,502$1,213$974$541
20 years$2,124$1,718$1,378$1,098$870$465
21 years$2,002$1,600$1,268$997$779$400
22 years$1,891$1,494$1,168$906$698$345
23 years$1,789$1,397$1,079$825$627$298
24 years$1,697$1,309$998$753$563$257
25 years$1,611$1,228$924$688$507$222
26 years$1,533$1,154$857$629$456$192
27 years$1,460$1,086$796$575$412$166
28 years$1,393$1,024$740$527$371$144
29 years$1,330$966$689$483$335$124
30 years$1,272$912$641$444$303$108
31 years$1,218$862$598$408$274$93
32 years$1,167$816$558$375$248$81
33 years$1,119$773$521$344$224$70
34 years$1,074$732$487$317$203$61
35 years$1,032$695$455$292$184$53
36 years$993$659$426$269$167$46
37 years$955$626$398$248$151$40
38 years$920$595$373$228$137$34
39 years$886$566$350$210$124$30
40 years$854$538$328$194$113$26
41 years$824$512$307$179$102$22
42 years$796$488$288$165$93$20
43 years$768$465$270$153$84$17
44 years$743$443$254$141$76$15
45 years$718$423$238$130$69$13
46 years$694$403$224$120$63$11
47 years$672$385$210$111$57$10
48 years$650$367$198$103$52$8
49 years$630$351$186$95$47$7
50 years$610$335$175$88$43$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $2,853 every year, while hoping to spend $38,863 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: 57/34/9 Blend
39$625,000$625,000$625,000$625,000
40$691,693$658,568$648,880$729,491
41$720,896$649,488$629,268$746,219
42$751,775$638,660$607,696$759,848
43$784,460$625,959$584,058$773,754
44$819,092$611,249$558,242$787,969
45$855,829$594,388$530,132$802,528
46$894,837$575,227$499,605$817,472
47$936,303$553,607$466,535$832,849
48$980,431$529,357$430,788$848,716
49$1,027,440$502,302$392,225$865,134
50$1,077,576$472,251$350,701$882,175
51$1,131,103$439,006$306,064$899,923
52$1,188,314$402,356$258,155$918,470
53$1,249,528$362,077$206,810$937,922
54$1,315,096$317,936$151,855$958,400
55$1,385,403$269,682$93,109$980,040
56$1,460,871$217,052$30,385$1,002,995
57$1,541,962$159,770$0$1,027,440
58$1,629,185$97,542$0$1,057,081
59$1,723,098$30,058$0$1,091,969
60$1,824,314$0$0$1,129,452
61$1,933,506$0$0$1,185,921
62$2,051,414$0$0$1,259,083
63$2,178,849$0$0$1,338,201
64$2,316,707$0$0$1,423,837
65$2,465,967$0$0$1,516,605
66$2,627,710$0$0$1,617,182
67$2,803,123$0$0$1,726,315
68$2,993,511$0$0$1,844,820
69$3,200,309$0$0$1,973,599
70$3,425,096$0$0$2,113,643
71$3,669,610$0$0$2,266,041
72$3,935,762$0$0$2,431,993
73$4,225,654$0$0$2,612,819
74$4,541,602$0$0$2,809,972
75$4,886,151$0$0$3,025,049
76$5,262,105$0$0$3,259,811
77$5,672,551$0$0$3,516,194
78$6,120,883$0$0$3,796,330
79$6,610,842$0$0$4,102,567
80$7,146,545$0$0$4,437,489
81$7,732,522$0$0$4,803,942
82$8,373,766$0$0$5,205,058
83$9,075,772$0$0$5,644,289
84$9,844,590$0$0$6,125,432
85$10,686,885$0$0$6,652,674
86$11,609,996$0$0$7,230,620
87$12,622,005$0$0$7,864,348
88$13,731,815$0$0$8,559,447
89$14,949,230$0$0$9,322,073
90$16,285,049$0$0$10,159,008
91$17,751,168$0$0$11,077,722
92$19,360,690$0$0$12,086,444
93$21,128,049$0$0$13,194,237
94$23,069,144$0$0$14,411,087
95$25,201,491$0$0$15,747,993
96$27,544,385$0$0$17,217,073
97$30,119,083$0$0$18,831,677
98$32,949,004$0$0$20,606,513
99$36,059,946$0$0$22,557,783
100$39,480,334$0$0$24,703,338