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%11.6%
1 years$51,612$51,152$50,704$50,266$49,838$49,504
2 years$25,550$25,075$24,613$24,166$23,733$23,395
3 years$16,864$16,387$15,927$15,484$15,057$14,727
4 years$12,522$12,046$11,590$11,155$10,739$10,419
5 years$9,918$9,444$8,995$8,568$8,163$7,855
6 years$8,182$7,712$7,269$6,852$6,459$6,162
7 years$6,942$6,476$6,041$5,633$5,253$4,967
8 years$6,013$5,551$5,123$4,726$4,358$4,084
9 years$5,291$4,834$4,412$4,025$3,670$3,408
10 years$4,714$4,261$3,847$3,470$3,127$2,876
11 years$4,241$3,793$3,387$3,020$2,689$2,450
12 years$3,848$3,404$3,006$2,649$2,331$2,102
13 years$3,516$3,076$2,685$2,338$2,032$1,814
14 years$3,231$2,796$2,413$2,076$1,782$1,574
15 years$2,984$2,555$2,178$1,851$1,569$1,371
16 years$2,769$2,344$1,975$1,658$1,386$1,199
17 years$2,579$2,159$1,797$1,489$1,229$1,052
18 years$2,410$1,995$1,641$1,342$1,093$925
19 years$2,260$1,849$1,502$1,213$974$815
20 years$2,124$1,718$1,378$1,098$870$720
21 years$2,002$1,600$1,268$997$779$637
22 years$1,891$1,494$1,168$906$698$564
23 years$1,789$1,397$1,079$825$627$500
24 years$1,697$1,309$998$753$563$444
25 years$1,611$1,228$924$688$507$395
26 years$1,533$1,154$857$629$456$351
27 years$1,460$1,086$796$575$412$313
28 years$1,393$1,024$740$527$371$279
29 years$1,330$966$689$483$335$248
30 years$1,272$912$641$444$303$222
31 years$1,218$862$598$408$274$198
32 years$1,167$816$558$375$248$177
33 years$1,119$773$521$344$224$158
34 years$1,074$732$487$317$203$141
35 years$1,032$695$455$292$184$126
36 years$993$659$426$269$167$113
37 years$955$626$398$248$151$101
38 years$920$595$373$228$137$90
39 years$886$566$350$210$124$81
40 years$854$538$328$194$113$72
41 years$824$512$307$179$102$65
42 years$796$488$288$165$93$58
43 years$768$465$270$153$84$52
44 years$743$443$254$141$76$46
45 years$718$423$238$130$69$41
46 years$694$403$224$120$63$37
47 years$672$385$210$111$57$33
48 years$650$367$198$103$52$30
49 years$630$351$186$95$47$27
50 years$610$335$175$88$43$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $6,841 every year, while hoping to spend $38,879 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: 61/24/15 Blend
39$625,000$625,000$625,000$625,000
40$695,806$662,681$652,994$735,245
41$725,412$653,786$633,502$753,710
42$756,734$643,151$612,055$768,866
43$789,907$630,652$588,544$784,480
44$825,076$616,153$562,860$800,600
45$862,404$599,514$534,885$817,279
46$902,063$580,584$504,498$834,579
47$944,246$559,205$471,571$852,568
48$989,162$535,209$435,972$871,326
49$1,037,040$508,419$397,561$890,939
50$1,088,132$478,645$356,193$911,507
51$1,142,713$445,690$311,717$933,142
52$1,201,084$409,343$263,974$955,969
53$1,263,576$369,383$212,798$980,128
54$1,330,552$325,573$158,018$1,005,778
55$1,402,410$277,667$99,453$1,033,096
56$1,479,585$225,403$36,914$1,062,280
57$1,562,557$168,502$0$1,093,553
58$1,651,852$106,672$0$1,131,936
59$1,748,047$39,606$0$1,179,547
60$1,851,777$0$0$1,230,818
61$1,963,738$0$0$1,294,851
62$2,084,697$0$0$1,375,368
63$2,215,494$0$0$1,462,473
64$2,357,054$0$0$1,556,788
65$2,510,394$0$0$1,658,994
66$2,676,632$0$0$1,769,844
67$2,856,997$0$0$1,890,161
68$3,052,840$0$0$2,020,854
69$3,265,649$0$0$2,162,922
70$3,497,060$0$0$2,317,463
71$3,748,870$0$0$2,485,685
72$4,023,062$0$0$2,668,919
73$4,321,813$0$0$2,868,629
74$4,647,521$0$0$3,086,424
75$5,002,826$0$0$3,324,078
76$5,390,631$0$0$3,583,542
77$5,814,134$0$0$3,866,965
78$6,276,854$0$0$4,176,710
79$6,782,667$0$0$4,515,382
80$7,335,838$0$0$4,885,847
81$7,941,065$0$0$5,291,261
82$8,603,520$0$0$5,735,099
83$9,328,897$0$0$6,221,189
84$10,123,470$0$0$6,753,746
85$10,994,144$0$0$7,337,409
86$11,948,527$0$0$7,977,293
87$12,994,995$0$0$8,679,025
88$14,142,776$0$0$9,448,808
89$15,402,033$0$0$10,293,471
90$16,783,961$0$0$11,220,537
91$18,300,888$0$0$12,238,294
92$19,966,399$0$0$13,355,870
93$21,795,455$0$0$14,583,321
94$23,804,538$0$0$15,931,724
95$26,011,804$0$0$17,413,282
96$28,437,256$0$0$19,041,440
97$31,102,931$0$0$20,831,008
98$34,033,104$0$0$22,798,304
99$37,254,521$0$0$24,961,303
100$40,796,650$0$0$27,339,811