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%13.6%
1 years$51,612$51,152$50,704$50,266$49,838$49,094
2 years$25,550$25,075$24,613$24,166$23,733$22,984
3 years$16,864$16,387$15,927$15,484$15,057$14,328
4 years$12,522$12,046$11,590$11,155$10,739$10,034
5 years$9,918$9,444$8,995$8,568$8,163$7,486
6 years$8,182$7,712$7,269$6,852$6,459$5,810
7 years$6,942$6,476$6,041$5,633$5,253$4,632
8 years$6,013$5,551$5,123$4,726$4,358$3,765
9 years$5,291$4,834$4,412$4,025$3,670$3,104
10 years$4,714$4,261$3,847$3,470$3,127$2,589
11 years$4,241$3,793$3,387$3,020$2,689$2,178
12 years$3,848$3,404$3,006$2,649$2,331$1,845
13 years$3,516$3,076$2,685$2,338$2,032$1,572
14 years$3,231$2,796$2,413$2,076$1,782$1,346
15 years$2,984$2,555$2,178$1,851$1,569$1,157
16 years$2,769$2,344$1,975$1,658$1,386$998
17 years$2,579$2,159$1,797$1,489$1,229$863
18 years$2,410$1,995$1,641$1,342$1,093$748
19 years$2,260$1,849$1,502$1,213$974$650
20 years$2,124$1,718$1,378$1,098$870$565
21 years$2,002$1,600$1,268$997$779$493
22 years$1,891$1,494$1,168$906$698$430
23 years$1,789$1,397$1,079$825$627$376
24 years$1,697$1,309$998$753$563$328
25 years$1,611$1,228$924$688$507$287
26 years$1,533$1,154$857$629$456$252
27 years$1,460$1,086$796$575$412$221
28 years$1,393$1,024$740$527$371$193
29 years$1,330$966$689$483$335$170
30 years$1,272$912$641$444$303$149
31 years$1,218$862$598$408$274$131
32 years$1,167$816$558$375$248$115
33 years$1,119$773$521$344$224$101
34 years$1,074$732$487$317$203$89
35 years$1,032$695$455$292$184$78
36 years$993$659$426$269$167$68
37 years$955$626$398$248$151$60
38 years$920$595$373$228$137$53
39 years$886$566$350$210$124$47
40 years$854$538$328$194$113$41
41 years$824$512$307$179$102$36
42 years$796$488$288$165$93$32
43 years$768$465$270$153$84$28
44 years$743$443$254$141$76$25
45 years$718$423$238$130$69$22
46 years$694$403$224$120$63$19
47 years$672$385$210$111$57$17
48 years$650$367$198$103$52$15
49 years$630$351$186$95$47$13
50 years$610$335$175$88$43$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $625,000, adding $4,094 every year, while hoping to spend $22,116 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: 64/12/24 Blend
39$625,000$625,000$625,000$625,000
40$692,973$659,848$650,160$732,733
41$740,125$668,649$648,410$768,860
42$791,345$677,141$645,859$805,480
43$847,025$685,283$642,458$844,992
44$907,596$693,037$638,155$887,682
45$973,532$700,356$632,894$933,866
46$1,045,354$707,195$626,617$983,891
47$1,123,636$713,504$619,265$1,038,141
48$1,209,010$719,229$610,773$1,097,039
49$1,302,171$724,313$601,077$1,161,051
50$1,403,885$728,697$590,105$1,230,694
51$1,514,993$732,315$577,786$1,306,534
52$1,636,424$735,100$564,043$1,389,198
53$1,769,199$736,979$548,798$1,479,379
54$1,914,441$737,875$531,966$1,577,838
55$2,073,388$737,705$513,461$1,685,417
56$2,247,403$736,383$493,192$1,803,043
57$2,437,988$733,815$471,064$1,931,741
58$2,646,795$729,904$446,977$2,072,638
59$2,875,645$724,546$420,827$2,226,979
60$3,126,541$717,630$392,505$2,396,139
61$3,401,693$709,038$361,899$2,581,631
62$3,703,533$698,648$328,889$2,785,126
63$4,034,738$686,326$293,352$3,008,465
64$4,398,259$671,935$255,158$3,253,680
65$4,797,347$655,325$214,171$3,523,012
66$5,235,582$636,341$170,251$3,818,930
67$5,716,907$614,818$123,250$4,144,159
68$6,245,668$590,579$73,015$4,501,703
69$6,826,649$563,441$19,384$4,894,874
70$7,465,124$533,206$0$5,327,325
71$8,166,901$499,668$0$5,812,776
72$8,938,380$462,607$0$6,351,903
73$9,786,612$421,791$0$6,944,678
74$10,719,363$376,976$0$7,596,550
75$11,745,192$327,902$0$8,313,521
76$12,873,528$274,295$0$9,102,206
77$14,114,759$215,868$0$9,969,897
78$15,480,333$152,313$0$10,924,626
79$16,982,859$83,309$0$11,975,247
80$18,636,235$8,515$0$13,131,518
81$20,455,770$0$0$14,404,191
82$22,458,335$0$0$15,814,681
83$24,662,518$0$0$17,368,468
84$27,088,801$0$0$19,078,873
85$29,759,752$0$0$20,961,812
86$32,700,239$0$0$23,034,824
87$35,937,663$0$0$25,317,232
88$39,502,216$0$0$27,830,330
89$43,427,170$0$0$30,597,584
90$47,749,185$0$0$33,644,846
91$52,508,657$0$0$37,000,608
92$57,750,101$0$0$40,696,263
93$63,522,566$0$0$44,766,406
94$69,880,106$0$0$49,249,155
95$76,882,278$0$0$54,186,517
96$84,594,716$0$0$59,624,779
97$93,089,741$0$0$65,614,948
98$102,447,050$0$0$72,213,230
99$112,754,462$0$0$79,481,561
100$124,108,751$0$0$87,488,194