Can I retire at age 40 with 649,000?

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 $649,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$53,594$53,116$52,651$52,196$51,752$50,937
2 years$26,532$26,037$25,559$25,094$24,644$23,824
3 years$17,512$17,016$16,538$16,078$15,635$14,837
4 years$13,003$12,508$12,035$11,583$11,151$10,381
5 years$10,299$9,807$9,340$8,897$8,477$7,737
6 years$8,496$8,008$7,548$7,115$6,707$5,998
7 years$7,209$6,725$6,273$5,850$5,455$4,776
8 years$6,244$5,765$5,320$4,907$4,525$3,878
9 years$5,494$5,019$4,582$4,180$3,811$3,194
10 years$4,895$4,424$3,994$3,603$3,247$2,660
11 years$4,404$3,939$3,517$3,136$2,793$2,235
12 years$3,996$3,535$3,121$2,750$2,420$1,891
13 years$3,651$3,195$2,788$2,428$2,110$1,609
14 years$3,355$2,904$2,505$2,156$1,850$1,376
15 years$3,099$2,653$2,262$1,922$1,629$1,181
16 years$2,875$2,434$2,051$1,721$1,440$1,017
17 years$2,678$2,241$1,866$1,547$1,276$878
18 years$2,503$2,071$1,704$1,394$1,135$760
19 years$2,346$1,920$1,560$1,259$1,012$659
20 years$2,206$1,784$1,431$1,141$904$573
21 years$2,079$1,661$1,317$1,035$809$499
22 years$1,963$1,551$1,213$941$725$434
23 years$1,858$1,451$1,120$857$651$379
24 years$1,762$1,359$1,036$782$585$331
25 years$1,673$1,275$960$714$526$289
26 years$1,592$1,199$890$653$474$253
27 years$1,516$1,128$826$598$427$221
28 years$1,446$1,063$768$547$386$194
29 years$1,382$1,003$715$502$348$169
30 years$1,321$947$666$461$315$148
31 years$1,265$895$621$423$284$130
32 years$1,212$847$579$389$257$114
33 years$1,162$802$541$358$233$100
34 years$1,116$760$505$329$211$88
35 years$1,072$721$472$303$191$77
36 years$1,031$685$442$279$173$68
37 years$992$650$414$257$157$59
38 years$955$618$387$237$142$52
39 years$920$588$363$218$129$46
40 years$887$559$340$201$117$40
41 years$856$532$319$186$106$35
42 years$826$507$299$172$96$31
43 years$798$483$281$158$87$27
44 years$771$460$264$146$79$24
45 years$745$439$247$135$72$21
46 years$721$419$232$125$65$18
47 years$698$400$218$115$59$16
48 years$675$381$205$106$54$14
49 years$654$364$193$98$49$12
50 years$634$348$181$91$44$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $649,000, adding $3,687 every year, while hoping to spend $20,943 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: 65/23/12 Blend
39$649,000$649,000$649,000$649,000
40$719,001$684,604$674,545$763,542
41$770,056$695,867$674,859$804,997
42$825,617$706,979$674,481$847,487
43$886,120$717,912$673,367$893,384
44$952,049$728,633$671,469$943,021
45$1,023,931$739,110$668,737$996,762
46$1,102,351$749,306$665,119$1,055,010
47$1,187,951$759,181$660,560$1,118,209
48$1,281,435$768,695$655,002$1,186,847
49$1,383,584$777,802$648,387$1,261,464
50$1,495,251$786,457$640,650$1,342,654
51$1,617,381$794,608$631,726$1,431,071
52$1,751,011$802,201$621,546$1,527,438
53$1,897,284$809,178$610,037$1,632,550
54$2,057,459$815,479$597,125$1,747,285
55$2,232,920$821,039$582,730$1,872,610
56$2,425,196$825,787$566,768$2,009,591
57$2,635,965$829,650$549,155$2,159,404
58$2,867,080$832,550$529,798$2,323,345
59$3,120,580$834,402$508,604$2,502,842
60$3,398,710$835,119$485,473$2,699,471
61$3,703,944$834,605$460,302$2,914,968
62$4,039,007$832,761$432,982$3,151,246
63$4,406,900$829,480$403,401$3,410,418
64$4,810,929$824,650$371,441$3,694,808
65$5,254,736$818,151$336,977$4,006,982
66$5,742,335$809,856$299,881$4,349,767
67$6,278,144$799,630$260,018$4,726,281
68$6,867,034$787,331$217,247$5,139,959
69$7,514,368$772,807$171,423$5,594,590
70$8,226,059$755,900$122,390$6,094,350
71$9,008,616$736,438$69,989$6,643,842
72$9,869,214$714,243$14,053$7,248,141
73$10,815,758$689,124$0$7,912,843
74$11,856,955$660,881$0$8,649,956
75$13,002,401$629,301$0$9,462,737
76$14,262,667$594,159$0$10,356,902
77$15,649,403$555,216$0$11,340,737
78$17,175,442$512,221$0$12,423,374
79$18,854,925$464,909$0$13,614,879
80$20,703,435$412,996$0$14,926,345
81$22,738,140$356,188$0$16,369,998
82$24,977,958$294,169$0$17,959,313
83$27,443,734$226,607$0$19,709,142
84$30,158,437$153,153$0$21,635,852
85$33,147,376$73,436$0$23,757,483
86$36,438,439$0$0$26,093,916
87$40,062,357$0$0$28,670,338
88$44,052,991$0$0$31,528,000
89$48,447,655$0$0$34,675,042
90$53,287,464$0$0$38,140,915
91$58,617,725$0$0$41,958,070
92$64,488,363$0$0$46,162,270
93$70,954,392$0$0$50,792,918
94$78,076,436$0$0$55,893,439
95$85,921,295$0$0$61,511,682
96$94,562,584$0$0$67,700,374
97$104,081,420$0$0$74,517,620
98$114,567,191$0$0$82,027,446
99$126,118,399$0$0$90,300,410
100$138,843,588$0$0$99,414,260