Can I retire at age 40 with 657,000?

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 $657,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$54,254$53,771$53,300$52,839$52,390$51,886
2 years$26,859$26,358$25,874$25,404$24,948$24,440
3 years$17,728$17,226$16,742$16,276$15,828$15,332
4 years$13,163$12,663$12,184$11,726$11,289$10,809
5 years$10,425$9,928$9,455$9,007$8,581$8,119
6 years$8,601$8,107$7,641$7,203$6,790$6,345
7 years$7,298$6,808$6,350$5,922$5,522$5,096
8 years$6,321$5,836$5,385$4,968$4,581$4,173
9 years$5,562$5,081$4,638$4,231$3,858$3,467
10 years$4,955$4,479$4,044$3,647$3,287$2,914
11 years$4,459$3,987$3,560$3,174$2,827$2,471
12 years$4,045$3,579$3,159$2,784$2,450$2,111
13 years$3,696$3,234$2,823$2,458$2,136$1,814
14 years$3,396$2,940$2,536$2,182$1,873$1,567
15 years$3,137$2,685$2,290$1,946$1,649$1,359
16 years$2,911$2,464$2,076$1,742$1,457$1,182
17 years$2,711$2,269$1,889$1,566$1,292$1,032
18 years$2,534$2,097$1,725$1,411$1,149$903
19 years$2,375$1,943$1,579$1,275$1,024$792
20 years$2,233$1,806$1,449$1,155$915$695
21 years$2,104$1,682$1,333$1,048$819$612
22 years$1,987$1,570$1,228$953$734$539
23 years$1,881$1,468$1,134$868$659$476
24 years$1,783$1,376$1,049$791$592$420
25 years$1,694$1,291$971$723$533$372
26 years$1,611$1,213$901$661$480$329
27 years$1,535$1,142$837$605$433$291
28 years$1,464$1,076$778$554$390$258
29 years$1,399$1,015$724$508$352$229
30 years$1,337$959$674$466$318$203
31 years$1,280$906$629$428$288$180
32 years$1,227$858$586$394$260$160
33 years$1,177$812$548$362$236$142
34 years$1,130$770$512$333$213$126
35 years$1,085$730$478$307$193$112
36 years$1,043$693$447$282$175$100
37 years$1,004$658$419$260$159$88
38 years$967$625$392$240$144$79
39 years$932$595$367$221$131$70
40 years$898$566$344$204$118$62
41 years$867$539$323$188$107$55
42 years$836$513$303$174$97$49
43 years$808$489$284$160$88$44
44 years$781$466$267$148$80$39
45 years$755$444$251$137$73$35
46 years$730$424$235$126$66$31
47 years$706$404$221$117$60$27
48 years$684$386$208$108$55$24
49 years$662$369$195$100$50$22
50 years$641$352$184$92$45$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $657,000, adding $5,552 every year, while hoping to spend $46,204 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: 55/30/15 Blend
39$657,000$657,000$657,000$657,000
40$729,741$694,920$684,736$766,704
41$755,014$679,810$658,514$777,364
42$781,316$662,412$629,865$783,506
43$808,704$642,563$598,659$789,143
44$837,237$620,095$564,760$794,236
45$866,981$594,825$528,026$798,746
46$898,007$566,565$488,308$802,633
47$930,388$535,111$445,451$805,854
48$964,207$500,251$399,293$808,367
49$999,552$461,759$349,665$810,128
50$1,036,517$419,396$296,389$811,092
51$1,075,205$372,910$239,282$811,214
52$1,115,728$322,035$178,150$810,448
53$1,158,206$266,488$112,792$808,746
54$1,202,770$205,973$42,997$806,063
55$1,249,562$140,176$0$802,351
56$1,298,737$68,763$0$802,604
57$1,350,461$0$0$809,408
58$1,404,917$0$0$818,712
59$1,462,305$0$0$852,461
60$1,522,840$0$0$888,086
61$1,586,757$0$0$925,727
62$1,654,315$0$0$965,539
63$1,725,794$0$0$1,007,692
64$1,801,500$0$0$1,052,371
65$1,881,767$0$0$1,099,776
66$1,966,962$0$0$1,150,129
67$2,057,484$0$0$1,203,670
68$2,153,772$0$0$1,260,663
69$2,256,303$0$0$1,321,398
70$2,365,601$0$0$1,386,190
71$2,482,242$0$0$1,455,387
72$2,606,853$0$0$1,529,367
73$2,740,125$0$0$1,608,548
74$2,882,812$0$0$1,693,385
75$3,035,744$0$0$1,784,380
76$3,199,831$0$0$1,882,081
77$3,376,068$0$0$1,987,093
78$3,565,553$0$0$2,100,077
79$3,769,487$0$0$2,221,759
80$3,989,189$0$0$2,352,939
81$4,226,110$0$0$2,494,492
82$4,481,844$0$0$2,647,383
83$4,758,139$0$0$2,812,670
84$5,056,919$0$0$2,991,516
85$5,380,298$0$0$3,185,202
86$5,730,601$0$0$3,395,133
87$6,110,382$0$0$3,622,856
88$6,522,452$0$0$3,870,071
89$6,969,900$0$0$4,138,649
90$7,456,126$0$0$4,430,647
91$7,984,869$0$0$4,748,330
92$8,560,243$0$0$5,094,188
93$9,186,773$0$0$5,470,962
94$9,869,442$0$0$5,881,667
95$10,613,729$0$0$6,329,624
96$11,425,668$0$0$6,818,484
97$12,311,900$0$0$7,352,271
98$13,279,732$0$0$7,935,410
99$14,337,212$0$0$8,572,775
100$15,493,198$0$0$9,269,732