Can I retire at age 40 with 675,000?

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 $675,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$55,741$55,244$54,760$54,287$53,825$53,374
2 years$27,594$27,081$26,582$26,100$25,631$25,177
3 years$18,214$17,697$17,201$16,722$16,261$15,817
4 years$13,524$13,009$12,518$12,047$11,598$11,168
5 years$10,711$10,200$9,714$9,254$8,816$8,402
6 years$8,836$8,329$7,851$7,400$6,976$6,577
7 years$7,498$6,994$6,524$6,084$5,673$5,290
8 years$6,494$5,996$5,533$5,104$4,707$4,339
9 years$5,714$5,220$4,765$4,347$3,964$3,612
10 years$5,091$4,601$4,155$3,747$3,377$3,041
11 years$4,581$4,096$3,658$3,261$2,905$2,584
12 years$4,156$3,677$3,246$2,861$2,517$2,212
13 years$3,797$3,323$2,900$2,526$2,195$1,904
14 years$3,489$3,020$2,606$2,242$1,924$1,648
15 years$3,223$2,759$2,353$1,999$1,694$1,432
16 years$2,991$2,531$2,133$1,790$1,497$1,248
17 years$2,785$2,331$1,941$1,608$1,328$1,092
18 years$2,603$2,154$1,772$1,450$1,180$957
19 years$2,440$1,996$1,622$1,310$1,052$841
20 years$2,294$1,855$1,489$1,186$940$741
21 years$2,162$1,728$1,369$1,077$841$653
22 years$2,042$1,613$1,262$979$754$577
23 years$1,932$1,509$1,165$892$677$510
24 years$1,832$1,414$1,078$813$608$452
25 years$1,740$1,327$998$743$547$400
26 years$1,655$1,247$926$679$493$355
27 years$1,577$1,173$860$621$444$315
28 years$1,504$1,106$799$569$401$280
29 years$1,437$1,043$744$522$362$249
30 years$1,374$985$693$479$327$221
31 years$1,315$931$646$440$296$197
32 years$1,260$881$602$404$268$175
33 years$1,209$834$563$372$242$156
34 years$1,160$791$526$342$219$139
35 years$1,115$750$491$315$199$124
36 years$1,072$712$460$290$180$110
37 years$1,032$676$430$267$163$98
38 years$993$643$403$246$148$88
39 years$957$611$378$227$134$78
40 years$923$581$354$210$122$70
41 years$890$553$332$193$110$62
42 years$859$527$311$178$100$55
43 years$830$502$292$165$91$49
44 years$802$479$274$152$82$44
45 years$775$456$257$140$75$39
46 years$750$435$242$130$68$35
47 years$726$416$227$120$62$31
48 years$702$397$213$111$56$28
49 years$680$379$201$102$51$25
50 years$659$362$189$95$46$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $675,000, adding $4,797 every year, while hoping to spend $40,978 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: 60/31/9 Blend
39$675,000$675,000$675,000$675,000
40$748,798$713,023$702,561$791,929
41$781,575$704,361$682,496$812,773
42$816,322$693,901$660,386$830,399
43$853,197$681,512$636,119$848,607
44$892,371$667,054$609,577$867,455
45$934,034$650,381$580,639$887,008
46$978,392$631,336$549,176$907,341
47$1,025,670$609,754$515,056$928,537
48$1,076,117$585,460$478,139$950,690
49$1,130,002$558,269$438,278$973,904
50$1,187,624$527,986$395,322$998,300
51$1,249,308$494,403$349,111$1,024,011
52$1,315,410$457,302$299,480$1,051,185
53$1,386,323$416,451$246,253$1,079,991
54$1,462,477$371,606$189,252$1,110,617
55$1,544,343$322,508$128,285$1,143,273
56$1,632,439$268,884$63,156$1,178,194
57$1,727,334$210,445$0$1,215,644
58$1,829,652$146,887$0$1,256,527
59$1,940,080$77,888$0$1,307,072
60$2,059,372$3,108$0$1,361,597
61$2,188,355$0$0$1,420,533
62$2,327,941$0$0$1,510,902
63$2,479,130$0$0$1,609,976
64$2,643,024$0$0$1,717,422
65$2,820,831$0$0$1,834,038
66$3,013,885$0$0$1,960,706
67$3,223,647$0$0$2,098,390
68$3,451,729$0$0$2,248,156
69$3,699,902$0$0$2,411,173
70$3,970,117$0$0$2,588,730
71$4,264,517$0$0$2,782,243
72$4,585,463$0$0$2,993,273
73$4,935,554$0$0$3,223,536
74$5,317,649$0$0$3,474,922
75$5,734,896$0$0$3,749,511
76$6,190,759$0$0$4,049,592
77$6,689,054$0$0$4,377,687
78$7,233,981$0$0$4,736,571
79$7,830,163$0$0$5,129,301
80$8,482,693$0$0$5,559,242
81$9,197,177$0$0$6,030,099
82$9,979,790$0$0$6,545,954
83$10,837,331$0$0$7,111,301
84$11,777,289$0$0$7,731,089
85$12,807,911$0$0$8,410,771
86$13,938,281$0$0$9,156,350
87$15,178,403$0$0$9,974,440
88$16,539,298$0$0$10,872,326
89$18,033,104$0$0$11,858,031
90$19,673,192$0$0$12,940,396
91$21,474,292$0$0$14,129,156
92$23,452,629$0$0$15,435,039
93$25,626,077$0$0$16,869,859
94$28,014,326$0$0$18,446,636
95$30,639,071$0$0$20,179,709
96$33,524,209$0$0$22,084,879
97$36,696,069$0$0$24,179,551
98$40,183,659$0$0$26,482,903
99$44,018,939$0$0$29,016,064
100$48,237,118$0$0$31,802,312