Can I retire at age 40 with 700,000?

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 $700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$57,805$57,290$56,788$56,298$55,819$54,315
2 years$28,617$28,084$27,567$27,066$26,580$25,076
3 years$18,888$18,353$17,838$17,342$16,864$15,406
4 years$14,025$13,491$12,981$12,494$12,027$10,628
5 years$11,108$10,577$10,074$9,596$9,143$7,805
6 years$9,164$8,637$8,141$7,674$7,235$5,959
7 years$7,776$7,254$6,765$6,309$5,884$4,671
8 years$6,735$6,218$5,738$5,293$4,881$3,731
9 years$5,926$5,414$4,942$4,508$4,111$3,022
10 years$5,279$4,772$4,308$3,886$3,502$2,474
11 years$4,750$4,248$3,793$3,382$3,012$2,042
12 years$4,310$3,813$3,366$2,967$2,610$1,696
13 years$3,938$3,446$3,008$2,619$2,276$1,417
14 years$3,619$3,132$2,702$2,325$1,995$1,189
15 years$3,343$2,861$2,440$2,073$1,757$1,001
16 years$3,101$2,625$2,212$1,857$1,553$845
17 years$2,889$2,418$2,013$1,668$1,377$715
18 years$2,700$2,234$1,837$1,503$1,224$606
19 years$2,531$2,070$1,682$1,358$1,091$515
20 years$2,379$1,924$1,544$1,230$975$438
21 years$2,242$1,792$1,420$1,117$872$373
22 years$2,117$1,673$1,309$1,015$782$318
23 years$2,004$1,565$1,208$925$702$272
24 years$1,900$1,466$1,118$843$631$232
25 years$1,805$1,376$1,035$770$568$198
26 years$1,717$1,293$960$704$511$169
27 years$1,635$1,217$891$645$461$145
28 years$1,560$1,147$829$591$416$124
29 years$1,490$1,082$771$542$376$106
30 years$1,425$1,021$718$497$339$91
31 years$1,364$966$670$456$307$78
32 years$1,307$914$625$419$278$67
33 years$1,254$865$583$386$251$57
34 years$1,203$820$545$355$227$49
35 years$1,156$778$510$327$206$42
36 years$1,112$738$477$301$187$36
37 years$1,070$701$446$277$169$31
38 years$1,030$666$418$256$153$26
39 years$993$634$391$236$139$23
40 years$957$603$367$217$126$19
41 years$923$574$344$201$114$17
42 years$891$547$323$185$104$14
43 years$861$521$303$171$94$12
44 years$832$496$284$158$86$10
45 years$804$473$267$146$78$9
46 years$778$452$251$135$70$8
47 years$753$431$236$124$64$7
48 years$728$411$221$115$58$6
49 years$705$393$208$106$53$5
50 years$683$375$196$98$48$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $700,000, adding $6,890 every year, while hoping to spend $34,111 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: 37/40/23 Blend
39$700,000$700,000$700,000$700,000
40$778,507$741,407$730,557$801,718
41$821,621$741,442$718,737$819,325
42$867,989$740,336$705,377$834,666
43$917,908$737,996$690,391$850,552
44$971,701$734,325$673,687$867,054
45$1,029,728$729,219$655,168$884,251
46$1,092,378$722,569$634,734$902,232
47$1,160,084$714,258$612,281$921,101
48$1,233,318$704,163$587,698$940,972
49$1,312,603$692,153$560,872$961,975
50$1,398,508$678,089$531,681$984,258
51$1,491,665$661,824$500,002$1,007,985
52$1,592,765$643,204$465,702$1,033,343
53$1,702,570$622,063$428,645$1,060,539
54$1,821,915$598,227$388,688$1,089,810
55$1,951,723$571,513$345,682$1,121,417
56$2,093,006$541,724$299,469$1,155,654
57$2,246,880$508,656$249,889$1,192,852
58$2,414,571$472,089$196,769$1,233,378
59$2,597,429$431,794$139,933$1,277,645
60$2,796,941$387,526$79,195$1,326,111
61$3,014,743$339,028$14,362$1,379,291
62$3,252,634$286,028$0$1,437,755
63$3,512,597$228,238$0$1,515,597
64$3,796,815$165,355$0$1,604,708
65$4,107,690$97,057$0$1,702,404
66$4,447,868$23,006$0$1,809,620
67$4,820,261$0$0$1,927,395
68$5,228,078$0$0$2,082,036
69$5,674,851$0$0$2,262,638
70$6,164,470$0$0$2,460,662
71$6,701,220$0$0$2,677,852
72$7,289,820$0$0$2,916,131
73$7,935,467$0$0$3,177,616
74$8,643,885$0$0$3,464,640
75$9,421,381$0$0$3,779,772
76$10,274,899$0$0$4,125,842
77$11,212,092$0$0$4,505,968
78$12,241,386$0$0$4,923,584
79$13,372,067$0$0$5,382,475
80$14,614,362$0$0$5,886,808
81$15,979,538$0$0$6,441,175
82$17,480,010$0$0$7,050,637
83$19,129,453$0$0$7,720,766
84$20,942,933$0$0$8,457,703
85$22,937,050$0$0$9,268,215
86$25,130,092$0$0$10,159,755
87$27,542,208$0$0$11,140,538
88$30,195,599$0$0$12,219,611
89$33,114,724$0$0$13,406,947
90$36,326,534$0$0$14,713,530
91$39,860,722$0$0$16,151,465
92$43,750,008$0$0$17,734,090
93$48,030,442$0$0$19,476,101
94$52,741,744$0$0$21,393,690
95$57,927,683$0$0$23,504,702
96$63,636,486$0$0$25,828,795
97$69,921,292$0$0$28,387,634
98$76,840,656$0$0$31,205,090
99$84,459,098$0$0$34,307,467
100$92,847,713$0$0$37,723,750