Coast Retirement · Research · Age 40
Am I behind on retirement at 40?
This calculator starts with what you spend, not what you earn. Enter your annual household expenses (housing, food, insurance, kids, travel — everything). We assume that spending level continues into retirement, with no large new costs added later. If you have a mortgage, this simple version assumes the payment continues into retirement unless you model a payoff elsewhere.
Next we apply the 4% rule (also called the 25× rule): the portfolio you need at retirement ≈ annual expenses ÷ 4%. Withdrawals in retirement start at 4% of that balance and rise with inflation each year; the remainder of the portfolio is assumed to grow at your investment return. Historical U.S. inflation is about 3% per year — we use that to show how today’s expenses might look at your retirement age.
Finally we compare your current savings and planned monthly contributions to the amount you would need to save to hit the target — and chart both paths over time (same chart style as FI Lab). For property detail, taxes, Social Security, and account types, use FI Lab instead of this page.
Am I behind? — expense-based check
Gray dashed line = target portfolio at retirement (25× expenses). Green line = your planned portfolio — it rises while you save, peaks at ★ retirement age, then falls each year as inflated spending is withdrawn (table shows amounts).
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Today: —/yr
At retirement age (inflated): —/yr
Planned monthly: —
What counts in “retirement savings”?
401(k), IRA, Roth, HSA invested for the long term, and taxable brokerage accounts earmarked for retirement. Primary home equity is excluded unless you plan to sell or downsize. RSUs count only if you will diversify them.
FAQ
Am I behind on retirement at 40?
On this check, you are behind if your projected portfolio at retirement is below 25× your annual expenses (the 4% rule target). Use the calculator above with your real spending and savings rate.
Should I use salary or expenses?
Expenses. A $150K earner who spends $70K needs a smaller portfolio than one who spends $120K. Income-only benchmarks ignore that.
Does this include my mortgage?
Include the payment in your expense number if you expect it to continue. This page does not model paying off the house early; FI Lab models can help you model mortgage payoff, property costs, and year-by-year expenses.
Is 40 too late?
Often no — you may have 20–25 years left. The chart shows whether raising monthly savings closes the gap under your assumptions.
Educational only — not individualized financial, tax, or investment advice. Assumptions are visible in the inputs; results are not guarantees. See also safe withdrawal rate explained and Research hub.