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Home / Retirement savings / Age 40, $1,000 a month

Retirement Savings Starting at 40 With $1,000 a Month

This page looks at retirement saving that begins at age 40 and runs to 65. That gives 25 years for the account to grow. The starting deposit is $1,000 a month at 5.5 percent.

You would make 300 deposits. By 65 the account reaches $642,037 and growth supplies 53 percent of it.

years
years
$
$
%
Balance at retirement
$642,037
Total you put in
$300,000
Growth
$342,037
Years of saving
25
Year by year
YearTotal put inBalance
41$12,000$12,307
42$24,000$25,309
43$36,000$39,043
44$48,000$53,553
45$60,000$68,881
46$72,000$85,073
47$84,000$102,179
48$96,000$120,250
49$108,000$139,341
50$120,000$159,508
51$132,000$180,812
52$144,000$203,319
53$156,000$227,095
54$168,000$252,212
55$180,000$278,746
56$192,000$306,776
57$204,000$336,388
58$216,000$367,670
59$228,000$400,717
60$240,000$435,627
61$252,000$472,507
62$264,000$511,468
63$276,000$552,626
64$288,000$596,105
65$300,000$642,037
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How the balance is worked out

The calculator counts 300 months from age 40 to age 65. Each month your balance grows by one twelfth of the 5.5 percent yearly return and then your $1,000 deposit goes in. The final balance is what is left after the last month.

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Worked example

Picture saving $1,000 a month for the 25 years between age 40 and 65. At a steady 5.5 percent that adds up to $642,037.

Out of $642,037, $300,000 comes from your pay. The remaining $342,037 comes from growth.

Questions about this calculator

What if you worked 3 years longer, to 68, when saving $1,000 a month from age 40 to 65 at 5.5 percent?

The balance would reach $795,972 instead of $642,037. That is $153,935 more.

What would an extra $100 a month add when saving $1,000 a month from age 40 to 65 at 5.5 percent?

The balance at 65 would be $706,241 instead of $642,037. The extra deposits total $30,000.

How much does waiting 5 years cost when saving $1,000 a month from age 40 to 65 at 5.5 percent?

Starting at 45 with the same $1,000 ends at $435,627 instead of $642,037. That is $206,410 less.

How much a month would it take to reach $1,000,000 by 65 from age 40 at 5.5 percent, compared with $1,000?

About $1,558 a month at 5.5 percent. That is $558 more than the $1,000 in the example.

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This page is for education only and is not financial or tax advice.