Can I retire at age 40 with 253,000?

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 $253,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$20,893$20,706$20,525$20,348$20,175$19,727
2 years$10,343$10,150$9,964$9,783$9,607$9,158
3 years$6,827$6,633$6,447$6,268$6,095$5,659
4 years$5,069$4,876$4,692$4,516$4,347$3,928
5 years$4,015$3,823$3,641$3,468$3,305$2,903
6 years$3,312$3,122$2,942$2,774$2,615$2,231
7 years$2,810$2,622$2,445$2,280$2,127$1,761
8 years$2,434$2,247$2,074$1,913$1,764$1,416
9 years$2,142$1,957$1,786$1,629$1,486$1,155
10 years$1,908$1,725$1,557$1,405$1,266$953
11 years$1,717$1,535$1,371$1,222$1,089$792
12 years$1,558$1,378$1,217$1,072$943$664
13 years$1,423$1,245$1,087$947$823$559
14 years$1,308$1,132$977$840$721$473
15 years$1,208$1,034$882$749$635$401
16 years$1,121$949$799$671$561$342
17 years$1,044$874$727$603$498$292
18 years$976$807$664$543$442$250
19 years$915$748$608$491$394$214
20 years$860$695$558$445$352$184
21 years$810$648$513$404$315$158
22 years$765$605$473$367$283$136
23 years$724$565$437$334$254$117
24 years$687$530$404$305$228$101
25 years$652$497$374$278$205$87
26 years$620$467$347$254$185$75
27 years$591$440$322$233$167$65
28 years$564$414$300$213$150$56
29 years$539$391$279$196$136$48
30 years$515$369$260$180$123$42
31 years$493$349$242$165$111$36
32 years$472$330$226$152$100$31
33 years$453$313$211$139$91$27
34 years$435$296$197$128$82$23
35 years$418$281$184$118$74$20
36 years$402$267$172$109$67$18
37 years$387$253$161$100$61$15
38 years$372$241$151$92$55$13
39 years$359$229$141$85$50$11
40 years$346$218$133$79$46$10
41 years$334$207$124$72$41$9
42 years$322$198$117$67$38$7
43 years$311$188$109$62$34$6
44 years$301$179$103$57$31$6
45 years$291$171$96$53$28$5
46 years$281$163$91$49$25$4
47 years$272$156$85$45$23$4
48 years$263$149$80$42$21$3
49 years$255$142$75$38$19$3
50 years$247$136$71$35$17$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $253,000, adding $3,703 every year, while hoping to spend $20,341 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: 67/10/23 Blend
39$253,000$253,000$253,000$253,000
40$282,626$269,217$265,295$299,667
41$289,811$260,766$252,540$303,115
42$297,047$251,219$238,676$304,216
43$304,318$240,501$223,644$304,944
44$311,606$228,532$207,383$305,263
45$318,888$215,229$189,829$305,132
46$326,142$200,502$170,915$304,509
47$333,339$184,258$150,571$303,348
48$340,450$166,396$128,725$301,598
49$347,438$146,812$105,300$299,204
50$354,266$125,395$80,217$296,106
51$360,889$102,027$53,392$292,241
52$367,257$76,585$24,738$287,539
53$373,317$48,936$0$281,923
54$379,005$18,944$0$276,744
55$384,253$0$0$277,052
56$388,984$0$0$278,185
57$393,112$0$0$280,949
58$396,542$0$0$283,188
59$399,166$0$0$284,823
60$400,866$0$0$285,767
61$401,511$0$0$285,922
62$400,954$0$0$285,179
63$399,033$0$0$283,418
64$395,567$0$0$280,506
65$390,356$0$0$276,294
66$383,178$0$0$270,619
67$373,788$0$0$263,299
68$361,913$0$0$254,132
69$347,252$0$0$242,895
70$329,471$0$0$229,341
71$308,201$0$0$213,198
72$283,032$0$0$194,162
73$253,513$0$0$171,901
74$219,143$0$0$146,043
75$179,371$0$0$116,181
76$133,585$0$0$81,864
77$81,111$0$0$42,592
78$21,202$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0