Can I retire at age 40 with 285,000?

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 $285,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.8%
1 years$23,535$23,325$23,121$22,921$22,726$22,096
2 years$11,651$11,434$11,224$11,020$10,822$10,192
3 years$7,690$7,472$7,262$7,061$6,866$6,256
4 years$5,710$5,493$5,285$5,087$4,897$4,311
5 years$4,522$4,307$4,102$3,907$3,723$3,163
6 years$3,731$3,517$3,315$3,125$2,945$2,412
7 years$3,166$2,953$2,755$2,569$2,395$1,889
8 years$2,742$2,531$2,336$2,155$1,987$1,507
9 years$2,413$2,204$2,012$1,836$1,674$1,219
10 years$2,149$1,943$1,754$1,582$1,426$996
11 years$1,934$1,730$1,544$1,377$1,226$821
12 years$1,755$1,552$1,371$1,208$1,063$682
13 years$1,603$1,403$1,224$1,066$927$569
14 years$1,473$1,275$1,100$947$812$476
15 years$1,361$1,165$993$844$715$400
16 years$1,263$1,069$901$756$632$338
17 years$1,176$984$820$679$561$285
18 years$1,099$910$748$612$498$242
19 years$1,030$843$685$553$444$205
20 years$969$783$629$501$397$174
21 years$913$730$578$455$355$148
22 years$862$681$533$413$318$126
23 years$816$637$492$376$286$107
24 years$774$597$455$343$257$92
25 years$735$560$421$314$231$78
26 years$699$526$391$287$208$67
27 years$666$495$363$262$188$57
28 years$635$467$337$240$169$49
29 years$607$440$314$220$153$42
30 years$580$416$292$202$138$36
31 years$555$393$273$186$125$30
32 years$532$372$254$171$113$26
33 years$510$352$238$157$102$22
34 years$490$334$222$144$93$19
35 years$471$317$207$133$84$16
36 years$453$301$194$123$76$14
37 years$436$285$182$113$69$12
38 years$419$271$170$104$62$10
39 years$404$258$159$96$57$9
40 years$390$245$149$88$51$7
41 years$376$234$140$82$47$6
42 years$363$223$131$75$42$5
43 years$350$212$123$70$38$5
44 years$339$202$116$64$35$4
45 years$327$193$109$59$32$3
46 years$317$184$102$55$29$3
47 years$306$175$96$51$26$3
48 years$297$167$90$47$24$2
49 years$287$160$85$43$21$2
50 years$278$153$80$40$20$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $285,000, adding $5,862 every year, while hoping to spend $20,257 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: 61/34/5 Blend
39$285,000$285,000$285,000$285,000
40$320,117$305,012$300,594$339,020
41$331,215$298,404$289,111$345,754
42$342,767$290,794$276,564$350,212
43$354,797$282,110$262,896$354,551
44$367,331$272,278$248,048$358,761
45$380,399$261,220$231,958$362,830
46$394,031$248,851$214,560$366,745
47$408,261$235,083$195,786$370,494
48$423,124$219,823$175,566$374,064
49$438,660$202,972$153,824$377,442
50$454,910$184,424$130,485$380,614
51$471,920$164,071$105,465$383,569
52$489,740$141,794$78,682$386,293
53$508,422$117,471$50,047$388,774
54$528,025$90,971$19,467$390,999
55$548,612$62,156$0$392,957
56$570,250$30,881$0$395,338
57$593,014$0$0$398,585
58$616,984$0$0$402,780
59$642,250$0$0$419,387
60$668,906$0$0$436,917
61$697,057$0$0$455,439
62$726,817$0$0$475,031
63$758,311$0$0$495,774
64$791,673$0$0$517,761
65$827,053$0$0$541,090
66$864,613$0$0$565,870
67$904,529$0$0$592,219
68$946,996$0$0$620,268
69$992,227$0$0$650,159
70$1,040,453$0$0$682,047
71$1,091,929$0$0$716,103
72$1,146,934$0$0$752,515
73$1,205,774$0$0$791,486
74$1,268,784$0$0$833,242
75$1,336,332$0$0$878,030
76$1,408,821$0$0$926,120
77$1,486,694$0$0$977,808
78$1,570,435$0$0$1,033,422
79$1,660,580$0$0$1,093,318
80$1,757,713$0$0$1,157,889
81$1,862,478$0$0$1,227,568
82$1,975,582$0$0$1,302,830
83$2,097,801$0$0$1,384,194
84$2,229,988$0$0$1,472,234
85$2,373,083$0$0$1,567,581
86$2,528,115$0$0$1,670,925
87$2,696,220$0$0$1,783,030
88$2,878,643$0$0$1,904,732
89$3,076,758$0$0$2,036,953
90$3,292,071$0$0$2,180,704
91$3,526,243$0$0$2,337,102
92$3,781,100$0$0$2,507,373
93$4,058,650$0$0$2,692,866
94$4,361,105$0$0$2,895,065
95$4,690,897$0$0$3,115,606
96$5,050,703$0$0$3,356,288
97$5,443,473$0$0$3,619,090
98$5,872,448$0$0$3,906,192
99$6,341,203$0$0$4,219,995
100$6,853,668$0$0$4,563,139