Can I retire at age 40 with 296,000?

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 $296,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.7%
1 years$24,443$24,226$24,013$23,806$23,603$23,146
2 years$12,101$11,875$11,657$11,445$11,240$10,781
3 years$7,987$7,761$7,543$7,333$7,131$6,685
4 years$5,931$5,705$5,489$5,283$5,086$4,656
5 years$4,697$4,473$4,260$4,058$3,866$3,453
6 years$3,875$3,652$3,443$3,245$3,059$2,664
7 years$3,288$3,067$2,861$2,668$2,488$2,111
8 years$2,848$2,629$2,426$2,238$2,064$1,705
9 years$2,506$2,289$2,090$1,906$1,738$1,397
10 years$2,232$2,018$1,822$1,643$1,481$1,157
11 years$2,009$1,796$1,604$1,430$1,274$966
12 years$1,822$1,612$1,423$1,254$1,104$813
13 years$1,665$1,457$1,272$1,107$963$688
14 years$1,530$1,324$1,143$983$844$584
15 years$1,413$1,210$1,032$877$743$499
16 years$1,311$1,110$935$785$657$427
17 years$1,221$1,022$851$705$582$366
18 years$1,142$945$777$636$518$315
19 years$1,070$875$711$574$461$271
20 years$1,006$814$653$520$412$234
21 years$948$758$600$472$369$202
22 years$895$707$553$429$331$175
23 years$847$662$511$391$297$152
24 years$803$620$473$357$267$131
25 years$763$582$438$326$240$114
26 years$726$547$406$298$216$99
27 years$692$515$377$273$195$86
28 years$660$485$350$250$176$75
29 years$630$457$326$229$159$65
30 years$603$432$304$210$143$56
31 years$577$408$283$193$130$49
32 years$553$386$264$177$117$43
33 years$530$366$247$163$106$37
34 years$509$347$230$150$96$32
35 years$489$329$215$138$87$28
36 years$470$312$202$127$79$25
37 years$452$297$189$117$72$21
38 years$436$282$177$108$65$19
39 years$420$268$166$100$59$16
40 years$405$255$155$92$53$14
41 years$390$243$145$85$48$12
42 years$377$231$136$78$44$11
43 years$364$220$128$72$40$9
44 years$352$210$120$67$36$8
45 years$340$200$113$62$33$7
46 years$329$191$106$57$30$6
47 years$318$182$100$53$27$5
48 years$308$174$94$49$25$5
49 years$298$166$88$45$22$4
50 years$289$159$83$41$20$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $296,000, adding $2,729 every year, while hoping to spend $22,397 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: 82/11/7 Blend
39$296,000$296,000$296,000$296,000
40$329,007$313,319$308,731$355,536
41$338,735$304,841$295,243$364,807
42$348,706$295,198$280,553$371,710
43$358,918$284,307$264,596$378,598
44$369,374$272,084$247,306$385,458
45$380,073$258,439$228,613$392,274
46$391,012$243,275$208,444$399,029
47$402,192$226,491$186,723$405,703
48$413,607$207,981$163,370$412,275
49$425,254$187,631$138,302$418,723
50$437,127$165,322$111,432$425,022
51$449,219$140,928$82,670$431,143
52$461,520$114,314$51,921$437,058
53$474,020$85,341$19,085$442,731
54$486,706$53,859$0$448,128
55$499,563$19,710$0$454,400
56$512,573$0$0$461,910
57$525,714$0$0$471,284
58$538,962$0$0$483,137
59$552,290$0$0$495,058
60$565,666$0$0$507,019
61$579,052$0$0$518,985
62$592,409$0$0$530,920
63$605,688$0$0$542,781
64$618,836$0$0$554,519
65$631,794$0$0$566,080
66$644,493$0$0$577,403
67$656,857$0$0$588,419
68$668,801$0$0$599,051
69$680,230$0$0$609,211
70$691,035$0$0$618,802
71$701,097$0$0$627,717
72$710,282$0$0$635,834
73$718,441$0$0$643,017
74$725,407$0$0$649,117
75$730,994$0$0$653,964
76$734,997$0$0$657,374
77$737,185$0$0$659,137
78$737,304$0$0$659,023
79$735,070$0$0$656,777
80$730,169$0$0$652,113
81$722,252$0$0$644,716
82$710,932$0$0$634,237
83$695,780$0$0$620,287
84$676,321$0$0$602,437
85$652,028$0$0$580,211
86$622,320$0$0$553,082
87$586,551$0$0$520,467
88$544,007$0$0$481,722
89$493,898$0$0$436,131
90$435,353$0$0$382,906
91$367,404$0$0$321,175
92$288,986$0$0$249,972
93$198,919$0$0$168,231
94$95,898$0$0$74,776
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