Can I retire at age 40 with 487,000?

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 $487,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$40,216$39,858$39,508$39,167$38,834$38,191
2 years$19,909$19,538$19,179$18,830$18,492$17,846
3 years$13,141$12,768$12,410$12,065$11,732$11,103
4 years$9,757$9,386$9,031$8,692$8,368$7,761
5 years$7,728$7,359$7,009$6,676$6,361$5,778
6 years$6,375$6,009$5,664$5,339$5,033$4,474
7 years$5,410$5,046$4,707$4,390$4,093$3,559
8 years$4,686$4,326$3,992$3,682$3,396$2,886
9 years$4,123$3,766$3,438$3,136$2,860$2,374
10 years$3,673$3,320$2,997$2,704$2,437$1,975
11 years$3,305$2,955$2,639$2,353$2,096$1,657
12 years$2,998$2,653$2,342$2,064$1,816$1,400
13 years$2,739$2,397$2,092$1,822$1,584$1,190
14 years$2,518$2,179$1,880$1,617$1,388$1,016
15 years$2,326$1,991$1,697$1,443$1,222$871
16 years$2,158$1,826$1,539$1,292$1,080$749
17 years$2,010$1,682$1,400$1,161$958$646
18 years$1,878$1,554$1,278$1,046$852$558
19 years$1,761$1,440$1,170$945$759$484
20 years$1,655$1,338$1,074$856$678$420
21 years$1,560$1,247$988$777$607$365
22 years$1,473$1,164$910$706$544$317
23 years$1,394$1,088$841$643$488$276
24 years$1,322$1,020$777$587$439$241
25 years$1,256$957$720$536$395$210
26 years$1,194$899$668$490$356$183
27 years$1,138$847$620$448$321$160
28 years$1,085$798$577$411$289$140
29 years$1,037$753$537$377$261$122
30 years$991$711$500$346$236$107
31 years$949$672$466$318$213$94
32 years$909$636$435$292$193$82
33 years$872$602$406$268$175$72
34 years$837$571$379$247$158$63
35 years$804$541$355$227$143$55
36 years$773$514$332$209$130$48
37 years$744$488$310$193$118$42
38 years$717$464$291$178$107$37
39 years$691$441$272$164$97$32
40 years$666$419$255$151$88$28
41 years$642$399$239$139$80$25
42 years$620$380$225$129$72$22
43 years$599$362$211$119$66$19
44 years$579$345$198$110$60$17
45 years$559$329$186$101$54$15
46 years$541$314$174$94$49$13
47 years$524$300$164$86$45$11
48 years$507$286$154$80$40$10
49 years$491$273$145$74$37$9
50 years$475$261$136$68$33$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $487,000, adding $3,792 every year, while hoping to spend $22,484 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: 34/46/20 Blend
39$487,000$487,000$487,000$487,000
40$540,585$514,774$507,226$555,539
41$571,802$516,076$500,295$568,210
42$605,450$516,687$492,379$579,524
43$641,752$516,551$483,420$591,258
44$680,955$515,606$473,359$603,463
45$723,330$513,789$462,134$616,195
46$769,174$511,029$449,680$629,520
47$818,814$507,253$435,928$643,512
48$872,610$502,386$420,809$658,252
49$930,957$496,343$404,246$673,834
50$994,289$489,038$386,163$690,362
51$1,063,085$480,380$366,478$707,955
52$1,137,871$470,269$345,106$726,745
53$1,219,225$458,603$321,958$746,881
54$1,307,783$445,273$296,941$768,528
55$1,404,247$430,161$269,959$791,874
56$1,509,386$413,145$240,909$817,127
57$1,624,050$394,096$209,686$844,520
58$1,749,172$372,875$176,179$874,314
59$1,885,780$349,338$140,273$906,801
60$2,035,005$323,331$101,847$942,304
61$2,198,092$294,691$60,776$981,187
62$2,376,413$263,247$16,928$1,023,853
63$2,571,477$228,816$0$1,070,752
64$2,784,947$191,207$0$1,128,758
65$3,018,653$150,218$0$1,196,325
66$3,274,611$105,633$0$1,270,487
67$3,555,040$57,228$0$1,351,967
68$3,862,385$4,763$0$1,441,566
69$4,199,339$0$0$1,540,170
70$4,568,865$0$0$1,675,090
71$4,974,232$0$0$1,825,814
72$5,419,034$0$0$1,991,278
73$5,907,236$0$0$2,172,965
74$6,443,201$0$0$2,372,509
75$7,031,738$0$0$2,591,711
76$7,678,142$0$0$2,832,553
77$8,388,249$0$0$3,097,221
78$9,168,485$0$0$3,388,120
79$10,025,930$0$0$3,707,903
80$10,968,387$0$0$4,059,492
81$12,004,448$0$0$4,446,103
82$13,143,581$0$0$4,871,285
83$14,396,219$0$0$5,338,943
84$15,773,854$0$0$5,853,381
85$17,289,148$0$0$6,419,343
86$18,956,052$0$0$7,042,054
87$20,789,937$0$0$7,727,272
88$22,807,741$0$0$8,481,340
89$25,028,123$0$0$9,311,249
90$27,471,646$0$0$10,224,700
91$30,160,963$0$0$11,230,179
92$33,121,037$0$0$12,337,038
93$36,379,374$0$0$13,555,580
94$39,966,282$0$0$14,897,159
95$43,915,155$0$0$16,374,284
96$48,262,790$0$0$18,000,741
97$53,049,735$0$0$19,791,719
98$58,320,670$0$0$21,763,957
99$64,124,825$0$0$23,935,897
100$70,516,450$0$0$26,327,864