Can I retire at age 40 with 495,000?

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 $495,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$40,877$40,513$40,157$39,811$39,472$38,979
2 years$20,236$19,859$19,494$19,140$18,796$18,300
3 years$13,357$12,978$12,614$12,263$11,925$11,441
4 years$9,918$9,540$9,180$8,835$8,505$8,037
5 years$7,855$7,480$7,124$6,786$6,465$6,015
6 years$6,480$6,108$5,757$5,427$5,116$4,683
7 years$5,498$5,129$4,784$4,462$4,161$3,746
8 years$4,763$4,397$4,057$3,743$3,452$3,055
9 years$4,190$3,828$3,495$3,188$2,907$2,529
10 years$3,733$3,374$3,047$2,748$2,477$2,116
11 years$3,359$3,004$2,682$2,392$2,130$1,787
12 years$3,048$2,696$2,380$2,098$1,846$1,520
13 years$2,784$2,437$2,127$1,852$1,610$1,300
14 years$2,559$2,215$1,911$1,644$1,411$1,117
15 years$2,364$2,023$1,725$1,466$1,242$964
16 years$2,193$1,856$1,564$1,313$1,098$835
17 years$2,043$1,710$1,423$1,180$974$725
18 years$1,909$1,580$1,299$1,063$866$631
19 years$1,790$1,464$1,189$961$772$551
20 years$1,682$1,360$1,092$870$689$482
21 years$1,585$1,267$1,004$790$617$422
22 years$1,497$1,183$925$718$553$369
23 years$1,417$1,106$854$654$496$324
24 years$1,344$1,037$790$596$446$285
25 years$1,276$973$732$545$401$250
26 years$1,214$914$679$498$362$220
27 years$1,157$860$630$456$326$194
28 years$1,103$811$586$418$294$171
29 years$1,054$765$545$383$266$151
30 years$1,008$722$508$351$240$133
31 years$965$683$474$323$217$117
32 years$924$646$442$297$196$104
33 years$886$612$413$273$178$91
34 years$851$580$385$251$161$81
35 years$818$550$360$231$146$71
36 years$786$522$337$213$132$63
37 years$756$496$316$196$120$56
38 years$728$471$295$181$108$49
39 years$702$448$277$167$98$43
40 years$677$426$259$154$89$38
41 years$653$406$243$142$81$34
42 years$630$386$228$131$73$30
43 years$609$368$214$121$67$27
44 years$588$351$201$112$60$24
45 years$569$335$189$103$55$21
46 years$550$319$177$95$50$18
47 years$532$305$167$88$45$16
48 years$515$291$157$81$41$14
49 years$499$278$147$75$37$13
50 years$483$265$138$69$34$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $495,000, adding $5,536 every year, while hoping to spend $35,022 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: 48/41/11 Blend
39$495,000$495,000$495,000$495,000
40$551,200$524,965$517,293$575,738
41$570,160$513,426$497,359$581,663
42$589,879$500,146$475,584$583,993
43$610,399$485,006$451,868$585,727
44$631,763$467,875$426,109$586,822
45$654,018$448,616$398,199$587,232
46$677,214$427,084$368,025$586,908
47$701,406$403,127$335,469$585,799
48$726,651$376,582$300,409$583,853
49$753,013$347,278$262,716$581,015
50$780,559$315,034$222,257$577,228
51$809,364$279,658$178,890$572,432
52$839,506$240,948$132,469$566,566
53$871,071$198,690$82,843$559,566
54$904,153$152,658$29,851$551,367
55$938,852$102,615$0$541,901
56$975,279$48,307$0$534,230
57$1,013,553$0$0$529,093
58$1,053,802$0$0$527,681
59$1,096,169$0$0$549,154
60$1,140,805$0$0$571,799
61$1,187,878$0$0$595,702
62$1,237,570$0$0$620,959
63$1,290,079$0$0$647,674
64$1,345,622$0$0$675,960
65$1,404,435$0$0$705,941
66$1,466,776$0$0$737,753
67$1,532,926$0$0$771,544
68$1,603,196$0$0$807,475
69$1,677,921$0$0$845,724
70$1,757,470$0$0$886,485
71$1,842,249$0$0$929,970
72$1,932,698$0$0$976,413
73$2,029,304$0$0$1,026,067
74$2,132,596$0$0$1,079,213
75$2,243,158$0$0$1,136,157
76$2,361,628$0$0$1,197,236
77$2,488,706$0$0$1,262,818
78$2,625,162$0$0$1,333,309
79$2,771,837$0$0$1,409,153
80$2,929,660$0$0$1,490,838
81$3,099,646$0$0$1,578,900
82$3,282,912$0$0$1,673,929
83$3,480,685$0$0$1,776,571
84$3,694,312$0$0$1,887,537
85$3,925,276$0$0$2,007,610
86$4,175,203$0$0$2,137,647
87$4,445,884$0$0$2,278,594
88$4,739,285$0$0$2,431,489
89$5,057,571$0$0$2,597,474
90$5,403,121$0$0$2,777,806
91$5,778,552$0$0$2,973,867
92$6,186,742$0$0$3,187,177
93$6,630,860$0$0$3,419,408
94$7,114,389$0$0$3,672,402
95$7,641,164$0$0$3,948,184
96$8,215,406$0$0$4,248,984
97$8,841,757$0$0$4,577,255
98$9,525,331$0$0$4,935,698
99$10,271,753$0$0$5,327,286
100$11,087,217$0$0$5,755,293