Can I retire at age 40 with 496,000?

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 $496,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.1%
1 years$40,959$40,594$40,238$39,891$39,552$38,564
2 years$20,277$19,899$19,533$19,178$18,834$17,846
3 years$13,384$13,004$12,639$12,288$11,949$10,990
4 years$9,938$9,560$9,198$8,853$8,522$7,601
5 years$7,871$7,495$7,138$6,800$6,478$5,597
6 years$6,493$6,120$5,769$5,438$5,126$4,285
7 years$5,510$5,140$4,794$4,471$4,169$3,368
8 years$4,772$4,406$4,066$3,750$3,459$2,698
9 years$4,199$3,836$3,502$3,194$2,913$2,192
10 years$3,741$3,381$3,053$2,754$2,482$1,800
11 years$3,366$3,010$2,688$2,397$2,134$1,490
12 years$3,054$2,702$2,385$2,102$1,850$1,242
13 years$2,790$2,441$2,131$1,856$1,613$1,041
14 years$2,564$2,219$1,915$1,647$1,414$876
15 years$2,368$2,027$1,729$1,469$1,245$740
16 years$2,197$1,860$1,567$1,315$1,100$627
17 years$2,047$1,713$1,426$1,182$976$533
18 years$1,913$1,583$1,302$1,065$867$454
19 years$1,793$1,467$1,192$962$773$387
20 years$1,686$1,363$1,094$872$691$330
21 years$1,589$1,270$1,006$791$618$282
22 years$1,500$1,185$927$719$554$242
23 years$1,420$1,109$856$655$497$207
24 years$1,346$1,039$792$597$447$178
25 years$1,279$975$733$546$402$152
26 years$1,216$916$680$499$362$131
27 years$1,159$862$632$457$327$112
28 years$1,105$812$587$418$295$96
29 years$1,056$766$546$384$266$83
30 years$1,010$724$509$352$240$71
31 years$966$684$475$323$217$61
32 years$926$647$443$297$197$53
33 years$888$613$413$273$178$45
34 years$853$581$386$251$161$39
35 years$819$551$361$231$146$34
36 years$788$523$338$213$132$29
37 years$758$497$316$196$120$25
38 years$730$472$296$181$109$21
39 years$703$449$277$167$99$18
40 years$678$427$260$154$89$16
41 years$654$407$244$142$81$14
42 years$631$387$229$131$74$12
43 years$610$369$215$121$67$10
44 years$589$352$201$112$61$9
45 years$570$335$189$103$55$8
46 years$551$320$178$95$50$6
47 years$533$305$167$88$45$6
48 years$516$291$157$81$41$5
49 years$500$278$147$75$37$4
50 years$484$266$139$70$34$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $496,000, adding $3,042 every year, while hoping to spend $29,722 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: 30/50/20 Blend
39$496,000$496,000$496,000$496,000
40$549,730$523,442$515,754$562,698
41$574,178$517,466$501,408$566,830
42$600,124$510,202$485,585$568,388
43$627,689$501,554$468,204$569,437
44$657,006$491,423$449,181$569,948
45$688,220$479,702$428,428$569,898
46$721,490$466,279$405,852$569,259
47$756,990$451,035$381,356$568,009
48$794,911$433,844$354,840$566,122
49$835,463$414,572$326,197$563,577
50$878,874$393,080$295,319$560,352
51$925,396$369,218$262,089$556,430
52$975,305$342,829$226,388$551,793
53$1,028,903$313,745$188,089$546,428
54$1,086,524$281,790$147,062$540,326
55$1,148,530$246,780$103,170$533,482
56$1,215,324$208,515$56,270$525,895
57$1,287,345$166,790$6,212$517,572
58$1,365,075$121,384$0$508,523
59$1,449,046$72,065$0$508,844
60$1,539,841$18,589$0$510,561
61$1,638,102$0$0$512,421
62$1,744,532$0$0$536,140
63$1,859,909$0$0$573,004
64$1,985,082$0$0$613,067
65$2,120,991$0$0$656,638
66$2,268,665$0$0$704,055
67$2,429,239$0$0$755,693
68$2,603,960$0$0$811,962
69$2,794,202$0$0$873,315
70$3,001,474$0$0$940,251
71$3,227,439$0$0$1,013,315
72$3,473,927$0$0$1,093,114
73$3,742,951$0$0$1,180,309
74$4,036,729$0$0$1,275,633
75$4,357,699$0$0$1,379,890
76$4,708,549$0$0$1,493,967
77$5,092,236$0$0$1,618,839
78$5,512,017$0$0$1,755,582
79$5,971,477$0$0$1,905,379
80$6,474,565$0$0$2,069,533
81$7,025,629$0$0$2,249,480
82$7,629,458$0$0$2,446,800
83$8,291,323$0$0$2,663,234
84$9,017,035$0$0$2,900,702
85$9,812,989$0$0$3,161,314
86$10,686,231$0$0$3,447,397
87$11,644,522$0$0$3,761,516
88$12,696,410$0$0$4,106,493
89$13,851,311$0$0$4,485,439
90$15,119,598$0$0$4,901,779
91$16,512,697$0$0$5,359,290
92$18,043,195$0$0$5,862,129
93$19,724,960$0$0$6,414,877
94$21,573,267$0$0$7,022,582
95$23,604,947$0$0$7,690,805
96$25,838,541$0$0$8,425,672
97$28,294,478$0$0$9,233,934
98$30,995,263$0$0$10,123,026
99$33,965,692$0$0$11,101,144
100$37,233,086$0$0$12,177,315