Can I retire at age 40 with 502,000?

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 $502,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$41,455$41,085$40,725$40,374$40,030$38,733
2 years$20,522$20,140$19,770$19,410$19,062$17,768
3 years$13,546$13,162$12,792$12,436$12,094$10,842
4 years$10,058$9,675$9,309$8,960$8,625$7,427
5 years$7,966$7,585$7,224$6,882$6,557$5,414
6 years$6,572$6,194$5,838$5,504$5,188$4,102
7 years$5,576$5,202$4,852$4,525$4,219$3,190
8 years$4,830$4,459$4,115$3,796$3,500$2,527
9 years$4,250$3,882$3,544$3,233$2,948$2,029
10 years$3,786$3,422$3,090$2,787$2,512$1,647
11 years$3,407$3,046$2,720$2,425$2,160$1,347
12 years$3,091$2,734$2,414$2,127$1,872$1,109
13 years$2,824$2,471$2,157$1,878$1,632$917
14 years$2,595$2,246$1,938$1,667$1,431$762
15 years$2,397$2,052$1,750$1,487$1,260$635
16 years$2,224$1,883$1,586$1,331$1,114$531
17 years$2,071$1,734$1,443$1,196$987$445
18 years$1,936$1,602$1,318$1,078$878$373
19 years$1,815$1,485$1,206$974$782$314
20 years$1,706$1,380$1,107$882$699$264
21 years$1,608$1,285$1,018$801$625$223
22 years$1,519$1,200$939$728$561$188
23 years$1,437$1,122$867$663$503$158
24 years$1,363$1,051$801$605$452$134
25 years$1,294$987$742$552$407$113
26 years$1,231$927$688$505$367$96
27 years$1,173$873$639$462$331$81
28 years$1,119$822$594$423$298$68
29 years$1,069$776$553$388$269$58
30 years$1,022$733$515$356$243$49
31 years$978$693$480$327$220$41
32 years$937$655$448$301$199$35
33 years$899$621$418$277$180$30
34 years$863$588$391$255$163$25
35 years$829$558$365$234$148$21
36 years$797$529$342$216$134$18
37 years$767$503$320$199$121$15
38 years$739$478$300$183$110$13
39 years$712$454$281$169$100$11
40 years$686$432$263$156$90$9
41 years$662$412$247$144$82$8
42 years$639$392$231$133$74$7
43 years$617$373$217$122$68$6
44 years$596$356$204$113$61$5
45 years$577$339$191$104$56$4
46 years$558$324$180$96$51$3
47 years$540$309$169$89$46$3
48 years$522$295$159$82$42$2
49 years$506$282$149$76$38$2
50 years$490$269$140$70$34$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $502,000, adding $5,657 every year, while hoping to spend $20,563 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: 53/17/30 Blend
39$502,000$502,000$502,000$502,000
40$559,039$532,433$524,652$583,707
41$594,182$536,644$520,349$605,657
42$632,221$540,371$515,213$626,996
43$673,428$543,570$509,193$649,819
44$718,106$546,193$502,239$674,278
45$766,584$548,188$494,296$700,540
46$819,227$549,500$485,306$728,790
47$876,434$550,072$475,210$759,232
48$938,647$549,842$463,946$792,095
49$1,006,349$548,744$451,448$827,628
50$1,080,073$546,709$437,648$866,110
51$1,160,406$543,664$422,475$907,848
52$1,247,993$539,529$405,853$953,181
53$1,343,545$534,222$387,706$1,002,487
54$1,447,843$527,656$367,951$1,056,179
55$1,561,748$519,736$346,502$1,114,719
56$1,686,208$510,364$323,271$1,178,614
57$1,822,265$499,436$298,164$1,248,425
58$1,971,068$486,840$271,085$1,324,775
59$2,133,881$472,459$241,930$1,408,348
60$2,312,096$456,169$210,594$1,499,903
61$2,507,247$437,839$176,967$1,600,278
62$2,721,022$417,329$140,931$1,710,398
63$2,955,280$394,492$102,366$1,831,285
64$3,212,069$369,172$61,146$1,964,068
65$3,493,645$341,206$17,138$2,109,995
66$3,802,489$310,418$0$2,270,442
67$4,141,340$276,625$0$2,456,478
68$4,513,210$239,633$0$2,666,709
69$4,921,418$199,236$0$2,897,545
70$5,369,622$155,217$0$3,151,082
71$5,861,847$107,347$0$3,429,632
72$6,402,533$55,384$0$3,735,743
73$6,996,565$0$0$4,072,223
74$7,649,330$0$0$4,442,343
75$8,366,759$0$0$4,860,567
76$9,155,387$0$0$5,320,351
77$10,022,415$0$0$5,825,898
78$10,975,775$0$0$6,381,842
79$12,024,206$0$0$6,993,286
80$13,177,338$0$0$7,665,852
81$14,445,779$0$0$8,405,737
82$15,841,218$0$0$9,219,766
83$17,376,534$0$0$10,115,460
84$19,065,917$0$0$11,101,107
85$20,925,002$0$0$12,185,836
86$22,971,016$0$0$13,379,709
87$25,222,940$0$0$14,693,810
88$27,701,691$0$0$16,140,355
89$30,430,313$0$0$17,732,803
90$33,434,201$0$0$19,485,984
91$36,741,335$0$0$21,416,238
92$40,382,548$0$0$23,541,573
93$44,391,813$0$0$25,881,831
94$48,806,565$0$0$28,458,873
95$53,668,056$0$0$31,296,792
96$59,021,741$0$0$34,422,135
97$64,917,706$0$0$37,864,154
98$71,411,147$0$0$41,655,085
99$78,562,881$0$0$45,830,448
100$86,439,928$0$0$50,429,384