Can I retire at age 40 with 507,000?

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 $507,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.5%
1 years$41,868$41,495$41,131$40,776$40,429$39,516
2 years$20,727$20,341$19,966$19,604$19,252$18,337
3 years$13,680$13,293$12,920$12,560$12,214$11,326
4 years$10,158$9,772$9,402$9,049$8,711$7,856
5 years$8,045$7,661$7,296$6,950$6,622$5,803
6 years$6,637$6,256$5,897$5,558$5,240$4,458
7 years$5,632$5,254$4,900$4,570$4,261$3,516
8 years$4,878$4,503$4,156$3,834$3,535$2,826
9 years$4,292$3,921$3,579$3,265$2,977$2,304
10 years$3,824$3,456$3,121$2,815$2,537$1,899
11 years$3,441$3,077$2,747$2,450$2,182$1,579
12 years$3,122$2,762$2,438$2,149$1,891$1,321
13 years$2,852$2,496$2,178$1,897$1,649$1,112
14 years$2,621$2,268$1,957$1,684$1,445$940
15 years$2,421$2,072$1,767$1,502$1,272$797
16 years$2,246$1,901$1,602$1,345$1,125$678
17 years$2,092$1,751$1,458$1,208$997$579
18 years$1,955$1,618$1,331$1,089$887$495
19 years$1,833$1,500$1,218$984$790$424
20 years$1,723$1,393$1,118$891$706$363
21 years$1,624$1,298$1,028$809$632$312
22 years$1,534$1,212$948$735$566$268
23 years$1,451$1,133$875$670$508$231
24 years$1,376$1,062$809$611$457$199
25 years$1,307$996$750$558$411$172
26 years$1,243$936$695$510$370$148
27 years$1,185$881$646$467$334$128
28 years$1,130$830$600$428$301$110
29 years$1,079$783$559$392$272$95
30 years$1,032$740$520$360$246$82
31 years$988$699$485$331$222$71
32 years$947$662$453$304$201$61
33 years$908$627$423$279$182$53
34 years$872$594$395$257$165$46
35 years$837$563$369$237$149$40
36 years$805$535$345$218$135$34
37 years$775$508$323$201$122$30
38 years$746$483$303$185$111$26
39 years$719$459$284$171$101$22
40 years$693$437$266$157$91$19
41 years$669$416$249$145$83$17
42 years$645$396$234$134$75$14
43 years$623$377$219$124$68$13
44 years$602$360$206$114$62$11
45 years$582$343$193$105$56$9
46 years$563$327$182$97$51$8
47 years$545$312$171$90$46$7
48 years$528$298$160$83$42$6
49 years$511$285$151$77$38$5
50 years$495$272$142$71$35$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $507,000, adding $6,656 every year, while hoping to spend $22,408 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: 49/31/20 Blend
39$507,000$507,000$507,000$507,000
40$565,580$538,709$530,850$589,818
41$599,427$541,263$524,792$609,880
42$635,975$543,192$517,779$628,847
43$675,477$544,441$509,757$648,981
44$718,209$544,952$500,667$670,400
45$764,476$544,664$490,449$693,236
46$814,611$543,511$479,038$717,636
47$868,983$541,425$466,367$743,762
48$927,997$538,332$452,368$771,793
49$992,096$534,154$436,966$801,931
50$1,061,772$528,809$420,086$834,396
51$1,137,561$522,210$401,648$869,435
52$1,220,057$514,263$381,567$907,320
53$1,309,911$504,870$359,758$948,353
54$1,407,841$493,927$336,129$992,868
55$1,514,635$481,324$310,584$1,041,237
56$1,631,163$466,944$283,024$1,093,871
57$1,758,381$450,664$253,344$1,151,223
58$1,897,342$432,353$221,437$1,213,798
59$2,049,204$411,871$187,189$1,282,152
60$2,215,244$389,074$150,480$1,356,904
61$2,396,866$363,806$111,189$1,438,734
62$2,595,617$335,903$69,184$1,528,400
63$2,813,200$305,192$24,332$1,626,737
64$3,051,490$271,491$0$1,734,668
65$3,312,554$234,605$0$1,858,237
66$3,598,665$194,332$0$1,999,422
67$3,912,329$150,454$0$2,154,306
68$4,256,305$102,744$0$2,324,304
69$4,633,630$50,961$0$2,510,979
70$5,047,654$0$0$2,716,056
71$5,502,061$0$0$2,943,193
72$6,000,914$0$0$3,211,688
73$6,548,686$0$0$3,506,570
74$7,150,304$0$0$3,830,500
75$7,811,197$0$0$4,186,408
76$8,537,346$0$0$4,577,522
77$9,335,338$0$0$5,007,399
78$10,212,432$0$0$5,479,956
79$11,176,623$0$0$5,999,512
80$12,236,721$0$0$6,570,821
81$13,402,432$0$0$7,199,123
82$14,684,448$0$0$7,890,192
83$16,094,552$0$0$8,650,388
84$17,645,723$0$0$9,486,718
85$19,352,264$0$0$10,406,905
86$21,229,932$0$0$11,419,456
87$23,296,091$0$0$12,533,746
88$25,569,870$0$0$13,760,102
89$28,072,347$0$0$15,109,906
90$30,826,750$0$0$16,595,697
91$33,858,669$0$0$18,231,294
92$37,196,303$0$0$20,031,920
93$40,870,723$0$0$22,014,353
94$44,916,166$0$0$24,197,079
95$49,370,359$0$0$26,600,466
96$54,274,870$0$0$29,246,960
97$59,675,507$0$0$32,161,294
98$65,622,744$0$0$35,370,720
99$72,172,199$0$0$38,905,271
100$79,385,161$0$0$42,798,039