Can I retire at age 40 with 525,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $525,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$43,354$42,968$42,591$42,223$41,864$40,737
2 years$21,462$21,063$20,675$20,300$19,935$18,807
3 years$14,166$13,765$13,378$13,006$12,648$11,555
4 years$10,519$10,118$9,736$9,370$9,021$7,971
5 years$8,331$7,933$7,556$7,197$6,857$5,854
6 years$6,873$6,478$6,106$5,756$5,426$4,469
7 years$5,832$5,440$5,074$4,732$4,413$3,503
8 years$5,051$4,663$4,303$3,970$3,661$2,798
9 years$4,444$4,060$3,706$3,381$3,083$2,266
10 years$3,959$3,579$3,231$2,915$2,627$1,855
11 years$3,563$3,186$2,845$2,537$2,259$1,531
12 years$3,232$2,860$2,525$2,225$1,958$1,272
13 years$2,953$2,584$2,256$1,964$1,707$1,063
14 years$2,714$2,349$2,027$1,744$1,496$891
15 years$2,507$2,146$1,830$1,555$1,318$750
16 years$2,326$1,969$1,659$1,392$1,165$634
17 years$2,166$1,813$1,510$1,251$1,033$536
18 years$2,025$1,675$1,378$1,127$918$455
19 years$1,898$1,553$1,262$1,019$818$386
20 years$1,784$1,443$1,158$923$731$329
21 years$1,681$1,344$1,065$837$654$280
22 years$1,588$1,255$982$761$586$239
23 years$1,503$1,173$906$693$526$204
24 years$1,425$1,099$838$632$473$174
25 years$1,354$1,032$776$578$426$149
26 years$1,288$970$720$528$383$127
27 years$1,227$913$669$483$346$109
28 years$1,170$860$622$443$312$93
29 years$1,118$811$578$406$282$80
30 years$1,069$766$539$373$255$68
31 years$1,023$724$502$342$230$58
32 years$980$685$469$315$208$50
33 years$940$649$438$289$188$43
34 years$903$615$409$266$171$37
35 years$867$583$382$245$154$31
36 years$834$554$358$226$140$27
37 years$802$526$335$208$127$23
38 years$773$500$313$192$115$20
39 years$744$475$294$177$104$17
40 years$718$452$275$163$95$15
41 years$692$430$258$150$86$12
42 years$668$410$242$139$78$11
43 years$646$391$227$128$71$9
44 years$624$372$213$118$64$8
45 years$603$355$200$109$58$7
46 years$583$339$188$101$53$6
47 years$564$323$177$93$48$5
48 years$546$309$166$86$44$4
49 years$529$295$156$80$40$4
50 years$513$281$147$74$36$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $525,000, adding $2,320 every year, while hoping to spend $31,383 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: 55/22/23 Blend
39$525,000$525,000$525,000$525,000
40$580,943$553,118$544,981$609,124
41$606,808$546,830$529,846$622,421
42$634,259$539,181$513,153$633,405
43$663,426$530,073$494,815$644,703
44$694,448$519,399$474,745$656,354
45$727,480$507,048$452,847$668,406
46$762,691$492,901$429,025$680,908
47$800,265$476,833$403,177$693,921
48$840,404$458,710$375,196$707,510
49$883,331$438,393$344,970$721,752
50$929,288$415,732$312,384$736,732
51$978,543$390,570$277,316$752,546
52$1,031,387$362,740$239,639$769,303
53$1,088,142$332,068$199,221$787,126
54$1,149,160$298,366$155,922$806,153
55$1,214,827$261,440$109,598$826,538
56$1,285,569$221,080$60,099$848,456
57$1,361,851$177,067$7,267$872,100
58$1,444,187$129,170$0$897,689
59$1,533,139$77,144$0$937,520
60$1,629,326$20,731$0$982,500
61$1,733,428$0$0$1,031,192
62$1,846,192$0$0$1,093,750
63$1,968,441$0$0$1,167,050
64$2,101,078$0$0$1,246,622
65$2,245,098$0$0$1,333,067
66$2,401,594$0$0$1,427,047
67$2,571,768$0$0$1,529,290
68$2,756,945$0$0$1,640,597
69$2,958,579$0$0$1,761,850
70$3,178,273$0$0$1,894,020
71$3,417,791$0$0$2,038,173
72$3,679,072$0$0$2,195,485
73$3,964,254$0$0$2,367,250
74$4,275,686$0$0$2,554,891
75$4,615,957$0$0$2,759,977
76$4,987,916$0$0$2,984,232
77$5,394,701$0$0$3,229,558
78$5,839,766$0$0$3,498,046
79$6,326,914$0$0$3,792,001
80$6,860,333$0$0$4,113,960
81$7,444,634$0$0$4,466,716
82$8,084,898$0$0$4,853,348
83$8,786,717$0$0$5,277,243
84$9,556,253$0$0$5,742,134
85$10,400,289$0$0$6,252,132
86$11,326,301$0$0$6,811,766
87$12,342,519$0$0$7,426,023
88$13,458,010$0$0$8,100,397
89$14,682,763$0$0$8,840,940
90$16,027,780$0$0$9,654,319
91$17,505,181$0$0$10,547,878
92$19,128,318$0$0$11,529,707
93$20,911,899$0$0$12,608,721
94$22,872,129$0$0$13,794,738
95$25,026,860$0$0$15,098,577
96$27,395,760$0$0$16,532,155
97$30,000,496$0$0$18,108,605
98$32,864,942$0$0$19,842,393
99$36,015,400$0$0$21,749,458
100$39,480,849$0$0$23,847,363