Can I retire at age 40 with 538,000?

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 $538,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.1%
1 years$44,428$44,032$43,646$43,269$42,901$42,702
2 years$21,994$21,584$21,187$20,802$20,429$20,228
3 years$14,517$14,106$13,710$13,328$12,961$12,765
4 years$10,779$10,369$9,977$9,602$9,244$9,053
5 years$8,537$8,129$7,743$7,375$7,027$6,843
6 years$7,043$6,638$6,257$5,898$5,560$5,383
7 years$5,976$5,575$5,200$4,849$4,522$4,351
8 years$5,176$4,779$4,410$4,068$3,751$3,588
9 years$4,555$4,161$3,798$3,465$3,159$3,002
10 years$4,057$3,667$3,311$2,987$2,692$2,541
11 years$3,651$3,265$2,915$2,599$2,315$2,171
12 years$3,312$2,930$2,587$2,280$2,006$1,869
13 years$3,026$2,648$2,311$2,013$1,749$1,618
14 years$2,781$2,407$2,077$1,787$1,534$1,409
15 years$2,569$2,199$1,875$1,594$1,350$1,231
16 years$2,384$2,018$1,700$1,427$1,193$1,080
17 years$2,220$1,858$1,547$1,282$1,058$951
18 years$2,075$1,717$1,412$1,155$941$839
19 years$1,945$1,591$1,293$1,044$839$742
20 years$1,828$1,479$1,186$946$749$658
21 years$1,723$1,377$1,091$858$670$584
22 years$1,627$1,286$1,006$780$601$519
23 years$1,540$1,202$929$711$539$462
24 years$1,460$1,127$859$648$485$412
25 years$1,387$1,057$796$592$436$368
26 years$1,319$994$738$541$393$328
27 years$1,257$935$685$495$354$293
28 years$1,199$881$637$454$320$263
29 years$1,145$831$593$416$289$235
30 years$1,095$785$552$382$261$210
31 years$1,048$742$515$351$236$189
32 years$1,005$702$480$322$213$169
33 years$963$665$448$296$193$152
34 years$925$630$419$273$175$136
35 years$889$598$392$251$158$122
36 years$854$567$366$231$143$110
37 years$822$539$343$213$130$98
38 years$792$512$321$196$118$88
39 years$763$487$301$181$107$79
40 years$736$463$282$167$97$71
41 years$710$441$264$154$88$64
42 years$685$420$248$142$80$58
43 years$662$400$233$131$72$52
44 years$639$382$218$121$66$47
45 years$618$364$205$112$60$42
46 years$598$347$193$103$54$38
47 years$578$331$181$96$49$34
48 years$560$316$170$88$45$30
49 years$542$302$160$82$41$27
50 years$525$288$150$75$37$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $538,000, adding $2,048 every year, while hoping to spend $33,091 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: 53/25/22 Blend
39$538,000$538,000$538,000$538,000
40$594,989$566,475$558,136$622,815
41$620,469$559,023$541,624$634,738
42$647,439$550,098$523,451$644,099
43$676,016$539,591$503,525$653,588
44$706,328$527,389$481,752$663,229
45$738,515$513,372$458,031$673,048
46$772,729$497,413$432,261$683,079
47$809,137$479,377$404,332$693,359
48$847,924$459,121$374,132$703,932
49$889,289$436,494$341,542$714,850
50$933,451$411,338$306,439$726,169
51$980,652$383,482$268,693$737,958
52$1,031,156$352,749$228,171$750,293
53$1,085,250$318,951$184,732$763,262
54$1,143,253$281,887$138,228$776,965
55$1,205,513$241,347$88,506$791,513
56$1,272,411$197,109$35,407$807,037
57$1,344,366$148,937$0$823,681
58$1,421,840$96,583$0$846,601
59$1,505,336$39,784$0$880,183
60$1,595,411$0$0$916,361
61$1,692,674$0$0$961,392
62$1,797,796$0$0$1,021,932
63$1,911,514$0$0$1,087,465
64$2,034,636$0$0$1,158,463
65$2,168,053$0$0$1,235,445
66$2,312,744$0$0$1,318,983
67$2,469,785$0$0$1,409,702
68$2,640,361$0$0$1,508,296
69$2,825,773$0$0$1,615,522
70$3,027,454$0$0$1,732,216
71$3,246,980$0$0$1,859,299
72$3,486,086$0$0$1,997,781
73$3,746,680$0$0$2,148,777
74$4,030,862$0$0$2,313,512
75$4,340,945$0$0$2,493,335
76$4,679,472$0$0$2,689,731
77$5,049,246$0$0$2,904,335
78$5,453,349$0$0$3,138,947
79$5,895,176$0$0$3,395,547
80$6,378,466$0$0$3,676,319
81$6,907,334$0$0$3,983,663
82$7,486,312$0$0$4,320,226
83$8,120,390$0$0$4,688,920
84$8,815,064$0$0$5,092,954
85$9,576,386$0$0$5,535,862
86$10,411,022$0$0$6,021,533
87$11,326,313$0$0$6,554,256
88$12,330,345$0$0$7,138,749
89$13,432,023$0$0$7,780,214
90$14,641,158$0$0$8,484,377
91$15,968,555$0$0$9,257,548
92$17,426,118$0$0$10,106,677
93$19,026,959$0$0$11,039,421
94$20,785,521$0$0$12,064,213
95$22,717,718$0$0$13,190,345
96$24,841,080$0$0$14,428,053
97$27,174,918$0$0$15,788,615
98$29,740,510$0$0$17,284,454
99$32,561,294$0$0$18,929,260
100$35,663,098$0$0$20,738,111