Can I retire at age 40 with 540,000?

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 $540,000?

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 years$44,593$44,195$43,808$43,430$43,060$42,879
2 years$22,076$21,664$21,266$20,880$20,505$20,322
3 years$14,571$14,158$13,761$13,378$13,009$12,830
4 years$10,819$10,408$10,014$9,638$9,278$9,104
5 years$8,569$8,160$7,771$7,403$7,053$6,885
6 years$7,069$6,663$6,280$5,920$5,581$5,419
7 years$5,998$5,596$5,219$4,867$4,539$4,383
8 years$5,195$4,796$4,426$4,083$3,765$3,616
9 years$4,571$4,176$3,812$3,478$3,171$3,027
10 years$4,072$3,681$3,324$2,998$2,702$2,564
11 years$3,665$3,277$2,926$2,609$2,324$2,192
12 years$3,325$2,941$2,597$2,289$2,014$1,888
13 years$3,038$2,658$2,320$2,020$1,756$1,636
14 years$2,792$2,416$2,085$1,794$1,539$1,425
15 years$2,579$2,207$1,882$1,599$1,355$1,246
16 years$2,392$2,025$1,706$1,432$1,198$1,094
17 years$2,228$1,865$1,553$1,287$1,062$964
18 years$2,083$1,723$1,417$1,160$944$851
19 years$1,952$1,597$1,298$1,048$842$753
20 years$1,835$1,484$1,191$949$752$668
21 years$1,730$1,382$1,095$861$673$593
22 years$1,633$1,290$1,010$783$603$528
23 years$1,546$1,207$932$713$541$470
24 years$1,466$1,131$862$650$487$420
25 years$1,392$1,061$798$594$438$375
26 years$1,324$997$741$543$394$335
27 years$1,262$939$688$497$356$300
28 years$1,204$884$639$456$321$268
29 years$1,150$834$595$418$290$240
30 years$1,099$788$554$383$262$215
31 years$1,052$745$517$352$237$193
32 years$1,008$705$482$324$214$173
33 years$967$668$450$298$194$156
34 years$928$633$420$274$175$140
35 years$892$600$393$252$159$126
36 years$858$570$368$232$144$113
37 years$825$541$344$214$130$101
38 years$795$514$322$197$118$91
39 years$766$489$302$182$107$82
40 years$738$465$283$168$97$74
41 years$712$443$265$155$88$66
42 years$687$422$249$143$80$60
43 years$664$402$234$132$73$54
44 years$642$383$219$122$66$48
45 years$620$365$206$112$60$43
46 years$600$348$193$104$54$39
47 years$581$332$182$96$49$35
48 years$562$317$171$89$45$32
49 years$544$303$160$82$41$29
50 years$527$289$151$76$37$26

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $540,000, adding $3,347 every year, while hoping to spend $40,859 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: 70/11/19 Blend
39$540,000$540,000$540,000$540,000
40$598,532$569,912$561,542$637,450
41$616,109$554,364$536,880$648,274
42$634,109$536,685$510,023$654,959
43$652,533$516,727$480,853$661,258
44$671,378$494,334$449,249$667,127
45$690,643$469,341$415,083$672,520
46$710,323$441,573$378,222$677,387
47$730,411$410,845$338,528$681,676
48$750,898$376,961$295,854$685,327
49$771,774$339,717$250,049$688,280
50$793,024$298,892$200,955$690,467
51$814,631$254,256$148,405$691,816
52$836,574$205,566$92,228$692,249
53$858,830$152,563$32,243$691,682
54$881,368$94,977$0$690,025
55$904,157$32,520$0$693,621
56$927,155$0$0$703,319
57$950,319$0$0$716,753
58$973,597$0$0$734,195
59$996,928$0$0$751,663
60$1,020,247$0$0$769,103
61$1,043,475$0$0$786,457
62$1,066,526$0$0$803,656
63$1,089,301$0$0$820,625
64$1,111,691$0$0$837,277
65$1,133,569$0$0$853,515
66$1,154,796$0$0$869,231
67$1,175,215$0$0$884,302
68$1,194,650$0$0$898,593
69$1,212,903$0$0$911,950
70$1,229,754$0$0$924,203
71$1,244,958$0$0$935,162
72$1,258,241$0$0$944,615
73$1,269,297$0$0$952,324
74$1,277,786$0$0$958,028
75$1,283,330$0$0$961,434
76$1,285,509$0$0$962,216
77$1,283,855$0$0$960,013
78$1,277,850$0$0$954,425
79$1,266,918$0$0$945,006
80$1,250,421$0$0$931,263
81$1,227,652$0$0$912,649
82$1,197,825$0$0$888,558
83$1,160,071$0$0$858,319
84$1,113,429$0$0$821,187
85$1,056,833$0$0$776,341
86$989,104$0$0$722,870
87$908,938$0$0$659,765
88$814,891$0$0$585,914
89$705,369$0$0$500,084
90$578,607$0$0$400,912
91$432,656$0$0$286,895
92$265,361$0$0$156,368
93$74,343$0$0$7,494
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0