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%13.8%
1 years$44,593$44,195$43,808$43,430$43,060$42,382
2 years$22,076$21,664$21,266$20,880$20,505$19,823
3 years$14,571$14,158$13,761$13,378$13,009$12,345
4 years$10,819$10,408$10,014$9,638$9,278$8,637
5 years$8,569$8,160$7,771$7,403$7,053$6,437
6 years$7,069$6,663$6,280$5,920$5,581$4,990
7 years$5,998$5,596$5,219$4,867$4,539$3,974
8 years$5,195$4,796$4,426$4,083$3,765$3,226
9 years$4,571$4,176$3,812$3,478$3,171$2,657
10 years$4,072$3,681$3,324$2,998$2,702$2,213
11 years$3,665$3,277$2,926$2,609$2,324$1,859
12 years$3,325$2,941$2,597$2,289$2,014$1,573
13 years$3,038$2,658$2,320$2,020$1,756$1,339
14 years$2,792$2,416$2,085$1,794$1,539$1,145
15 years$2,579$2,207$1,882$1,599$1,355$983
16 years$2,392$2,025$1,706$1,432$1,198$846
17 years$2,228$1,865$1,553$1,287$1,062$731
18 years$2,083$1,723$1,417$1,160$944$633
19 years$1,952$1,597$1,298$1,048$842$549
20 years$1,835$1,484$1,191$949$752$477
21 years$1,730$1,382$1,095$861$673$415
22 years$1,633$1,290$1,010$783$603$361
23 years$1,546$1,207$932$713$541$315
24 years$1,466$1,131$862$650$487$275
25 years$1,392$1,061$798$594$438$240
26 years$1,324$997$741$543$394$210
27 years$1,262$939$688$497$356$184
28 years$1,204$884$639$456$321$161
29 years$1,150$834$595$418$290$141
30 years$1,099$788$554$383$262$124
31 years$1,052$745$517$352$237$108
32 years$1,008$705$482$324$214$95
33 years$967$668$450$298$194$83
34 years$928$633$420$274$175$73
35 years$892$600$393$252$159$64
36 years$858$570$368$232$144$56
37 years$825$541$344$214$130$49
38 years$795$514$322$197$118$43
39 years$766$489$302$182$107$38
40 years$738$465$283$168$97$33
41 years$712$443$265$155$88$29
42 years$687$422$249$143$80$26
43 years$664$402$234$132$73$23
44 years$642$383$219$122$66$20
45 years$620$365$206$112$60$17
46 years$600$348$193$104$54$15
47 years$581$332$182$96$49$13
48 years$562$317$171$89$45$12
49 years$544$303$160$82$41$10
50 years$527$289$151$76$37$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $540,000, adding $5,960 every year, while hoping to spend $27,989 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: 56/23/21 Blend
39$540,000$540,000$540,000$540,000
40$601,228$572,608$564,238$631,178
41$632,773$570,885$553,360$650,579
42$666,598$568,141$541,179$668,218
43$702,905$564,294$527,623$686,826
44$741,917$559,260$512,614$706,505
45$783,879$552,951$496,073$727,366
46$829,060$545,270$477,916$749,534
47$877,753$536,117$458,056$773,148
48$930,283$525,386$436,400$798,361
49$987,005$512,964$412,853$825,346
50$1,048,312$498,731$387,315$854,293
51$1,114,631$482,560$359,682$885,415
52$1,186,435$464,317$329,843$918,946
53$1,264,244$443,862$297,686$955,148
54$1,348,629$421,043$263,090$994,312
55$1,440,217$395,702$225,931$1,036,760
56$1,539,699$367,671$186,080$1,082,849
57$1,647,834$336,773$143,399$1,132,976
58$1,765,458$302,820$97,748$1,187,581
59$1,893,491$265,614$48,979$1,247,151
60$2,032,943$224,945$0$1,312,227
61$2,184,929$180,593$0$1,384,093
62$2,350,673$132,323$0$1,474,484
63$2,531,524$79,889$0$1,573,185
64$2,728,965$23,029$0$1,681,049
65$2,944,631$0$0$1,799,017
66$3,180,320$0$0$1,937,881
67$3,438,013$0$0$2,096,128
68$3,719,889$0$0$2,269,275
69$4,028,349$0$0$2,458,803
70$4,366,037$0$0$2,666,341
71$4,735,863$0$0$2,893,685
72$5,141,033$0$0$3,142,812
73$5,585,077$0$0$3,415,901
74$6,071,882$0$0$3,715,350
75$6,605,731$0$0$4,043,799
76$7,191,340$0$0$4,404,159
77$7,833,903$0$0$4,799,634
78$8,539,143$0$0$5,233,755
79$9,313,362$0$0$5,710,409
80$10,163,503$0$0$6,233,881
81$11,097,214$0$0$6,808,889
82$12,122,920$0$0$7,440,631
83$13,249,903$0$0$8,134,833
84$14,488,386$0$0$8,897,805
85$15,849,636$0$0$9,736,496
86$17,346,061$0$0$10,658,564
87$18,991,333$0$0$11,672,445
88$20,800,517$0$0$12,787,433
89$22,790,208$0$0$14,013,768
90$24,978,690$0$0$15,362,732
91$27,386,110$0$0$16,846,757
92$30,034,664$0$0$18,479,540
93$32,948,808$0$0$20,276,170
94$36,155,489$0$0$22,253,275
95$39,684,398$0$0$24,429,176
96$43,568,248$0$0$26,824,061
97$47,843,086$0$0$29,460,172
98$52,548,631$0$0$32,362,017
99$57,728,645$0$0$35,556,604
100$63,431,353$0$0$39,073,689