Can I retire at age 40 with 542,000?

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 $542,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$44,758$44,359$43,970$43,591$43,220$42,261
2 years$22,157$21,745$21,345$20,957$20,581$19,620
3 years$14,625$14,210$13,811$13,427$13,057$12,124
4 years$10,859$10,446$10,051$9,674$9,313$8,414
5 years$8,601$8,190$7,800$7,430$7,079$6,219
6 years$7,095$6,688$6,304$5,942$5,602$4,779
7 years$6,020$5,616$5,238$4,885$4,556$3,772
8 years$5,215$4,814$4,443$4,098$3,779$3,034
9 years$4,588$4,192$3,826$3,491$3,183$2,475
10 years$4,088$3,695$3,336$3,009$2,712$2,041
11 years$3,678$3,289$2,937$2,619$2,332$1,698
12 years$3,337$2,952$2,606$2,297$2,021$1,422
13 years$3,049$2,668$2,329$2,028$1,762$1,197
14 years$2,802$2,425$2,092$1,800$1,545$1,012
15 years$2,588$2,215$1,889$1,605$1,360$859
16 years$2,401$2,033$1,713$1,437$1,202$732
17 years$2,237$1,872$1,559$1,292$1,066$625
18 years$2,090$1,730$1,423$1,164$948$535
19 years$1,960$1,603$1,302$1,052$845$458
20 years$1,842$1,490$1,195$953$755$393
21 years$1,736$1,388$1,099$864$675$338
22 years$1,640$1,295$1,013$786$605$291
23 years$1,552$1,211$936$716$543$251
24 years$1,471$1,135$865$653$488$216
25 years$1,397$1,065$801$596$439$186
26 years$1,329$1,001$743$545$396$161
27 years$1,266$942$690$499$357$139
28 years$1,208$888$642$457$322$120
29 years$1,154$837$597$419$291$104
30 years$1,103$791$556$385$263$90
31 years$1,056$748$519$353$238$78
32 years$1,012$707$484$325$215$67
33 years$971$670$452$299$194$58
34 years$932$635$422$275$176$50
35 years$895$602$395$253$159$44
36 years$861$572$369$233$144$38
37 years$828$543$345$215$131$33
38 years$798$516$324$198$119$28
39 years$769$491$303$182$108$24
40 years$741$467$284$168$98$21
41 years$715$444$266$155$89$18
42 years$690$423$250$143$80$16
43 years$666$403$234$132$73$14
44 years$644$384$220$122$66$12
45 years$623$367$207$113$60$10
46 years$602$350$194$104$55$9
47 years$583$334$182$96$50$8
48 years$564$319$171$89$45$7
49 years$546$304$161$82$41$6
50 years$529$291$151$76$37$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $542,000, adding $2,667 every year, while hoping to spend $42,286 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: 42/40/18 Blend
39$542,000$542,000$542,000$542,000
40$600,035$571,309$562,908$621,971
41$616,247$554,311$536,773$620,749
42$632,695$535,063$508,346$615,094
43$649,358$513,410$477,505$608,084
44$666,214$489,188$444,122$599,615
45$683,233$462,224$408,066$589,577
46$700,384$432,334$369,197$577,852
47$717,629$399,324$327,371$564,316
48$734,926$362,990$282,437$548,833
49$752,227$323,115$234,237$531,263
50$769,476$279,469$182,605$511,452
51$786,611$231,812$127,371$489,238
52$803,560$179,886$68,353$464,449
53$820,246$123,422$5,365$436,898
54$836,577$62,136$0$406,389
55$852,452$0$0$384,590
56$867,760$0$0$363,150
57$882,371$0$0$368,701
58$896,146$0$0$373,826
59$908,924$0$0$378,450
60$920,528$0$0$382,491
61$930,762$0$0$385,855
62$939,404$0$0$388,439
63$946,209$0$0$390,129
64$950,905$0$0$390,796
65$953,187$0$0$390,298
66$952,718$0$0$388,479
67$949,125$0$0$385,163
68$941,990$0$0$380,156
69$930,854$0$0$373,242
70$915,204$0$0$364,185
71$894,474$0$0$352,719
72$868,036$0$0$338,552
73$835,195$0$0$321,361
74$795,180$0$0$300,786
75$747,140$0$0$276,433
76$690,132$0$0$247,862
77$623,113$0$0$214,589
78$544,929$0$0$176,077
79$454,305$0$0$131,735
80$349,833$0$0$80,907
81$229,953$0$0$22,870
82$92,946$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
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