Can I retire at age 40 with 545,000?

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 $545,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.5%
1 years$45,006$44,605$44,214$43,832$43,459$41,967
2 years$22,280$21,865$21,463$21,073$20,695$19,207
3 years$14,706$14,289$13,888$13,502$13,130$11,693
4 years$10,919$10,504$10,107$9,727$9,364$7,989
5 years$8,648$8,235$7,843$7,471$7,118$5,809
6 years$7,135$6,725$6,339$5,975$5,633$4,389
7 years$6,054$5,647$5,267$4,912$4,581$3,403
8 years$5,244$4,841$4,467$4,121$3,800$2,688
9 years$4,614$4,215$3,848$3,510$3,200$2,152
10 years$4,110$3,715$3,354$3,026$2,727$1,741
11 years$3,698$3,307$2,953$2,633$2,345$1,419
12 years$3,356$2,969$2,621$2,310$2,032$1,165
13 years$3,066$2,683$2,342$2,039$1,772$960
14 years$2,817$2,438$2,104$1,810$1,553$795
15 years$2,602$2,228$1,900$1,614$1,368$660
16 years$2,415$2,044$1,722$1,445$1,209$550
17 years$2,249$1,882$1,567$1,299$1,072$459
18 years$2,102$1,739$1,431$1,170$953$384
19 years$1,970$1,612$1,310$1,058$849$321
20 years$1,852$1,498$1,202$958$759$269
21 years$1,746$1,395$1,106$869$679$226
22 years$1,649$1,302$1,019$790$609$190
23 years$1,560$1,218$941$720$546$160
24 years$1,479$1,141$870$657$491$134
25 years$1,405$1,071$806$600$442$113
26 years$1,337$1,007$747$548$398$95
27 years$1,273$947$694$502$359$80
28 years$1,215$893$645$460$324$68
29 years$1,160$842$600$422$292$57
30 years$1,109$795$559$387$264$48
31 years$1,062$752$521$355$239$40
32 years$1,018$711$486$327$216$34
33 years$976$674$454$300$196$29
34 years$937$639$424$276$177$24
35 years$900$606$397$254$160$20
36 years$866$575$371$234$145$17
37 years$833$546$347$216$132$15
38 years$802$519$325$199$119$12
39 years$773$493$305$183$108$10
40 years$745$469$286$169$98$9
41 years$719$447$268$156$89$7
42 years$694$426$251$144$81$6
43 years$670$405$236$133$73$5
44 years$648$386$221$123$67$4
45 years$626$369$208$113$60$4
46 years$605$352$195$105$55$3
47 years$586$336$183$97$50$3
48 years$567$320$172$89$45$2
49 years$549$306$162$83$41$2
50 years$532$292$152$76$37$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $545,000, adding $3,957 every year, while hoping to spend $31,467 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: 77/15/8 Blend
39$545,000$545,000$545,000$545,000
40$604,672$575,787$567,339$650,234
41$632,868$570,520$552,864$675,461
42$662,885$563,940$536,850$698,666
43$694,876$555,950$519,211$723,192
44$729,008$546,446$499,860$749,159
45$765,464$535,319$478,702$776,695
46$804,445$522,453$455,642$805,947
47$846,170$507,725$430,578$837,071
48$890,880$491,005$403,404$870,245
49$938,841$472,155$374,009$905,661
50$990,343$451,030$342,277$943,534
51$1,045,703$427,476$308,089$984,100
52$1,105,271$401,329$271,317$1,027,620
53$1,169,433$372,418$231,830$1,074,381
54$1,238,609$340,560$189,490$1,124,701
55$1,313,262$305,563$144,153$1,178,932
56$1,393,902$267,222$95,669$1,237,461
57$1,481,087$225,324$43,882$1,300,715
58$1,575,434$179,640$0$1,369,169
59$1,677,617$129,932$0$1,444,314
60$1,788,379$75,944$0$1,529,816
61$1,908,538$17,409$0$1,622,577
62$2,038,992$0$0$1,723,314
63$2,180,730$0$0$1,840,404
64$2,334,838$0$0$1,970,855
65$2,502,514$0$0$2,112,808
66$2,685,072$0$0$2,267,380
67$2,883,961$0$0$2,435,798
68$3,100,774$0$0$2,619,415
69$3,337,266$0$0$2,819,719
70$3,595,367$0$0$3,038,347
71$3,877,202$0$0$3,277,103
72$4,185,109$0$0$3,537,970
73$4,521,665$0$0$3,823,133
74$4,889,704$0$0$4,134,998
75$5,292,349$0$0$4,476,214
76$5,733,036$0$0$4,849,695
77$6,215,550$0$0$5,258,655
78$6,744,060$0$0$5,706,629
79$7,323,155$0$0$6,197,511
80$7,957,890$0$0$6,735,591
81$8,653,834$0$0$7,325,591
82$9,417,117$0$0$7,972,715
83$10,254,494$0$0$8,682,694
84$11,173,404$0$0$9,461,837
85$12,182,040$0$0$10,317,100
86$13,289,429$0$0$11,256,138
87$14,505,514$0$0$12,287,390
88$15,841,247$0$0$13,420,147
89$17,308,694$0$0$14,664,649
90$18,921,148$0$0$16,032,172
91$20,693,251$0$0$17,535,142
92$22,641,136$0$0$19,187,248
93$24,782,577$0$0$21,003,569
94$27,137,153$0$0$23,000,720
95$29,726,440$0$0$25,197,007
96$32,574,204$0$0$27,612,596
97$35,706,634$0$0$30,269,709
98$39,152,583$0$0$33,192,827
99$42,943,840$0$0$36,408,925
100$47,115,433$0$0$39,947,723