Can I retire at age 40 with 548,000?

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 $548,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.7%
1 years$45,253$44,850$44,457$44,073$43,698$42,504
2 years$22,403$21,985$21,581$21,189$20,809$19,614
3 years$14,787$14,368$13,964$13,576$13,202$12,045
4 years$10,980$10,562$10,162$9,781$9,416$8,304
5 years$8,696$8,281$7,887$7,513$7,158$6,096
6 years$7,174$6,762$6,373$6,008$5,664$4,652
7 years$6,087$5,678$5,296$4,939$4,606$3,644
8 years$5,272$4,867$4,492$4,144$3,821$2,909
9 years$4,639$4,238$3,869$3,529$3,218$2,355
10 years$4,133$3,736$3,373$3,042$2,742$1,926
11 years$3,719$3,326$2,969$2,648$2,358$1,589
12 years$3,374$2,985$2,635$2,322$2,043$1,319
13 years$3,083$2,697$2,354$2,050$1,782$1,101
14 years$2,833$2,452$2,115$1,820$1,562$923
15 years$2,617$2,240$1,910$1,623$1,375$777
16 years$2,428$2,055$1,732$1,453$1,216$655
17 years$2,261$1,893$1,576$1,306$1,078$554
18 years$2,113$1,749$1,438$1,177$958$470
19 years$1,981$1,621$1,317$1,063$854$399
20 years$1,862$1,506$1,209$963$763$339
21 years$1,755$1,403$1,112$874$683$288
22 years$1,658$1,310$1,025$795$612$246
23 years$1,569$1,225$946$724$549$209
24 years$1,488$1,148$875$660$494$179
25 years$1,413$1,077$810$603$444$153
26 years$1,344$1,012$752$551$400$130
27 years$1,280$953$698$505$361$111
28 years$1,221$898$649$462$326$95
29 years$1,167$847$604$424$294$81
30 years$1,115$800$562$389$266$70
31 years$1,068$756$524$357$240$60
32 years$1,023$715$489$328$217$51
33 years$981$677$457$302$197$44
34 years$942$642$427$278$178$37
35 years$905$609$399$256$161$32
36 years$870$578$373$236$146$27
37 years$837$549$349$217$132$23
38 years$806$522$327$200$120$20
39 years$777$496$306$184$109$17
40 years$749$472$287$170$99$15
41 years$723$449$269$157$90$13
42 years$698$428$253$145$81$11
43 years$674$408$237$134$74$9
44 years$651$389$223$123$67$8
45 years$629$371$209$114$61$7
46 years$609$354$196$105$55$6
47 years$589$337$184$97$50$5
48 years$570$322$173$90$46$4
49 years$552$308$163$83$41$4
50 years$535$294$153$77$38$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $548,000, adding $2,484 every year, while hoping to spend $36,412 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: 62/11/27 Blend
39$548,000$548,000$548,000$548,000
40$606,458$577,414$568,920$639,540
41$629,575$566,965$549,237$651,844
42$653,829$554,784$527,674$661,088
43$679,298$540,747$504,130$670,397
44$706,067$524,724$478,498$679,786
45$734,227$506,577$450,669$689,271
46$763,877$486,158$420,526$698,869
47$795,127$463,314$387,948$708,604
48$828,094$437,881$352,808$718,502
49$862,908$409,685$314,975$728,596
50$899,708$378,544$274,311$738,920
51$938,649$344,263$230,671$749,518
52$979,898$306,638$183,905$760,439
53$1,023,637$265,454$133,856$771,739
54$1,070,068$220,480$80,359$783,482
55$1,119,408$171,477$23,244$795,742
56$1,171,896$118,188$0$808,605
57$1,227,796$60,345$0$833,028
58$1,287,392$0$0$866,110
59$1,351,000$0$0$901,610
60$1,418,963$0$0$947,370
61$1,491,658$0$0$996,341
62$1,569,499$0$0$1,048,806
63$1,652,939$0$0$1,105,074
64$1,742,475$0$0$1,165,484
65$1,838,653$0$0$1,230,409
66$1,942,073$0$0$1,300,255
67$2,053,392$0$0$1,375,473
68$2,173,332$0$0$1,456,555
69$2,302,686$0$0$1,544,042
70$2,442,327$0$0$1,638,529
71$2,593,211$0$0$1,740,669
72$2,756,390$0$0$1,851,179
73$2,933,022$0$0$1,970,850
74$3,124,378$0$0$2,100,550
75$3,331,857$0$0$2,241,231
76$3,556,995$0$0$2,393,945
77$3,801,483$0$0$2,559,845
78$4,067,183$0$0$2,740,201
79$4,356,139$0$0$2,936,409
80$4,670,603$0$0$3,150,007
81$5,013,051$0$0$3,382,686
82$5,386,210$0$0$3,636,307
83$5,793,079$0$0$3,912,917
84$6,236,958$0$0$4,214,771
85$6,721,482$0$0$4,544,350
86$7,250,651$0$0$4,904,387
87$7,828,868$0$0$5,297,887
88$8,460,981$0$0$5,728,162
89$9,152,326$0$0$6,198,856
90$9,908,781$0$0$6,713,983
91$10,736,816$0$0$7,277,963
92$11,643,557$0$0$7,895,662
93$12,636,851$0$0$8,572,440
94$13,725,338$0$0$9,314,199
95$14,918,537$0$0$10,127,439
96$16,226,927$0$0$11,019,321
97$17,662,055$0$0$11,997,729
98$19,236,635$0$0$13,071,350
99$20,964,673$0$0$14,249,750
100$22,861,598$0$0$15,543,469