Can I retire at age 40 with 549,000?

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 $549,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$45,336$44,932$44,538$44,154$43,778$42,947
2 years$22,444$22,026$21,620$21,228$20,847$20,013
3 years$14,814$14,394$13,990$13,601$13,226$12,415
4 years$11,000$10,581$10,181$9,799$9,433$8,651
5 years$8,712$8,296$7,901$7,526$7,171$6,420
6 years$7,187$6,774$6,385$6,019$5,674$4,956
7 years$6,098$5,689$5,306$4,948$4,614$3,929
8 years$5,282$4,876$4,500$4,151$3,828$3,175
9 years$4,648$4,246$3,876$3,536$3,224$2,603
10 years$4,140$3,742$3,379$3,048$2,747$2,157
11 years$3,726$3,332$2,975$2,653$2,362$1,803
12 years$3,380$2,990$2,640$2,327$2,047$1,518
13 years$3,088$2,702$2,359$2,054$1,785$1,285
14 years$2,838$2,456$2,119$1,823$1,565$1,093
15 years$2,622$2,244$1,913$1,626$1,378$933
16 years$2,432$2,059$1,735$1,456$1,218$799
17 years$2,265$1,896$1,579$1,308$1,080$686
18 years$2,117$1,752$1,441$1,179$960$590
19 years$1,985$1,624$1,319$1,065$856$509
20 years$1,866$1,509$1,211$965$764$440
21 years$1,758$1,405$1,114$876$684$380
22 years$1,661$1,312$1,026$796$613$329
23 years$1,572$1,227$948$725$550$285
24 years$1,490$1,150$876$661$495$248
25 years$1,415$1,079$812$604$445$215
26 years$1,346$1,014$753$552$401$187
27 years$1,283$954$699$505$362$162
28 years$1,224$899$650$463$326$141
29 years$1,169$848$605$425$295$123
30 years$1,118$801$563$390$266$107
31 years$1,070$757$525$358$241$93
32 years$1,025$717$490$329$218$81
33 years$983$679$458$303$197$71
34 years$944$643$427$278$178$62
35 years$907$610$400$256$162$54
36 years$872$579$374$236$146$47
37 years$839$550$350$217$133$41
38 years$808$523$328$200$120$36
39 years$778$497$307$185$109$31
40 years$751$473$288$170$99$27
41 years$724$450$270$157$90$24
42 years$699$429$253$145$81$21
43 years$675$408$238$134$74$18
44 years$652$389$223$124$67$16
45 years$631$371$209$114$61$14
46 years$610$354$197$106$55$12
47 years$590$338$185$97$50$10
48 years$571$323$174$90$46$9
49 years$553$308$163$83$41$8
50 years$536$294$153$77$38$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $549,000, adding $6,140 every year, while hoping to spend $29,667 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: 42/41/17 Blend
39$549,000$549,000$549,000$549,000
40$611,331$582,234$573,725$633,728
41$642,122$579,198$561,379$647,105
42$675,058$575,019$547,626$658,204
43$710,329$569,610$532,386$669,595
44$748,139$562,877$515,577$681,318
45$788,715$554,724$497,115$693,423
46$832,303$545,045$476,908$705,962
47$879,177$533,731$454,863$718,997
48$929,634$520,665$430,882$732,600
49$984,002$505,723$404,862$746,850
50$1,042,642$488,775$376,696$761,841
51$1,105,948$469,681$346,272$777,674
52$1,174,356$448,297$313,473$794,469
53$1,248,342$424,466$278,177$812,358
54$1,328,433$398,024$240,255$831,492
55$1,415,205$368,799$199,576$852,039
56$1,509,293$336,607$155,998$874,190
57$1,611,394$301,254$109,378$898,159
58$1,722,276$262,536$59,562$924,187
59$1,842,784$220,236$6,393$952,544
60$1,973,846$174,125$0$983,533
61$2,116,484$123,963$0$1,026,624
62$2,271,822$69,494$0$1,074,897
63$2,441,098$10,449$0$1,127,645
64$2,625,672$0$0$1,185,378
65$2,827,044$0$0$1,272,776
66$3,046,863$0$0$1,373,393
67$3,286,944$0$0$1,483,352
68$3,549,286$0$0$1,603,579
69$3,836,090$0$0$1,735,089
70$4,149,779$0$0$1,879,004
71$4,493,020$0$0$2,036,557
72$4,868,750$0$0$2,209,106
73$5,280,204$0$0$2,398,146
74$5,730,944$0$0$2,605,326
75$6,224,893$0$0$2,832,458
76$6,766,370$0$0$3,081,542
77$7,360,133$0$0$3,354,779
78$8,011,424$0$0$3,654,591
79$8,726,014$0$0$3,983,649
80$9,510,261$0$0$4,344,894
81$10,371,168$0$0$4,741,566
82$11,316,450$0$0$5,177,234
83$12,354,604$0$0$5,655,828
84$13,494,993$0$0$6,181,681
85$14,747,928$0$0$6,759,562
86$16,124,770$0$0$7,394,729
87$17,638,035$0$0$8,092,973
88$19,301,513$0$0$8,860,672
89$21,130,394$0$0$9,704,857
90$23,141,415$0$0$10,633,271
91$25,353,015$0$0$11,654,447
92$27,785,510$0$0$12,777,785
93$30,461,284$0$0$14,013,643
94$33,404,999$0$0$15,373,432
95$36,643,828$0$0$16,869,728
96$40,207,711$0$0$18,516,385
97$44,129,635$0$0$20,328,668
98$48,445,949$0$0$22,323,397
99$53,196,702$0$0$24,519,107
100$58,426,023$0$0$26,936,219