Can I retire at age 40 with 550,000?

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 $550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$45,418$45,014$44,619$44,234$43,858$43,364
2 years$22,484$22,066$21,660$21,266$20,885$20,387
3 years$14,841$14,420$14,015$13,626$13,250$12,765
4 years$11,020$10,600$10,200$9,816$9,450$8,981
5 years$8,728$8,311$7,915$7,540$7,184$6,732
6 years$7,200$6,786$6,397$6,030$5,684$5,250
7 years$6,109$5,699$5,316$4,957$4,623$4,206
8 years$5,292$4,885$4,508$4,159$3,835$3,437
9 years$4,656$4,254$3,883$3,542$3,230$2,849
10 years$4,148$3,749$3,385$3,053$2,752$2,389
11 years$3,732$3,338$2,980$2,657$2,367$2,021
12 years$3,386$2,996$2,645$2,331$2,051$1,722
13 years$3,094$2,707$2,363$2,058$1,788$1,476
14 years$2,843$2,461$2,123$1,827$1,568$1,271
15 years$2,626$2,248$1,917$1,629$1,380$1,099
16 years$2,437$2,063$1,738$1,459$1,220$954
17 years$2,270$1,900$1,582$1,311$1,082$830
18 years$2,121$1,755$1,444$1,181$962$724
19 years$1,989$1,627$1,322$1,067$857$633
20 years$1,869$1,512$1,213$967$766$555
21 years$1,762$1,408$1,116$877$685$487
22 years$1,664$1,314$1,028$798$614$428
23 years$1,575$1,229$949$726$551$376
24 years$1,493$1,152$878$663$496$331
25 years$1,418$1,081$813$605$446$292
26 years$1,349$1,016$754$553$402$257
27 years$1,285$956$700$506$362$227
28 years$1,226$901$651$464$327$201
29 years$1,171$850$606$425$295$177
30 years$1,120$803$564$390$267$157
31 years$1,072$759$526$359$241$139
32 years$1,027$718$491$330$218$123
33 years$985$680$458$303$197$109
34 years$946$644$428$279$179$96
35 years$908$611$400$257$162$85
36 years$874$580$375$236$147$75
37 years$841$551$351$218$133$67
38 years$809$524$328$201$120$59
39 years$780$498$308$185$109$52
40 years$752$474$288$171$99$47
41 years$725$451$270$158$90$41
42 years$700$429$254$145$82$37
43 years$676$409$238$134$74$32
44 years$653$390$223$124$67$29
45 years$632$372$210$114$61$25
46 years$611$355$197$106$55$23
47 years$591$339$185$98$50$20
48 years$572$323$174$90$46$18
49 years$554$309$163$83$41$16
50 years$537$295$154$77$38$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $550,000, adding $2,681 every year, while hoping to spend $39,136 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: 42/46/12 Blend
39$550,000$550,000$550,000$550,000
40$608,865$579,715$571,190$632,190
41$629,329$566,481$548,685$635,566
42$650,569$551,287$524,114$635,109
43$672,622$533,995$497,367$633,748
44$695,529$514,460$468,328$631,419
45$719,332$492,528$436,876$628,053
46$744,079$468,037$402,887$623,576
47$769,818$440,814$366,226$617,913
48$796,603$410,677$326,758$610,983
49$824,490$377,433$284,338$602,701
50$853,540$340,880$238,816$592,979
51$883,820$300,802$190,035$581,725
52$915,399$256,971$137,831$568,841
53$948,355$209,147$82,033$554,225
54$982,769$157,077$22,463$537,771
55$1,018,730$100,493$0$519,369
56$1,056,334$39,111$0$504,165
57$1,095,686$0$0$490,185
58$1,136,896$0$0$488,305
59$1,180,088$0$0$507,102
60$1,225,394$0$0$526,840
61$1,272,956$0$0$547,583
62$1,322,930$0$0$569,403
63$1,375,486$0$0$592,377
64$1,430,807$0$0$616,588
65$1,489,094$0$0$642,128
66$1,550,566$0$0$669,096
67$1,615,459$0$0$697,601
68$1,684,034$0$0$727,763
69$1,756,573$0$0$759,709
70$1,833,386$0$0$793,581
71$1,914,808$0$0$829,535
72$2,001,211$0$0$867,739
73$2,092,995$0$0$908,378
74$2,190,603$0$0$951,654
75$2,294,517$0$0$997,789
76$2,405,265$0$0$1,047,025
77$2,523,425$0$0$1,099,628
78$2,649,632$0$0$1,155,889
79$2,784,579$0$0$1,216,129
80$2,929,029$0$0$1,280,696
81$3,083,816$0$0$1,349,976
82$3,249,856$0$0$1,424,390
83$3,428,154$0$0$1,504,401
84$3,619,813$0$0$1,590,516
85$3,826,044$0$0$1,683,294
86$4,048,176$0$0$1,783,348
87$4,287,670$0$0$1,891,351
88$4,546,129$0$0$2,008,042
89$4,825,317$0$0$2,134,234
90$5,127,169$0$0$2,270,821
91$5,453,815$0$0$2,418,785
92$5,807,594$0$0$2,579,207
93$6,191,080$0$0$2,753,273
94$6,607,101$0$0$2,942,290
95$7,058,770$0$0$3,147,694
96$7,549,507$0$0$3,371,066
97$8,083,078$0$0$3,614,145
98$8,663,625$0$0$3,878,844
99$9,295,703$0$0$4,167,268
100$9,984,327$0$0$4,481,733