Can I retire at age 40 with 551,000?

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 $551,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$45,501$45,096$44,700$44,314$43,938$42,379
2 years$22,525$22,106$21,699$21,305$20,923$19,369
3 years$14,868$14,446$14,041$13,650$13,274$11,774
4 years$11,040$10,620$10,218$9,834$9,467$8,032
5 years$8,743$8,326$7,930$7,554$7,197$5,831
6 years$7,213$6,799$6,408$6,041$5,695$4,399
7 years$6,120$5,710$5,325$4,966$4,631$3,405
8 years$5,301$4,894$4,516$4,166$3,842$2,685
9 years$4,665$4,261$3,890$3,549$3,236$2,145
10 years$4,155$3,756$3,391$3,059$2,757$1,732
11 years$3,739$3,344$2,986$2,662$2,371$1,410
12 years$3,393$3,001$2,650$2,335$2,055$1,154
13 years$3,099$2,712$2,367$2,062$1,792$950
14 years$2,848$2,465$2,127$1,830$1,571$785
15 years$2,631$2,252$1,920$1,632$1,383$650
16 years$2,441$2,066$1,741$1,461$1,222$540
17 years$2,274$1,903$1,584$1,313$1,084$450
18 years$2,125$1,758$1,446$1,183$964$375
19 years$1,992$1,630$1,324$1,069$859$314
20 years$1,873$1,514$1,215$968$767$262
21 years$1,765$1,411$1,118$879$686$220
22 years$1,667$1,317$1,030$799$615$184
23 years$1,577$1,232$951$728$552$154
24 years$1,496$1,154$880$664$496$130
25 years$1,421$1,083$815$606$447$109
26 years$1,351$1,018$756$554$402$91
27 years$1,287$958$702$507$363$77
28 years$1,228$903$652$465$327$65
29 years$1,173$851$607$426$296$54
30 years$1,122$804$565$391$267$46
31 years$1,074$760$527$359$241$38
32 years$1,029$719$492$330$218$32
33 years$987$681$459$304$198$27
34 years$947$646$429$279$179$23
35 years$910$612$401$257$162$19
36 years$875$581$375$237$147$16
37 years$842$552$351$218$133$14
38 years$811$525$329$201$121$11
39 years$781$499$308$185$109$10
40 years$753$475$289$171$99$8
41 years$727$452$271$158$90$7
42 years$702$430$254$146$82$6
43 years$678$410$238$134$74$5
44 years$655$391$224$124$67$4
45 years$633$373$210$115$61$3
46 years$612$355$197$106$55$3
47 years$592$339$185$98$50$2
48 years$573$324$174$90$46$2
49 years$555$309$164$84$42$2
50 years$538$295$154$77$38$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $551,000, adding $4,522 every year, while hoping to spend $41,223 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: 74/14/12 Blend
39$551,000$551,000$551,000$551,000
40$611,866$582,663$574,123$655,335
41$630,416$567,353$549,495$669,349
42$649,476$549,911$522,661$679,122
43$669,055$530,189$493,502$688,698
44$689,160$508,030$461,897$698,047
45$709,801$483,270$427,716$707,135
46$730,982$455,732$390,826$715,923
47$752,711$425,231$351,087$724,374
48$774,991$391,571$308,353$732,444
49$797,828$354,546$262,471$740,088
50$821,224$313,936$213,280$747,254
51$845,179$269,509$160,616$753,891
52$869,694$221,021$104,303$759,940
53$894,765$168,215$44,160$765,340
54$920,390$110,816$0$770,022
55$946,561$48,537$0$776,479
56$973,268$0$0$788,271
57$1,000,499$0$0$802,594
58$1,028,239$0$0$824,796
59$1,056,467$0$0$847,384
60$1,085,160$0$0$870,337
61$1,114,289$0$0$893,632
62$1,143,820$0$0$917,240
63$1,173,714$0$0$941,128
64$1,203,923$0$0$965,259
65$1,234,393$0$0$989,587
66$1,265,064$0$0$1,014,061
67$1,295,863$0$0$1,038,623
68$1,326,709$0$0$1,063,207
69$1,357,509$0$0$1,087,734
70$1,388,158$0$0$1,112,121
71$1,418,537$0$0$1,136,268
72$1,448,512$0$0$1,160,065
73$1,477,931$0$0$1,183,389
74$1,506,622$0$0$1,206,099
75$1,534,396$0$0$1,228,038
76$1,561,037$0$0$1,249,031
77$1,586,304$0$0$1,268,881
78$1,609,929$0$0$1,287,368
79$1,631,611$0$0$1,304,246
80$1,651,014$0$0$1,319,241
81$1,667,766$0$0$1,332,047
82$1,681,450$0$0$1,342,324
83$1,691,601$0$0$1,349,694
84$1,697,706$0$0$1,353,734
85$1,699,190$0$0$1,353,977
86$1,695,417$0$0$1,349,902
87$1,685,682$0$0$1,340,934
88$1,669,199$0$0$1,326,431
89$1,645,100$0$0$1,305,683
90$1,612,421$0$0$1,277,904
91$1,570,093$0$0$1,242,221
92$1,516,933$0$0$1,197,669
93$1,451,632$0$0$1,143,177
94$1,372,740$0$0$1,077,563
95$1,278,651$0$0$999,517
96$1,167,591$0$0$907,589
97$1,037,596$0$0$800,177
98$886,495$0$0$675,509
99$711,888$0$0$531,628
100$511,123$0$0$366,367