Can I retire at age 40 with 554,000?

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 $554,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$45,749$45,341$44,944$44,556$44,177$43,197
2 years$22,648$22,226$21,817$21,421$21,037$20,054
3 years$14,949$14,525$14,117$13,725$13,346$12,392
4 years$11,100$10,677$10,274$9,888$9,519$8,601
5 years$8,791$8,371$7,973$7,595$7,236$6,356
6 years$7,252$6,836$6,443$6,074$5,726$4,885
7 years$6,154$5,741$5,354$4,993$4,656$3,855
8 years$5,330$4,921$4,541$4,189$3,863$3,101
9 years$4,690$4,284$3,911$3,568$3,253$2,530
10 years$4,178$3,777$3,410$3,076$2,772$2,086
11 years$3,760$3,362$3,002$2,677$2,384$1,735
12 years$3,411$3,018$2,664$2,348$2,066$1,453
13 years$3,116$2,727$2,380$2,073$1,801$1,224
14 years$2,864$2,479$2,139$1,840$1,579$1,035
15 years$2,645$2,264$1,931$1,641$1,390$879
16 years$2,454$2,078$1,751$1,469$1,229$748
17 years$2,286$1,913$1,593$1,320$1,090$639
18 years$2,137$1,768$1,454$1,190$969$546
19 years$2,003$1,639$1,331$1,075$864$468
20 years$1,883$1,523$1,222$974$771$402
21 years$1,774$1,418$1,124$884$690$346
22 years$1,676$1,324$1,036$803$619$297
23 years$1,586$1,238$956$732$555$256
24 years$1,504$1,160$884$667$499$221
25 years$1,428$1,089$819$609$449$191
26 years$1,359$1,023$760$557$405$165
27 years$1,294$963$705$510$365$142
28 years$1,235$907$656$467$329$123
29 years$1,179$856$610$429$297$106
30 years$1,128$808$568$393$269$92
31 years$1,080$764$530$361$243$79
32 years$1,034$723$494$332$220$69
33 years$992$685$462$305$199$59
34 years$952$649$431$281$180$51
35 years$915$616$403$259$163$45
36 years$880$584$377$238$148$39
37 years$847$555$353$219$134$33
38 years$815$527$331$202$121$29
39 years$786$502$310$186$110$25
40 years$757$477$290$172$100$22
41 years$731$454$272$159$91$19
42 years$705$433$255$146$82$16
43 years$681$412$240$135$75$14
44 years$658$393$225$125$68$12
45 years$636$375$211$115$61$11
46 years$615$357$198$106$56$9
47 years$596$341$186$98$51$8
48 years$577$326$175$91$46$7
49 years$558$311$165$84$42$6
50 years$541$297$155$78$38$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $554,000, adding $5,702 every year, while hoping to spend $25,407 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: 52/43/5 Blend
39$554,000$554,000$554,000$554,000
40$616,390$587,028$578,441$647,452
41$652,229$588,759$570,786$670,869
42$690,871$589,724$562,022$693,059
43$732,578$589,858$552,087$716,572
44$777,632$589,092$540,914$741,536
45$826,347$587,354$528,431$768,094
46$879,067$584,567$514,566$796,404
47$936,170$580,649$499,242$826,642
48$998,072$575,514$482,379$859,004
49$1,065,230$569,068$463,894$893,706
50$1,138,146$561,216$443,697$930,987
51$1,217,375$551,853$421,699$971,114
52$1,303,524$540,870$397,802$1,014,380
53$1,397,262$528,152$371,907$1,061,111
54$1,499,326$513,574$343,909$1,111,669
55$1,610,525$497,008$313,699$1,166,454
56$1,731,753$478,316$281,162$1,225,909
57$1,863,990$457,351$246,179$1,290,525
58$2,008,317$433,961$208,626$1,360,845
59$2,165,922$407,982$168,372$1,437,470
60$2,338,115$379,242$125,281$1,521,065
61$2,526,337$347,559$79,212$1,612,368
62$2,732,174$312,740$30,016$1,712,193
63$2,957,372$274,581$0$1,821,440
64$3,203,857$232,868$0$1,942,308
65$3,473,745$187,373$0$2,076,485
66$3,769,369$137,856$0$2,223,597
67$4,093,297$84,064$0$2,385,002
68$4,448,360$25,729$0$2,562,200
69$4,837,671$0$0$2,756,848
70$5,264,663$0$0$2,988,491
71$5,733,114$0$0$3,256,038
72$6,247,189$0$0$3,549,702
73$6,811,472$0$0$3,872,108
74$7,431,015$0$0$4,226,150
75$8,111,381$0$0$4,615,015
76$8,858,701$0$0$5,042,215
77$9,679,725$0$0$5,511,619
78$10,581,894$0$0$6,027,487
79$11,573,401$0$0$6,594,515
80$12,663,274$0$0$7,217,874
81$13,861,461$0$0$7,903,265
82$15,178,918$0$0$8,656,963
83$16,627,719$0$0$9,485,887
84$18,221,165$0$0$10,397,658
85$19,973,911$0$0$11,400,672
86$21,902,104$0$0$12,504,181
87$24,023,534$0$0$13,718,377
88$26,357,804$0$0$15,054,493
89$28,926,512$0$0$16,524,903
90$31,753,454$0$0$18,143,244
91$34,864,853$0$0$19,924,537
92$38,289,599$0$0$21,885,340
93$42,059,528$0$0$24,043,892
94$46,209,718$0$0$26,420,293
95$50,778,821$0$0$29,036,690
96$55,809,428$0$0$31,917,489
97$61,348,468$0$0$35,089,579
98$67,447,654$0$0$38,582,592
99$74,163,969$0$0$42,429,179
100$81,560,203$0$0$46,665,320