Can I retire at age 40 with 555,000?

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 $555,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$45,831$45,423$45,025$44,636$44,256$43,867
2 years$22,689$22,266$21,857$21,460$21,075$20,682
3 years$14,976$14,551$14,143$13,749$13,371$12,988
4 years$11,120$10,697$10,292$9,906$9,536$9,165
5 years$8,807$8,386$7,987$7,609$7,249$6,891
6 years$7,265$6,848$6,455$6,085$5,736$5,392
7 years$6,165$5,751$5,364$5,002$4,665$4,335
8 years$5,340$4,930$4,549$4,196$3,870$3,554
9 years$4,698$4,292$3,918$3,574$3,259$2,956
10 years$4,186$3,783$3,416$3,081$2,777$2,488
11 years$3,766$3,368$3,007$2,682$2,388$2,112
12 years$3,417$3,023$2,669$2,352$2,070$1,807
13 years$3,122$2,732$2,385$2,077$1,805$1,555
14 years$2,869$2,483$2,143$1,843$1,582$1,344
15 years$2,650$2,268$1,934$1,644$1,393$1,167
16 years$2,459$2,081$1,754$1,472$1,231$1,017
17 years$2,290$1,917$1,596$1,323$1,092$889
18 years$2,140$1,771$1,457$1,192$971$779
19 years$2,007$1,642$1,334$1,077$865$684
20 years$1,886$1,525$1,224$975$773$602
21 years$1,778$1,421$1,126$885$691$530
22 years$1,679$1,326$1,038$805$620$468
23 years$1,589$1,240$958$733$556$414
24 years$1,507$1,162$886$669$500$366
25 years$1,431$1,091$821$611$450$324
26 years$1,361$1,025$761$558$405$287
27 years$1,297$965$707$511$365$255
28 years$1,237$909$657$468$330$226
29 years$1,181$858$611$429$298$201
30 years$1,130$810$570$394$269$178
31 years$1,081$766$531$362$243$158
32 years$1,036$724$495$333$220$141
33 years$994$686$463$306$199$125
34 years$954$650$432$281$180$112
35 years$917$617$404$259$163$99
36 years$881$585$378$239$148$88
37 years$848$556$354$220$134$79
38 years$817$528$331$203$122$70
39 years$787$502$310$187$110$62
40 years$759$478$291$172$100$56
41 years$732$455$273$159$91$50
42 years$707$433$256$147$82$44
43 years$682$413$240$135$75$39
44 years$659$394$225$125$68$35
45 years$637$375$212$115$62$31
46 years$617$358$199$107$56$28
47 years$597$342$187$99$51$25
48 years$578$326$175$91$46$22
49 years$559$311$165$84$42$20
50 years$542$298$155$78$38$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $555,000, adding $4,092 every year, while hoping to spend $34,925 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: 45/47/8 Blend
39$555,000$555,000$555,000$555,000
40$615,831$586,416$577,813$641,983
41$641,486$577,990$560,010$652,042
42$668,587$567,981$540,440$659,012
43$697,245$556,275$519,007$665,767
44$727,580$542,749$495,610$672,296
45$759,726$527,275$470,145$678,595
46$793,825$509,719$442,502$684,658
47$830,035$489,935$412,566$690,483
48$868,528$467,772$380,217$696,071
49$909,494$443,068$345,330$701,426
50$953,138$415,654$307,774$706,555
51$999,686$385,349$267,412$711,471
52$1,049,386$351,963$224,103$716,191
53$1,102,508$315,295$177,696$720,737
54$1,159,351$275,132$128,036$725,139
55$1,220,241$231,249$74,960$729,435
56$1,285,534$183,408$18,300$733,672
57$1,355,623$131,360$0$737,906
58$1,430,938$74,838$0$745,803
59$1,511,952$13,564$0$755,746
60$1,599,184$0$0$766,283
61$1,693,204$0$0$804,828
62$1,794,637$0$0$854,032
63$1,904,172$0$0$907,218
64$2,022,563$0$0$964,761
65$2,150,641$0$0$1,027,070
66$2,289,319$0$0$1,094,599
67$2,439,600$0$0$1,167,842
68$2,602,589$0$0$1,247,346
69$2,779,498$0$0$1,333,712
70$2,971,662$0$0$1,427,600
71$3,180,549$0$0$1,529,737
72$3,407,775$0$0$1,640,922
73$3,655,117$0$0$1,762,036
74$3,924,530$0$0$1,894,046
75$4,218,165$0$0$2,038,017
76$4,538,391$0$0$2,195,124
77$4,887,815$0$0$2,366,656
78$5,269,304$0$0$2,554,034
79$5,686,018$0$0$2,758,824
80$6,141,433$0$0$2,982,747
81$6,639,377$0$0$3,227,699
82$7,184,063$0$0$3,495,769
83$7,780,133$0$0$3,789,255
84$8,432,696$0$0$4,110,691
85$9,147,379$0$0$4,462,863
86$9,930,377$0$0$4,848,842
87$10,788,516$0$0$5,272,010
88$11,729,309$0$0$5,736,092
89$12,761,035$0$0$6,245,190
90$13,892,810$0$0$6,803,823
91$15,134,675$0$0$7,416,967
92$16,497,692$0$0$8,090,105
93$17,994,044$0$0$8,829,276
94$19,637,152$0$0$9,641,133
95$21,441,801$0$0$10,533,005
96$23,424,275$0$0$11,512,965
97$25,602,517$0$0$12,589,906
98$27,996,293$0$0$13,773,628
99$30,627,376$0$0$15,074,926
100$33,519,758$0$0$16,505,693