Can I retire at age 40 with 557,000?

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 $557,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$45,997$45,587$45,187$44,797$44,416$43,220
2 years$22,771$22,346$21,935$21,537$21,150$19,954
3 years$15,030$14,604$14,194$13,799$13,419$12,259
4 years$11,160$10,735$10,329$9,941$9,570$8,457
5 years$8,839$8,417$8,016$7,636$7,275$6,210
6 years$7,292$6,873$6,478$6,107$5,757$4,742
7 years$6,187$5,772$5,383$5,021$4,682$3,717
8 years$5,359$4,947$4,566$4,212$3,884$2,969
9 years$4,715$4,308$3,932$3,587$3,271$2,405
10 years$4,201$3,797$3,428$3,092$2,787$1,968
11 years$3,780$3,380$3,018$2,691$2,397$1,625
12 years$3,429$3,034$2,679$2,361$2,077$1,350
13 years$3,133$2,742$2,393$2,084$1,811$1,127
14 years$2,879$2,492$2,150$1,850$1,588$946
15 years$2,660$2,277$1,941$1,650$1,398$796
16 years$2,468$2,089$1,760$1,477$1,236$672
17 years$2,298$1,924$1,602$1,327$1,095$569
18 years$2,148$1,778$1,462$1,196$974$482
19 years$2,014$1,647$1,338$1,081$868$410
20 years$1,893$1,531$1,228$979$775$349
21 years$1,784$1,426$1,130$888$694$297
22 years$1,685$1,331$1,041$808$622$253
23 years$1,595$1,245$962$736$558$216
24 years$1,512$1,166$889$671$502$185
25 years$1,436$1,095$824$613$452$158
26 years$1,366$1,029$764$560$407$135
27 years$1,301$968$709$513$367$115
28 years$1,241$912$659$470$331$99
29 years$1,186$861$614$431$299$84
30 years$1,134$813$572$395$270$72
31 years$1,085$768$533$363$244$62
32 years$1,040$727$497$334$221$53
33 years$998$689$464$307$200$45
34 years$958$653$434$282$181$39
35 years$920$619$406$260$164$33
36 years$885$587$379$239$148$29
37 years$851$558$355$221$135$25
38 years$820$530$332$203$122$21
39 years$790$504$312$187$111$18
40 years$762$480$292$173$100$15
41 years$735$457$274$160$91$13
42 years$709$435$257$147$83$11
43 years$685$414$241$136$75$10
44 years$662$395$226$125$68$8
45 years$640$377$212$116$62$7
46 years$619$359$199$107$56$6
47 years$599$343$187$99$51$5
48 years$580$327$176$91$46$5
49 years$561$313$166$84$42$4
50 years$544$299$156$78$38$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $557,000, adding $5,152 every year, while hoping to spend $42,398 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: 60/26/14 Blend
39$557,000$557,000$557,000$557,000
40$619,128$589,607$580,974$653,820
41$637,168$573,387$555,325$661,578
42$655,627$554,951$527,397$664,826
43$674,503$534,145$497,066$667,359
44$693,793$510,809$464,208$669,113
45$713,490$484,769$428,690$670,018
46$733,588$455,844$390,373$670,001
47$754,077$423,843$349,113$668,980
48$774,944$388,563$304,759$666,872
49$796,173$349,788$257,154$663,584
50$817,747$307,291$206,133$659,019
51$839,643$260,834$151,524$653,073
52$861,834$210,163$93,148$645,632
53$884,291$155,011$30,818$636,576
54$906,976$95,094$0$625,777
55$929,848$30,114$0$618,429
56$952,860$0$0$614,310
57$975,957$0$0$620,199
58$999,075$0$0$634,694
59$1,022,143$0$0$649,131
60$1,045,082$0$0$663,457
61$1,067,798$0$0$677,609
62$1,090,189$0$0$691,519
63$1,112,139$0$0$705,108
64$1,133,516$0$0$718,290
65$1,154,173$0$0$730,967
66$1,173,947$0$0$743,027
67$1,192,652$0$0$754,350
68$1,210,081$0$0$764,796
69$1,226,006$0$0$774,213
70$1,240,169$0$0$782,430
71$1,252,284$0$0$789,257
72$1,262,031$0$0$794,481
73$1,269,055$0$0$797,867
74$1,272,963$0$0$799,152
75$1,273,315$0$0$798,044
76$1,269,623$0$0$794,222
77$1,261,348$0$0$787,325
78$1,247,889$0$0$776,955
79$1,228,580$0$0$762,671
80$1,202,684$0$0$743,984
81$1,169,384$0$0$720,352
82$1,127,773$0$0$691,175
83$1,076,851$0$0$655,788
84$1,015,506$0$0$613,456
85$942,513$0$0$563,366
86$856,511$0$0$504,617
87$756,001$0$0$436,216
88$639,320$0$0$357,061
89$504,633$0$0$265,938
90$349,912$0$0$161,503
91$172,914$0$0$42,271
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0