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%13.3%
1 years$45,997$45,587$45,187$44,797$44,416$43,806
2 years$22,771$22,346$21,935$21,537$21,150$20,537
3 years$15,030$14,604$14,194$13,799$13,419$12,821
4 years$11,160$10,735$10,329$9,941$9,570$8,993
5 years$8,839$8,417$8,016$7,636$7,275$6,720
6 years$7,292$6,873$6,478$6,107$5,757$5,224
7 years$6,187$5,772$5,383$5,021$4,682$4,172
8 years$5,359$4,947$4,566$4,212$3,884$3,396
9 years$4,715$4,308$3,932$3,587$3,271$2,806
10 years$4,201$3,797$3,428$3,092$2,787$2,344
11 years$3,780$3,380$3,018$2,691$2,397$1,975
12 years$3,429$3,034$2,679$2,361$2,077$1,677
13 years$3,133$2,742$2,393$2,084$1,811$1,432
14 years$2,879$2,492$2,150$1,850$1,588$1,228
15 years$2,660$2,277$1,941$1,650$1,398$1,058
16 years$2,468$2,089$1,760$1,477$1,236$914
17 years$2,298$1,924$1,602$1,327$1,095$792
18 years$2,148$1,778$1,462$1,196$974$688
19 years$2,014$1,647$1,338$1,081$868$599
20 years$1,893$1,531$1,228$979$775$523
21 years$1,784$1,426$1,130$888$694$456
22 years$1,685$1,331$1,041$808$622$399
23 years$1,595$1,245$962$736$558$349
24 years$1,512$1,166$889$671$502$306
25 years$1,436$1,095$824$613$452$269
26 years$1,366$1,029$764$560$407$236
27 years$1,301$968$709$513$367$207
28 years$1,241$912$659$470$331$182
29 years$1,186$861$614$431$299$160
30 years$1,134$813$572$395$270$141
31 years$1,085$768$533$363$244$124
32 years$1,040$727$497$334$221$109
33 years$998$689$464$307$200$96
34 years$958$653$434$282$181$85
35 years$920$619$406$260$164$75
36 years$885$587$379$239$148$66
37 years$851$558$355$221$135$58
38 years$820$530$332$203$122$51
39 years$790$504$312$187$111$45
40 years$762$480$292$173$100$40
41 years$735$457$274$160$91$35
42 years$709$435$257$147$83$31
43 years$685$414$241$136$75$27
44 years$662$395$226$125$68$24
45 years$640$377$212$116$62$21
46 years$619$359$199$107$56$19
47 years$599$343$187$99$51$17
48 years$580$327$176$91$46$15
49 years$561$313$166$84$42$13
50 years$544$299$156$78$38$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $557,000, adding $2,708 every year, while hoping to spend $38,547 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: 57/24/19 Blend
39$557,000$557,000$557,000$557,000
40$616,607$587,086$578,453$648,495
41$638,488$574,840$556,817$658,249
42$661,308$560,701$533,165$664,477
43$685,123$544,537$507,388$670,407
44$709,992$526,207$479,372$676,017
45$735,981$505,560$449,001$681,288
46$763,158$482,439$416,149$686,198
47$791,598$456,677$380,688$690,728
48$821,382$428,096$342,483$694,858
49$852,600$396,509$301,392$698,569
50$885,346$361,719$257,270$701,842
51$919,725$323,516$209,962$704,659
52$955,848$281,680$159,307$707,004
53$993,838$235,976$105,138$708,863
54$1,033,830$186,159$47,279$710,222
55$1,075,966$131,967$0$711,073
56$1,120,407$73,125$0$714,339
57$1,167,323$9,343$0$727,504
58$1,216,902$0$0$741,013
59$1,269,350$0$0$770,676
60$1,324,890$0$0$804,723
61$1,383,766$0$0$840,839
62$1,446,245$0$0$879,192
63$1,512,618$0$0$919,962
64$1,583,206$0$0$963,351
65$1,658,357$0$0$1,009,576
66$1,738,455$0$0$1,058,877
67$1,823,916$0$0$1,111,516
68$1,915,202$0$0$1,167,779
69$2,012,813$0$0$1,227,983
70$2,117,303$0$0$1,292,472
71$2,229,274$0$0$1,361,625
72$2,349,391$0$0$1,435,857
73$2,478,380$0$0$1,515,624
74$2,617,041$0$0$1,601,427
75$2,766,251$0$0$1,693,814
76$2,926,971$0$0$1,793,390
77$3,100,260$0$0$1,900,817
78$3,287,278$0$0$2,016,823
79$3,489,302$0$0$2,142,209
80$3,707,734$0$0$2,277,854
81$3,944,115$0$0$2,424,724
82$4,200,141$0$0$2,583,883
83$4,477,673$0$0$2,756,499
84$4,778,761$0$0$2,943,857
85$5,105,658$0$0$3,147,371
86$5,460,841$0$0$3,368,595
87$5,847,037$0$0$3,609,240
88$6,267,244$0$0$3,871,188
89$6,724,762$0$0$4,156,510
90$7,223,222$0$0$4,467,484
91$7,766,620$0$0$4,806,618
92$8,359,354$0$0$5,176,673
93$9,006,263$0$0$5,580,686
94$9,712,676$0$0$6,022,002
95$10,484,458$0$0$6,504,303
96$11,328,066$0$0$7,031,643
97$12,250,609$0$0$7,608,484
98$13,259,914$0$0$8,239,741
99$14,364,601$0$0$8,930,824
100$15,574,159$0$0$9,687,693