Can I retire at age 40 with 562,000?

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 $562,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.5%
1 years$46,409$45,996$45,593$45,199$44,815$43,105
2 years$22,975$22,547$22,132$21,730$21,340$19,638
3 years$15,164$14,735$14,321$13,923$13,539$11,897
4 years$11,260$10,832$10,422$10,031$9,656$8,088
5 years$8,918$8,492$8,088$7,704$7,341$5,850
6 years$7,357$6,934$6,536$6,161$5,808$4,396
7 years$6,243$5,824$5,432$5,066$4,724$3,389
8 years$5,407$4,992$4,607$4,249$3,919$2,661
9 years$4,758$4,346$3,968$3,620$3,300$2,118
10 years$4,238$3,831$3,459$3,120$2,812$1,702
11 years$3,814$3,411$3,045$2,715$2,418$1,379
12 years$3,460$3,061$2,703$2,382$2,096$1,124
13 years$3,161$2,766$2,415$2,103$1,827$920
14 years$2,905$2,515$2,170$1,867$1,602$757
15 years$2,684$2,297$1,959$1,665$1,410$624
16 years$2,490$2,108$1,776$1,491$1,247$516
17 years$2,319$1,941$1,616$1,339$1,105$427
18 years$2,167$1,794$1,475$1,207$983$355
19 years$2,032$1,662$1,350$1,091$876$295
20 years$1,910$1,545$1,239$988$782$245
21 years$1,800$1,439$1,140$896$700$204
22 years$1,700$1,343$1,051$815$628$170
23 years$1,609$1,256$970$742$563$142
24 years$1,526$1,177$897$677$506$119
25 years$1,449$1,104$831$618$456$99
26 years$1,378$1,038$771$565$410$83
27 years$1,313$977$716$517$370$69
28 years$1,253$921$665$474$334$58
29 years$1,196$868$619$435$302$48
30 years$1,144$820$577$399$272$40
31 years$1,095$775$538$366$246$34
32 years$1,049$734$502$337$223$28
33 years$1,006$695$468$310$202$24
34 years$966$658$438$285$183$20
35 years$928$625$409$262$165$17
36 years$893$593$383$242$150$14
37 years$859$563$358$223$136$12
38 years$827$535$335$205$123$10
39 years$797$509$314$189$112$8
40 years$768$484$295$174$101$7
41 years$741$461$276$161$92$6
42 years$716$439$259$149$83$5
43 years$691$418$243$137$76$4
44 years$668$399$228$127$69$3
45 years$646$380$214$117$62$3
46 years$624$363$201$108$57$2
47 years$604$346$189$100$51$2
48 years$585$330$178$92$47$2
49 years$566$315$167$85$42$1
50 years$549$301$157$79$39$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $562,000, adding $6,987 every year, while hoping to spend $32,096 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: 57/20/23 Blend
39$562,000$562,000$562,000$562,000
40$626,531$596,745$588,034$657,980
41$656,287$591,836$573,583$675,334
42$688,003$585,610$557,573$690,226
43$721,844$577,970$539,916$705,767
44$757,992$568,810$520,524$722,028
45$796,647$558,022$499,301$739,090
46$838,027$545,487$476,149$757,041
47$882,372$531,081$450,966$775,982
48$929,943$514,674$423,643$796,025
49$981,031$496,126$394,068$817,295
50$1,035,951$475,291$362,124$839,932
51$1,095,050$452,013$327,688$864,093
52$1,158,711$426,128$290,632$889,953
53$1,227,353$397,461$250,820$917,706
54$1,301,434$365,828$208,115$947,570
55$1,381,463$331,036$162,369$979,787
56$1,467,993$292,878$113,429$1,014,627
57$1,561,637$251,137$61,138$1,052,391
58$1,663,066$205,585$5,328$1,093,413
59$1,773,018$155,977$0$1,138,064
60$1,892,305$102,059$0$1,200,068
61$2,021,820$43,560$0$1,268,834
62$2,162,545$0$0$1,343,611
63$2,315,561$0$0$1,429,372
64$2,482,056$0$0$1,533,163
65$2,663,339$0$0$1,646,218
66$2,860,848$0$0$1,769,439
67$3,076,167$0$0$1,903,821
68$3,311,039$0$0$2,050,458
69$3,567,384$0$0$2,210,554
70$3,847,311$0$0$2,385,434
71$4,153,147$0$0$2,576,559
72$4,487,451$0$0$2,785,534
73$4,853,040$0$0$3,014,129
74$5,253,017$0$0$3,264,291
75$5,690,799$0$0$3,538,166
76$6,170,146$0$0$3,838,115
77$6,695,201$0$0$4,166,739
78$7,270,527$0$0$4,526,902
79$7,901,147$0$0$4,921,760
80$8,592,595$0$0$5,354,786
81$9,350,964$0$0$5,829,807
82$10,182,968$0$0$6,351,039
83$11,096,000$0$0$6,923,124
84$12,098,203$0$0$7,551,177
85$13,198,549$0$0$8,240,830
86$14,406,920$0$0$8,998,290
87$15,734,202$0$0$9,830,394
88$17,192,386$0$0$10,744,672
89$18,794,684$0$0$11,749,421
90$20,555,649$0$0$12,853,781
91$22,491,316$0$0$14,067,822
92$24,619,349$0$0$15,402,639
93$26,959,210$0$0$16,870,454
94$29,532,340$0$0$18,484,733
95$32,362,364$0$0$20,260,314
96$35,475,308$0$0$22,213,544
97$38,899,850$0$0$24,362,433
98$42,667,586$0$0$26,726,827
99$46,813,329$0$0$29,328,591
100$51,375,439$0$0$32,191,818