Can I retire at age 40 with 589,000?

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 $589,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$48,639$48,206$47,783$47,371$46,968$46,770
2 years$24,079$23,630$23,196$22,774$22,366$22,166
3 years$15,893$15,443$15,009$14,592$14,190$13,994
4 years$11,801$11,352$10,923$10,513$10,120$9,930
5 years$9,346$8,900$8,477$8,075$7,693$7,510
6 years$7,711$7,268$6,850$6,457$6,087$5,911
7 years$6,543$6,103$5,693$5,309$4,951$4,781
8 years$5,667$5,232$4,828$4,454$4,107$3,944
9 years$4,986$4,555$4,158$3,793$3,459$3,302
10 years$4,442$4,015$3,625$3,270$2,947$2,797
11 years$3,997$3,574$3,192$2,846$2,535$2,391
12 years$3,627$3,208$2,832$2,496$2,196$2,059
13 years$3,313$2,899$2,531$2,204$1,915$1,784
14 years$3,045$2,635$2,274$1,956$1,679$1,554
15 years$2,813$2,407$2,053$1,745$1,478$1,359
16 years$2,609$2,209$1,861$1,562$1,306$1,193
17 years$2,430$2,034$1,694$1,404$1,158$1,051
18 years$2,272$1,880$1,546$1,265$1,030$928
19 years$2,130$1,742$1,415$1,143$918$821
20 years$2,002$1,619$1,299$1,035$820$728
21 years$1,886$1,508$1,195$939$734$647
22 years$1,782$1,408$1,101$854$658$576
23 years$1,686$1,316$1,017$778$590$513
24 years$1,599$1,233$940$710$531$458
25 years$1,519$1,158$871$648$478$409
26 years$1,445$1,088$808$592$430$365
27 years$1,376$1,024$750$542$388$327
28 years$1,313$965$697$497$350$293
29 years$1,254$910$649$456$316$262
30 years$1,199$860$604$418$286$235
31 years$1,148$813$563$384$258$211
32 years$1,100$769$526$353$234$189
33 years$1,055$728$491$325$211$170
34 years$1,013$690$459$299$191$152
35 years$973$655$429$275$173$137
36 years$935$621$401$253$157$123
37 years$900$590$375$233$142$111
38 years$867$561$352$215$129$99
39 years$835$533$329$198$117$89
40 years$805$507$309$183$106$80
41 years$777$483$290$169$96$72
42 years$750$460$272$156$87$65
43 years$724$438$255$144$79$59
44 years$700$418$239$133$72$53
45 years$677$398$225$123$65$47
46 years$654$380$211$113$59$43
47 years$633$363$198$105$54$38
48 years$613$346$186$97$49$35
49 years$594$331$175$89$44$31
50 years$575$316$165$83$40$28

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $589,000, adding $3,453 every year, while hoping to spend $41,395 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: 82/11/7 Blend
39$589,000$589,000$589,000$589,000
40$652,640$621,423$612,293$705,428
41$675,165$607,829$588,761$726,862
42$698,601$592,181$563,053$744,501
43$722,995$574,335$535,053$762,591
44$748,402$554,139$504,639$781,153
45$774,878$531,431$471,683$800,213
46$802,484$506,039$436,052$819,794
47$831,285$477,783$397,608$839,926
48$861,353$446,471$356,205$860,641
49$892,764$411,901$311,691$881,974
50$925,601$373,859$263,908$903,962
51$959,953$332,119$212,689$926,650
52$995,918$286,442$157,864$950,085
53$1,033,599$236,575$99,250$974,319
54$1,073,111$182,252$36,659$999,411
55$1,114,576$123,191$0$1,025,425
56$1,158,130$59,094$0$1,054,686
57$1,203,916$0$0$1,088,089
58$1,252,094$0$0$1,124,252
59$1,302,836$0$0$1,169,878
60$1,356,329$0$0$1,217,982
61$1,412,777$0$0$1,268,750
62$1,472,402$0$0$1,322,382
63$1,535,449$0$0$1,379,097
64$1,602,182$0$0$1,439,134
65$1,672,890$0$0$1,502,756
66$1,747,889$0$0$1,570,247
67$1,827,527$0$0$1,641,920
68$1,912,179$0$0$1,718,117
69$2,002,261$0$0$1,799,209
70$2,098,225$0$0$1,885,608
71$2,200,568$0$0$1,977,760
72$2,309,831$0$0$2,076,155
73$2,426,610$0$0$2,181,332
74$2,551,558$0$0$2,293,880
75$2,685,390$0$0$2,414,443
76$2,828,890$0$0$2,543,732
77$2,982,919$0$0$2,682,523
78$3,148,422$0$0$2,831,670
79$3,326,436$0$0$2,992,109
80$3,518,098$0$0$3,164,868
81$3,724,660$0$0$3,351,078
82$3,947,494$0$0$3,551,977
83$4,188,109$0$0$3,768,929
84$4,448,162$0$0$4,003,433
85$4,729,477$0$0$4,257,132
86$5,034,055$0$0$4,531,838
87$5,364,098$0$0$4,829,538
88$5,722,028$0$0$5,152,421
89$6,110,506$0$0$5,502,891
90$6,532,462$0$0$5,883,595
91$6,991,115$0$0$6,297,441
92$7,490,010$0$0$6,747,632
93$8,033,045$0$0$7,237,690
94$8,624,509$0$0$7,771,491
95$9,269,124$0$0$8,353,299
96$9,972,085$0$0$8,987,809
97$10,739,109$0$0$9,680,186
98$11,576,491$0$0$10,436,118
99$12,491,158$0$0$11,261,865
100$13,490,738$0$0$12,164,318