Can I retire at age 42 with 500,000?

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 $500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.3%
1 years$41,290$40,922$40,563$40,213$39,871$39,162
2 years$20,440$20,060$19,691$19,333$18,986$18,274
3 years$13,492$13,109$12,741$12,387$12,046$11,353
4 years$10,018$9,637$9,272$8,924$8,591$7,923
5 years$7,934$7,555$7,196$6,855$6,531$5,889
6 years$6,545$6,169$5,815$5,482$5,168$4,553
7 years$5,554$5,181$4,832$4,507$4,203$3,616
8 years$4,811$4,441$4,098$3,781$3,486$2,927
9 years$4,233$3,867$3,530$3,220$2,936$2,404
10 years$3,771$3,408$3,077$2,776$2,502$1,996
11 years$3,393$3,034$2,709$2,416$2,152$1,672
12 years$3,079$2,723$2,404$2,119$1,864$1,410
13 years$2,813$2,461$2,148$1,871$1,626$1,196
14 years$2,585$2,237$1,930$1,661$1,425$1,019
15 years$2,388$2,044$1,743$1,481$1,255$872
16 years$2,215$1,875$1,580$1,326$1,109$748
17 years$2,063$1,727$1,438$1,191$983$644
18 years$1,928$1,596$1,312$1,074$874$555
19 years$1,808$1,479$1,202$970$779$480
20 years$1,699$1,374$1,103$879$696$415
21 years$1,601$1,280$1,014$798$623$360
22 years$1,512$1,195$935$725$558$312
23 years$1,431$1,118$863$660$501$271
24 years$1,357$1,047$798$602$451$236
25 years$1,289$983$739$550$405$205
26 years$1,226$923$686$503$365$179
27 years$1,168$869$637$460$329$156
28 years$1,114$819$592$422$297$136
29 years$1,064$773$551$387$268$119
30 years$1,018$730$513$355$242$103
31 years$974$690$478$326$219$90
32 years$934$653$446$300$198$79
33 years$895$618$417$276$179$69
34 years$860$586$389$254$162$60
35 years$826$556$364$233$147$53
36 years$794$527$341$215$133$46
37 years$764$501$319$198$121$40
38 years$736$476$298$183$110$35
39 years$709$453$280$168$99$31
40 years$684$431$262$155$90$27
41 years$659$410$246$143$82$23
42 years$637$390$231$132$74$21
43 years$615$372$216$122$67$18
44 years$594$355$203$113$61$16
45 years$574$338$191$104$55$14
46 years$555$323$179$96$50$12
47 years$538$308$168$89$46$10
48 years$520$294$158$82$42$9
49 years$504$281$149$76$38$8
50 years$488$268$140$70$34$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $500,000, adding $5,387 every year, while hoping to spend $25,278 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: 52/40/8 Blend
41$500,000$500,000$500,000$500,000
42$556,557$530,057$522,307$584,107
43$586,430$529,134$512,908$602,505
44$618,503$527,319$502,348$619,314
45$652,974$524,541$490,560$636,992
46$690,059$520,725$477,476$655,628
47$729,997$515,792$463,023$675,320
48$773,049$509,659$447,127$696,175
49$819,504$502,236$429,710$718,315
50$869,676$493,429$410,688$741,875
51$923,914$483,137$389,977$767,004
52$982,598$471,256$367,486$793,869
53$1,046,148$457,672$343,121$822,655
54$1,115,024$442,267$316,785$853,570
55$1,189,734$424,916$288,375$886,842
56$1,270,836$405,486$257,784$922,727
57$1,358,942$383,835$224,901$961,507
58$1,454,727$359,816$189,608$1,003,498
59$1,558,932$333,271$151,783$1,049,048
60$1,672,376$304,033$111,300$1,098,545
61$1,795,955$271,928$68,025$1,152,419
62$1,930,659$236,768$21,821$1,211,148
63$2,077,575$198,359$0$1,275,261
64$2,237,901$156,492$0$1,347,691
65$2,412,955$110,949$0$1,428,882
66$2,604,189$61,498$0$1,517,705
67$2,813,200$7,895$0$1,614,972
68$3,041,747$0$0$1,721,583
69$3,291,765$0$0$1,860,593
70$3,565,389$0$0$2,016,580
71$3,864,964$0$0$2,187,413
72$4,193,077$0$0$2,374,573
73$4,552,575$0$0$2,579,691
74$4,946,593$0$0$2,804,562
75$5,378,586$0$0$3,051,165
76$5,852,356$0$0$3,321,678
77$6,372,093$0$0$3,618,502
78$6,942,412$0$0$3,944,279
79$7,568,394$0$0$4,301,921
80$8,255,639$0$0$4,694,635
81$9,010,315$0$0$5,125,954
82$9,839,213$0$0$5,599,771
83$10,749,820$0$0$6,120,373
84$11,750,379$0$0$6,692,482
85$12,849,974$0$0$7,321,304
86$14,058,611$0$0$8,012,571
87$15,387,314$0$0$8,772,598
88$16,848,228$0$0$9,608,344
89$18,454,735$0$0$10,527,477
90$20,221,577$0$0$11,538,441
91$22,164,998$0$0$12,650,545
92$24,302,893$0$0$13,874,042
93$26,654,982$0$0$15,220,229
94$29,242,988$0$0$16,701,555
95$32,090,852$0$0$18,331,736
96$35,224,947$0$0$20,125,883
97$38,674,336$0$0$22,100,649
98$42,471,041$0$0$24,274,382
99$46,650,345$0$0$26,667,299
100$51,251,127$0$0$29,301,677