Can I retire at age 42 with 540,000?

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 $540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$44,593$44,195$43,808$43,430$43,060$42,717
2 years$22,076$21,664$21,266$20,880$20,505$20,159
3 years$14,571$14,158$13,761$13,378$13,009$12,671
4 years$10,819$10,408$10,014$9,638$9,278$8,951
5 years$8,569$8,160$7,771$7,403$7,053$6,738
6 years$7,069$6,663$6,280$5,920$5,581$5,277
7 years$5,998$5,596$5,219$4,867$4,539$4,247
8 years$5,195$4,796$4,426$4,083$3,765$3,486
9 years$4,571$4,176$3,812$3,478$3,171$2,903
10 years$4,072$3,681$3,324$2,998$2,702$2,446
11 years$3,665$3,277$2,926$2,609$2,324$2,079
12 years$3,325$2,941$2,597$2,289$2,014$1,781
13 years$3,038$2,658$2,320$2,020$1,756$1,534
14 years$2,792$2,416$2,085$1,794$1,539$1,329
15 years$2,579$2,207$1,882$1,599$1,355$1,155
16 years$2,392$2,025$1,706$1,432$1,198$1,008
17 years$2,228$1,865$1,553$1,287$1,062$882
18 years$2,083$1,723$1,417$1,160$944$774
19 years$1,952$1,597$1,298$1,048$842$681
20 years$1,835$1,484$1,191$949$752$600
21 years$1,730$1,382$1,095$861$673$529
22 years$1,633$1,290$1,010$783$603$468
23 years$1,546$1,207$932$713$541$414
24 years$1,466$1,131$862$650$487$367
25 years$1,392$1,061$798$594$438$325
26 years$1,324$997$741$543$394$289
27 years$1,262$939$688$497$356$257
28 years$1,204$884$639$456$321$228
29 years$1,150$834$595$418$290$203
30 years$1,099$788$554$383$262$180
31 years$1,052$745$517$352$237$161
32 years$1,008$705$482$324$214$143
33 years$967$668$450$298$194$128
34 years$928$633$420$274$175$114
35 years$892$600$393$252$159$101
36 years$858$570$368$232$144$90
37 years$825$541$344$214$130$81
38 years$795$514$322$197$118$72
39 years$766$489$302$182$107$64
40 years$738$465$283$168$97$57
41 years$712$443$265$155$88$51
42 years$687$422$249$143$80$46
43 years$664$402$234$132$73$41
44 years$642$383$219$122$66$36
45 years$620$365$206$112$60$32
46 years$600$348$193$104$54$29
47 years$581$332$182$96$49$26
48 years$562$317$171$89$45$23
49 years$544$303$160$82$41$21
50 years$527$289$151$76$37$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $540,000, adding $6,992 every year, while hoping to spend $44,036 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: 64/14/22 Blend
41$540,000$540,000$540,000$540,000
42$602,292$573,672$565,302$636,994
43$616,872$554,928$537,386$642,475
44$631,463$533,790$507,058$642,883
45$646,020$510,093$474,193$642,318
46$660,492$483,665$438,656$640,688
47$674,819$454,322$400,308$637,894
48$688,938$421,871$359,005$633,827
49$702,773$386,106$314,595$628,372
50$716,241$346,811$266,920$621,401
51$729,249$303,756$215,813$612,778
52$741,693$256,700$161,103$602,355
53$753,455$205,388$102,609$589,970
54$764,404$149,549$40,143$575,449
55$774,394$88,897$0$558,601
56$783,261$23,132$0$545,448
57$790,824$0$0$539,999
58$796,880$0$0$540,035
59$801,204$0$0$542,392
60$803,545$0$0$543,328
61$803,624$0$0$542,647
62$801,131$0$0$540,129
63$795,724$0$0$535,531
64$787,021$0$0$528,584
65$774,599$0$0$518,989
66$757,990$0$0$506,415
67$736,675$0$0$490,494
68$710,080$0$0$470,821
69$677,567$0$0$446,946
70$638,431$0$0$418,370
71$591,895$0$0$384,544
72$537,094$0$0$344,858
73$473,076$0$0$298,638
74$398,786$0$0$245,139
75$313,057$0$0$183,539
76$214,603$0$0$112,928
77$102,000$0$0$32,300
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
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