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%17%
1 years$44,593$44,195$43,808$43,430$43,060$41,833
2 years$22,076$21,664$21,266$20,880$20,505$19,278
3 years$14,571$14,158$13,761$13,378$13,009$11,821
4 years$10,819$10,408$10,014$9,638$9,278$8,138
5 years$8,569$8,160$7,771$7,403$7,053$5,964
6 years$7,069$6,663$6,280$5,920$5,581$4,544
7 years$5,998$5,596$5,219$4,867$4,539$3,554
8 years$5,195$4,796$4,426$4,083$3,765$2,832
9 years$4,571$4,176$3,812$3,478$3,171$2,288
10 years$4,072$3,681$3,324$2,998$2,702$1,868
11 years$3,665$3,277$2,926$2,609$2,324$1,538
12 years$3,325$2,941$2,597$2,289$2,014$1,274
13 years$3,038$2,658$2,320$2,020$1,756$1,062
14 years$2,792$2,416$2,085$1,794$1,539$888
15 years$2,579$2,207$1,882$1,599$1,355$746
16 years$2,392$2,025$1,706$1,432$1,198$628
17 years$2,228$1,865$1,553$1,287$1,062$530
18 years$2,083$1,723$1,417$1,160$944$448
19 years$1,952$1,597$1,298$1,048$842$379
20 years$1,835$1,484$1,191$949$752$322
21 years$1,730$1,382$1,095$861$673$273
22 years$1,633$1,290$1,010$783$603$232
23 years$1,546$1,207$932$713$541$198
24 years$1,466$1,131$862$650$487$168
25 years$1,392$1,061$798$594$438$143
26 years$1,324$997$741$543$394$122
27 years$1,262$939$688$497$356$104
28 years$1,204$884$639$456$321$89
29 years$1,150$834$595$418$290$76
30 years$1,099$788$554$383$262$65
31 years$1,052$745$517$352$237$55
32 years$1,008$705$482$324$214$47
33 years$967$668$450$298$194$40
34 years$928$633$420$274$175$34
35 years$892$600$393$252$159$29
36 years$858$570$368$232$144$25
37 years$825$541$344$214$130$21
38 years$795$514$322$197$118$18
39 years$766$489$302$182$107$16
40 years$738$465$283$168$97$13
41 years$712$443$265$155$88$11
42 years$687$422$249$143$80$10
43 years$664$402$234$132$73$8
44 years$642$383$219$122$66$7
45 years$620$365$206$112$60$6
46 years$600$348$193$104$54$5
47 years$581$332$182$96$49$4
48 years$562$317$171$89$45$4
49 years$544$303$160$82$41$3
50 years$527$289$151$76$37$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $540,000, adding $3,830 every year, while hoping to spend $40,695 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: 60/16/24 Blend
41$540,000$540,000$540,000$540,000
42$599,031$570,411$562,041$630,921
43$616,833$555,062$537,570$637,688
44$635,086$537,597$510,915$640,319
45$653,795$517,869$481,961$642,305
46$672,961$495,723$450,586$643,590
47$692,585$470,996$416,662$644,116
48$712,667$443,512$380,058$643,821
49$733,204$413,089$340,635$642,639
50$754,193$379,533$298,249$640,497
51$775,628$342,638$252,748$637,323
52$797,502$302,187$203,974$633,033
53$819,804$257,950$151,764$627,543
54$842,520$209,686$95,945$620,761
55$865,635$157,139$36,337$612,588
56$889,130$100,038$0$602,920
57$912,979$38,098$0$598,629
58$937,155$0$0$602,995
59$961,626$0$0$611,732
60$986,352$0$0$627,322
61$1,011,290$0$0$643,028
62$1,036,387$0$0$658,815
63$1,061,586$0$0$674,643
64$1,086,819$0$0$690,468
65$1,112,010$0$0$706,238
66$1,137,072$0$0$721,894
67$1,161,906$0$0$737,372
68$1,186,403$0$0$752,596
69$1,210,437$0$0$767,484
70$1,233,867$0$0$781,941
71$1,256,536$0$0$795,862
72$1,278,267$0$0$809,130
73$1,298,862$0$0$821,611
74$1,318,099$0$0$833,159
75$1,335,731$0$0$843,609
76$1,351,482$0$0$852,777
77$1,365,044$0$0$860,458
78$1,376,074$0$0$866,424
79$1,384,191$0$0$870,423
80$1,388,970$0$0$872,172
81$1,389,939$0$0$871,357
82$1,386,576$0$0$867,631
83$1,378,297$0$0$860,609
84$1,364,458$0$0$849,861
85$1,344,344$0$0$834,913
86$1,317,159$0$0$815,239
87$1,282,027$0$0$790,255
88$1,237,972$0$0$759,318
89$1,183,917$0$0$721,710
90$1,118,668$0$0$676,643
91$1,040,904$0$0$623,241
92$949,164$0$0$560,535
93$841,832$0$0$487,455
94$717,123$0$0$402,818
95$573,059$0$0$305,316
96$407,459$0$0$193,503
97$217,910$0$0$65,782
98$1,748$0$0$0
99$0$0$0$0
100$0$0$0$0