Can I retire at age 42 with 550,000?

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 $550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.1%
1 years$45,418$45,014$44,619$44,234$43,858$42,763
2 years$22,484$22,066$21,660$21,266$20,885$19,788
3 years$14,841$14,420$14,015$13,626$13,250$12,187
4 years$11,020$10,600$10,200$9,816$9,450$8,428
5 years$8,728$8,311$7,915$7,540$7,184$6,206
6 years$7,200$6,786$6,397$6,030$5,684$4,751
7 years$6,109$5,699$5,316$4,957$4,623$3,735
8 years$5,292$4,885$4,508$4,159$3,835$2,992
9 years$4,656$4,254$3,883$3,542$3,230$2,431
10 years$4,148$3,749$3,385$3,053$2,752$1,996
11 years$3,732$3,338$2,980$2,657$2,367$1,653
12 years$3,386$2,996$2,645$2,331$2,051$1,378
13 years$3,094$2,707$2,363$2,058$1,788$1,155
14 years$2,843$2,461$2,123$1,827$1,568$972
15 years$2,626$2,248$1,917$1,629$1,380$821
16 years$2,437$2,063$1,738$1,459$1,220$696
17 years$2,270$1,900$1,582$1,311$1,082$591
18 years$2,121$1,755$1,444$1,181$962$503
19 years$1,989$1,627$1,322$1,067$857$429
20 years$1,869$1,512$1,213$967$766$366
21 years$1,762$1,408$1,116$877$685$313
22 years$1,664$1,314$1,028$798$614$268
23 years$1,575$1,229$949$726$551$230
24 years$1,493$1,152$878$663$496$197
25 years$1,418$1,081$813$605$446$169
26 years$1,349$1,016$754$553$402$145
27 years$1,285$956$700$506$362$125
28 years$1,226$901$651$464$327$107
29 years$1,171$850$606$425$295$92
30 years$1,120$803$564$390$267$79
31 years$1,072$759$526$359$241$68
32 years$1,027$718$491$330$218$58
33 years$985$680$458$303$197$50
34 years$946$644$428$279$179$43
35 years$908$611$400$257$162$37
36 years$874$580$375$236$147$32
37 years$841$551$351$218$133$28
38 years$809$524$328$201$120$24
39 years$780$498$308$185$109$20
40 years$752$474$288$171$99$18
41 years$725$451$270$158$90$15
42 years$700$429$254$145$82$13
43 years$676$409$238$134$74$11
44 years$653$390$223$124$67$10
45 years$632$372$210$114$61$8
46 years$611$355$197$106$55$7
47 years$591$339$185$98$50$6
48 years$572$323$174$90$46$5
49 years$554$309$163$83$41$5
50 years$537$295$154$77$38$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $550,000, adding $6,231 every year, while hoping to spend $28,969 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: 43/34/23 Blend
41$550,000$550,000$550,000$550,000
42$612,527$583,377$574,852$634,526
43$644,182$581,140$563,287$648,521
44$678,095$577,822$550,363$660,401
45$714,466$573,340$536,005$672,693
46$753,513$567,606$520,133$685,448
47$795,477$560,524$502,664$698,728
48$840,623$551,997$483,510$712,601
49$889,240$541,918$462,581$727,146
50$941,646$530,176$439,781$742,452
51$998,191$516,652$415,011$758,617
52$1,059,260$501,221$388,167$775,756
53$1,125,274$483,750$359,140$793,994
54$1,196,697$464,100$327,817$813,474
55$1,274,040$442,120$294,079$834,358
56$1,357,864$417,655$257,802$856,826
57$1,448,784$390,539$218,856$881,080
58$1,547,479$360,594$177,107$907,346
59$1,654,695$327,637$132,414$935,878
60$1,771,253$291,470$84,628$966,961
61$1,898,054$251,885$33,597$1,000,911
62$2,036,093$208,664$0$1,038,082
63$2,186,461$161,576$0$1,083,990
64$2,350,361$110,374$0$1,143,088
65$2,529,116$54,801$0$1,207,657
66$2,724,184$0$0$1,278,290
67$2,937,168$0$0$1,357,669
68$3,169,832$0$0$1,466,843
69$3,424,119$0$0$1,586,231
70$3,702,169$0$0$1,716,843
71$4,006,337$0$0$1,859,796
72$4,339,217$0$0$2,016,317
73$4,703,663$0$0$2,187,758
74$5,102,821$0$0$2,375,608
75$5,540,154$0$0$2,581,506
76$6,019,476$0$0$2,807,260
77$6,544,986$0$0$3,054,856
78$7,121,312$0$0$3,326,488
79$7,753,548$0$0$3,624,566
80$8,447,307$0$0$3,951,751
81$9,208,770$0$0$4,310,968
82$10,044,747$0$0$4,705,445
83$10,962,740$0$0$5,138,732
84$11,971,011$0$0$5,614,745
85$13,078,663$0$0$6,137,795
86$14,295,723$0$0$6,712,632
87$15,633,240$0$0$7,344,489
88$17,103,382$0$0$8,039,132
89$18,719,559$0$0$8,802,911
90$20,496,543$0$0$9,642,825
91$22,450,607$0$0$10,566,583
92$24,599,684$0$0$11,582,681
93$26,963,530$0$0$12,700,478
94$29,563,909$0$0$13,930,285
95$32,424,806$0$0$15,283,465
96$35,572,643$0$0$16,772,537
97$39,036,536$0$0$18,411,294
98$42,848,563$0$0$20,214,935
99$47,044,072$0$0$22,200,206
100$51,662,008$0$0$24,385,560