Can I retire at age 40 with 342,000?

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 $342,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.4%
1 years$28,242$27,990$27,745$27,505$27,272$26,998
2 years$13,981$13,721$13,468$13,224$12,986$12,711
3 years$9,228$8,967$8,715$8,473$8,239$7,970
4 years$6,852$6,591$6,342$6,104$5,876$5,616
5 years$5,427$5,168$4,922$4,688$4,467$4,216
6 years$4,477$4,220$3,978$3,749$3,535$3,293
7 years$3,799$3,544$3,305$3,083$2,875$2,643
8 years$3,290$3,038$2,803$2,586$2,385$2,163
9 years$2,895$2,645$2,414$2,203$2,008$1,796
10 years$2,579$2,331$2,105$1,899$1,711$1,509
11 years$2,321$2,075$1,853$1,652$1,472$1,279
12 years$2,106$1,863$1,645$1,449$1,275$1,092
13 years$1,924$1,683$1,469$1,280$1,112$938
14 years$1,768$1,530$1,320$1,136$975$809
15 years$1,633$1,398$1,192$1,013$858$701
16 years$1,515$1,283$1,081$907$759$610
17 years$1,411$1,181$983$815$673$532
18 years$1,319$1,091$898$734$598$465
19 years$1,236$1,012$822$664$533$407
20 years$1,162$940$754$601$476$358
21 years$1,095$876$694$545$426$315
22 years$1,035$817$639$496$382$277
23 years$979$764$590$452$343$244
24 years$928$716$546$412$308$216
25 years$882$672$506$376$277$190
26 years$839$632$469$344$250$168
27 years$799$594$436$315$225$149
28 years$762$560$405$289$203$132
29 years$728$528$377$265$183$117
30 years$696$499$351$243$166$104
31 years$666$472$327$223$150$92
32 years$639$446$305$205$136$81
33 years$612$423$285$188$123$72
34 years$588$401$266$173$111$64
35 years$565$380$249$160$101$57
36 years$543$361$233$147$91$51
37 years$523$343$218$135$83$45
38 years$503$326$204$125$75$40
39 years$485$310$191$115$68$35
40 years$468$295$179$106$62$31
41 years$451$280$168$98$56$28
42 years$435$267$158$90$51$25
43 years$421$254$148$83$46$22
44 years$406$243$139$77$42$20
45 years$393$231$130$71$38$17
46 years$380$221$122$66$34$16
47 years$368$211$115$61$31$14
48 years$356$201$108$56$28$12
49 years$345$192$102$52$26$11
50 years$334$183$96$48$23$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $342,000, adding $3,296 every year, while hoping to spend $26,425 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: 84/5/11 Blend
39$342,000$342,000$342,000$342,000
40$380,284$362,158$356,857$411,273
41$390,957$351,788$340,696$421,666
42$401,833$340,024$323,107$429,198
43$412,904$326,769$304,016$436,665
44$424,163$311,924$283,343$444,045
45$435,598$295,378$261,006$451,312
46$447,197$277,020$236,917$458,440
47$458,945$256,727$210,987$465,397
48$470,824$234,374$183,122$472,151
49$482,815$209,824$153,223$478,665
50$494,893$182,937$121,188$484,897
51$507,033$153,562$86,908$490,805
52$519,203$121,539$50,272$496,337
53$531,369$86,702$11,164$501,439
54$543,490$48,872$0$506,053
55$555,523$7,864$0$513,700
56$567,416$0$0$522,351
57$579,112$0$0$532,640
58$590,546$0$0$543,116
59$601,645$0$0$553,279
60$612,329$0$0$563,054
61$622,507$0$0$572,356
62$632,075$0$0$581,091
63$640,921$0$0$589,154
64$648,917$0$0$596,425
65$655,921$0$0$602,774
66$661,775$0$0$608,055
67$666,303$0$0$612,103
68$669,310$0$0$614,739
69$670,577$0$0$615,760
70$669,862$0$0$614,941
71$666,898$0$0$612,036
72$661,385$0$0$606,766
73$652,994$0$0$598,826
74$641,358$0$0$587,877
75$626,070$0$0$573,543
76$606,681$0$0$555,405
77$582,692$0$0$533,004
78$553,550$0$0$505,828
79$518,647$0$0$473,310
80$477,305$0$0$434,827
81$428,777$0$0$389,685
82$372,237$0$0$337,120
83$306,772$0$0$276,286
84$231,371$0$0$206,246
85$144,919$0$0$125,969
86$46,181$0$0$34,312
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