Can I retire at age 40 with 375,000?

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 $375,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$30,967$30,691$30,422$30,160$29,903$28,739
2 years$15,330$15,045$14,768$14,500$14,240$13,081
3 years$10,119$9,832$9,556$9,290$9,034$7,918
4 years$7,513$7,227$6,954$6,693$6,443$5,377
5 years$5,951$5,666$5,397$5,141$4,898$3,885
6 years$4,909$4,627$4,361$4,111$3,876$2,916
7 years$4,165$3,886$3,624$3,380$3,152$2,246
8 years$3,608$3,331$3,074$2,835$2,615$1,761
9 years$3,175$2,900$2,647$2,415$2,202$1,400
10 years$2,828$2,556$2,308$2,082$1,876$1,124
11 years$2,545$2,276$2,032$1,812$1,614$909
12 years$2,309$2,043$1,803$1,589$1,398$740
13 years$2,109$1,846$1,611$1,403$1,219$605
14 years$1,939$1,678$1,448$1,245$1,069$497
15 years$1,791$1,533$1,307$1,111$941$409
16 years$1,661$1,406$1,185$995$832$338
17 years$1,547$1,295$1,078$894$738$279
18 years$1,446$1,197$984$805$656$232
19 years$1,356$1,109$901$728$585$192
20 years$1,275$1,031$827$659$522$160
21 years$1,201$960$761$598$467$133
22 years$1,134$896$701$544$419$110
23 years$1,074$838$647$495$376$92
24 years$1,018$785$599$452$338$77
25 years$967$737$554$413$304$64
26 years$920$693$514$377$274$53
27 years$876$652$478$345$247$44
28 years$836$614$444$316$223$37
29 years$798$579$413$290$201$31
30 years$763$547$385$266$182$26
31 years$731$517$359$245$164$22
32 years$700$489$335$225$149$18
33 years$672$464$313$207$135$15
34 years$645$439$292$190$122$13
35 years$619$417$273$175$110$10
36 years$596$396$255$161$100$9
37 years$573$376$239$149$91$7
38 years$552$357$224$137$82$6
39 years$532$339$210$126$74$5
40 years$513$323$197$116$68$4
41 years$495$307$184$107$61$4
42 years$477$293$173$99$56$3
43 years$461$279$162$92$50$2
44 years$446$266$152$84$46$2
45 years$431$254$143$78$42$2
46 years$417$242$134$72$38$1
47 years$403$231$126$67$34$1
48 years$390$220$119$62$31$1
49 years$378$210$111$57$28$1
50 years$366$201$105$53$26$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $375,000, adding $2,403 every year, while hoping to spend $20,681 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: 40/48/12 Blend
39$375,000$375,000$375,000$375,000
40$415,729$395,854$390,041$430,777
41$436,129$393,246$381,103$439,021
42$457,916$389,818$371,173$445,714
43$481,211$385,506$360,194$452,499
44$506,145$380,246$348,111$459,393
45$532,861$373,967$334,862$466,417
46$561,517$366,596$320,384$473,595
47$592,287$358,054$304,612$480,957
48$625,360$348,259$287,477$488,536
49$660,946$337,123$268,906$496,370
50$699,273$324,553$248,826$504,506
51$740,594$310,450$227,156$512,994
52$785,183$294,712$203,814$521,894
53$833,346$277,227$178,717$531,275
54$885,416$257,880$151,772$541,212
55$941,760$236,547$122,888$551,796
56$1,002,781$213,099$91,966$563,125
57$1,068,922$187,398$58,904$575,315
58$1,140,671$159,300$23,597$588,493
59$1,218,564$128,650$0$602,804
60$1,303,191$95,288$0$620,217
61$1,395,200$59,041$0$642,454
62$1,495,306$19,729$0$666,714
63$1,604,292$0$0$693,248
64$1,723,024$0$0$734,398
65$1,852,453$0$0$790,659
66$1,993,623$0$0$852,071
67$2,147,688$0$0$919,141
68$2,315,916$0$0$992,428
69$2,499,701$0$0$1,072,545
70$2,700,580$0$0$1,160,169
71$2,920,246$0$0$1,256,044
72$3,160,559$0$0$1,360,992
73$3,423,572$0$0$1,475,914
74$3,711,542$0$0$1,601,805
75$4,026,956$0$0$1,739,761
76$4,372,553$0$0$1,890,988
77$4,751,348$0$0$2,056,813
78$5,166,663$0$0$2,238,700
79$5,622,157$0$0$2,438,261
80$6,121,859$0$0$2,657,270
81$6,670,207$0$0$2,897,683
82$7,272,090$0$0$3,161,652
83$7,932,893$0$0$3,451,552
84$8,658,548$0$0$3,769,995
85$9,455,590$0$0$4,119,860
86$10,331,217$0$0$4,504,319
87$11,293,359$0$0$4,926,866
88$12,350,753$0$0$5,391,351
89$13,513,023$0$0$5,902,015
90$14,790,774$0$0$6,463,530
91$16,195,686$0$0$7,081,044
92$17,740,632$0$0$7,760,229
93$19,439,792$0$0$8,507,333
94$21,308,789$0$0$9,329,242
95$23,364,836$0$0$10,233,542
96$25,626,901$0$0$11,228,592
97$28,115,880$0$0$12,323,600
98$30,854,799$0$0$13,528,714
99$33,869,027$0$0$14,855,115
100$37,186,518$0$0$16,315,123