Can I retire at age 40 with 500,000?

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 $500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.6%
1 years$41,290$40,922$40,563$40,213$39,871$38,334
2 years$20,440$20,060$19,691$19,333$18,986$17,456
3 years$13,492$13,109$12,741$12,387$12,046$10,571
4 years$10,018$9,637$9,272$8,924$8,591$7,182
5 years$7,934$7,555$7,196$6,855$6,531$5,192
6 years$6,545$6,169$5,815$5,482$5,168$3,900
7 years$5,554$5,181$4,832$4,507$4,203$3,005
8 years$4,811$4,441$4,098$3,781$3,486$2,358
9 years$4,233$3,867$3,530$3,220$2,936$1,875
10 years$3,771$3,408$3,077$2,776$2,502$1,506
11 years$3,393$3,034$2,709$2,416$2,152$1,219
12 years$3,079$2,723$2,404$2,119$1,864$993
13 years$2,813$2,461$2,148$1,871$1,626$813
14 years$2,585$2,237$1,930$1,661$1,425$668
15 years$2,388$2,044$1,743$1,481$1,255$550
16 years$2,215$1,875$1,580$1,326$1,109$455
17 years$2,063$1,727$1,438$1,191$983$376
18 years$1,928$1,596$1,312$1,074$874$312
19 years$1,808$1,479$1,202$970$779$259
20 years$1,699$1,374$1,103$879$696$216
21 years$1,601$1,280$1,014$798$623$179
22 years$1,512$1,195$935$725$558$149
23 years$1,431$1,118$863$660$501$124
24 years$1,357$1,047$798$602$451$104
25 years$1,289$983$739$550$405$87
26 years$1,226$923$686$503$365$72
27 years$1,168$869$637$460$329$60
28 years$1,114$819$592$422$297$50
29 years$1,064$773$551$387$268$42
30 years$1,018$730$513$355$242$35
31 years$974$690$478$326$219$29
32 years$934$653$446$300$198$25
33 years$895$618$417$276$179$21
34 years$860$586$389$254$162$17
35 years$826$556$364$233$147$14
36 years$794$527$341$215$133$12
37 years$764$501$319$198$121$10
38 years$736$476$298$183$110$8
39 years$709$453$280$168$99$7
40 years$684$431$262$155$90$6
41 years$659$410$246$143$82$5
42 years$637$390$231$132$74$4
43 years$615$372$216$122$67$3
44 years$594$355$203$113$61$3
45 years$574$338$191$104$55$2
46 years$555$323$179$96$50$2
47 years$538$308$168$89$46$2
48 years$520$294$158$82$42$1
49 years$504$281$149$76$38$1
50 years$488$268$140$70$34$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $500,000, adding $2,777 every year, while hoping to spend $20,441 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: 67/7/26 Blend
39$500,000$500,000$500,000$500,000
40$553,864$527,364$519,614$587,060
41$588,610$531,456$515,272$613,828
42$626,214$535,063$510,100$640,523
43$666,947$538,141$504,047$669,254
44$711,105$540,640$497,063$700,224
45$759,016$542,510$489,093$733,654
46$811,039$543,695$480,081$769,792
47$867,568$544,139$469,966$808,909
48$929,037$543,779$458,687$851,304
49$995,925$542,551$446,180$897,307
50$1,068,758$540,384$432,375$947,284
51$1,148,114$537,206$417,202$1,001,638
52$1,234,629$532,937$400,587$1,060,814
53$1,329,006$527,496$382,451$1,125,301
54$1,432,016$520,794$362,714$1,195,641
55$1,544,507$512,738$341,291$1,272,432
56$1,667,415$503,230$318,092$1,356,333
57$1,801,768$492,166$293,025$1,448,071
58$1,948,700$479,433$265,993$1,548,448
59$2,109,458$464,917$236,895$1,658,351
60$2,285,417$448,491$205,624$1,778,756
61$2,478,088$430,026$172,071$1,910,740
62$2,689,138$409,382$136,120$2,055,493
63$2,920,400$386,412$97,651$2,214,326
64$3,173,897$360,962$56,538$2,388,685
65$3,451,851$332,866$12,649$2,580,166
66$3,756,715$301,952$0$2,790,529
67$4,091,188$268,035$0$3,031,200
68$4,458,242$230,922$0$3,299,197
69$4,861,153$190,407$0$3,593,409
70$5,303,528$146,275$0$3,916,484
71$5,789,341$98,296$0$4,271,340
72$6,322,970$46,229$0$4,661,189
73$6,909,238$0$0$5,089,575
74$7,553,457$0$0$5,561,182
75$8,261,479$0$0$6,083,445
76$9,039,753$0$0$6,657,561
77$9,895,383$0$0$7,288,776
78$10,836,194$0$0$7,982,867
79$11,870,810$0$0$8,746,201
80$13,008,730$0$0$9,585,790
81$14,260,422$0$0$10,509,364
82$15,637,418$0$0$11,525,435
83$17,152,424$0$0$12,643,385
84$18,819,440$0$0$13,873,550
85$20,653,892$0$0$15,227,319
86$22,672,777$0$0$16,717,241
87$24,894,821$0$0$18,357,142
88$27,340,661$0$0$20,162,257
89$30,033,034$0$0$22,149,373
90$32,996,993$0$0$24,336,988
91$36,260,144$0$0$26,745,483
92$39,852,906$0$0$29,397,319
93$43,808,799$0$0$32,317,240
94$48,164,756$0$0$35,532,518
95$52,961,475$0$0$39,073,200
96$58,243,803$0$0$42,972,397
97$64,061,156$0$0$47,266,595
98$70,467,989$0$0$51,995,998
99$77,524,306$0$0$57,204,909
100$85,296,227$0$0$62,942,146