Can I retire at age 40 with 516,000?

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 $516,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$42,611$42,231$41,861$41,499$41,147$40,382
2 years$21,094$20,702$20,321$19,952$19,594$18,826
3 years$13,923$13,529$13,149$12,783$12,431$11,684
4 years$10,338$9,945$9,569$9,210$8,866$8,146
5 years$8,188$7,797$7,426$7,074$6,740$6,049
6 years$6,755$6,367$6,001$5,657$5,333$4,672
7 years$5,732$5,347$4,987$4,651$4,337$3,706
8 years$4,965$4,583$4,229$3,902$3,598$2,996
9 years$4,368$3,991$3,643$3,323$3,030$2,458
10 years$3,891$3,517$3,176$2,865$2,582$2,038
11 years$3,502$3,131$2,796$2,493$2,220$1,705
12 years$3,177$2,811$2,481$2,187$1,924$1,436
13 years$2,903$2,540$2,217$1,931$1,678$1,216
14 years$2,668$2,309$1,992$1,714$1,471$1,035
15 years$2,464$2,109$1,798$1,528$1,295$884
16 years$2,286$1,935$1,631$1,369$1,145$758
17 years$2,129$1,782$1,484$1,230$1,015$651
18 years$1,990$1,647$1,354$1,108$902$561
19 years$1,866$1,526$1,240$1,001$804$484
20 years$1,754$1,418$1,138$907$718$418
21 years$1,653$1,321$1,047$823$643$362
22 years$1,561$1,233$965$748$576$314
23 years$1,477$1,153$891$682$517$272
24 years$1,401$1,081$824$622$465$236
25 years$1,330$1,014$763$568$418$205
26 years$1,266$953$708$519$377$179
27 years$1,206$897$657$475$340$155
28 years$1,150$845$611$435$307$135
29 years$1,098$797$568$399$277$118
30 years$1,050$753$529$366$250$103
31 years$1,005$712$494$336$226$89
32 years$963$674$461$309$205$78
33 years$924$638$430$284$185$68
34 years$887$605$402$262$168$59
35 years$852$573$376$241$152$52
36 years$820$544$351$222$138$45
37 years$789$517$329$204$125$39
38 years$759$491$308$188$113$34
39 years$732$467$289$174$102$30
40 years$705$444$270$160$93$26
41 years$681$423$254$148$84$23
42 years$657$403$238$136$77$20
43 years$634$384$223$126$69$17
44 years$613$366$210$116$63$15
45 years$593$349$197$107$57$13
46 years$573$333$185$99$52$12
47 years$555$318$174$92$47$10
48 years$537$303$163$85$43$9
49 years$520$290$153$78$39$8
50 years$504$277$144$72$35$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $516,000, adding $6,798 every year, while hoping to spend $27,451 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: 45/31/24 Blend
39$516,000$516,000$516,000$516,000
40$575,644$548,296$540,298$597,293
41$605,152$545,955$529,190$610,914
42$636,750$542,579$516,791$622,473
43$670,622$538,089$503,026$634,461
44$706,970$532,399$487,822$646,933
45$746,015$525,422$471,099$659,948
46$788,002$517,060$452,774$673,577
47$833,197$507,215$432,760$687,897
48$881,893$495,779$410,968$702,998
49$934,414$482,640$387,303$718,980
50$991,112$467,677$361,666$735,953
51$1,052,377$450,765$333,954$754,045
52$1,118,637$431,770$304,059$773,398
53$1,190,361$410,550$271,868$794,171
54$1,268,067$386,956$237,264$816,541
55$1,352,321$360,828$200,124$840,709
56$1,443,749$332,000$160,319$866,899
57$1,543,038$300,294$117,716$895,360
58$1,650,942$265,523$72,174$926,371
59$1,768,295$227,490$23,548$960,244
60$1,896,009$185,985$0$997,328
61$2,035,092$140,788$0$1,045,268
62$2,186,650$91,666$0$1,104,146
63$2,351,903$38,372$0$1,168,449
64$2,532,191$0$0$1,238,756
65$2,728,991$0$0$1,322,313
66$2,943,928$0$0$1,427,924
67$3,178,791$0$0$1,543,385
68$3,435,549$0$0$1,669,673
69$3,716,371$0$0$1,807,861
70$4,023,644$0$0$1,959,132
71$4,359,998$0$0$2,124,790
72$4,728,326$0$0$2,306,268
73$5,131,818$0$0$2,505,147
74$5,573,984$0$0$2,723,166
75$6,058,691$0$0$2,962,241
76$6,590,196$0$0$3,224,483
77$7,173,191$0$0$3,512,217
78$7,812,842$0$0$3,828,004
79$8,514,838$0$0$4,174,662
80$9,285,449$0$0$4,555,301
81$10,131,577$0$0$4,973,342
82$11,060,830$0$0$5,432,554
83$12,081,585$0$0$5,937,093
84$13,203,073$0$0$6,491,532
85$14,435,461$0$0$7,100,914
86$15,789,951$0$0$7,770,790
87$17,278,885$0$0$8,507,279
88$18,915,858$0$0$9,317,123
89$20,715,850$0$0$10,207,747
90$22,695,364$0$0$11,187,333
91$24,872,584$0$0$12,264,896
92$27,267,542$0$0$13,450,369
93$29,902,311$0$0$14,754,695
94$32,801,211$0$0$16,189,933
95$35,991,039$0$0$17,769,369
96$39,501,318$0$0$19,507,641
97$43,364,580$0$0$21,420,879
98$47,616,670$0$0$23,526,857
99$52,297,084$0$0$25,845,157
100$57,449,340$0$0$28,397,358