Can I retire at age 40 with 525,000?

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 $525,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$43,354$42,968$42,591$42,223$41,864$40,557
2 years$21,462$21,063$20,675$20,300$19,935$18,630
3 years$14,166$13,765$13,378$13,006$12,648$11,385
4 years$10,519$10,118$9,736$9,370$9,021$7,810
5 years$8,331$7,933$7,556$7,197$6,857$5,703
6 years$6,873$6,478$6,106$5,756$5,426$4,328
7 years$5,832$5,440$5,074$4,732$4,413$3,371
8 years$5,051$4,663$4,303$3,970$3,661$2,675
9 years$4,444$4,060$3,706$3,381$3,083$2,152
10 years$3,959$3,579$3,231$2,915$2,627$1,750
11 years$3,563$3,186$2,845$2,537$2,259$1,434
12 years$3,232$2,860$2,525$2,225$1,958$1,183
13 years$2,953$2,584$2,256$1,964$1,707$981
14 years$2,714$2,349$2,027$1,744$1,496$816
15 years$2,507$2,146$1,830$1,555$1,318$682
16 years$2,326$1,969$1,659$1,392$1,165$571
17 years$2,166$1,813$1,510$1,251$1,033$480
18 years$2,025$1,675$1,378$1,127$918$403
19 years$1,898$1,553$1,262$1,019$818$340
20 years$1,784$1,443$1,158$923$731$287
21 years$1,681$1,344$1,065$837$654$242
22 years$1,588$1,255$982$761$586$205
23 years$1,503$1,173$906$693$526$173
24 years$1,425$1,099$838$632$473$147
25 years$1,354$1,032$776$578$426$124
26 years$1,288$970$720$528$383$105
27 years$1,227$913$669$483$346$89
28 years$1,170$860$622$443$312$76
29 years$1,118$811$578$406$282$64
30 years$1,069$766$539$373$255$54
31 years$1,023$724$502$342$230$46
32 years$980$685$469$315$208$39
33 years$940$649$438$289$188$33
34 years$903$615$409$266$171$28
35 years$867$583$382$245$154$24
36 years$834$554$358$226$140$20
37 years$802$526$335$208$127$17
38 years$773$500$313$192$115$15
39 years$744$475$294$177$104$12
40 years$718$452$275$163$95$11
41 years$692$430$258$150$86$9
42 years$668$410$242$139$78$8
43 years$646$391$227$128$71$7
44 years$624$372$213$118$64$6
45 years$603$355$200$109$58$5
46 years$583$339$188$101$53$4
47 years$564$323$177$93$48$3
48 years$546$309$166$86$44$3
49 years$529$295$156$80$40$2
50 years$513$281$147$74$36$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $525,000, adding $2,643 every year, while hoping to spend $23,950 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: 73/19/8 Blend
39$525,000$525,000$525,000$525,000
40$581,276$553,451$545,314$622,773
41$615,084$555,088$538,099$652,138
42$651,537$556,002$529,840$681,032
43$690,881$556,133$520,476$712,005
44$733,383$555,416$509,945$745,257
45$779,340$553,783$498,180$781,005
46$829,075$551,161$485,112$819,491
47$882,947$547,473$470,669$860,981
48$941,346$542,638$454,775$905,766
49$1,004,704$536,569$437,351$954,172
50$1,073,497$529,173$418,315$1,006,553
51$1,148,245$520,354$397,580$1,063,305
52$1,229,523$510,009$375,056$1,124,860
53$1,317,962$498,027$350,648$1,191,697
54$1,414,258$484,294$324,258$1,264,345
55$1,519,174$468,686$295,783$1,343,384
56$1,633,552$451,074$265,114$1,429,459
57$1,758,319$431,321$232,140$1,523,276
58$1,894,494$409,282$196,743$1,625,618
59$2,043,198$384,803$158,800$1,737,346
60$2,205,668$357,722$118,183$1,859,412
61$2,383,262$327,867$74,758$1,992,864
62$2,577,479$295,056$28,387$2,138,859
63$2,789,966$259,098$0$2,298,672
64$3,022,538$219,790$0$2,475,514
65$3,277,195$176,917$0$2,671,836
66$3,556,137$130,254$0$2,886,940
67$3,861,789$79,562$0$3,122,727
68$4,196,818$24,588$0$3,381,295
69$4,564,167$0$0$3,664,956
70$4,967,072$0$0$3,983,562
71$5,409,100$0$0$4,338,770
72$5,894,180$0$0$4,728,599
73$6,426,638$0$0$5,156,530
74$7,011,242$0$0$5,626,397
75$7,653,241$0$0$6,142,423
76$8,358,421$0$0$6,709,261
77$9,133,151$0$0$7,332,036
78$9,984,453$0$0$8,016,395
79$10,920,059$0$0$8,768,558
80$11,948,488$0$0$9,595,378
81$13,079,126$0$0$10,504,405
82$14,322,314$0$0$11,503,957
83$15,689,444$0$0$12,603,199
84$17,193,069$0$0$13,812,228
85$18,847,017$0$0$15,142,167
86$20,666,526$0$0$16,605,275
87$22,668,384$0$0$18,215,056
88$24,871,088$0$0$19,986,390
89$27,295,020$0$0$21,935,672
90$29,962,636$0$0$24,080,967
91$32,898,680$0$0$26,442,179
92$36,130,416$0$0$29,041,241
93$39,687,885$0$0$31,902,320
94$43,604,190$0$0$35,052,042
95$47,915,803$0$0$38,519,751
96$52,662,917$0$0$42,337,776
97$57,889,817$0$0$46,541,744
98$63,645,302$0$0$51,170,911
99$69,983,145$0$0$56,268,532
100$76,962,597$0$0$61,882,274