Can I retire at age 40 with 538,000?

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 $538,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$44,428$44,032$43,646$43,269$42,901$41,611
2 years$21,994$21,584$21,187$20,802$20,429$19,140
3 years$14,517$14,106$13,710$13,328$12,961$11,714
4 years$10,779$10,369$9,977$9,602$9,244$8,048
5 years$8,537$8,129$7,743$7,375$7,027$5,886
6 years$7,043$6,638$6,257$5,898$5,560$4,474
7 years$5,976$5,575$5,200$4,849$4,522$3,491
8 years$5,176$4,779$4,410$4,068$3,751$2,775
9 years$4,555$4,161$3,798$3,465$3,159$2,237
10 years$4,057$3,667$3,311$2,987$2,692$1,822
11 years$3,651$3,265$2,915$2,599$2,315$1,496
12 years$3,312$2,930$2,587$2,280$2,006$1,237
13 years$3,026$2,648$2,311$2,013$1,749$1,027
14 years$2,781$2,407$2,077$1,787$1,534$857
15 years$2,569$2,199$1,875$1,594$1,350$717
16 years$2,384$2,018$1,700$1,427$1,193$602
17 years$2,220$1,858$1,547$1,282$1,058$507
18 years$2,075$1,717$1,412$1,155$941$427
19 years$1,945$1,591$1,293$1,044$839$361
20 years$1,828$1,479$1,186$946$749$305
21 years$1,723$1,377$1,091$858$670$258
22 years$1,627$1,286$1,006$780$601$219
23 years$1,540$1,202$929$711$539$186
24 years$1,460$1,127$859$648$485$157
25 years$1,387$1,057$796$592$436$134
26 years$1,319$994$738$541$393$114
27 years$1,257$935$685$495$354$96
28 years$1,199$881$637$454$320$82
29 years$1,145$831$593$416$289$70
30 years$1,095$785$552$382$261$59
31 years$1,048$742$515$351$236$50
32 years$1,005$702$480$322$213$43
33 years$963$665$448$296$193$37
34 years$925$630$419$273$175$31
35 years$889$598$392$251$158$26
36 years$854$567$366$231$143$23
37 years$822$539$343$213$130$19
38 years$792$512$321$196$118$16
39 years$763$487$301$181$107$14
40 years$736$463$282$167$97$12
41 years$710$441$264$154$88$10
42 years$685$420$248$142$80$9
43 years$662$400$233$131$72$7
44 years$639$382$218$121$66$6
45 years$618$364$205$112$60$5
46 years$598$347$193$103$54$5
47 years$578$331$181$96$49$4
48 years$560$316$170$88$45$3
49 years$542$302$160$82$41$3
50 years$525$288$150$75$37$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $538,000, adding $6,956 every year, while hoping to spend $26,276 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: 41/33/26 Blend
39$538,000$538,000$538,000$538,000
40$600,051$571,537$563,198$619,822
41$633,299$571,585$554,108$634,762
42$669,057$570,755$543,832$647,928
43$707,555$568,975$532,304$661,669
44$749,042$566,171$519,453$676,052
45$793,794$562,264$505,204$691,155
46$842,114$557,167$489,482$707,065
47$894,334$550,793$472,204$723,878
48$950,820$543,046$453,287$741,705
49$1,011,973$533,825$432,641$760,669
50$1,078,235$523,023$410,176$780,907
51$1,150,092$510,528$385,793$802,573
52$1,228,077$496,220$359,393$825,842
53$1,312,778$479,972$330,870$850,905
54$1,404,841$461,650$300,114$877,979
55$1,504,976$441,112$267,009$907,305
56$1,613,965$418,208$231,436$939,151
57$1,732,670$392,780$193,268$973,819
58$1,862,035$364,659$152,376$1,011,643
59$2,003,104$333,669$108,622$1,052,995
60$2,157,022$299,621$61,862$1,098,290
61$2,325,053$262,317$11,949$1,147,990
62$2,508,585$221,547$0$1,202,608
63$2,709,149$177,091$0$1,274,177
64$2,928,428$128,713$0$1,356,153
65$3,168,275$76,169$0$1,445,969
66$3,430,734$19,195$0$1,544,456
67$3,718,051$0$0$1,652,534
68$4,032,702$0$0$1,786,648
69$4,377,413$0$0$1,941,280
70$4,755,185$0$0$2,110,815
71$5,169,326$0$0$2,296,745
72$5,623,476$0$0$2,500,715
73$6,121,646$0$0$2,724,536
74$6,668,253$0$0$2,970,201
75$7,268,164$0$0$3,239,910
76$7,926,737$0$0$3,536,081
77$8,649,878$0$0$3,861,380
78$9,444,089$0$0$4,218,747
79$10,316,535$0$0$4,611,414
80$11,275,109$0$0$5,042,949
81$12,328,506$0$0$5,517,276
82$13,486,304$0$0$6,038,723
83$14,759,057$0$0$6,612,057
84$16,158,391$0$0$7,242,528
85$17,697,114$0$0$7,935,922
86$19,389,341$0$0$8,698,614
87$21,250,619$0$0$9,537,628
88$23,298,080$0$0$10,460,701
89$25,550,599$0$0$11,476,360
90$28,028,972$0$0$12,593,999
91$30,756,113$0$0$13,823,970
92$33,757,272$0$0$15,177,677
93$37,060,265$0$0$16,667,688
94$40,695,746$0$0$18,307,849
95$44,697,489$0$0$20,113,418
96$49,102,709$0$0$22,101,208
97$53,952,413$0$0$24,289,743
98$59,291,785$0$0$26,699,437
99$65,170,615$0$0$29,352,782
100$71,643,764$0$0$32,274,563