Can I retire at age 40 with 540,000?

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 $540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.5%
1 years$44,593$44,195$43,808$43,430$43,060$42,088
2 years$22,076$21,664$21,266$20,880$20,505$19,530
3 years$14,571$14,158$13,761$13,378$13,009$12,063
4 years$10,819$10,408$10,014$9,638$9,278$8,368
5 years$8,569$8,160$7,771$7,403$7,053$6,181
6 years$7,069$6,663$6,280$5,920$5,581$4,748
7 years$5,998$5,596$5,219$4,867$4,539$3,745
8 years$5,195$4,796$4,426$4,083$3,765$3,010
9 years$4,571$4,176$3,812$3,478$3,171$2,454
10 years$4,072$3,681$3,324$2,998$2,702$2,023
11 years$3,665$3,277$2,926$2,609$2,324$1,681
12 years$3,325$2,941$2,597$2,289$2,014$1,407
13 years$3,038$2,658$2,320$2,020$1,756$1,184
14 years$2,792$2,416$2,085$1,794$1,539$1,001
15 years$2,579$2,207$1,882$1,599$1,355$849
16 years$2,392$2,025$1,706$1,432$1,198$722
17 years$2,228$1,865$1,553$1,287$1,062$616
18 years$2,083$1,723$1,417$1,160$944$527
19 years$1,952$1,597$1,298$1,048$842$451
20 years$1,835$1,484$1,191$949$752$387
21 years$1,730$1,382$1,095$861$673$333
22 years$1,633$1,290$1,010$783$603$286
23 years$1,546$1,207$932$713$541$246
24 years$1,466$1,131$862$650$487$212
25 years$1,392$1,061$798$594$438$183
26 years$1,324$997$741$543$394$158
27 years$1,262$939$688$497$356$136
28 years$1,204$884$639$456$321$117
29 years$1,150$834$595$418$290$101
30 years$1,099$788$554$383$262$88
31 years$1,052$745$517$352$237$76
32 years$1,008$705$482$324$214$65
33 years$967$668$450$298$194$57
34 years$928$633$420$274$175$49
35 years$892$600$393$252$159$42
36 years$858$570$368$232$144$37
37 years$825$541$344$214$130$32
38 years$795$514$322$197$118$27
39 years$766$489$302$182$107$24
40 years$738$465$283$168$97$21
41 years$712$443$265$155$88$18
42 years$687$422$249$143$80$15
43 years$664$402$234$132$73$13
44 years$642$383$219$122$66$12
45 years$620$365$206$112$60$10
46 years$600$348$193$104$54$9
47 years$581$332$182$96$49$7
48 years$562$317$171$89$45$6
49 years$544$303$160$82$41$6
50 years$527$289$151$76$37$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $540,000, adding $3,579 every year, while hoping to spend $38,331 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: 83/6/11 Blend
39$540,000$540,000$540,000$540,000
40$598,772$570,152$561,782$647,087
41$619,063$557,305$539,818$666,401
42$640,138$542,545$515,833$682,139
43$662,039$525,736$489,720$698,265
44$684,806$506,736$461,364$714,795
45$708,486$485,395$430,650$731,747
46$733,126$461,555$397,451$749,143
47$758,780$435,046$361,641$767,005
48$785,503$405,691$323,083$785,358
49$813,355$373,301$281,638$804,229
50$842,402$337,677$237,157$823,648
51$872,714$298,610$189,488$843,650
52$904,365$255,876$138,471$864,270
53$937,438$209,242$83,937$885,551
54$972,020$158,458$25,713$907,536
55$1,008,207$103,264$0$930,277
56$1,046,102$43,381$0$958,104
57$1,085,817$0$0$990,301
58$1,127,472$0$0$1,025,357
59$1,171,200$0$0$1,065,167
60$1,217,142$0$0$1,106,997
61$1,265,455$0$0$1,150,990
62$1,316,307$0$0$1,197,298
63$1,369,882$0$0$1,246,090
64$1,426,380$0$0$1,297,550
65$1,486,019$0$0$1,351,875
66$1,549,036$0$0$1,409,284
67$1,615,692$0$0$1,470,014
68$1,686,270$0$0$1,534,322
69$1,761,078$0$0$1,602,493
70$1,840,455$0$0$1,674,835
71$1,924,771$0$0$1,751,686
72$2,014,429$0$0$1,833,415
73$2,109,873$0$0$1,920,427
74$2,211,586$0$0$2,013,164
75$2,320,098$0$0$2,112,111
76$2,435,992$0$0$2,217,799
77$2,559,902$0$0$2,330,810
78$2,692,528$0$0$2,451,783
79$2,834,634$0$0$2,581,416
80$2,987,060$0$0$2,720,478
81$3,150,728$0$0$2,869,811
82$3,326,648$0$0$3,030,338
83$3,515,929$0$0$3,203,076
84$3,719,792$0$0$3,389,137
85$3,939,573$0$0$3,589,746
86$4,176,743$0$0$3,806,248
87$4,432,918$0$0$4,040,118
88$4,709,873$0$0$4,292,980
89$5,009,557$0$0$4,566,619
90$5,334,117$0$0$4,862,995
91$5,685,910$0$0$5,184,264
92$6,067,528$0$0$5,532,799
93$6,481,824$0$0$5,911,206
94$6,931,934$0$0$6,322,353
95$7,421,307$0$0$6,769,395
96$7,953,738$0$0$7,255,804
97$8,533,405$0$0$7,785,399
98$9,164,902$0$0$8,362,381
99$9,853,286$0$0$8,991,376
100$10,604,123$0$0$9,677,474