Can I retire at age 40 with 545,000?

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 $545,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$45,006$44,605$44,214$43,832$43,459$43,167
2 years$22,280$21,865$21,463$21,073$20,695$20,400
3 years$14,706$14,289$13,888$13,502$13,130$12,842
4 years$10,919$10,504$10,107$9,727$9,364$9,085
5 years$8,648$8,235$7,843$7,471$7,118$6,849
6 years$7,135$6,725$6,339$5,975$5,633$5,373
7 years$6,054$5,647$5,267$4,912$4,581$4,332
8 years$5,244$4,841$4,467$4,121$3,800$3,561
9 years$4,614$4,215$3,848$3,510$3,200$2,971
10 years$4,110$3,715$3,354$3,026$2,727$2,508
11 years$3,698$3,307$2,953$2,633$2,345$2,136
12 years$3,356$2,969$2,621$2,310$2,032$1,833
13 years$3,066$2,683$2,342$2,039$1,772$1,582
14 years$2,817$2,438$2,104$1,810$1,553$1,373
15 years$2,602$2,228$1,900$1,614$1,368$1,196
16 years$2,415$2,044$1,722$1,445$1,209$1,046
17 years$2,249$1,882$1,567$1,299$1,072$917
18 years$2,102$1,739$1,431$1,170$953$806
19 years$1,970$1,612$1,310$1,058$849$711
20 years$1,852$1,498$1,202$958$759$627
21 years$1,746$1,395$1,106$869$679$555
22 years$1,649$1,302$1,019$790$609$492
23 years$1,560$1,218$941$720$546$436
24 years$1,479$1,141$870$657$491$387
25 years$1,405$1,071$806$600$442$344
26 years$1,337$1,007$747$548$398$306
27 years$1,273$947$694$502$359$273
28 years$1,215$893$645$460$324$243
29 years$1,160$842$600$422$292$217
30 years$1,109$795$559$387$264$193
31 years$1,062$752$521$355$239$172
32 years$1,018$711$486$327$216$154
33 years$976$674$454$300$196$138
34 years$937$639$424$276$177$123
35 years$900$606$397$254$160$110
36 years$866$575$371$234$145$98
37 years$833$546$347$216$132$88
38 years$802$519$325$199$119$79
39 years$773$493$305$183$108$70
40 years$745$469$286$169$98$63
41 years$719$447$268$156$89$56
42 years$694$426$251$144$81$50
43 years$670$405$236$133$73$45
44 years$648$386$221$123$67$40
45 years$626$369$208$113$60$36
46 years$605$352$195$105$55$32
47 years$586$336$183$97$50$29
48 years$567$320$172$89$45$26
49 years$549$306$162$83$41$23
50 years$532$292$152$76$37$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $545,000, adding $3,003 every year, while hoping to spend $26,345 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: 54/39/7 Blend
39$545,000$545,000$545,000$545,000
40$603,688$574,803$566,355$635,136
41$637,233$574,937$557,297$656,880
42$673,317$574,195$547,053$677,376
43$712,170$572,506$535,554$699,044
44$754,048$569,795$522,731$721,999
45$799,227$565,981$508,510$746,370
46$848,016$560,982$492,812$772,298
47$900,750$554,706$475,557$799,942
48$957,799$547,059$456,661$829,477
49$1,019,570$537,941$436,035$861,097
50$1,086,510$527,244$413,586$895,018
51$1,159,110$514,855$389,217$931,479
52$1,237,912$500,656$362,829$970,746
53$1,323,510$484,518$334,314$1,013,114
54$1,416,557$466,309$303,563$1,058,909
55$1,517,774$445,887$270,461$1,108,492
56$1,627,952$423,100$234,886$1,162,265
57$1,747,962$397,791$196,714$1,220,673
58$1,878,763$369,792$155,813$1,284,207
59$2,021,410$338,924$112,045$1,353,413
60$2,177,063$305,001$65,268$1,428,895
61$2,347,002$267,824$15,333$1,511,322
62$2,532,632$227,184$0$1,601,433
63$2,735,503$182,858$0$1,702,885
64$2,957,320$134,614$0$1,815,154
65$3,199,960$82,204$0$1,938,110
66$3,465,491$25,367$0$2,072,877
67$3,756,189$0$0$2,220,698
68$4,074,561$0$0$2,398,467
69$4,423,366$0$0$2,605,208
70$4,805,645$0$0$2,831,843
71$5,224,747$0$0$3,080,363
72$5,684,358$0$0$3,352,961
73$6,188,539$0$0$3,652,055
74$6,741,766$0$0$3,980,304
75$7,348,964$0$0$4,340,641
76$8,015,561$0$0$4,736,293
77$8,747,538$0$0$5,170,819
78$9,551,479$0$0$5,648,137
79$10,434,641$0$0$6,172,562
80$11,405,015$0$0$6,748,851
81$12,471,409$0$0$7,382,242
82$13,643,521$0$0$8,078,506
83$14,932,040$0$0$8,844,003
84$16,348,739$0$0$9,685,737
85$17,906,591$0$0$10,611,427
86$19,619,888$0$0$11,629,576
87$21,504,376$0$0$12,749,554
88$23,577,405$0$0$13,981,683
89$25,858,089$0$0$15,337,336
90$28,367,491$0$0$16,829,047
91$31,128,815$0$0$18,470,621
92$34,167,632$0$0$20,277,275
93$37,512,114$0$0$22,265,770
94$41,193,303$0$0$24,454,579
95$45,245,405$0$0$26,864,054
96$49,706,109$0$0$29,516,621
97$54,616,943$0$0$32,436,991
98$60,023,667$0$0$35,652,394
99$65,976,705$0$0$39,192,834
100$72,531,617$0$0$43,091,371