Can I retire at age 40 with 549,000?

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 $549,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.9%
1 years$45,336$44,932$44,538$44,154$43,778$42,377
2 years$22,444$22,026$21,620$21,228$20,847$19,448
3 years$14,814$14,394$13,990$13,601$13,226$11,873
4 years$11,000$10,581$10,181$9,799$9,433$8,137
5 years$8,712$8,296$7,901$7,526$7,171$5,935
6 years$7,187$6,774$6,385$6,019$5,674$4,499
7 years$6,098$5,689$5,306$4,948$4,614$3,501
8 years$5,282$4,876$4,500$4,151$3,828$2,775
9 years$4,648$4,246$3,876$3,536$3,224$2,230
10 years$4,140$3,742$3,379$3,048$2,747$1,811
11 years$3,726$3,332$2,975$2,653$2,362$1,482
12 years$3,380$2,990$2,640$2,327$2,047$1,221
13 years$3,088$2,702$2,359$2,054$1,785$1,011
14 years$2,838$2,456$2,119$1,823$1,565$840
15 years$2,622$2,244$1,913$1,626$1,378$701
16 years$2,432$2,059$1,735$1,456$1,218$586
17 years$2,265$1,896$1,579$1,308$1,080$491
18 years$2,117$1,752$1,441$1,179$960$413
19 years$1,985$1,624$1,319$1,065$856$347
20 years$1,866$1,509$1,211$965$764$293
21 years$1,758$1,405$1,114$876$684$247
22 years$1,661$1,312$1,026$796$613$208
23 years$1,572$1,227$948$725$550$176
24 years$1,490$1,150$876$661$495$149
25 years$1,415$1,079$812$604$445$126
26 years$1,346$1,014$753$552$401$106
27 years$1,283$954$699$505$362$90
28 years$1,224$899$650$463$326$76
29 years$1,169$848$605$425$295$65
30 years$1,118$801$563$390$266$55
31 years$1,070$757$525$358$241$46
32 years$1,025$717$490$329$218$39
33 years$983$679$458$303$197$33
34 years$944$643$427$278$178$28
35 years$907$610$400$256$162$24
36 years$872$579$374$236$146$20
37 years$839$550$350$217$133$17
38 years$808$523$328$200$120$15
39 years$778$497$307$185$109$12
40 years$751$473$288$170$99$10
41 years$724$450$270$157$90$9
42 years$699$429$253$145$81$8
43 years$675$408$238$134$74$6
44 years$652$389$223$124$67$5
45 years$631$371$209$114$61$5
46 years$610$354$197$106$55$4
47 years$590$338$185$97$50$3
48 years$571$323$174$90$46$3
49 years$553$308$163$83$41$2
50 years$536$294$153$77$38$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $549,000, adding $4,115 every year, while hoping to spend $33,959 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: 61/12/27 Blend
39$549,000$549,000$549,000$549,000
40$609,243$580,146$571,636$641,759
41$635,253$572,441$554,654$656,650
42$662,779$563,220$535,964$668,865
43$691,938$552,373$515,475$681,474
44$722,860$539,784$493,088$694,522
45$755,688$525,329$468,702$708,061
46$790,575$508,878$442,211$722,149
47$827,692$490,291$413,503$736,852
48$867,223$469,422$382,462$752,243
49$909,373$446,117$348,968$768,406
50$954,363$420,211$312,892$785,434
51$1,002,438$391,531$274,104$803,433
52$1,053,864$359,893$232,464$822,521
53$1,108,935$325,105$187,828$842,829
54$1,167,972$286,960$140,046$864,507
55$1,231,327$245,243$88,959$887,721
56$1,299,387$199,725$34,405$912,655
57$1,372,578$150,165$0$939,517
58$1,451,364$96,306$0$975,399
59$1,536,258$37,880$0$1,024,722
60$1,627,822$0$0$1,077,907
61$1,726,674$0$0$1,138,682
62$1,833,492$0$0$1,209,794
63$1,949,023$0$0$1,286,741
64$2,074,087$0$0$1,370,073
65$2,209,584$0$0$1,460,395
66$2,356,506$0$0$1,558,374
67$2,515,942$0$0$1,664,740
68$2,689,092$0$0$1,780,300
69$2,877,274$0$0$1,905,937
70$3,081,938$0$0$2,042,627
71$3,304,679$0$0$2,191,442
72$3,547,255$0$0$2,353,560
73$3,811,597$0$0$2,530,280
74$4,099,830$0$0$2,723,030
75$4,414,297$0$0$2,933,382
76$4,757,572$0$0$3,163,068
77$5,132,490$0$0$3,413,991
78$5,542,175$0$0$3,688,250
79$5,990,062$0$0$3,988,153
80$6,479,934$0$0$4,316,243
81$7,015,959$0$0$4,675,319
82$7,602,722$0$0$5,068,463
83$8,245,277$0$0$5,499,070
84$8,949,185$0$0$5,970,879
85$9,720,572$0$0$6,488,005
86$10,566,186$0$0$7,054,984
87$11,493,457$0$0$7,676,808
88$12,510,570$0$0$8,358,977
89$13,626,539$0$0$9,107,551
90$14,851,293$0$0$9,929,203
91$16,195,770$0$0$10,831,282
92$17,672,017$0$0$11,821,886
93$19,293,307$0$0$12,909,934
94$21,074,258$0$0$14,105,254
95$23,030,977$0$0$15,418,669
96$25,181,206$0$0$16,862,105
97$27,544,492$0$0$18,448,699
98$30,142,370$0$0$20,192,926
99$32,998,564$0$0$22,110,732
100$36,139,213$0$0$24,219,684