Can I retire at age 40 with 550,000?

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 $550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.2%
1 years$45,418$45,014$44,619$44,234$43,858$42,573
2 years$22,484$22,066$21,660$21,266$20,885$19,601
3 years$14,841$14,420$14,015$13,626$13,250$12,007
4 years$11,020$10,600$10,200$9,816$9,450$8,258
5 years$8,728$8,311$7,915$7,540$7,184$6,045
6 years$7,200$6,786$6,397$6,030$5,684$4,601
7 years$6,109$5,699$5,316$4,957$4,623$3,594
8 years$5,292$4,885$4,508$4,159$3,835$2,861
9 years$4,656$4,254$3,883$3,542$3,230$2,308
10 years$4,148$3,749$3,385$3,053$2,752$1,883
11 years$3,732$3,338$2,980$2,657$2,367$1,548
12 years$3,386$2,996$2,645$2,331$2,051$1,281
13 years$3,094$2,707$2,363$2,058$1,788$1,066
14 years$2,843$2,461$2,123$1,827$1,568$890
15 years$2,626$2,248$1,917$1,629$1,380$746
16 years$2,437$2,063$1,738$1,459$1,220$627
17 years$2,270$1,900$1,582$1,311$1,082$529
18 years$2,121$1,755$1,444$1,181$962$446
19 years$1,989$1,627$1,322$1,067$857$377
20 years$1,869$1,512$1,213$967$766$320
21 years$1,762$1,408$1,116$877$685$271
22 years$1,664$1,314$1,028$798$614$230
23 years$1,575$1,229$949$726$551$195
24 years$1,493$1,152$878$663$496$166
25 years$1,418$1,081$813$605$446$141
26 years$1,349$1,016$754$553$402$120
27 years$1,285$956$700$506$362$102
28 years$1,226$901$651$464$327$87
29 years$1,171$850$606$425$295$74
30 years$1,120$803$564$390$267$63
31 years$1,072$759$526$359$241$54
32 years$1,027$718$491$330$218$46
33 years$985$680$458$303$197$39
34 years$946$644$428$279$179$33
35 years$908$611$400$257$162$28
36 years$874$580$375$236$147$24
37 years$841$551$351$218$133$21
38 years$809$524$328$201$120$18
39 years$780$498$308$185$109$15
40 years$752$474$288$171$99$13
41 years$725$451$270$158$90$11
42 years$700$429$254$145$82$9
43 years$676$409$238$134$74$8
44 years$653$390$223$124$67$7
45 years$632$372$210$114$61$6
46 years$611$355$197$106$55$5
47 years$591$339$185$98$50$4
48 years$572$323$174$90$46$4
49 years$554$309$163$83$41$3
50 years$537$295$154$77$38$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $550,000, adding $6,274 every year, while hoping to spend $36,039 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: 50/33/17 Blend
39$550,000$550,000$550,000$550,000
40$612,572$583,422$574,897$640,025
41$636,709$573,664$555,810$649,859
42$662,100$562,221$534,877$656,298
43$688,835$548,970$511,996$662,513
44$717,012$533,786$487,064$668,495
45$746,737$516,531$459,971$674,238
46$778,127$497,064$430,603$679,734
47$811,309$475,233$398,840$684,982
48$846,420$450,876$364,559$689,980
49$883,611$423,826$327,628$694,729
50$923,048$393,902$287,912$699,235
51$964,911$360,915$245,269$703,506
52$1,009,396$324,665$199,550$707,556
53$1,056,720$284,939$150,601$711,404
54$1,107,119$241,514$98,259$715,073
55$1,160,851$194,154$42,357$718,594
56$1,218,199$142,609$0$722,007
57$1,279,473$86,614$0$728,496
58$1,345,013$25,892$0$743,384
59$1,415,191$0$0$759,084
60$1,490,417$0$0$790,183
61$1,571,139$0$0$833,683
62$1,657,848$0$0$880,452
63$1,751,085$0$0$930,785
64$1,851,442$0$0$985,009
65$1,959,570$0$0$1,043,481
66$2,076,185$0$0$1,106,594
67$2,202,073$0$0$1,174,780
68$2,338,095$0$0$1,248,514
69$2,485,201$0$0$1,328,316
70$2,644,433$0$0$1,414,761
71$2,816,938$0$0$1,508,478
72$3,003,976$0$0$1,610,160
73$3,206,932$0$0$1,720,571
74$3,427,331$0$0$1,840,548
75$3,666,850$0$0$1,971,014
76$3,927,333$0$0$2,112,983
77$4,210,808$0$0$2,267,572
78$4,519,509$0$0$2,436,010
79$4,855,892$0$0$2,619,648
80$5,222,661$0$0$2,819,975
81$5,622,792$0$0$3,038,629
82$6,059,559$0$0$3,277,413
83$6,536,570$0$0$3,538,312
84$7,057,791$0$0$3,823,510
85$7,627,594$0$0$4,135,413
86$8,250,789$0$0$4,476,670
87$8,932,672$0$0$4,850,199
88$9,679,078$0$0$5,259,209
89$10,496,428$0$0$5,707,239
90$11,391,795$0$0$6,198,184
91$12,372,969$0$0$6,736,331
92$13,448,527$0$0$7,326,407
93$14,627,919$0$0$7,973,614
94$15,921,549$0$0$8,683,684
95$17,340,879$0$0$9,462,928
96$18,898,533$0$0$10,318,301
97$20,608,419$0$0$11,257,462
98$22,485,853$0$0$12,288,848
99$24,547,709$0$0$13,421,754
100$26,812,577$0$0$14,666,419