Can I retire at age 40 with 556,000?

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 $556,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$45,914$45,505$45,106$44,717$44,336$42,951
2 years$22,730$22,306$21,896$21,498$21,112$19,730
3 years$15,003$14,577$14,168$13,774$13,395$12,057
4 years$11,140$10,716$10,311$9,924$9,553$8,271
5 years$8,823$8,401$8,002$7,622$7,262$6,039
6 years$7,279$6,860$6,467$6,096$5,746$4,584
7 years$6,176$5,761$5,374$5,011$4,673$3,571
8 years$5,349$4,939$4,557$4,204$3,877$2,833
9 years$4,707$4,300$3,925$3,581$3,265$2,280
10 years$4,193$3,790$3,422$3,087$2,782$1,853
11 years$3,773$3,374$3,013$2,686$2,393$1,519
12 years$3,423$3,028$2,674$2,356$2,073$1,253
13 years$3,128$2,737$2,389$2,080$1,808$1,039
14 years$2,874$2,488$2,146$1,847$1,585$865
15 years$2,655$2,273$1,938$1,647$1,395$722
16 years$2,463$2,085$1,757$1,475$1,233$605
17 years$2,294$1,920$1,599$1,325$1,094$508
18 years$2,144$1,774$1,459$1,194$972$427
19 years$2,010$1,644$1,336$1,079$867$360
20 years$1,890$1,528$1,226$977$774$304
21 years$1,781$1,423$1,128$887$693$256
22 years$1,682$1,329$1,039$806$621$217
23 years$1,592$1,243$960$734$557$183
24 years$1,509$1,164$888$670$501$155
25 years$1,433$1,093$822$612$451$132
26 years$1,364$1,027$762$559$406$111
27 years$1,299$966$708$512$366$94
28 years$1,239$911$658$469$330$80
29 years$1,184$859$613$430$298$68
30 years$1,132$811$571$395$270$58
31 years$1,083$767$532$363$244$49
32 years$1,038$726$496$333$220$42
33 years$996$687$463$306$199$35
34 years$956$651$433$282$181$30
35 years$918$618$405$260$164$25
36 years$883$586$379$239$148$22
37 years$850$557$354$220$134$18
38 years$818$529$332$203$122$16
39 years$788$503$311$187$110$13
40 years$760$479$291$173$100$11
41 years$733$456$273$159$91$10
42 years$708$434$256$147$82$8
43 years$684$414$241$136$75$7
44 years$661$394$226$125$68$6
45 years$639$376$212$116$62$5
46 years$618$359$199$107$56$4
47 years$598$342$187$99$51$4
48 years$579$327$176$91$46$3
49 years$560$312$165$84$42$3
50 years$543$298$155$78$38$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $556,000, adding $2,551 every year, while hoping to spend $36,444 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: 62/18/20 Blend
39$556,000$556,000$556,000$556,000
40$615,343$585,875$577,257$650,164
41$639,332$575,807$557,819$663,897
42$664,547$564,024$536,509$674,590
43$691,073$550,404$513,224$685,429
44$719,005$534,816$487,860$696,430
45$748,446$517,125$460,306$707,614
46$779,507$497,183$430,446$719,008
47$812,310$474,839$398,159$730,640
48$846,988$449,928$363,319$742,544
49$883,685$422,279$325,795$754,759
50$922,559$391,709$285,448$767,331
51$963,785$358,027$242,134$780,313
52$1,007,549$321,029$195,704$793,762
53$1,054,060$280,500$146,001$807,749
54$1,103,542$236,213$92,861$822,351
55$1,156,244$187,928$36,112$837,656
56$1,212,436$135,391$0$853,764
57$1,272,414$78,335$0$876,007
58$1,336,504$16,477$0$907,859
59$1,405,062$0$0$941,792
60$1,478,477$0$0$988,013
61$1,557,180$0$0$1,041,088
62$1,641,639$0$0$1,098,075
63$1,732,370$0$0$1,159,324
64$1,829,938$0$0$1,225,221
65$1,934,967$0$0$1,296,191
66$2,048,136$0$0$1,372,699
67$2,170,197$0$0$1,455,255
68$2,301,973$0$0$1,544,423
69$2,444,367$0$0$1,640,819
70$2,598,376$0$0$1,745,121
71$2,765,090$0$0$1,858,076
72$2,945,712$0$0$1,980,504
73$3,141,563$0$0$2,113,305
74$3,354,096$0$0$2,257,472
75$3,584,908$0$0$2,414,095
76$3,835,756$0$0$2,584,374
77$4,108,574$0$0$2,769,629
78$4,405,490$0$0$2,971,312
79$4,728,843$0$0$3,191,020
80$5,081,208$0$0$3,430,513
81$5,465,421$0$0$3,691,726
82$5,884,600$0$0$3,976,788
83$6,342,179$0$0$4,288,044
84$6,841,937$0$0$4,628,076
85$7,388,036$0$0$4,999,724
86$7,985,056$0$0$5,406,118
87$8,638,041$0$0$5,850,701
88$9,352,542$0$0$6,337,266
89$10,134,676$0$0$6,869,989
90$10,991,175$0$0$7,453,469
91$11,929,454$0$0$8,092,770
92$12,957,679$0$0$8,793,470
93$14,084,842$0$0$9,561,711
94$15,320,848$0$0$10,404,259
95$16,676,607$0$0$11,328,565
96$18,164,133$0$0$12,342,838
97$19,796,662$0$0$13,456,117
98$21,588,773$0$0$14,678,361
99$23,556,524$0$0$16,020,541
100$25,717,604$0$0$17,494,740