Can I retire at age 40 with 557,000?

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 $557,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$45,997$45,587$45,187$44,797$44,416$42,687
2 years$22,771$22,346$21,935$21,537$21,150$19,430
3 years$15,030$14,604$14,194$13,799$13,419$11,760
4 years$11,160$10,735$10,329$9,941$9,570$7,987
5 years$8,839$8,417$8,016$7,636$7,275$5,770
6 years$7,292$6,873$6,478$6,107$5,757$4,331
7 years$6,187$5,772$5,383$5,021$4,682$3,336
8 years$5,359$4,947$4,566$4,212$3,884$2,616
9 years$4,715$4,308$3,932$3,587$3,271$2,079
10 years$4,201$3,797$3,428$3,092$2,787$1,669
11 years$3,780$3,380$3,018$2,691$2,397$1,350
12 years$3,429$3,034$2,679$2,361$2,077$1,099
13 years$3,133$2,742$2,393$2,084$1,811$899
14 years$2,879$2,492$2,150$1,850$1,588$738
15 years$2,660$2,277$1,941$1,650$1,398$608
16 years$2,468$2,089$1,760$1,477$1,236$502
17 years$2,298$1,924$1,602$1,327$1,095$415
18 years$2,148$1,778$1,462$1,196$974$344
19 years$2,014$1,647$1,338$1,081$868$285
20 years$1,893$1,531$1,228$979$775$237
21 years$1,784$1,426$1,130$888$694$197
22 years$1,685$1,331$1,041$808$622$164
23 years$1,595$1,245$962$736$558$137
24 years$1,512$1,166$889$671$502$114
25 years$1,436$1,095$824$613$452$95
26 years$1,366$1,029$764$560$407$79
27 years$1,301$968$709$513$367$66
28 years$1,241$912$659$470$331$55
29 years$1,186$861$614$431$299$46
30 years$1,134$813$572$395$270$38
31 years$1,085$768$533$363$244$32
32 years$1,040$727$497$334$221$27
33 years$998$689$464$307$200$22
34 years$958$653$434$282$181$19
35 years$920$619$406$260$164$16
36 years$885$587$379$239$148$13
37 years$851$558$355$221$135$11
38 years$820$530$332$203$122$9
39 years$790$504$312$187$111$8
40 years$762$480$292$173$100$6
41 years$735$457$274$160$91$5
42 years$709$435$257$147$83$4
43 years$685$414$241$136$75$4
44 years$662$395$226$125$68$3
45 years$640$377$212$116$62$3
46 years$619$359$199$107$56$2
47 years$599$343$187$99$51$2
48 years$580$327$176$91$46$2
49 years$561$313$166$84$42$1
50 years$544$299$156$78$38$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $557,000, adding $3,688 every year, while hoping to spend $33,384 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: 78/11/11 Blend
39$557,000$557,000$557,000$557,000
40$617,618$588,097$579,464$664,280
41$645,095$581,394$563,355$688,778
42$674,255$573,243$545,589$710,982
43$705,236$563,538$526,072$734,376
44$738,186$552,168$504,712$759,064
45$773,270$539,012$481,408$785,161
46$810,665$523,945$456,057$812,796
47$850,567$506,834$428,550$842,109
48$893,192$487,536$398,773$873,255
49$938,775$465,902$366,609$906,407
50$987,573$441,774$331,934$941,752
51$1,039,869$414,985$294,617$979,502
52$1,095,974$385,357$254,525$1,019,886
53$1,156,228$352,704$211,516$1,063,160
54$1,221,004$316,828$165,443$1,109,605
55$1,290,713$277,519$116,152$1,159,533
56$1,365,805$234,556$63,482$1,213,287
57$1,446,775$187,707$7,266$1,271,246
58$1,534,166$136,725$0$1,333,830
59$1,628,574$81,348$0$1,407,689
60$1,730,658$21,303$0$1,488,458
61$1,841,137$0$0$1,575,870
62$1,960,804$0$0$1,675,860
63$2,090,531$0$0$1,787,067
64$2,231,277$0$0$1,907,736
65$2,384,095$0$0$2,038,772
66$2,550,145$0$0$2,181,171
67$2,730,703$0$0$2,336,030
68$2,927,172$0$0$2,504,555
69$3,141,096$0$0$2,688,073
70$3,374,174$0$0$2,888,043
71$3,628,275$0$0$3,106,072
72$3,905,458$0$0$3,343,928
73$4,207,986$0$0$3,603,559
74$4,538,354$0$0$3,887,106
75$4,899,306$0$0$4,196,928
76$5,293,864$0$0$4,535,623
77$5,725,353$0$0$4,906,049
78$6,197,437$0$0$5,311,353
79$6,714,148$0$0$5,755,003
80$7,279,928$0$0$6,240,814
81$7,899,667$0$0$6,772,990
82$8,578,751$0$0$7,356,160
83$9,323,111$0$0$7,995,422
84$10,139,280$0$0$8,696,390
85$11,034,452$0$0$9,465,247
86$12,016,552$0$0$10,308,806
87$13,094,308$0$0$11,234,568
88$14,277,336$0$0$12,250,797
89$15,576,226$0$0$13,366,596
90$17,002,645$0$0$14,591,992
91$18,569,444$0$0$15,938,032
92$20,290,781$0$0$17,416,883
93$22,182,254$0$0$19,041,953
94$24,261,043$0$0$20,828,009
95$26,546,080$0$0$22,791,322
96$29,058,218$0$0$24,949,817
97$31,820,434$0$0$27,323,242
98$34,858,041$0$0$29,933,356
99$38,198,931$0$0$32,804,130
100$41,873,830$0$0$35,961,977