Can I retire at age 42 with 525,000?

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 $525,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$43,354$42,968$42,591$42,223$41,864$40,836
2 years$21,462$21,063$20,675$20,300$19,935$18,905
3 years$14,166$13,765$13,378$13,006$12,648$11,649
4 years$10,519$10,118$9,736$9,370$9,021$8,060
5 years$8,331$7,933$7,556$7,197$6,857$5,938
6 years$6,873$6,478$6,106$5,756$5,426$4,549
7 years$5,832$5,440$5,074$4,732$4,413$3,578
8 years$5,051$4,663$4,303$3,970$3,661$2,868
9 years$4,444$4,060$3,706$3,381$3,083$2,331
10 years$3,959$3,579$3,231$2,915$2,627$1,915
11 years$3,563$3,186$2,845$2,537$2,259$1,587
12 years$3,232$2,860$2,525$2,225$1,958$1,324
13 years$2,953$2,584$2,256$1,964$1,707$1,110
14 years$2,714$2,349$2,027$1,744$1,496$935
15 years$2,507$2,146$1,830$1,555$1,318$790
16 years$2,326$1,969$1,659$1,392$1,165$670
17 years$2,166$1,813$1,510$1,251$1,033$570
18 years$2,025$1,675$1,378$1,127$918$485
19 years$1,898$1,553$1,262$1,019$818$414
20 years$1,784$1,443$1,158$923$731$354
21 years$1,681$1,344$1,065$837$654$303
22 years$1,588$1,255$982$761$586$259
23 years$1,503$1,173$906$693$526$222
24 years$1,425$1,099$838$632$473$191
25 years$1,354$1,032$776$578$426$164
26 years$1,288$970$720$528$383$141
27 years$1,227$913$669$483$346$121
28 years$1,170$860$622$443$312$104
29 years$1,118$811$578$406$282$89
30 years$1,069$766$539$373$255$77
31 years$1,023$724$502$342$230$66
32 years$980$685$469$315$208$57
33 years$940$649$438$289$188$49
34 years$903$615$409$266$171$42
35 years$867$583$382$245$154$36
36 years$834$554$358$226$140$31
37 years$802$526$335$208$127$27
38 years$773$500$313$192$115$23
39 years$744$475$294$177$104$20
40 years$718$452$275$163$95$17
41 years$692$430$258$150$86$15
42 years$668$410$242$139$78$13
43 years$646$391$227$128$71$11
44 years$624$372$213$118$64$10
45 years$603$355$200$109$58$8
46 years$583$339$188$101$53$7
47 years$564$323$177$93$48$6
48 years$546$309$166$86$44$5
49 years$529$295$156$80$40$5
50 years$513$281$147$74$36$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $525,000, adding $2,388 every year, while hoping to spend $25,890 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: 38/49/13 Blend
41$525,000$525,000$525,000$525,000
42$581,013$553,188$545,051$600,714
43$612,730$552,748$535,763$614,536
44$646,814$551,418$525,297$626,778
45$683,479$549,128$513,585$639,441
46$722,961$545,802$500,557$652,577
47$765,518$541,361$486,140$666,242
48$811,434$535,721$470,259$680,503
49$861,019$528,790$452,832$695,431
50$914,617$520,475$433,776$711,112
51$972,604$510,674$413,003$727,638
52$1,035,394$499,281$390,423$745,117
53$1,103,441$486,183$365,938$763,667
54$1,177,245$471,259$339,451$783,423
55$1,257,357$454,384$310,856$804,537
56$1,344,382$435,423$280,043$827,177
57$1,438,984$414,234$246,900$851,536
58$1,541,896$390,667$211,307$877,826
59$1,653,924$364,564$173,140$906,286
60$1,775,953$335,757$132,269$937,184
61$1,908,959$304,068$88,559$970,819
62$2,054,015$269,310$41,868$1,007,526
63$2,212,303$231,284$0$1,047,676
64$2,385,123$189,782$0$1,092,791
65$2,573,905$144,581$0$1,148,501
66$2,780,227$95,449$0$1,209,530
67$3,005,823$42,139$0$1,276,480
68$3,252,604$0$0$1,350,015
69$3,522,671$0$0$1,439,292
70$3,818,342$0$0$1,561,978
71$4,142,167$0$0$1,696,418
72$4,496,954$0$0$1,843,786
73$4,885,796$0$0$2,005,378
74$5,312,101$0$0$2,182,619
75$5,779,618$0$0$2,377,077
76$6,292,482$0$0$2,590,483
77$6,855,242$0$0$2,824,741
78$7,472,914$0$0$3,081,950
79$8,151,019$0$0$3,364,420
80$8,895,640$0$0$3,674,697
81$9,713,480$0$0$4,015,586
82$10,611,919$0$0$4,390,178
83$11,599,090$0$0$4,801,875
84$12,683,952$0$0$5,254,428
85$13,876,376$0$0$5,751,969
86$15,187,235$0$0$6,299,049
87$16,628,509$0$0$6,900,682
88$18,213,396$0$0$7,562,396
89$19,956,438$0$0$8,290,276
90$21,873,656$0$0$9,091,029
91$23,982,704$0$0$9,972,047
92$26,303,028$0$0$10,941,472
93$28,856,060$0$0$12,008,274
94$31,665,411$0$0$13,182,340
95$34,757,094$0$0$14,474,560
96$38,159,777$0$0$15,896,938
97$41,905,043$0$0$17,462,696
98$46,027,695$0$0$19,186,405
99$50,566,080$0$0$21,084,123
100$55,562,452$0$0$23,173,539