Can I retire at age 42 with 540,000?

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 $540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$44,593$44,195$43,808$43,430$43,060$42,575
2 years$22,076$21,664$21,266$20,880$20,505$20,017
3 years$14,571$14,158$13,761$13,378$13,009$12,533
4 years$10,819$10,408$10,014$9,638$9,278$8,817
5 years$8,569$8,160$7,771$7,403$7,053$6,609
6 years$7,069$6,663$6,280$5,920$5,581$5,154
7 years$5,998$5,596$5,219$4,867$4,539$4,130
8 years$5,195$4,796$4,426$4,083$3,765$3,374
9 years$4,571$4,176$3,812$3,478$3,171$2,797
10 years$4,072$3,681$3,324$2,998$2,702$2,345
11 years$3,665$3,277$2,926$2,609$2,324$1,984
12 years$3,325$2,941$2,597$2,289$2,014$1,691
13 years$3,038$2,658$2,320$2,020$1,756$1,449
14 years$2,792$2,416$2,085$1,794$1,539$1,248
15 years$2,579$2,207$1,882$1,599$1,355$1,079
16 years$2,392$2,025$1,706$1,432$1,198$937
17 years$2,228$1,865$1,553$1,287$1,062$815
18 years$2,083$1,723$1,417$1,160$944$711
19 years$1,952$1,597$1,298$1,048$842$622
20 years$1,835$1,484$1,191$949$752$545
21 years$1,730$1,382$1,095$861$673$478
22 years$1,633$1,290$1,010$783$603$420
23 years$1,546$1,207$932$713$541$369
24 years$1,466$1,131$862$650$487$325
25 years$1,392$1,061$798$594$438$287
26 years$1,324$997$741$543$394$253
27 years$1,262$939$688$497$356$223
28 years$1,204$884$639$456$321$197
29 years$1,150$834$595$418$290$174
30 years$1,099$788$554$383$262$154
31 years$1,052$745$517$352$237$136
32 years$1,008$705$482$324$214$120
33 years$967$668$450$298$194$107
34 years$928$633$420$274$175$94
35 years$892$600$393$252$159$84
36 years$858$570$368$232$144$74
37 years$825$541$344$214$130$66
38 years$795$514$322$197$118$58
39 years$766$489$302$182$107$52
40 years$738$465$283$168$97$46
41 years$712$443$265$155$88$40
42 years$687$422$249$143$80$36
43 years$664$402$234$132$73$32
44 years$642$383$219$122$66$28
45 years$620$365$206$112$60$25
46 years$600$348$193$104$54$22
47 years$581$332$182$96$49$20
48 years$562$317$171$89$45$17
49 years$544$303$160$82$41$15
50 years$527$289$151$76$37$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $540,000, adding $5,676 every year, while hoping to spend $26,798 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
41$540,000$540,000$540,000$540,000
42$600,935$572,315$563,945$627,889
43$633,717$571,845$554,324$646,603
44$668,945$570,455$543,483$663,694
45$706,840$568,070$531,352$681,684
46$747,645$564,612$517,859$700,670
47$791,626$559,999$502,929$720,755
48$839,076$554,143$486,481$742,057
49$890,318$546,952$468,434$764,707
50$945,704$538,326$448,700$788,851
51$1,005,623$528,162$427,190$814,650
52$1,070,504$516,349$403,807$842,285
53$1,140,814$502,769$378,454$871,958
54$1,217,072$487,300$351,027$903,891
55$1,299,845$469,809$321,418$938,334
56$1,389,757$450,157$289,513$975,562
57$1,487,496$428,199$255,196$1,015,884
58$1,593,818$403,779$218,343$1,059,640
59$1,709,555$376,731$178,824$1,107,209
60$1,835,622$346,883$136,507$1,159,012
61$1,973,026$314,051$91,251$1,215,515
62$2,122,875$278,040$42,908$1,277,237
63$2,286,390$238,646$0$1,344,753
64$2,464,914$195,651$0$1,420,272
65$2,659,924$148,827$0$1,511,337
66$2,873,048$97,931$0$1,610,967
67$3,106,078$42,709$0$1,720,062
68$3,360,987$0$0$1,839,615
69$3,639,946$0$0$1,976,936
70$3,945,347$0$0$2,144,309
71$4,279,824$0$0$2,327,674
72$4,646,277$0$0$2,528,629
73$5,047,901$0$0$2,748,932
74$5,488,213$0$0$2,990,522
75$5,971,087$0$0$3,255,531
76$6,500,792$0$0$3,546,310
77$7,082,028$0$0$3,865,449
78$7,719,971$0$0$4,215,798
79$8,420,325$0$0$4,600,499
80$9,189,372$0$0$5,023,012
81$10,034,032$0$0$5,487,149
82$10,961,929$0$0$5,997,110
83$11,981,461$0$0$6,557,521
84$13,101,880$0$0$7,173,477
85$14,333,378$0$0$7,850,594
86$15,687,185$0$0$8,595,058
87$17,175,672$0$0$9,413,684
88$18,812,469$0$0$10,313,981
89$20,612,593$0$0$11,304,221
90$22,592,589$0$0$12,393,520
91$24,770,687$0$0$13,591,919
92$27,166,970$0$0$14,910,484
93$29,803,569$0$0$16,361,407
94$32,704,867$0$0$17,958,120
95$35,897,729$0$0$19,715,426
96$39,411,757$0$0$21,649,633
97$43,279,569$0$0$23,778,710
98$47,537,103$0$0$26,122,459
99$52,223,961$0$0$28,702,698
100$57,383,778$0$0$31,543,466