Can I retire at age 42 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%11.4%
1 years$45,418$45,014$44,619$44,234$43,858$43,600
2 years$22,484$22,066$21,660$21,266$20,885$20,624
3 years$14,841$14,420$14,015$13,626$13,250$12,995
4 years$11,020$10,600$10,200$9,816$9,450$9,203
5 years$8,728$8,311$7,915$7,540$7,184$6,945
6 years$7,200$6,786$6,397$6,030$5,684$5,455
7 years$6,109$5,699$5,316$4,957$4,623$4,402
8 years$5,292$4,885$4,508$4,159$3,835$3,623
9 years$4,656$4,254$3,883$3,542$3,230$3,027
10 years$4,148$3,749$3,385$3,053$2,752$2,558
11 years$3,732$3,338$2,980$2,657$2,367$2,181
12 years$3,386$2,996$2,645$2,331$2,051$1,874
13 years$3,094$2,707$2,363$2,058$1,788$1,619
14 years$2,843$2,461$2,123$1,827$1,568$1,407
15 years$2,626$2,248$1,917$1,629$1,380$1,227
16 years$2,437$2,063$1,738$1,459$1,220$1,075
17 years$2,270$1,900$1,582$1,311$1,082$944
18 years$2,121$1,755$1,444$1,181$962$831
19 years$1,989$1,627$1,322$1,067$857$733
20 years$1,869$1,512$1,213$967$766$649
21 years$1,762$1,408$1,116$877$685$575
22 years$1,664$1,314$1,028$798$614$510
23 years$1,575$1,229$949$726$551$453
24 years$1,493$1,152$878$663$496$403
25 years$1,418$1,081$813$605$446$359
26 years$1,349$1,016$754$553$402$319
27 years$1,285$956$700$506$362$285
28 years$1,226$901$651$464$327$254
29 years$1,171$850$606$425$295$227
30 years$1,120$803$564$390$267$203
31 years$1,072$759$526$359$241$181
32 years$1,027$718$491$330$218$162
33 years$985$680$458$303$197$145
34 years$946$644$428$279$179$130
35 years$908$611$400$257$162$116
36 years$874$580$375$236$147$104
37 years$841$551$351$218$133$93
38 years$809$524$328$201$120$84
39 years$780$498$308$185$109$75
40 years$752$474$288$171$99$67
41 years$725$451$270$158$90$60
42 years$700$429$254$145$82$54
43 years$676$409$238$134$74$48
44 years$653$390$223$124$67$43
45 years$632$372$210$114$61$39
46 years$611$355$197$106$55$35
47 years$591$339$185$98$50$31
48 years$572$323$174$90$46$28
49 years$554$309$163$83$41$25
50 years$537$295$154$77$38$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $550,000, adding $6,027 every year, while hoping to spend $21,093 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: 33/39/28 Blend
41$550,000$550,000$550,000$550,000
42$612,317$583,167$574,642$627,158
43$652,330$589,299$571,450$645,076
44$695,718$595,025$567,443$662,081
45$742,803$600,302$562,574$679,999
46$793,937$605,086$556,789$698,924
47$849,512$609,328$550,034$718,964
48$909,955$612,978$542,253$740,236
49$975,737$615,981$533,386$762,872
50$1,047,378$618,280$523,370$787,020
51$1,125,448$619,813$512,140$812,843
52$1,210,575$620,515$499,628$840,523
53$1,303,450$620,317$485,762$870,262
54$1,404,835$619,145$470,468$902,286
55$1,515,566$616,921$453,666$936,845
56$1,636,566$613,563$435,277$974,216
57$1,768,851$608,982$415,213$1,014,708
58$1,913,537$603,085$393,386$1,058,664
59$2,071,855$595,774$369,702$1,106,463
60$2,245,161$586,943$344,063$1,158,528
61$2,434,946$576,482$316,368$1,215,325
62$2,642,853$564,273$286,510$1,277,374
63$2,870,693$550,191$254,376$1,345,250
64$3,120,458$534,105$219,852$1,419,589
65$3,394,343$515,874$182,816$1,501,099
66$3,694,765$495,351$143,139$1,590,560
67$4,024,388$472,380$100,692$1,688,839
68$4,386,145$446,796$55,333$1,796,895
69$4,783,265$418,423$6,921$1,915,790
70$5,219,309$387,076$0$2,046,698
71$5,698,195$352,559$0$2,204,288
72$6,224,243$314,667$0$2,379,706
73$6,802,211$273,180$0$2,572,522
74$7,437,338$227,868$0$2,784,548
75$8,135,400$178,487$0$3,017,782
76$8,902,756$124,779$0$3,274,433
77$9,746,416$66,471$0$3,556,937
78$10,674,100$3,278$0$3,867,984
79$11,694,314$0$0$4,210,544
80$12,816,431$0$0$4,615,832
81$14,050,777$0$0$5,063,297
82$15,408,728$0$0$5,555,668
83$16,902,822$0$0$6,097,502
84$18,546,868$0$0$6,693,820
85$20,356,086$0$0$7,350,156
86$22,347,243$0$0$8,072,605
87$24,538,815$0$0$8,867,885
88$26,951,161$0$0$9,743,398
89$29,606,712$0$0$10,707,300
90$32,530,184$0$0$11,768,576
91$35,748,814$0$0$12,937,130
92$39,292,612$0$0$14,223,874
93$43,194,645$0$0$15,640,832
94$47,491,353$0$0$17,201,252
95$52,222,887$0$0$18,919,733
96$57,433,491$0$0$20,812,365
97$63,171,919$0$0$22,896,874
98$69,491,893$0$0$25,192,794
99$76,452,612$0$0$27,721,653
100$84,119,309$0$0$30,507,169