Can I retire at age 40 with 796,000?

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 $796,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$65,733$65,147$64,576$64,019$63,474$62,066
2 years$32,541$31,935$31,348$30,778$30,226$28,814
3 years$21,479$20,870$20,284$19,720$19,176$17,806
4 years$15,948$15,342$14,762$14,207$13,677$12,358
5 years$12,631$12,028$11,456$10,912$10,397$9,133
6 years$10,420$9,822$9,258$8,727$8,227$7,019
7 years$8,842$8,248$7,693$7,175$6,691$5,539
8 years$7,659$7,070$6,525$6,019$5,550$4,456
9 years$6,739$6,156$5,620$5,127$4,674$3,635
10 years$6,003$5,426$4,899$4,419$3,983$2,998
11 years$5,402$4,831$4,313$3,846$3,425$2,493
12 years$4,901$4,336$3,828$3,373$2,968$2,088
13 years$4,478$3,918$3,420$2,978$2,588$1,758
14 years$4,115$3,562$3,073$2,644$2,269$1,487
15 years$3,801$3,254$2,774$2,358$1,998$1,262
16 years$3,527$2,985$2,515$2,111$1,766$1,075
17 years$3,285$2,749$2,289$1,897$1,566$918
18 years$3,070$2,540$2,089$1,709$1,392$785
19 years$2,878$2,354$1,913$1,545$1,241$673
20 years$2,705$2,188$1,755$1,399$1,108$578
21 years$2,549$2,038$1,615$1,270$992$497
22 years$2,408$1,902$1,488$1,154$889$427
23 years$2,279$1,779$1,374$1,051$798$368
24 years$2,161$1,667$1,271$959$717$317
25 years$2,052$1,564$1,177$876$645$274
26 years$1,952$1,470$1,092$801$581$236
27 years$1,860$1,384$1,014$733$524$204
28 years$1,774$1,304$942$671$473$176
29 years$1,694$1,230$877$616$427$153
30 years$1,620$1,162$817$565$386$132
31 years$1,551$1,098$761$519$349$114
32 years$1,486$1,039$710$477$316$99
33 years$1,426$984$663$439$286$85
34 years$1,368$933$620$404$259$74
35 years$1,315$885$579$372$234$64
36 years$1,264$840$542$342$212$55
37 years$1,217$797$507$315$192$48
38 years$1,171$758$475$291$174$42
39 years$1,129$721$445$268$158$36
40 years$1,088$686$417$247$143$31
41 years$1,050$653$391$228$130$27
42 years$1,013$622$367$210$118$23
43 years$979$592$344$194$107$20
44 years$946$564$323$179$97$18
45 years$914$538$304$166$88$15
46 years$884$513$285$153$80$13
47 years$856$490$268$141$73$11
48 years$828$468$252$131$66$10
49 years$802$447$237$121$60$9
50 years$777$427$222$112$55$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $796,000, adding $3,857 every year, while hoping to spend $35,354 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: 52/36/12 Blend
39$796,000$796,000$796,000$796,000
40$881,170$838,982$826,644$924,003
41$933,434$842,476$816,721$957,147
42$989,842$844,956$805,280$989,078
43$1,050,783$846,336$792,233$1,022,993
44$1,116,678$846,522$777,488$1,059,090
45$1,187,995$845,417$760,950$1,097,586
46$1,265,244$842,916$742,515$1,138,722
47$1,348,989$838,909$722,080$1,182,767
48$1,439,849$833,278$699,532$1,230,018
49$1,538,504$825,900$674,757$1,280,802
50$1,645,704$816,641$647,634$1,335,485
51$1,762,271$805,362$618,035$1,394,469
52$1,889,113$791,915$585,829$1,458,203
53$2,027,226$776,142$550,878$1,527,180
54$2,177,707$757,877$513,036$1,601,950
55$2,341,764$736,943$472,154$1,683,118
56$2,520,725$713,155$428,072$1,771,356
57$2,716,054$686,314$380,627$1,867,408
58$2,929,360$656,212$329,647$1,972,096
59$3,162,415$622,628$274,951$2,086,330
60$3,417,172$585,327$216,352$2,211,116
61$3,695,778$544,062$153,654$2,347,569
62$4,000,598$498,572$86,653$2,496,920
63$4,334,237$448,580$15,134$2,660,529
64$4,699,563$393,795$0$2,839,904
65$5,099,735$333,906$0$3,044,543
66$5,538,229$268,589$0$3,271,028
67$6,018,877$197,499$0$3,519,485
68$6,545,897$120,271$0$3,792,194
69$7,123,936$36,521$0$4,091,671
70$7,758,111$0$0$4,420,696
71$8,454,059$0$0$4,803,791
72$9,217,989$0$0$5,240,270
73$10,056,741$0$0$5,719,586
74$10,977,849$0$0$6,246,053
75$11,989,613$0$0$6,824,426
76$13,101,175$0$0$7,459,943
77$14,322,608$0$0$8,158,376
78$15,665,009$0$0$8,926,080
79$17,140,601$0$0$9,770,059
80$18,762,854$0$0$10,698,031
81$20,546,604$0$0$11,718,495
82$22,508,200$0$0$12,840,819
83$24,665,653$0$0$14,075,321
84$27,038,807$0$0$15,433,372
85$29,649,526$0$0$16,927,499
86$32,521,900$0$0$18,571,504
87$35,682,473$0$0$20,380,596
88$39,160,489$0$0$22,371,531
89$42,988,172$0$0$24,562,774
90$47,201,029$0$0$26,974,667
91$51,838,181$0$0$29,629,628
92$56,942,735$0$0$32,552,357
93$62,562,192$0$0$35,770,070
94$68,748,889$0$0$39,312,757
95$75,560,498$0$0$43,213,464
96$83,060,567$0$0$47,508,603
97$91,319,119$0$0$52,238,298
98$100,413,314$0$0$57,446,762
99$110,428,175$0$0$63,182,715
100$121,457,393$0$0$69,499,841