Can I retire at age 40 with 797,000?

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 $797,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$65,816$65,229$64,657$64,099$63,554$62,656
2 years$32,582$31,975$31,387$30,817$30,264$29,361
3 years$21,506$20,896$20,309$19,745$19,201$18,321
4 years$15,968$15,361$14,780$14,225$13,694$12,844
5 years$12,647$12,043$11,470$10,926$10,410$9,592
6 years$10,433$9,834$9,269$8,738$8,237$7,453
7 years$8,853$8,259$7,703$7,184$6,699$5,948
8 years$7,668$7,079$6,533$6,026$5,557$4,840
9 years$6,747$6,164$5,627$5,133$4,680$3,996
10 years$6,011$5,433$4,905$4,425$3,988$3,336
11 years$5,409$4,837$4,319$3,851$3,430$2,810
12 years$4,907$4,341$3,833$3,378$2,972$2,384
13 years$4,483$3,923$3,424$2,982$2,592$2,034
14 years$4,120$3,566$3,077$2,647$2,272$1,744
15 years$3,806$3,258$2,778$2,361$2,000$1,501
16 years$3,531$2,989$2,519$2,114$1,768$1,296
17 years$3,289$2,753$2,292$1,899$1,568$1,122
18 years$3,074$2,544$2,092$1,712$1,394$974
19 years$2,882$2,357$1,915$1,547$1,242$848
20 years$2,709$2,191$1,758$1,401$1,110$739
21 years$2,553$2,040$1,617$1,271$993$645
22 years$2,411$1,905$1,490$1,156$890$563
23 years$2,282$1,781$1,376$1,053$799$493
24 years$2,163$1,669$1,272$960$718$432
25 years$2,055$1,566$1,178$877$646$378
26 years$1,955$1,472$1,093$802$582$332
27 years$1,862$1,385$1,015$734$525$291
28 years$1,776$1,305$944$672$474$256
29 years$1,697$1,232$878$617$428$225
30 years$1,622$1,163$818$566$386$198
31 years$1,553$1,099$762$520$349$174
32 years$1,488$1,040$711$478$316$153
33 years$1,427$985$664$439$286$135
34 years$1,370$934$621$404$259$118
35 years$1,316$886$580$372$234$104
36 years$1,266$841$543$343$212$92
37 years$1,218$798$508$316$193$81
38 years$1,173$759$476$291$175$71
39 years$1,130$721$446$268$158$63
40 years$1,090$686$418$247$144$55
41 years$1,051$653$392$228$130$49
42 years$1,015$622$367$211$118$43
43 years$980$593$345$194$107$38
44 years$947$565$324$180$97$33
45 years$915$539$304$166$88$29
46 years$885$514$285$153$80$26
47 years$857$491$268$142$73$23
48 years$829$468$252$131$66$20
49 years$803$447$237$121$60$18
50 years$778$427$223$112$55$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $797,000, adding $4,070 every year, while hoping to spend $48,166 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: 35/45/20 Blend
39$797,000$797,000$797,000$797,000
40$882,492$840,251$827,898$907,874
41$921,258$830,175$804,384$916,783
42$962,364$817,991$778,468$921,633
43$1,005,997$803,545$750,019$925,870
44$1,052,364$786,673$718,900$929,467
45$1,101,688$767,203$684,966$932,401
46$1,154,215$744,952$648,067$934,648
47$1,210,215$719,725$608,048$936,188
48$1,269,983$691,317$564,743$937,005
49$1,333,841$659,511$517,982$937,085
50$1,402,144$624,079$467,586$936,420
51$1,475,280$584,775$413,367$935,006
52$1,553,674$541,345$355,130$932,845
53$1,637,794$493,516$292,672$929,949
54$1,728,152$441,001$225,780$926,335
55$1,825,311$383,497$154,230$922,030
56$1,929,887$320,684$77,792$917,075
57$2,042,560$252,221$0$911,521
58$2,164,074$177,753$0$906,240
59$2,295,247$96,901$0$918,278
60$2,436,979$9,265$0$931,175
61$2,590,257$0$0$945,111
62$2,756,168$0$0$1,002,671
63$2,935,905$0$0$1,070,094
64$3,130,782$0$0$1,143,296
65$3,342,242$0$0$1,222,832
66$3,571,873$0$0$1,309,313
67$3,821,420$0$0$1,403,410
68$4,092,806$0$0$1,505,863
69$4,388,143$0$0$1,617,483
70$4,709,758$0$0$1,739,167
71$5,060,210$0$0$1,871,898
72$5,442,314$0$0$2,016,761
73$5,859,171$0$0$2,174,949
74$6,314,192$0$0$2,347,776
75$6,811,132$0$0$2,536,686
76$7,354,127$0$0$2,743,272
77$7,947,728$0$0$2,969,288
78$8,596,945$0$0$3,216,662
79$9,307,296$0$0$3,487,521
80$10,084,858$0$0$3,784,204
81$10,936,320$0$0$4,109,288
82$11,869,049$0$0$4,465,613
83$12,891,159$0$0$4,856,305
84$14,011,586$0$0$5,284,805
85$15,240,171$0$0$5,754,907
86$16,587,752$0$0$6,270,787
87$18,066,268$0$0$6,837,047
88$19,688,871$0$0$7,458,755
89$21,470,043$0$0$8,141,493
90$23,425,742$0$0$8,891,412
91$25,573,543$0$0$9,715,286
92$27,932,809$0$0$10,620,579
93$30,524,869$0$0$11,615,514
94$33,373,221$0$0$12,709,149
95$36,503,752$0$0$13,911,463
96$39,944,980$0$0$15,233,451
97$43,728,326$0$0$16,687,228
98$47,888,405$0$0$18,286,139
99$52,463,356$0$0$20,044,888
100$57,495,197$0$0$21,979,677