Can I retire at age 40 with 805,000?

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 $805,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.1%
1 years$66,476$65,884$65,306$64,742$64,192$62,087
2 years$32,909$32,296$31,702$31,126$30,568$28,467
3 years$21,721$21,106$20,513$19,943$19,393$17,363
4 years$16,129$15,515$14,928$14,368$13,831$11,887
5 years$12,774$12,164$11,585$11,036$10,514$8,661
6 years$10,538$9,933$9,362$8,825$8,320$6,559
7 years$8,942$8,342$7,780$7,256$6,766$5,098
8 years$7,745$7,150$6,598$6,087$5,613$4,036
9 years$6,815$6,226$5,683$5,185$4,727$3,239
10 years$6,071$5,488$4,955$4,469$4,028$2,627
11 years$5,463$4,885$4,362$3,889$3,464$2,147
12 years$4,956$4,385$3,871$3,412$3,002$1,766
13 years$4,528$3,963$3,459$3,012$2,618$1,460
14 years$4,162$3,602$3,108$2,674$2,295$1,212
15 years$3,844$3,290$2,806$2,384$2,020$1,010
16 years$3,566$3,019$2,544$2,135$1,786$844
17 years$3,322$2,780$2,315$1,918$1,583$706
18 years$3,105$2,569$2,113$1,729$1,408$592
19 years$2,910$2,381$1,934$1,562$1,255$497
20 years$2,736$2,213$1,775$1,415$1,121$418
21 years$2,578$2,061$1,633$1,284$1,003$352
22 years$2,435$1,924$1,505$1,167$899$297
23 years$2,305$1,799$1,390$1,063$807$250
24 years$2,185$1,686$1,285$970$725$211
25 years$2,075$1,582$1,190$886$653$178
26 years$1,974$1,487$1,104$810$588$151
27 years$1,881$1,399$1,025$741$530$127
28 years$1,794$1,319$953$679$478$108
29 years$1,714$1,244$887$623$432$91
30 years$1,639$1,175$826$572$390$77
31 years$1,569$1,110$770$525$353$65
32 years$1,503$1,051$719$482$319$55
33 years$1,442$995$671$444$289$47
34 years$1,384$943$627$408$261$39
35 years$1,330$895$586$376$237$33
36 years$1,279$849$548$346$215$28
37 years$1,230$806$513$319$194$24
38 years$1,185$766$481$294$176$20
39 years$1,141$729$450$271$160$17
40 years$1,101$693$422$250$145$14
41 years$1,062$660$396$231$132$12
42 years$1,025$629$371$213$119$10
43 years$990$599$348$196$108$9
44 years$956$571$327$181$98$7
45 years$925$544$307$168$89$6
46 years$894$519$288$155$81$5
47 years$865$496$271$143$74$5
48 years$838$473$255$132$67$4
49 years$811$452$239$122$61$3
50 years$786$432$225$113$55$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $805,000, adding $2,498 every year, while hoping to spend $38,313 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: 25/46/29 Blend
39$805,000$805,000$805,000$805,000
40$889,687$847,022$834,544$903,807
41$939,670$847,761$821,737$916,599
42$993,468$847,252$807,216$926,897
43$1,051,428$845,394$790,884$937,150
44$1,113,934$842,079$772,639$947,381
45$1,181,406$837,192$752,374$957,619
46$1,254,307$830,612$729,976$967,899
47$1,333,144$822,210$705,328$978,264
48$1,418,476$811,849$678,308$988,764
49$1,510,916$799,386$648,787$999,462
50$1,611,140$784,666$616,631$1,010,428
51$1,719,889$767,527$581,701$1,021,747
52$1,837,979$747,797$543,849$1,033,517
53$1,966,308$725,295$502,924$1,045,851
54$2,105,864$699,826$458,764$1,058,882
55$2,257,733$671,188$411,203$1,072,759
56$2,423,110$639,165$360,066$1,087,656
57$2,603,310$603,527$305,172$1,103,770
58$2,799,782$564,035$246,330$1,121,327
59$3,014,119$520,431$183,341$1,140,583
60$3,248,074$472,447$115,998$1,161,829
61$3,503,578$419,797$44,084$1,185,395
62$3,782,755$362,179$0$1,211,652
63$4,087,945$299,276$0$1,251,127
64$4,421,724$230,749$0$1,309,402
65$4,786,929$156,244$0$1,373,430
66$5,186,681$75,385$0$1,443,890
67$5,624,419$0$0$1,521,537
68$6,103,931$0$0$1,613,400
69$6,629,386$0$0$1,756,014
70$7,205,378$0$0$1,912,483
71$7,836,964$0$0$2,084,198
72$8,529,717$0$0$2,272,692
73$9,289,771$0$0$2,479,654
74$10,123,887$0$0$2,706,943
75$11,039,509$0$0$2,956,608
76$12,044,839$0$0$3,230,906
77$13,148,911$0$0$3,532,323
78$14,361,675$0$0$3,863,598
79$15,694,097$0$0$4,227,750
80$17,158,253$0$0$4,628,101
81$18,767,448$0$0$5,068,316
82$20,536,342$0$0$5,552,430
83$22,481,083$0$0$6,084,888
84$24,619,463$0$0$6,670,589
85$26,971,086$0$0$7,314,931
86$29,557,548$0$0$8,023,860
87$32,402,645$0$0$8,803,928
88$35,532,593$0$0$9,662,354
89$38,976,280$0$0$10,607,093
90$42,765,533$0$0$11,646,910
91$46,935,421$0$0$12,791,462
92$51,524,583$0$0$14,051,390
93$56,575,594$0$0$15,438,419
94$62,135,367$0$0$16,965,469
95$68,255,593$0$0$18,646,778
96$74,993,227$0$0$20,498,030
97$82,411,031$0$0$22,536,513
98$90,578,158$0$0$24,781,273
99$99,570,810$0$0$27,253,299
100$109,472,953$0$0$29,975,718