Can I retire at age 40 with 825,000?

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 $825,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.2%
1 years$68,128$67,521$66,929$66,351$65,787$64,911
2 years$33,727$33,098$32,490$31,899$31,327$30,446
3 years$22,261$21,630$21,023$20,438$19,875$19,016
4 years$16,529$15,900$15,299$14,725$14,175$13,345
5 years$13,091$12,466$11,873$11,310$10,776$9,977
6 years$10,800$10,180$9,595$9,045$8,526$7,760
7 years$9,164$8,549$7,974$7,436$6,934$6,200
8 years$7,938$7,328$6,762$6,238$5,753$5,051
9 years$6,984$6,380$5,824$5,313$4,845$4,175
10 years$6,222$5,624$5,078$4,580$4,128$3,490
11 years$5,599$5,007$4,470$3,986$3,550$2,943
12 years$5,080$4,494$3,967$3,496$3,076$2,500
13 years$4,641$4,061$3,545$3,087$2,683$2,136
14 years$4,265$3,691$3,185$2,740$2,352$1,833
15 years$3,940$3,372$2,875$2,444$2,071$1,580
16 years$3,655$3,094$2,607$2,188$1,830$1,367
17 years$3,404$2,849$2,372$1,966$1,623$1,185
18 years$3,182$2,633$2,166$1,772$1,443$1,030
19 years$2,983$2,440$1,982$1,601$1,286$898
20 years$2,804$2,267$1,819$1,450$1,149$783
21 years$2,642$2,112$1,674$1,316$1,028$685
22 years$2,496$1,972$1,542$1,196$921$599
23 years$2,362$1,844$1,424$1,090$827$525
24 years$2,239$1,728$1,317$994$743$461
25 years$2,127$1,621$1,220$908$669$404
26 years$2,023$1,524$1,131$830$603$355
27 years$1,928$1,434$1,051$760$543$312
28 years$1,839$1,351$977$696$490$275
29 years$1,756$1,275$909$638$443$242
30 years$1,679$1,204$847$586$400$213
31 years$1,608$1,138$789$538$362$188
32 years$1,540$1,077$736$494$327$165
33 years$1,477$1,020$688$455$296$146
34 years$1,418$967$642$418$268$128
35 years$1,363$917$601$385$243$113
36 years$1,310$870$562$355$220$100
37 years$1,261$826$526$327$199$88
38 years$1,214$785$492$301$181$78
39 years$1,170$747$461$278$164$69
40 years$1,128$711$432$256$149$61
41 years$1,088$676$406$236$135$53
42 years$1,050$644$380$218$122$47
43 years$1,014$614$357$201$111$42
44 years$980$585$335$186$101$37
45 years$948$558$315$172$92$32
46 years$917$532$295$159$83$29
47 years$887$508$278$147$75$25
48 years$859$485$261$135$69$22
49 years$831$463$245$125$62$20
50 years$805$442$231$116$57$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $825,000, adding $5,597 every year, while hoping to spend $22,148 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: 53/40/7 Blend
39$825,000$825,000$825,000$825,000
40$914,923$871,198$858,411$961,588
41$984,680$890,322$863,602$1,012,960
42$1,060,810$909,640$868,225$1,065,921
43$1,143,939$929,139$872,238$1,123,004
44$1,234,758$948,804$875,594$1,184,601
45$1,334,025$968,617$878,249$1,251,147
46$1,442,578$988,561$880,152$1,323,119
47$1,561,336$1,008,616$881,252$1,401,041
48$1,691,313$1,028,759$881,495$1,485,493
49$1,833,626$1,048,967$880,824$1,577,113
50$1,989,503$1,069,213$879,179$1,676,603
51$2,160,298$1,089,471$876,497$1,784,738
52$2,347,502$1,109,709$872,714$1,902,372
53$2,552,757$1,129,894$867,759$2,030,443
54$2,777,871$1,149,991$861,562$2,169,990
55$3,024,835$1,169,963$854,046$2,322,153
56$3,295,844$1,189,767$845,132$2,488,190
57$3,593,314$1,209,359$834,738$2,669,489
58$3,919,907$1,228,692$822,776$2,867,578
59$4,278,554$1,247,715$809,156$3,084,142
60$4,672,486$1,266,373$793,782$3,321,037
61$5,105,262$1,284,606$776,556$3,580,310
62$5,580,799$1,302,353$757,371$3,864,217
63$6,103,418$1,319,546$736,121$4,175,242
64$6,677,876$1,336,113$712,690$4,516,128
65$7,309,413$1,351,976$686,959$4,889,893
66$8,003,805$1,367,054$658,803$5,299,868
67$8,767,412$1,381,260$628,093$5,749,722
68$9,607,245$1,394,498$594,691$6,243,500
69$10,531,026$1,406,671$558,455$6,785,660
70$11,547,264$1,417,671$519,236$7,381,117
71$12,665,333$1,427,385$476,879$8,035,287
72$13,895,564$1,435,693$431,221$8,754,141
73$15,249,336$1,442,466$382,091$9,544,260
74$16,739,190$1,447,569$329,313$10,412,900
75$18,378,944$1,450,857$272,702$11,368,055
76$20,183,822$1,452,174$212,063$12,418,540
77$22,170,599$1,451,358$147,195$13,574,069
78$24,357,761$1,448,236$77,886$14,845,351
79$26,765,675$1,442,621$3,917$16,244,188
80$29,416,783$1,434,319$0$17,783,589
81$32,335,817$1,423,123$0$19,483,498
82$35,550,025$1,408,811$0$21,354,792
83$39,089,436$1,391,150$0$23,414,620
84$42,987,135$1,369,893$0$25,682,201
85$47,279,583$1,344,778$0$28,178,720
86$52,006,954$1,315,527$0$30,927,525
87$57,213,521$1,281,845$0$33,954,351
88$62,948,066$1,243,421$0$37,287,558
89$69,264,346$1,199,926$0$40,958,405
90$76,221,597$1,151,010$0$45,001,344
91$83,885,095$1,096,304$0$49,454,344
92$92,326,769$1,035,418$0$54,359,254
93$101,625,885$967,938$0$59,762,194
94$111,869,786$893,429$0$65,713,996
95$123,154,724$811,427$0$72,270,683
96$135,586,764$721,444$0$79,493,998
97$149,282,785$622,966$0$87,451,990
98$164,371,584$515,447$0$96,219,654
99$180,995,093$398,311$0$105,879,646
100$199,309,714$270,950$0$116,523,060