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%20%
1 years$68,128$67,521$66,929$66,351$65,787$63,152
2 years$33,727$33,098$32,490$31,899$31,327$28,705
3 years$22,261$21,630$21,023$20,438$19,875$17,349
4 years$16,529$15,900$15,299$14,725$14,175$11,764
5 years$13,091$12,466$11,873$11,310$10,776$8,486
6 years$10,800$10,180$9,595$9,045$8,526$6,360
7 years$9,164$8,549$7,974$7,436$6,934$4,889
8 years$7,938$7,328$6,762$6,238$5,753$3,828
9 years$6,984$6,380$5,824$5,313$4,845$3,036
10 years$6,222$5,624$5,078$4,580$4,128$2,433
11 years$5,599$5,007$4,470$3,986$3,550$1,964
12 years$5,080$4,494$3,967$3,496$3,076$1,596
13 years$4,641$4,061$3,545$3,087$2,683$1,302
14 years$4,265$3,691$3,185$2,740$2,352$1,067
15 years$3,940$3,372$2,875$2,444$2,071$877
16 years$3,655$3,094$2,607$2,188$1,830$722
17 years$3,404$2,849$2,372$1,966$1,623$596
18 years$3,182$2,633$2,166$1,772$1,443$493
19 years$2,983$2,440$1,982$1,601$1,286$408
20 years$2,804$2,267$1,819$1,450$1,149$338
21 years$2,642$2,112$1,674$1,316$1,028$281
22 years$2,496$1,972$1,542$1,196$921$233
23 years$2,362$1,844$1,424$1,090$827$194
24 years$2,239$1,728$1,317$994$743$161
25 years$2,127$1,621$1,220$908$669$134
26 years$2,023$1,524$1,131$830$603$111
27 years$1,928$1,434$1,051$760$543$93
28 years$1,839$1,351$977$696$490$77
29 years$1,756$1,275$909$638$443$64
30 years$1,679$1,204$847$586$400$53
31 years$1,608$1,138$789$538$362$44
32 years$1,540$1,077$736$494$327$37
33 years$1,477$1,020$688$455$296$31
34 years$1,418$967$642$418$268$26
35 years$1,363$917$601$385$243$21
36 years$1,310$870$562$355$220$18
37 years$1,261$826$526$327$199$15
38 years$1,214$785$492$301$181$12
39 years$1,170$747$461$278$164$10
40 years$1,128$711$432$256$149$9
41 years$1,088$676$406$236$135$7
42 years$1,050$644$380$218$122$6
43 years$1,014$614$357$201$111$5
44 years$980$585$335$186$101$4
45 years$948$558$315$172$92$3
46 years$917$532$295$159$83$3
47 years$887$508$278$147$75$2
48 years$859$485$261$135$69$2
49 years$831$463$245$125$62$2
50 years$805$442$231$116$57$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $825,000, adding $4,663 every year, while hoping to spend $51,802 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: 43/27/30 Blend
39$825,000$825,000$825,000$825,000
40$913,960$870,235$857,447$945,094
41$952,067$857,759$831,055$955,459
42$992,325$842,937$802,042$961,458
43$1,034,898$825,596$770,267$966,989
44$1,079,966$805,559$735,579$972,039
45$1,127,726$782,635$697,824$976,600
46$1,178,392$756,622$656,839$980,665
47$1,232,198$727,307$612,454$984,233
48$1,289,401$694,464$564,490$987,307
49$1,350,282$657,855$512,762$989,893
50$1,415,148$617,226$457,077$992,008
51$1,484,334$572,312$397,230$993,670
52$1,558,210$522,829$333,012$994,910
53$1,637,180$468,480$264,200$995,766
54$1,721,685$408,949$190,564$996,287
55$1,812,212$343,902$111,862$996,534
56$1,909,292$272,988$27,844$996,581
57$2,013,510$195,834$0$996,520
58$2,125,506$112,048$0$1,016,245
59$2,245,985$21,215$0$1,046,893
60$2,375,718$0$0$1,079,785
61$2,515,554$0$0$1,138,098
62$2,666,425$0$0$1,207,891
63$2,829,355$0$0$1,283,345
64$3,005,468$0$0$1,364,991
65$3,196,002$0$0$1,453,413
66$3,402,316$0$0$1,549,254
67$3,625,904$0$0$1,653,220
68$3,868,409$0$0$1,766,087
69$4,131,639$0$0$1,888,711
70$4,417,581$0$0$2,022,031
71$4,728,421$0$0$2,167,080
72$5,066,564$0$0$2,324,996
73$5,434,658$0$0$2,497,032
74$5,835,612$0$0$2,684,564
75$6,272,633$0$0$2,889,108
76$6,749,246$0$0$3,112,334
77$7,269,333$0$0$3,356,078
78$7,837,166$0$0$3,622,361
79$8,457,449$0$0$3,913,411
80$9,135,358$0$0$4,231,676
81$9,876,595$0$0$4,579,857
82$10,687,435$0$0$4,960,923
83$11,574,788$0$0$5,378,146
84$12,546,265$0$0$5,835,130
85$13,610,243$0$0$6,335,840
86$14,775,952$0$0$6,884,648
87$16,053,553$0$0$7,486,363
88$17,454,239$0$0$8,146,288
89$18,990,336$0$0$8,870,259
90$20,675,422$0$0$9,664,706
91$22,524,451$0$0$10,536,711
92$24,553,895$0$0$11,494,077
93$26,781,899$0$0$12,545,396
94$29,228,449$0$0$13,700,136
95$31,915,564$0$0$14,968,726
96$34,867,497$0$0$16,362,653
97$38,110,969$0$0$17,894,575
98$41,675,416$0$0$19,578,436
99$45,593,265$0$0$21,429,597
100$49,900,244$0$0$23,464,983