Can I retire at age 40 with 847,000?

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 $847,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$69,944$69,321$68,714$68,120$67,541$67,256
2 years$34,626$33,981$33,356$32,750$32,162$31,875
3 years$22,855$22,207$21,584$20,983$20,405$20,124
4 years$16,970$16,325$15,707$15,117$14,553$14,280
5 years$13,440$12,799$12,190$11,612$11,063$10,799
6 years$11,088$10,451$9,851$9,286$8,754$8,500
7 years$9,408$8,777$8,186$7,634$7,119$6,875
8 years$8,149$7,523$6,943$6,404$5,906$5,671
9 years$7,170$6,550$5,980$5,455$4,974$4,748
10 years$6,388$5,774$5,213$4,702$4,238$4,022
11 years$5,748$5,140$4,590$4,092$3,645$3,438
12 years$5,215$4,613$4,073$3,590$3,158$2,961
13 years$4,765$4,169$3,639$3,169$2,754$2,566
14 years$4,379$3,790$3,270$2,813$2,414$2,235
15 years$4,045$3,462$2,952$2,509$2,126$1,955
16 years$3,753$3,176$2,677$2,246$1,879$1,716
17 years$3,495$2,925$2,436$2,018$1,666$1,511
18 years$3,267$2,703$2,223$1,819$1,481$1,335
19 years$3,062$2,505$2,035$1,644$1,320$1,181
20 years$2,879$2,328$1,868$1,489$1,179$1,048
21 years$2,713$2,168$1,718$1,351$1,055$931
22 years$2,562$2,024$1,584$1,228$946$828
23 years$2,425$1,893$1,462$1,119$849$738
24 years$2,299$1,774$1,352$1,020$763$658
25 years$2,184$1,665$1,252$932$687$588
26 years$2,077$1,564$1,162$852$619$525
27 years$1,979$1,472$1,079$780$558$470
28 years$1,888$1,387$1,003$715$503$421
29 years$1,803$1,309$933$655$454$377
30 years$1,724$1,236$869$601$411$338
31 years$1,650$1,168$810$552$371$303
32 years$1,581$1,106$756$508$336$272
33 years$1,517$1,047$706$467$304$244
34 years$1,456$992$660$429$275$219
35 years$1,399$941$617$395$249$197
36 years$1,345$893$577$364$226$177
37 years$1,294$848$540$335$205$159
38 years$1,246$806$506$309$186$143
39 years$1,201$767$474$285$168$129
40 years$1,158$730$444$263$153$116
41 years$1,117$694$416$243$138$104
42 years$1,078$661$391$224$126$94
43 years$1,041$630$366$207$114$84
44 years$1,006$601$344$191$103$76
45 years$973$573$323$176$94$68
46 years$941$546$303$163$85$61
47 years$911$521$285$150$77$55
48 years$881$498$268$139$70$50
49 years$854$475$252$128$64$45
50 years$827$454$237$119$58$40

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $847,000, adding $4,904 every year, while hoping to spend $56,276 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: 62/19/19 Blend
39$847,000$847,000$847,000$847,000
40$938,452$893,561$880,433$991,771
41$974,297$877,469$850,050$1,012,213
42$1,011,912$858,701$816,764$1,027,785
43$1,051,419$837,069$780,416$1,043,481
44$1,092,947$812,369$740,844$1,059,321
45$1,136,642$784,390$697,877$1,075,324
46$1,182,659$752,904$651,335$1,091,518
47$1,231,166$717,673$601,031$1,107,935
48$1,282,350$678,443$546,770$1,124,611
49$1,336,411$634,948$488,348$1,141,591
50$1,393,569$586,904$425,551$1,158,928
51$1,454,063$534,013$358,158$1,176,681
52$1,518,156$475,958$285,935$1,194,922
53$1,586,133$412,405$208,639$1,213,731
54$1,658,308$343,002$126,017$1,233,203
55$1,735,021$267,375$37,805$1,253,445
56$1,816,648$185,131$0$1,274,579
57$1,903,597$95,854$0$1,308,167
58$1,996,317$0$0$1,351,870
59$2,095,299$0$0$1,398,446
60$2,201,081$0$0$1,469,676
61$2,314,252$0$0$1,545,922
62$2,435,460$0$0$1,627,625
63$2,565,414$0$0$1,715,269
64$2,704,891$0$0$1,809,383
65$2,854,745$0$0$1,910,550
66$3,015,915$0$0$2,019,410
67$3,189,428$0$0$2,136,664
68$3,376,415$0$0$2,263,083
69$3,578,117$0$0$2,399,513
70$3,795,898$0$0$2,546,886
71$4,031,256$0$0$2,706,224
72$4,285,838$0$0$2,878,650
73$4,561,455$0$0$3,065,399
74$4,860,096$0$0$3,267,831
75$5,183,949$0$0$3,487,438
76$5,535,422$0$0$3,725,863
77$5,917,160$0$0$3,984,913
78$6,332,075$0$0$4,266,575
79$6,783,369$0$0$4,573,035
80$7,274,566$0$0$4,906,699
81$7,809,543$0$0$5,270,214
82$8,392,566$0$0$5,666,493
83$9,028,331$0$0$6,098,742
84$9,722,005$0$0$6,570,490
85$10,479,276$0$0$7,085,620
86$11,306,406$0$0$7,648,410
87$12,210,288$0$0$8,263,567
88$13,198,511$0$0$8,936,272
89$14,279,430$0$0$9,672,232
90$15,462,245$0$0$10,477,731
91$16,757,086$0$0$11,359,688
92$18,175,108$0$0$12,325,720
93$19,728,596$0$0$13,384,219
94$21,431,077$0$0$14,544,426
95$23,297,452$0$0$15,816,516
96$25,344,129$0$0$17,211,699
97$27,589,184$0$0$18,742,321
98$30,052,522$0$0$20,421,979
99$32,756,072$0$0$22,265,653
100$35,723,988$0$0$24,289,841