Can I retire at age 40 with 848,000?

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 $848,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$70,027$69,403$68,795$68,201$67,621$66,446
2 years$34,667$34,021$33,395$32,789$32,200$31,020
3 years$22,882$22,233$21,609$21,008$20,429$19,281
4 years$16,990$16,344$15,726$15,135$14,570$13,463
5 years$13,456$12,814$12,204$11,625$11,076$10,012
6 years$11,101$10,463$9,863$9,297$8,764$7,745
7 years$9,419$8,787$8,196$7,643$7,128$6,154
8 years$8,159$7,532$6,951$6,412$5,913$4,985
9 years$7,179$6,558$5,987$5,461$4,980$4,096
10 years$6,395$5,781$5,219$4,708$4,243$3,403
11 years$5,755$5,146$4,595$4,097$3,649$2,852
12 years$5,221$4,619$4,078$3,594$3,162$2,407
13 years$4,770$4,174$3,643$3,173$2,757$2,043
14 years$4,384$3,794$3,274$2,816$2,417$1,742
15 years$4,049$3,466$2,956$2,512$2,128$1,491
16 years$3,757$3,180$2,680$2,249$1,881$1,280
17 years$3,499$2,929$2,438$2,021$1,668$1,103
18 years$3,270$2,706$2,226$1,821$1,483$952
19 years$3,066$2,508$2,038$1,646$1,322$823
20 years$2,882$2,331$1,870$1,490$1,181$713
21 years$2,716$2,171$1,720$1,353$1,057$619
22 years$2,565$2,026$1,585$1,230$947$537
23 years$2,428$1,895$1,464$1,120$850$467
24 years$2,302$1,776$1,354$1,022$764$407
25 years$2,186$1,667$1,254$933$688$354
26 years$2,080$1,566$1,163$853$619$309
27 years$1,981$1,474$1,080$781$558$269
28 years$1,890$1,389$1,004$715$504$235
29 years$1,805$1,310$934$656$455$205
30 years$1,726$1,237$870$602$411$179
31 years$1,652$1,170$811$553$372$156
32 years$1,583$1,107$757$508$336$137
33 years$1,519$1,048$707$467$304$119
34 years$1,458$993$660$430$275$104
35 years$1,401$942$617$396$250$91
36 years$1,347$894$578$365$226$80
37 years$1,296$849$541$336$205$70
38 years$1,248$807$506$310$186$61
39 years$1,202$768$474$285$168$53
40 years$1,159$730$445$263$153$47
41 years$1,118$695$417$243$139$41
42 years$1,080$662$391$224$126$36
43 years$1,043$631$367$207$114$31
44 years$1,008$601$344$191$104$27
45 years$974$573$323$176$94$24
46 years$942$547$304$163$85$21
47 years$912$522$285$151$78$18
48 years$882$498$268$139$70$16
49 years$855$476$252$129$64$14
50 years$828$455$237$119$58$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $848,000, adding $3,094 every year, while hoping to spend $29,725 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: 73/20/7 Blend
39$848,000$848,000$848,000$848,000
40$937,687$892,743$879,599$1,004,988
41$1,001,704$904,861$877,439$1,061,888
42$1,071,255$916,575$874,210$1,120,149
43$1,146,872$927,837$869,845$1,183,116
44$1,229,142$938,590$864,273$1,251,243
45$1,318,710$948,776$857,422$1,325,033
46$1,416,286$958,334$849,213$1,405,038
47$1,522,651$967,196$839,566$1,491,867
48$1,638,666$975,293$828,396$1,586,191
49$1,765,276$982,549$815,614$1,688,749
50$1,903,524$988,884$801,127$1,800,355
51$2,054,556$994,212$784,837$1,921,908
52$2,219,635$998,442$766,643$2,054,396
53$2,400,151$1,001,479$746,439$2,198,911
54$2,597,634$1,003,219$724,112$2,356,653
55$2,813,769$1,003,553$699,546$2,528,947
56$3,050,411$1,002,365$672,619$2,717,252
57$3,309,605$999,533$643,204$2,923,179
58$3,593,601$994,926$611,167$3,148,499
59$3,904,876$988,405$576,369$3,395,168
60$4,246,160$979,824$538,664$3,665,340
61$4,620,459$969,026$497,900$3,961,390
62$5,031,085$955,847$453,918$4,285,935
63$5,481,683$940,111$406,552$4,641,861
64$5,976,271$921,633$355,628$5,032,347
65$6,519,274$900,216$300,965$5,460,900
66$7,115,566$875,653$242,373$5,931,382
67$7,770,517$847,723$179,656$6,448,054
68$8,490,041$816,193$112,606$7,015,610
69$9,280,655$780,816$41,008$7,639,225
70$10,149,538$741,332$0$8,324,603
71$11,104,597$697,464$0$9,080,676
72$12,154,547$648,921$0$9,915,170
73$13,308,986$595,393$0$10,832,677
74$14,578,490$536,554$0$11,841,636
75$15,974,711$472,061$0$12,951,349
76$17,510,487$401,547$0$14,172,066
77$19,199,962$324,628$0$15,515,086
78$21,058,721$240,897$0$16,992,860
79$23,103,934$149,926$0$18,619,111
80$25,354,522$51,259$0$20,408,965
81$27,831,331$0$0$22,379,091
82$30,557,329$0$0$24,560,093
83$33,557,826$0$0$26,973,178
84$36,860,709$0$0$29,629,498
85$40,496,706$0$0$32,553,773
86$44,499,674$0$0$35,773,238
87$48,906,923$0$0$39,317,907
88$53,759,562$0$0$43,220,850
89$59,102,890$0$0$47,518,507
90$64,986,823$0$0$52,251,032
91$71,466,364$0$0$57,462,673
92$78,602,121$0$0$63,202,186
93$86,460,880$0$0$69,523,296
94$95,116,235$0$0$76,485,205
95$104,649,280$0$0$84,153,151
96$115,149,379$0$0$92,599,021
97$126,715,003$0$0$101,902,030
98$139,454,663$0$0$112,149,470
99$153,487,932$0$0$123,437,532
100$168,946,574$0$0$135,872,215