Can I retire at age 40 with 849,000?

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 $849,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$70,110$69,485$68,876$68,281$67,700$66,037
2 years$34,708$34,061$33,435$32,827$32,238$30,573
3 years$22,909$22,259$21,635$21,033$20,453$18,838
4 years$17,010$16,363$15,744$15,153$14,587$13,034
5 years$13,472$12,829$12,218$11,639$11,089$9,602
6 years$11,114$10,476$9,874$9,308$8,774$7,356
7 years$9,431$8,797$8,206$7,652$7,136$5,786
8 years$8,168$7,541$6,959$6,419$5,920$4,637
9 years$7,187$6,566$5,994$5,468$4,985$3,770
10 years$6,403$5,787$5,225$4,713$4,248$3,097
11 years$5,761$5,152$4,600$4,102$3,653$2,566
12 years$5,227$4,624$4,083$3,598$3,166$2,141
13 years$4,776$4,179$3,648$3,177$2,761$1,795
14 years$4,389$3,799$3,277$2,820$2,420$1,512
15 years$4,054$3,470$2,959$2,515$2,131$1,278
16 years$3,761$3,184$2,683$2,252$1,883$1,084
17 years$3,503$2,932$2,441$2,023$1,670$921
18 years$3,274$2,709$2,229$1,823$1,485$785
19 years$3,070$2,511$2,040$1,647$1,323$670
20 years$2,885$2,333$1,872$1,492$1,182$572
21 years$2,719$2,174$1,722$1,354$1,058$490
22 years$2,568$2,029$1,587$1,231$948$420
23 years$2,431$1,898$1,466$1,121$851$360
24 years$2,305$1,778$1,355$1,023$765$309
25 years$2,189$1,668$1,255$934$688$265
26 years$2,082$1,568$1,164$854$620$228
27 years$1,984$1,476$1,081$782$559$196
28 years$1,892$1,391$1,005$716$504$168
29 years$1,807$1,312$935$657$455$145
30 years$1,728$1,239$871$603$412$125
31 years$1,654$1,171$812$554$372$107
32 years$1,585$1,108$758$509$337$92
33 years$1,520$1,049$708$468$305$79
34 years$1,460$995$661$430$276$68
35 years$1,402$943$618$396$250$59
36 years$1,348$895$578$365$226$51
37 years$1,298$850$541$336$205$44
38 years$1,249$808$507$310$186$38
39 years$1,204$769$475$286$169$32
40 years$1,161$731$445$264$153$28
41 years$1,120$696$417$243$139$24
42 years$1,081$663$391$224$126$21
43 years$1,044$632$367$207$114$18
44 years$1,009$602$345$191$104$15
45 years$975$574$324$177$94$13
46 years$943$548$304$163$86$11
47 years$913$523$286$151$78$10
48 years$884$499$268$139$71$9
49 years$856$476$252$129$64$7
50 years$829$455$237$119$58$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $849,000, adding $3,619 every year, while hoping to spend $55,258 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: 53/25/22 Blend
39$849,000$849,000$849,000$849,000
40$939,331$894,334$881,174$983,242
41$976,349$879,362$851,900$998,887
42$1,015,290$861,805$819,792$1,009,863
43$1,056,293$841,477$784,699$1,020,642
44$1,099,508$818,182$746,459$1,031,224
45$1,145,098$791,714$704,906$1,041,612
46$1,193,242$761,851$659,864$1,051,813
47$1,244,134$728,363$611,151$1,061,838
48$1,297,986$691,003$558,575$1,071,703
49$1,355,030$649,512$501,936$1,081,430
50$1,415,519$603,614$441,027$1,091,049
51$1,479,729$553,018$375,629$1,100,593
52$1,547,963$497,418$305,514$1,110,109
53$1,620,553$436,488$230,446$1,119,651
54$1,697,859$369,886$150,176$1,129,283
55$1,780,279$297,249$64,445$1,139,083
56$1,868,247$218,193$0$1,149,144
57$1,962,238$132,315$0$1,165,923
58$2,062,775$39,187$0$1,199,751
59$2,170,428$0$0$1,235,703
60$2,285,826$0$0$1,290,975
61$2,409,655$0$0$1,361,911
62$2,542,671$0$0$1,438,168
63$2,685,703$0$0$1,520,229
64$2,839,660$0$0$1,608,626
65$3,005,541$0$0$1,703,938
66$3,184,444$0$0$1,806,806
67$3,377,573$0$0$1,917,932
68$3,586,253$0$0$2,038,089
69$3,811,940$0$0$2,168,124
70$4,056,233$0$0$2,308,970
71$4,320,892$0$0$2,461,653
72$4,607,850$0$0$2,627,301
73$4,919,234$0$0$2,807,153
74$5,257,383$0$0$3,002,574
75$5,624,869$0$0$3,215,064
76$6,024,522$0$0$3,446,274
77$6,459,457$0$0$3,698,021
78$6,933,098$0$0$3,972,304
79$7,449,217$0$0$4,271,321
80$8,011,961$0$0$4,597,494
81$8,625,897$0$0$4,953,487
82$9,296,051$0$0$5,342,234
83$10,027,956$0$0$5,766,963
84$10,827,702$0$0$6,231,229
85$11,701,994$0$0$6,738,945
86$12,658,214$0$0$7,294,420
87$13,704,492$0$0$7,902,398
88$14,849,777$0$0$8,568,105
89$16,103,925$0$0$9,297,294
90$17,477,789$0$0$10,096,299
91$18,983,322$0$0$10,972,100
92$20,633,688$0$0$11,932,381
93$22,443,384$0$0$12,985,606
94$24,428,379$0$0$14,141,097
95$26,606,259$0$0$15,409,124
96$28,996,399$0$0$16,800,997
97$31,620,136$0$0$18,329,176
98$34,500,976$0$0$20,007,385
99$37,664,814$0$0$21,850,743
100$41,140,172$0$0$23,875,906