Can I retire at age 40 with 853,000?

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 $853,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$70,440$69,813$69,200$68,603$68,019$66,948
2 years$34,871$34,222$33,592$32,982$32,390$31,313
3 years$23,017$22,364$21,737$21,132$20,550$19,501
4 years$17,090$16,440$15,819$15,224$14,656$13,644
5 years$13,536$12,889$12,276$11,694$11,141$10,168
6 years$11,167$10,525$9,921$9,352$8,816$7,883
7 years$9,475$8,839$8,244$7,688$7,170$6,278
8 years$8,207$7,577$6,992$6,450$5,948$5,096
9 years$7,221$6,597$6,022$5,494$5,009$4,198
10 years$6,433$5,815$5,250$4,736$4,268$3,496
11 years$5,789$5,177$4,622$4,121$3,671$2,937
12 years$5,252$4,646$4,102$3,615$3,181$2,485
13 years$4,798$4,199$3,665$3,192$2,774$2,115
14 years$4,410$3,817$3,293$2,833$2,431$1,808
15 years$4,073$3,487$2,973$2,527$2,141$1,552
16 years$3,779$3,199$2,696$2,262$1,892$1,337
17 years$3,520$2,946$2,453$2,033$1,678$1,154
18 years$3,290$2,722$2,239$1,832$1,492$999
19 years$3,084$2,523$2,050$1,655$1,330$867
20 years$2,899$2,344$1,881$1,499$1,188$753
21 years$2,732$2,184$1,730$1,361$1,063$655
22 years$2,580$2,038$1,595$1,237$953$571
23 years$2,442$1,907$1,472$1,127$855$498
24 years$2,315$1,786$1,362$1,028$769$435
25 years$2,199$1,676$1,261$938$692$380
26 years$2,092$1,575$1,170$858$623$332
27 years$1,993$1,483$1,086$785$562$291
28 years$1,901$1,397$1,010$720$507$254
29 years$1,816$1,318$940$660$458$223
30 years$1,736$1,245$875$606$414$195
31 years$1,662$1,177$816$556$374$171
32 years$1,593$1,113$761$511$338$150
33 years$1,528$1,054$711$470$306$132
34 years$1,466$999$664$432$277$115
35 years$1,409$948$621$398$251$101
36 years$1,355$900$581$367$227$89
37 years$1,304$854$544$338$206$78
38 years$1,255$812$509$311$187$68
39 years$1,210$772$477$287$169$60
40 years$1,166$735$447$265$154$53
41 years$1,125$699$419$244$139$46
42 years$1,086$666$393$225$127$41
43 years$1,049$635$369$208$115$36
44 years$1,013$605$346$192$104$31
45 years$980$577$325$177$95$28
46 years$948$550$306$164$86$24
47 years$917$525$287$151$78$21
48 years$888$501$270$140$71$19
49 years$860$479$254$129$64$16
50 years$833$457$238$120$58$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $853,000, adding $2,296 every year, while hoping to spend $46,404 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: 45/43/12 Blend
39$853,000$853,000$853,000$853,000
40$942,374$897,165$883,944$981,466
41$989,123$891,753$864,182$1,003,430
42$1,039,085$884,520$842,204$1,022,328
43$1,092,538$875,329$817,885$1,041,788
44$1,149,790$864,032$791,096$1,061,878
45$1,211,173$850,475$761,703$1,082,679
46$1,277,058$834,493$729,565$1,104,281
47$1,347,846$815,911$694,533$1,126,788
48$1,423,981$794,546$656,455$1,150,317
49$1,505,950$770,201$615,169$1,175,001
50$1,594,287$742,671$570,507$1,200,991
51$1,689,577$711,735$522,293$1,228,458
52$1,792,467$677,163$470,342$1,257,594
53$1,903,664$638,709$414,464$1,288,616
54$2,023,946$596,114$354,457$1,321,769
55$2,154,169$549,105$290,112$1,357,328
56$2,295,275$497,391$221,211$1,395,601
57$2,448,296$440,667$147,525$1,436,935
58$2,614,372$378,608$68,816$1,481,719
59$2,794,752$310,874$0$1,530,388
60$2,990,812$237,103$0$1,585,374
61$3,204,068$156,914$0$1,654,808
62$3,436,183$69,903$0$1,730,512
63$3,688,991$0$0$1,813,205
64$3,964,509$0$0$1,915,207
65$4,264,955$0$0$2,062,598
66$4,592,773$0$0$2,223,513
67$4,950,651$0$0$2,399,282
68$5,341,550$0$0$2,591,373
69$5,768,727$0$0$2,801,399
70$6,235,770$0$0$3,031,137
71$6,746,628$0$0$3,282,545
72$7,305,651$0$0$3,557,776
73$7,917,625$0$0$3,859,203
74$8,587,826$0$0$4,189,441
75$9,322,058$0$0$4,551,365
76$10,126,719$0$0$4,948,146
77$11,008,849$0$0$5,383,273
78$11,976,207$0$0$5,860,591
79$13,037,336$0$0$6,384,335
80$14,201,645$0$0$6,959,168
81$15,479,502$0$0$7,590,229
82$16,882,322$0$0$8,283,177
83$18,422,683$0$0$9,044,246
84$20,114,439$0$0$9,880,303
85$21,972,853$0$0$10,798,916
86$24,014,737$0$0$11,808,417
87$26,258,614$0$0$12,917,990
88$28,724,889$0$0$14,137,751
89$31,436,043$0$0$15,478,844
90$34,416,842$0$0$16,953,549
91$37,694,575$0$0$18,575,393
92$41,299,304$0$0$20,359,281
93$45,264,151$0$0$22,321,636
94$49,625,611$0$0$24,480,551
95$54,423,892$0$0$26,855,962
96$59,703,296$0$0$29,469,834
97$65,512,637$0$0$32,346,369
98$71,905,698$0$0$35,512,236
99$78,941,740$0$0$38,996,817
100$86,686,062$0$0$42,832,488