Can I retire at age 40 with 854,000?

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 $854,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.9%
1 years$70,523$69,894$69,281$68,683$68,099$66,185
2 years$34,912$34,262$33,632$33,021$32,428$30,514
3 years$23,044$22,391$21,762$21,157$20,574$18,720
4 years$17,110$16,459$15,837$15,242$14,673$12,894
5 years$13,551$12,904$12,290$11,708$11,154$9,454
6 years$11,180$10,537$9,932$9,363$8,826$7,207
7 years$9,486$8,849$8,254$7,697$7,178$5,640
8 years$8,217$7,585$7,000$6,457$5,955$4,497
9 years$7,230$6,605$6,029$5,500$5,015$3,635
10 years$6,441$5,822$5,256$4,741$4,273$2,970
11 years$5,795$5,183$4,628$4,126$3,675$2,447
12 years$5,258$4,652$4,107$3,619$3,185$2,029
13 years$4,804$4,204$3,669$3,195$2,777$1,691
14 years$4,415$3,821$3,297$2,836$2,434$1,416
15 years$4,078$3,491$2,977$2,530$2,143$1,189
16 years$3,784$3,203$2,699$2,265$1,894$1,002
17 years$3,524$2,949$2,456$2,035$1,680$846
18 years$3,294$2,725$2,242$1,834$1,493$716
19 years$3,088$2,526$2,052$1,657$1,331$607
20 years$2,902$2,347$1,883$1,501$1,189$515
21 years$2,735$2,186$1,732$1,362$1,064$438
22 years$2,583$2,041$1,597$1,239$954$372
23 years$2,445$1,909$1,474$1,128$856$317
24 years$2,318$1,788$1,363$1,029$770$270
25 years$2,202$1,678$1,263$940$692$230
26 years$2,094$1,577$1,171$859$624$196
27 years$1,995$1,484$1,088$786$562$168
28 years$1,903$1,399$1,011$720$507$143
29 years$1,818$1,320$941$661$458$122
30 years$1,738$1,246$876$606$414$104
31 years$1,664$1,178$817$557$374$89
32 years$1,595$1,115$762$512$339$76
33 years$1,529$1,056$712$471$306$65
34 years$1,468$1,001$665$433$277$56
35 years$1,411$949$622$399$251$48
36 years$1,356$901$582$367$228$41
37 years$1,305$855$544$338$206$35
38 years$1,257$813$510$312$187$30
39 years$1,211$773$478$287$170$25
40 years$1,168$736$448$265$154$22
41 years$1,126$700$420$245$140$19
42 years$1,087$667$394$226$127$16
43 years$1,050$635$369$208$115$14
44 years$1,015$606$347$192$104$12
45 years$981$577$326$178$95$10
46 years$949$551$306$164$86$9
47 years$918$526$287$152$78$7
48 years$889$502$270$140$71$6
49 years$861$479$254$130$64$5
50 years$834$458$239$120$59$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $854,000, adding $6,814 every year, while hoping to spend $47,056 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: 64/22/14 Blend
39$854,000$854,000$854,000$854,000
40$948,137$902,875$889,638$1,005,221
41$994,779$897,048$869,373$1,038,451
42$1,044,603$889,359$846,853$1,068,685
43$1,097,881$879,667$821,951$1,100,553
44$1,154,916$867,821$794,538$1,134,213
45$1,216,037$853,664$764,475$1,169,844
46$1,281,607$837,029$731,619$1,207,640
47$1,352,024$817,736$695,821$1,247,821
48$1,427,723$795,598$656,924$1,290,626
49$1,509,185$770,416$614,765$1,336,326
50$1,596,934$741,979$569,172$1,385,218
51$1,691,549$710,063$519,967$1,437,631
52$1,793,664$674,433$466,962$1,493,932
53$1,903,976$634,839$409,964$1,554,528
54$2,023,252$591,016$348,768$1,619,868
55$2,152,334$542,686$283,162$1,690,451
56$2,292,147$489,554$212,924$1,766,831
57$2,443,711$431,306$137,821$1,849,619
58$2,608,143$367,613$57,611$1,939,494
59$2,786,675$298,128$0$2,037,209
60$2,980,661$222,482$0$2,147,774
61$3,191,591$140,286$0$2,277,388
62$3,421,104$51,130$0$2,418,496
63$3,671,001$0$0$2,572,268
64$3,943,268$0$0$2,750,995
65$4,240,088$0$0$2,959,387
66$4,563,863$0$0$3,186,761
67$4,917,239$0$0$3,434,981
68$5,303,126$0$0$3,706,099
69$5,724,731$0$0$4,002,374
70$6,185,581$0$0$4,326,295
71$6,689,561$0$0$4,680,599
72$7,240,948$0$0$5,068,303
73$7,844,452$0$0$5,492,726
74$8,505,258$0$0$5,957,526
75$9,229,077$0$0$6,466,728
76$10,022,200$0$0$7,024,766
77$10,891,550$0$0$7,636,526
78$11,844,758$0$0$8,307,385
79$12,890,225$0$0$9,043,267
80$14,037,204$0$0$9,850,698
81$15,295,889$0$0$10,736,865
82$16,677,506$0$0$11,709,685
83$18,194,424$0$0$12,777,879
84$19,860,265$0$0$13,951,054
85$21,690,037$0$0$15,239,792
86$23,700,274$0$0$16,655,752
87$25,909,186$0$0$18,211,777
88$28,336,839$0$0$19,922,017
89$31,005,338$0$0$21,802,059
90$33,939,035$0$0$23,869,077
91$37,164,761$0$0$26,141,992
92$40,712,075$0$0$28,641,650
93$44,613,545$0$0$31,391,018
94$48,905,053$0$0$34,415,401
95$53,626,134$0$0$37,742,680
96$58,820,348$0$0$41,403,575
97$64,535,688$0$0$45,431,931
98$70,825,036$0$0$49,865,043
99$77,746,660$0$0$54,744,002
100$85,364,759$0$0$60,114,087