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%13.5%
1 years$70,523$69,894$69,281$68,683$68,099$67,109
2 years$34,912$34,262$33,632$33,021$32,428$31,433
3 years$23,044$22,391$21,762$21,157$20,574$19,604
4 years$17,110$16,459$15,837$15,242$14,673$13,737
5 years$13,551$12,904$12,290$11,708$11,154$10,254
6 years$11,180$10,537$9,932$9,363$8,826$7,962
7 years$9,486$8,849$8,254$7,697$7,178$6,351
8 years$8,217$7,585$7,000$6,457$5,955$5,165
9 years$7,230$6,605$6,029$5,500$5,015$4,262
10 years$6,441$5,822$5,256$4,741$4,273$3,556
11 years$5,795$5,183$4,628$4,126$3,675$2,993
12 years$5,258$4,652$4,107$3,619$3,185$2,537
13 years$4,804$4,204$3,669$3,195$2,777$2,164
14 years$4,415$3,821$3,297$2,836$2,434$1,854
15 years$4,078$3,491$2,977$2,530$2,143$1,594
16 years$3,784$3,203$2,699$2,265$1,894$1,376
17 years$3,524$2,949$2,456$2,035$1,680$1,191
18 years$3,294$2,725$2,242$1,834$1,493$1,033
19 years$3,088$2,526$2,052$1,657$1,331$898
20 years$2,902$2,347$1,883$1,501$1,189$782
21 years$2,735$2,186$1,732$1,362$1,064$682
22 years$2,583$2,041$1,597$1,239$954$595
23 years$2,445$1,909$1,474$1,128$856$521
24 years$2,318$1,788$1,363$1,029$770$456
25 years$2,202$1,678$1,263$940$692$399
26 years$2,094$1,577$1,171$859$624$350
27 years$1,995$1,484$1,088$786$562$307
28 years$1,903$1,399$1,011$720$507$269
29 years$1,818$1,320$941$661$458$236
30 years$1,738$1,246$876$606$414$208
31 years$1,664$1,178$817$557$374$182
32 years$1,595$1,115$762$512$339$160
33 years$1,529$1,056$712$471$306$141
34 years$1,468$1,001$665$433$277$124
35 years$1,411$949$622$399$251$109
36 years$1,356$901$582$367$228$96
37 years$1,305$855$544$338$206$84
38 years$1,257$813$510$312$187$74
39 years$1,211$773$478$287$170$65
40 years$1,168$736$448$265$154$58
41 years$1,126$700$420$245$140$51
42 years$1,087$667$394$226$127$45
43 years$1,050$635$369$208$115$39
44 years$1,015$606$347$192$104$35
45 years$981$577$326$178$95$30
46 years$949$551$306$164$86$27
47 years$918$526$287$152$78$24
48 years$889$502$270$140$71$21
49 years$861$479$254$130$64$18
50 years$834$458$239$120$59$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $854,000, adding $3,162 every year, while hoping to spend $57,341 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: 36/48/16 Blend
39$854,000$854,000$854,000$854,000
40$944,370$899,108$885,871$973,643
41$979,685$882,153$854,537$978,151
42$1,016,681$862,447$820,232$977,359
43$1,055,467$839,792$782,795$975,279
44$1,096,166$813,983$742,059$971,827
45$1,138,906$784,799$697,849$966,916
46$1,183,830$752,010$649,983$960,456
47$1,231,092$715,370$598,269$952,353
48$1,280,860$674,620$542,508$942,509
49$1,333,317$629,485$482,491$930,826
50$1,388,661$579,676$418,000$917,199
51$1,447,110$524,885$348,808$901,524
52$1,508,900$464,789$274,678$883,691
53$1,574,289$399,045$195,361$863,591
54$1,643,559$327,291$110,599$841,109
55$1,717,019$249,145$20,121$816,131
56$1,795,006$164,204$0$788,541
57$1,877,886$72,040$0$771,271
58$1,966,064$0$0$755,669
59$2,059,979$0$0$752,912
60$2,160,116$0$0$790,612
61$2,267,002$0$0$830,925
62$2,381,217$0$0$874,081
63$2,503,396$0$0$920,328
64$2,634,234$0$0$969,940
65$2,774,497$0$0$1,023,219
66$2,925,020$0$0$1,080,494
67$3,086,724$0$0$1,142,128
68$3,260,617$0$0$1,208,518
69$3,447,808$0$0$1,280,102
70$3,649,511$0$0$1,357,359
71$3,867,065$0$0$1,440,817
72$4,101,936$0$0$1,531,055
73$4,355,738$0$0$1,628,711
74$4,630,242$0$0$1,734,484
75$4,927,398$0$0$1,849,146
76$5,249,347$0$0$1,973,541
77$5,598,445$0$0$2,108,603
78$5,977,281$0$0$2,255,353
79$6,388,704$0$0$2,414,921
80$6,835,847$0$0$2,588,544
81$7,322,157$0$0$2,777,586
82$7,851,425$0$0$2,983,549
83$8,427,824$0$0$3,208,083
84$9,055,947$0$0$3,453,006
85$9,740,845$0$0$3,720,319
86$10,488,080$0$0$4,012,224
87$11,303,773$0$0$4,331,145
88$12,194,664$0$0$4,679,751
89$13,168,169$0$0$5,060,979
90$14,232,456$0$0$5,478,066
91$15,396,516$0$0$5,934,572
92$16,670,249$0$0$6,434,421
93$18,064,557$0$0$6,981,932
94$19,591,442$0$0$7,581,862
95$21,264,126$0$0$8,239,450
96$23,097,166$0$0$8,960,465
97$25,106,595$0$0$9,751,263
98$27,310,071$0$0$10,618,841
99$29,727,044$0$0$11,570,911
100$32,378,936$0$0$12,615,964