Can I retire at age 40 with 856,000?

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 $856,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$70,688$70,058$69,444$68,844$68,259$66,528
2 years$34,994$34,342$33,711$33,098$32,504$30,771
3 years$23,098$22,443$21,813$21,206$20,622$18,942
4 years$17,151$16,498$15,874$15,278$14,708$13,093
5 years$13,583$12,935$12,319$11,735$11,181$9,636
6 years$11,206$10,562$9,956$9,385$8,847$7,373
7 years$9,508$8,870$8,273$7,716$7,195$5,793
8 years$8,236$7,603$7,016$6,472$5,969$4,638
9 years$7,247$6,620$6,043$5,513$5,027$3,765
10 years$6,456$5,835$5,269$4,752$4,283$3,090
11 years$5,809$5,195$4,638$4,136$3,683$2,557
12 years$5,270$4,663$4,116$3,628$3,192$2,130
13 years$4,815$4,214$3,678$3,203$2,783$1,784
14 years$4,425$3,830$3,304$2,843$2,440$1,501
15 years$4,088$3,499$2,983$2,535$2,148$1,267
16 years$3,792$3,210$2,705$2,270$1,899$1,073
17 years$3,532$2,956$2,461$2,040$1,684$910
18 years$3,301$2,732$2,247$1,838$1,497$774
19 years$3,095$2,532$2,057$1,661$1,334$660
20 years$2,909$2,353$1,888$1,504$1,192$563
21 years$2,742$2,191$1,736$1,365$1,066$481
22 years$2,589$2,046$1,600$1,241$956$411
23 years$2,451$1,913$1,478$1,131$858$352
24 years$2,324$1,793$1,367$1,031$771$302
25 years$2,207$1,682$1,266$942$694$259
26 years$2,099$1,581$1,174$861$625$222
27 years$2,000$1,488$1,090$788$564$190
28 years$1,908$1,402$1,013$722$509$163
29 years$1,822$1,323$943$662$459$140
30 years$1,742$1,249$878$608$415$121
31 years$1,668$1,181$819$558$375$104
32 years$1,598$1,117$764$513$339$89
33 years$1,533$1,058$713$472$307$77
34 years$1,472$1,003$667$434$278$66
35 years$1,414$951$623$400$252$57
36 years$1,360$903$583$368$228$49
37 years$1,308$857$546$339$207$42
38 years$1,260$815$511$312$188$36
39 years$1,214$775$479$288$170$31
40 years$1,170$737$449$266$154$27
41 years$1,129$702$421$245$140$23
42 years$1,090$668$395$226$127$20
43 years$1,053$637$370$209$115$17
44 years$1,017$607$348$193$105$15
45 years$983$579$326$178$95$13
46 years$951$552$307$165$86$11
47 years$920$527$288$152$78$9
48 years$891$503$271$140$71$8
49 years$863$480$254$130$65$7
50 years$836$459$239$120$59$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $856,000, adding $3,894 every year, while hoping to spend $45,378 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: 47/29/24 Blend
39$856,000$856,000$856,000$856,000
40$947,329$901,961$888,693$985,194
41$995,674$897,875$870,182$1,008,071
42$1,047,430$892,068$849,530$1,028,095
43$1,102,897$884,408$826,618$1,048,920
44$1,162,403$874,754$801,320$1,070,643
45$1,226,309$862,958$773,506$1,093,372
46$1,295,012$848,863$743,037$1,117,231
47$1,368,946$832,300$709,772$1,142,360
48$1,448,590$813,094$673,561$1,168,915
49$1,534,468$791,058$634,247$1,197,072
50$1,627,156$765,992$591,667$1,227,029
51$1,727,289$737,688$545,650$1,259,008
52$1,835,560$705,923$496,018$1,293,258
53$1,952,736$670,462$442,583$1,330,057
54$2,079,658$631,057$385,152$1,369,717
55$2,217,249$587,445$323,521$1,412,586
56$2,366,527$539,348$257,477$1,459,055
57$2,528,609$486,473$186,799$1,509,558
58$2,704,726$428,509$111,256$1,564,580
59$2,896,230$365,127$30,605$1,624,662
60$3,104,609$295,983$0$1,690,408
61$3,331,502$220,708$0$1,776,693
62$3,578,709$138,917$0$1,879,347
63$3,848,215$50,201$0$1,991,427
64$4,142,201$0$0$2,113,933
65$4,463,070$0$0$2,262,608
66$4,813,466$0$0$2,442,549
67$5,196,300$0$0$2,639,242
68$5,614,777$0$0$2,854,346
69$6,072,425$0$0$3,089,686
70$6,573,128$0$0$3,347,273
71$7,121,165$0$0$3,629,321
72$7,721,245$0$0$3,938,268
73$8,378,556$0$0$4,276,798
74$9,098,809$0$0$4,647,868
75$9,888,295$0$0$5,054,734
76$10,753,944$0$0$5,500,984
77$11,703,386$0$0$5,990,567
78$12,745,025$0$0$6,527,834
79$13,888,121$0$0$7,117,580
80$15,142,870$0$0$7,765,082
81$16,520,505$0$0$8,476,157
82$18,033,401$0$0$9,257,211
83$19,695,188$0$0$10,115,302
84$21,520,883$0$0$11,058,205
85$23,527,027$0$0$12,094,485
86$25,731,844$0$0$13,233,579
87$28,155,412$0$0$14,485,882
88$30,819,851$0$0$15,862,847
89$33,749,528$0$0$17,377,095
90$36,971,293$0$0$19,042,527
91$40,514,727$0$0$20,874,462
92$44,412,420$0$0$22,889,777
93$48,700,281$0$0$25,107,066
94$53,417,875$0$0$27,546,819
95$58,608,793$0$0$30,231,609
96$64,321,068$0$0$33,186,312
97$70,607,621$0$0$36,438,332
98$77,526,765$0$0$40,017,870
99$85,142,753$0$0$43,958,200
100$93,526,382$0$0$48,295,987