Can I retire at age 40 with 857,000?

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 $857,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%20%
1 years$70,770$70,140$69,525$68,925$68,338$65,601
2 years$35,035$34,382$33,750$33,137$32,542$29,819
3 years$23,125$22,469$21,838$21,231$20,646$18,022
4 years$17,171$16,517$15,893$15,296$14,725$12,221
5 years$13,599$12,950$12,333$11,749$11,194$8,815
6 years$11,219$10,574$9,967$9,395$8,857$6,606
7 years$9,519$8,880$8,283$7,725$7,203$5,079
8 years$8,245$7,612$7,025$6,480$5,976$3,976
9 years$7,255$6,628$6,050$5,519$5,032$3,154
10 years$6,463$5,842$5,275$4,758$4,288$2,527
11 years$5,816$5,201$4,644$4,141$3,688$2,040
12 years$5,277$4,668$4,121$3,632$3,196$1,657
13 years$4,821$4,218$3,682$3,206$2,787$1,353
14 years$4,430$3,834$3,308$2,846$2,443$1,108
15 years$4,092$3,503$2,987$2,538$2,151$911
16 years$3,797$3,214$2,708$2,273$1,901$750
17 years$3,536$2,960$2,464$2,042$1,686$619
18 years$3,305$2,735$2,250$1,840$1,499$512
19 years$3,098$2,535$2,059$1,663$1,336$424
20 years$2,913$2,355$1,890$1,506$1,193$351
21 years$2,745$2,194$1,738$1,367$1,068$292
22 years$2,592$2,048$1,602$1,243$957$242
23 years$2,453$1,915$1,479$1,132$859$201
24 years$2,326$1,795$1,368$1,032$772$167
25 years$2,209$1,684$1,267$943$695$139
26 years$2,102$1,583$1,175$862$626$116
27 years$2,002$1,490$1,091$789$564$96
28 years$1,910$1,404$1,015$723$509$80
29 years$1,824$1,324$944$663$460$67
30 years$1,744$1,251$879$608$415$56
31 years$1,670$1,182$820$559$376$46
32 years$1,600$1,119$765$514$340$38
33 years$1,535$1,059$714$472$307$32
34 years$1,473$1,004$667$435$278$27
35 years$1,416$952$624$400$252$22
36 years$1,361$904$584$368$228$19
37 years$1,310$858$546$339$207$15
38 years$1,261$816$512$313$188$13
39 years$1,215$776$479$288$170$11
40 years$1,172$738$449$266$154$9
41 years$1,130$703$421$245$140$7
42 years$1,091$669$395$227$127$6
43 years$1,054$638$371$209$115$5
44 years$1,018$608$348$193$105$4
45 years$984$580$327$178$95$4
46 years$952$553$307$165$86$3
47 years$921$528$288$152$78$2
48 years$892$504$271$141$71$2
49 years$864$481$255$130$65$2
50 years$837$459$239$120$59$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $857,000, adding $5,825 every year, while hoping to spend $42,972 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: 49/46/5 Blend
39$857,000$857,000$857,000$857,000
40$950,422$905,001$891,718$995,542
41$1,001,644$903,625$875,869$1,025,555
42$1,056,649$900,740$858,048$1,053,051
43$1,115,780$896,229$838,145$1,081,886
44$1,179,409$889,964$816,043$1,112,193
45$1,247,948$881,811$791,619$1,144,124
46$1,321,848$871,629$764,747$1,177,847
47$1,401,603$859,265$735,293$1,213,550
48$1,487,759$844,562$703,118$1,251,443
49$1,580,913$827,348$668,075$1,291,760
50$1,681,722$807,445$630,012$1,334,761
51$1,790,911$784,662$588,771$1,380,738
52$1,909,273$758,800$544,183$1,430,013
53$2,037,682$729,644$496,077$1,482,947
54$2,177,099$696,970$444,269$1,539,940
55$2,328,581$660,540$388,570$1,601,440
56$2,493,291$620,101$328,782$1,667,943
57$2,672,508$575,387$264,697$1,739,999
58$2,867,640$526,117$196,100$1,818,222
59$3,080,235$471,993$122,766$1,903,293
60$3,311,998$412,699$44,457$1,995,969
61$3,564,804$347,904$0$2,097,089
62$3,840,718$277,255$0$2,209,673
63$4,142,014$200,383$0$2,335,334
64$4,471,191$116,894$0$2,472,861
65$4,831,006$26,375$0$2,623,541
66$5,224,491$0$0$2,788,801
67$5,654,983$0$0$3,006,469
68$6,126,160$0$0$3,259,411
69$6,642,069$0$0$3,536,461
70$7,207,169$0$0$3,840,025
71$7,826,369$0$0$4,172,752
72$8,505,075$0$0$4,537,560
73$9,249,243$0$0$4,937,663
74$10,065,430$0$0$5,376,600
75$10,960,861$0$0$5,858,271
76$11,943,491$0$0$6,386,970
77$13,022,085$0$0$6,967,427
78$14,206,296$0$0$7,604,854
79$15,506,761$0$0$8,304,992
80$16,935,192$0$0$9,074,163
81$18,504,495$0$0$9,919,335
82$20,228,888$0$0$10,848,182
83$22,124,033$0$0$11,869,159
84$24,207,183$0$0$12,991,581
85$26,497,350$0$0$14,225,711
86$29,015,477$0$0$15,582,856
87$31,784,637$0$0$17,075,472
88$34,830,253$0$0$18,717,285
89$38,180,336$0$0$20,523,416
90$41,865,744$0$0$22,510,527
91$45,920,481$0$0$24,696,976
92$50,382,011$0$0$27,102,989
93$55,291,613$0$0$29,750,854
94$60,694,769$0$0$32,665,126
95$66,641,595$0$0$35,872,865
96$73,187,310$0$0$39,403,883
97$80,392,758$0$0$43,291,034
98$88,324,982$0$0$47,570,513
99$97,057,856$0$0$52,282,210
100$106,672,782$0$0$57,470,074