Can I retire at age 40 with 862,000?

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 $862,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$71,183$70,549$69,930$69,327$68,737$67,322
2 years$35,239$34,583$33,947$33,330$32,732$31,312
3 years$23,259$22,600$21,966$21,355$20,766$19,387
4 years$17,271$16,614$15,986$15,385$14,811$13,482
5 years$13,678$13,025$12,405$11,817$11,259$9,985
6 years$11,284$10,636$10,025$9,450$8,909$7,691
7 years$9,575$8,932$8,331$7,770$7,245$6,083
8 years$8,294$7,657$7,065$6,518$6,011$4,904
9 years$7,297$6,666$6,086$5,552$5,062$4,011
10 years$6,501$5,876$5,305$4,786$4,313$3,316
11 years$5,850$5,231$4,671$4,165$3,709$2,765
12 years$5,307$4,695$4,145$3,653$3,214$2,321
13 years$4,849$4,243$3,704$3,225$2,803$1,960
14 years$4,456$3,857$3,328$2,863$2,457$1,662
15 years$4,116$3,523$3,004$2,553$2,163$1,415
16 years$3,819$3,233$2,724$2,286$1,912$1,208
17 years$3,557$2,977$2,479$2,054$1,695$1,035
18 years$3,324$2,751$2,263$1,851$1,507$888
19 years$3,117$2,550$2,071$1,673$1,344$763
20 years$2,930$2,369$1,901$1,515$1,200$657
21 years$2,761$2,207$1,749$1,375$1,074$567
22 years$2,608$2,060$1,612$1,250$963$489
23 years$2,468$1,927$1,488$1,138$864$423
24 years$2,340$1,805$1,376$1,038$777$366
25 years$2,222$1,694$1,275$948$699$316
26 years$2,114$1,592$1,182$867$630$274
27 years$2,014$1,498$1,098$794$568$237
28 years$1,921$1,412$1,020$727$512$206
29 years$1,835$1,332$950$667$462$178
30 years$1,755$1,258$885$612$418$155
31 years$1,680$1,189$825$562$378$134
32 years$1,609$1,125$769$517$342$117
33 years$1,544$1,066$718$475$309$101
34 years$1,482$1,010$671$437$280$88
35 years$1,424$958$628$402$254$76
36 years$1,369$909$587$371$230$66
37 years$1,317$863$549$341$208$58
38 years$1,269$821$515$315$189$50
39 years$1,222$780$482$290$171$44
40 years$1,178$742$452$268$155$38
41 years$1,137$707$424$247$141$33
42 years$1,097$673$397$228$128$29
43 years$1,060$641$373$210$116$25
44 years$1,024$611$350$194$105$22
45 years$990$583$329$179$96$19
46 years$958$556$309$166$87$16
47 years$927$531$290$153$79$14
48 years$897$507$273$141$72$12
49 years$869$484$256$131$65$11
50 years$842$462$241$121$59$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $862,000, adding $3,964 every year, while hoping to spend $45,838 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: 48/39/13 Blend
39$862,000$862,000$862,000$862,000
40$954,013$908,327$894,966$996,187
41$1,002,551$904,064$876,176$1,021,422
42$1,054,504$898,055$855,220$1,043,740
43$1,110,171$890,168$831,978$1,066,951
44$1,169,881$880,259$806,322$1,091,153
45$1,233,996$868,179$778,121$1,116,458
46$1,302,911$853,767$747,236$1,142,992
47$1,377,062$836,856$713,522$1,170,897
48$1,456,926$817,265$676,829$1,200,331
49$1,543,027$794,805$636,997$1,231,473
50$1,635,941$769,277$593,862$1,264,524
51$1,736,302$740,466$547,251$1,299,709
52$1,844,805$708,148$496,984$1,337,279
53$1,962,214$672,086$442,871$1,377,517
54$2,089,369$632,029$384,717$1,420,737
55$2,227,195$587,709$322,316$1,467,292
56$2,376,708$538,845$255,453$1,517,577
57$2,539,026$485,142$183,903$1,572,029
58$2,715,375$426,283$107,433$1,631,140
59$2,907,110$361,937$25,799$1,695,456
60$3,115,717$291,754$0$1,765,587
61$3,342,833$215,362$0$1,850,715
62$3,590,257$132,370$0$1,947,463
63$3,859,972$42,365$0$2,053,127
64$4,154,159$0$0$2,168,682
65$4,475,217$0$0$2,318,851
66$4,825,790$0$0$2,502,767
67$5,208,785$0$0$2,703,784
68$5,627,404$0$0$2,923,596
69$6,085,173$0$0$3,164,066
70$6,585,974$0$0$3,427,245
71$7,134,080$0$0$3,715,393
72$7,734,198$0$0$4,030,996
73$8,391,509$0$0$4,376,795
74$9,111,721$0$0$4,755,806
75$9,901,120$0$0$5,171,352
76$10,766,628$0$0$5,627,094
77$11,715,868$0$0$6,127,062
78$12,757,239$0$0$6,675,695
79$13,899,990$0$0$7,277,885
80$15,154,309$0$0$7,939,018
81$16,531,419$0$0$8,665,028
82$18,043,683$0$0$9,462,453
83$19,704,718$0$0$10,338,493
84$21,529,527$0$0$11,301,082
85$23,534,637$0$0$12,358,959
86$25,738,254$0$0$13,521,752
87$28,160,438$0$0$14,800,068
88$30,823,286$0$0$16,205,595
89$33,751,145$0$0$17,751,206
90$36,970,838$0$0$19,451,089
91$40,511,918$0$0$21,320,870
92$44,406,944$0$0$23,377,772
93$48,691,792$0$0$25,640,765
94$53,405,987$0$0$28,130,756
95$58,593,081$0$0$30,870,776
96$64,301,058$0$0$33,886,205
97$70,582,790$0$0$37,205,006
98$77,496,535$0$0$40,857,991
99$85,106,482$0$0$44,879,109
100$93,483,360$0$0$49,305,770