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%12.3%
1 years$71,183$70,549$69,930$69,327$68,737$68,076
2 years$35,239$34,583$33,947$33,330$32,732$32,066
3 years$23,259$22,600$21,966$21,355$20,766$20,116
4 years$17,271$16,614$15,986$15,385$14,811$14,181
5 years$13,678$13,025$12,405$11,817$11,259$10,652
6 years$11,284$10,636$10,025$9,450$8,909$8,325
7 years$9,575$8,932$8,331$7,770$7,245$6,685
8 years$8,294$7,657$7,065$6,518$6,011$5,474
9 years$7,297$6,666$6,086$5,552$5,062$4,549
10 years$6,501$5,876$5,305$4,786$4,313$3,823
11 years$5,850$5,231$4,671$4,165$3,709$3,242
12 years$5,307$4,695$4,145$3,653$3,214$2,770
13 years$4,849$4,243$3,704$3,225$2,803$2,380
14 years$4,456$3,857$3,328$2,863$2,457$2,056
15 years$4,116$3,523$3,004$2,553$2,163$1,782
16 years$3,819$3,233$2,724$2,286$1,912$1,551
17 years$3,557$2,977$2,479$2,054$1,695$1,354
18 years$3,324$2,751$2,263$1,851$1,507$1,184
19 years$3,117$2,550$2,071$1,673$1,344$1,039
20 years$2,930$2,369$1,901$1,515$1,200$912
21 years$2,761$2,207$1,749$1,375$1,074$803
22 years$2,608$2,060$1,612$1,250$963$708
23 years$2,468$1,927$1,488$1,138$864$624
24 years$2,340$1,805$1,376$1,038$777$551
25 years$2,222$1,694$1,275$948$699$488
26 years$2,114$1,592$1,182$867$630$431
27 years$2,014$1,498$1,098$794$568$382
28 years$1,921$1,412$1,020$727$512$338
29 years$1,835$1,332$950$667$462$300
30 years$1,755$1,258$885$612$418$266
31 years$1,680$1,189$825$562$378$236
32 years$1,609$1,125$769$517$342$210
33 years$1,544$1,066$718$475$309$186
34 years$1,482$1,010$671$437$280$165
35 years$1,424$958$628$402$254$147
36 years$1,369$909$587$371$230$131
37 years$1,317$863$549$341$208$116
38 years$1,269$821$515$315$189$103
39 years$1,222$780$482$290$171$92
40 years$1,178$742$452$268$155$82
41 years$1,137$707$424$247$141$73
42 years$1,097$673$397$228$128$65
43 years$1,060$641$373$210$116$57
44 years$1,024$611$350$194$105$51
45 years$990$583$329$179$96$46
46 years$958$556$309$166$87$41
47 years$927$531$290$153$79$36
48 years$897$507$273$141$72$32
49 years$869$484$256$131$65$29
50 years$842$462$241$121$59$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $862,000, adding $2,457 every year, while hoping to spend $59,749 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: 41/41/18 Blend
39$862,000$862,000$862,000$862,000
40$952,458$906,772$893,411$986,363
41$986,037$887,632$859,768$991,534
42$1,021,037$865,551$822,995$991,147
43$1,057,543$840,322$782,925$989,476
44$1,095,641$811,727$739,382$986,435
45$1,135,427$779,532$692,182$981,934
46$1,177,004$743,493$641,134$975,877
47$1,220,484$703,350$586,037$968,166
48$1,265,987$658,827$526,683$958,698
49$1,313,643$609,635$462,852$947,368
50$1,363,593$555,466$394,317$934,063
51$1,415,991$495,995$320,838$918,671
52$1,471,003$430,880$242,167$901,071
53$1,528,810$359,757$158,043$881,142
54$1,589,607$282,244$68,196$858,757
55$1,653,609$197,935$0$833,786
56$1,721,047$106,405$0$811,413
57$1,792,176$7,200$0$800,507
58$1,867,270$0$0$787,875
59$1,946,631$0$0$818,624
60$2,030,588$0$0$854,639
61$2,119,498$0$0$892,831
62$2,213,753$0$0$933,376
63$2,313,781$0$0$976,466
64$2,420,051$0$0$1,022,308
65$2,533,073$0$0$1,071,134
66$2,653,408$0$0$1,123,193
67$2,781,669$0$0$1,178,760
68$2,918,527$0$0$1,238,137
69$3,064,719$0$0$1,301,653
70$3,221,050$0$0$1,369,670
71$3,388,404$0$0$1,442,586
72$3,567,750$0$0$1,520,835
73$3,760,153$0$0$1,604,895
74$3,966,778$0$0$1,695,291
75$4,188,906$0$0$1,792,598
76$4,427,943$0$0$1,897,449
77$4,685,433$0$0$2,010,537
78$4,963,070$0$0$2,132,626
79$5,262,717$0$0$2,264,555
80$5,586,422$0$0$2,407,244
81$5,936,431$0$0$2,561,705
82$6,315,218$0$0$2,729,053
83$6,725,499$0$0$2,910,511
84$7,170,261$0$0$3,107,426
85$7,652,791$0$0$3,321,276
86$8,176,700$0$0$3,553,692
87$8,745,963$0$0$3,806,464
88$9,364,950$0$0$4,081,563
89$10,038,471$0$0$4,381,158
90$10,771,818$0$0$4,707,634
91$11,570,813$0$0$5,063,619
92$12,441,864$0$0$5,452,001
93$13,392,024$0$0$5,875,964
94$14,429,054$0$0$6,339,008
95$15,561,499$0$0$6,844,989
96$16,798,764$0$0$7,398,151
97$18,151,206$0$0$8,003,167
98$19,630,224$0$0$8,665,183
99$21,248,371$0$0$9,389,864
100$23,019,469$0$0$10,183,448