Can I retire at age 40 with 863,000?

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 $863,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$71,266$70,631$70,012$69,407$68,817$67,957
2 years$35,280$34,623$33,986$33,369$32,770$31,905
3 years$23,286$22,627$21,991$21,380$20,791$19,947
4 years$17,291$16,633$16,004$15,403$14,828$14,012
5 years$13,694$13,040$12,420$11,831$11,272$10,487
6 years$11,297$10,648$10,037$9,461$8,919$8,165
7 years$9,586$8,943$8,341$7,779$7,254$6,531
8 years$8,303$7,665$7,074$6,525$6,018$5,327
9 years$7,306$6,674$6,093$5,558$5,068$4,408
10 years$6,508$5,883$5,312$4,791$4,318$3,689
11 years$5,856$5,237$4,676$4,170$3,714$3,115
12 years$5,314$4,701$4,150$3,657$3,218$2,649
13 years$4,855$4,248$3,708$3,229$2,806$2,266
14 years$4,461$3,861$3,331$2,866$2,460$1,948
15 years$4,121$3,527$3,008$2,556$2,166$1,681
16 years$3,823$3,236$2,727$2,289$1,914$1,456
17 years$3,561$2,981$2,482$2,056$1,697$1,265
18 years$3,328$2,754$2,265$1,853$1,509$1,101
19 years$3,120$2,553$2,074$1,675$1,345$961
20 years$2,933$2,372$1,903$1,517$1,202$840
21 years$2,764$2,209$1,751$1,376$1,075$735
22 years$2,611$2,062$1,613$1,252$964$644
23 years$2,471$1,929$1,490$1,140$865$565
24 years$2,343$1,807$1,378$1,040$778$497
25 years$2,225$1,696$1,276$949$700$437
26 years$2,117$1,594$1,184$868$630$384
27 years$2,016$1,500$1,099$795$568$338
28 years$1,923$1,414$1,022$728$513$298
29 years$1,837$1,334$951$668$463$263
30 years$1,757$1,259$886$613$418$232
31 years$1,682$1,191$826$563$378$204
32 years$1,611$1,126$770$517$342$180
33 years$1,546$1,067$719$476$310$159
34 years$1,484$1,011$672$438$280$141
35 years$1,425$959$628$403$254$124
36 years$1,371$910$588$371$230$110
37 years$1,319$864$550$342$209$97
38 years$1,270$822$515$315$189$86
39 years$1,224$781$483$290$171$76
40 years$1,180$743$452$268$155$67
41 years$1,138$708$424$247$141$59
42 years$1,099$674$398$228$128$52
43 years$1,061$642$373$211$116$46
44 years$1,025$612$350$194$105$41
45 years$991$584$329$180$96$36
46 years$959$557$309$166$87$32
47 years$928$531$290$153$79$28
48 years$898$507$273$142$72$25
49 years$870$484$256$131$65$22
50 years$843$463$241$121$59$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $863,000, adding $5,549 every year, while hoping to spend $49,641 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: 59/26/15 Blend
39$863,000$863,000$863,000$863,000
40$956,750$911,011$897,634$1,009,238
41$1,001,521$902,833$874,887$1,037,154
42$1,049,194$892,590$849,715$1,061,584
43$1,100,015$880,129$821,983$1,087,062
44$1,154,248$865,288$791,551$1,113,696
45$1,212,188$847,893$758,274$1,141,607
46$1,274,154$827,763$721,999$1,170,929
47$1,340,497$804,703$682,566$1,201,813
48$1,411,604$778,509$639,808$1,234,429
49$1,487,896$748,965$593,550$1,268,964
50$1,569,838$715,841$543,611$1,305,631
51$1,657,939$678,894$489,799$1,344,665
52$1,752,757$637,868$431,915$1,386,328
53$1,854,906$592,492$369,752$1,430,913
54$1,965,060$542,478$303,093$1,478,747
55$2,083,961$487,524$231,711$1,530,193
56$2,212,421$427,308$155,369$1,585,657
57$2,351,334$361,493$73,821$1,645,590
58$2,501,684$289,720$0$1,710,493
59$2,664,551$211,611$0$1,783,037
60$2,841,122$126,767$0$1,874,476
61$3,032,705$34,767$0$1,973,716
62$3,240,735$0$0$2,081,570
63$3,466,794$0$0$2,217,485
64$3,712,618$0$0$2,376,164
65$3,980,122$0$0$2,548,902
66$4,271,409$0$0$2,737,065
67$4,588,794$0$0$2,942,159
68$4,934,826$0$0$3,165,838
69$5,312,310$0$0$3,409,926
70$5,724,332$0$0$3,676,428
71$6,174,290$0$0$3,967,551
72$6,665,926$0$0$4,285,727
73$7,203,357$0$0$4,633,632
74$7,791,118$0$0$5,014,212
75$8,434,200$0$0$5,430,711
76$9,138,101$0$0$5,886,703
77$9,908,874$0$0$6,386,121
78$10,753,184$0$0$6,933,297
79$11,678,372$0$0$7,533,002
80$12,692,523$0$0$8,190,491
81$13,804,540$0$0$8,911,552
82$15,024,230$0$0$9,702,558
83$16,362,396$0$0$10,570,530
84$17,830,933$0$0$11,523,203
85$19,442,948$0$0$12,569,094
86$21,212,876$0$0$13,717,588
87$23,156,619$0$0$14,979,021
88$25,291,695$0$0$16,364,781
89$27,637,402$0$0$17,887,412
90$30,214,998$0$0$19,560,734
91$33,047,904$0$0$21,399,973
92$36,161,922$0$0$23,421,901
93$39,585,479$0$0$25,644,999
94$43,349,893$0$0$28,089,625
95$47,489,667$0$0$30,778,212
96$52,042,818$0$0$33,735,474
97$57,051,231$0$0$36,988,639
98$62,561,053$0$0$40,567,710
99$68,623,130$0$0$44,505,742
100$75,293,487$0$0$48,839,157