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%15.8%
1 years$71,266$70,631$70,012$69,407$68,817$67,180
2 years$35,280$34,623$33,986$33,369$32,770$31,131
3 years$23,286$22,627$21,991$21,380$20,791$19,200
4 years$17,291$16,633$16,004$15,403$14,828$13,298
5 years$13,694$13,040$12,420$11,831$11,272$9,807
6 years$11,297$10,648$10,037$9,461$8,919$7,521
7 years$9,586$8,943$8,341$7,779$7,254$5,922
8 years$8,303$7,665$7,074$6,525$6,018$4,752
9 years$7,306$6,674$6,093$5,558$5,068$3,868
10 years$6,508$5,883$5,312$4,791$4,318$3,182
11 years$5,856$5,237$4,676$4,170$3,714$2,640
12 years$5,314$4,701$4,150$3,657$3,218$2,205
13 years$4,855$4,248$3,708$3,229$2,806$1,851
14 years$4,461$3,861$3,331$2,866$2,460$1,562
15 years$4,121$3,527$3,008$2,556$2,166$1,322
16 years$3,823$3,236$2,727$2,289$1,914$1,123
17 years$3,561$2,981$2,482$2,056$1,697$956
18 years$3,328$2,754$2,265$1,853$1,509$815
19 years$3,120$2,553$2,074$1,675$1,345$697
20 years$2,933$2,372$1,903$1,517$1,202$596
21 years$2,764$2,209$1,751$1,376$1,075$511
22 years$2,611$2,062$1,613$1,252$964$438
23 years$2,471$1,929$1,490$1,140$865$376
24 years$2,343$1,807$1,378$1,040$778$324
25 years$2,225$1,696$1,276$949$700$278
26 years$2,117$1,594$1,184$868$630$239
27 years$2,016$1,500$1,099$795$568$206
28 years$1,923$1,414$1,022$728$513$178
29 years$1,837$1,334$951$668$463$153
30 years$1,757$1,259$886$613$418$132
31 years$1,682$1,191$826$563$378$114
32 years$1,611$1,126$770$517$342$98
33 years$1,546$1,067$719$476$310$85
34 years$1,484$1,011$672$438$280$73
35 years$1,425$959$628$403$254$63
36 years$1,371$910$588$371$230$54
37 years$1,319$864$550$342$209$47
38 years$1,270$822$515$315$189$40
39 years$1,224$781$483$290$171$35
40 years$1,180$743$452$268$155$30
41 years$1,138$708$424$247$141$26
42 years$1,099$674$398$228$128$22
43 years$1,061$642$373$211$116$19
44 years$1,025$612$350$194$105$17
45 years$991$584$329$180$96$14
46 years$959$557$309$166$87$12
47 years$928$531$290$153$79$11
48 years$898$507$273$142$72$9
49 years$870$484$256$131$65$8
50 years$843$463$241$121$59$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $863,000, adding $4,522 every year, while hoping to spend $52,033 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: 83/8/9 Blend
39$863,000$863,000$863,000$863,000
40$955,690$909,951$896,575$1,033,463
41$997,808$899,176$871,247$1,074,224
42$1,042,478$886,129$843,328$1,111,550
43$1,089,905$870,644$812,674$1,150,943
44$1,140,315$852,545$779,137$1,192,582
45$1,193,952$831,644$742,563$1,236,662
46$1,251,085$807,746$702,790$1,283,395
47$1,312,010$780,640$659,648$1,333,020
48$1,377,049$750,105$612,960$1,385,796
49$1,446,555$715,907$562,541$1,442,009
50$1,520,916$677,798$508,198$1,501,975
51$1,600,556$635,517$449,729$1,566,043
52$1,685,941$588,785$386,923$1,634,596
53$1,777,582$537,311$319,561$1,708,056
54$1,876,041$480,785$247,411$1,786,889
55$1,981,932$418,879$170,235$1,871,609
56$2,095,933$351,247$87,781$1,962,782
57$2,218,784$277,524$0$2,061,032
58$2,351,302$197,325$0$2,167,068
59$2,494,382$110,241$0$2,290,625
60$2,649,008$15,842$0$2,424,130
61$2,816,263$0$0$2,568,532
62$2,997,335$0$0$2,732,480
63$3,193,531$0$0$2,911,648
64$3,406,289$0$0$3,105,954
65$3,637,189$0$0$3,316,846
66$3,887,971$0$0$3,545,912
67$4,160,545$0$0$3,794,902
68$4,457,016$0$0$4,065,739
69$4,779,698$0$0$4,360,539
70$5,131,137$0$0$4,681,632
71$5,514,137$0$0$5,031,580
72$5,931,780$0$0$5,413,205
73$6,387,462$0$0$5,829,610
74$6,884,919$0$0$6,284,212
75$7,428,264$0$0$6,780,774
76$8,022,023$0$0$7,323,435
77$8,671,183$0$0$7,916,754
78$9,381,230$0$0$8,565,752
79$10,158,209$0$0$9,275,954
80$11,008,772$0$0$10,053,447
81$11,940,247$0$0$10,904,931
82$12,960,703$0$0$11,837,786
83$14,079,026$0$0$12,860,140
84$15,305,002$0$0$13,980,944
85$16,649,409$0$0$15,210,055
86$18,124,121$0$0$16,558,332
87$19,742,212$0$0$18,037,734
88$21,518,085$0$0$19,661,435
89$23,467,605$0$0$21,443,944
90$25,608,249$0$0$23,401,245
91$27,959,267$0$0$25,550,947
92$30,541,867$0$0$27,912,447
93$33,379,411$0$0$30,507,111
94$36,497,636$0$0$33,358,480
95$39,924,896$0$0$36,492,487
96$43,692,428$0$0$39,937,704
97$47,834,647$0$0$43,725,607
98$52,389,468$0$0$47,890,874
99$57,398,666$0$0$52,471,715
100$62,908,264$0$0$57,510,225