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%13.7%
1 years$71,266$70,631$70,012$69,407$68,817$67,760
2 years$35,280$34,623$33,986$33,369$32,770$31,708
3 years$23,286$22,627$21,991$21,380$20,791$19,757
4 years$17,291$16,633$16,004$15,403$14,828$13,830
5 years$13,694$13,040$12,420$11,831$11,272$10,312
6 years$11,297$10,648$10,037$9,461$8,919$7,999
7 years$9,586$8,943$8,341$7,779$7,254$6,373
8 years$8,303$7,665$7,074$6,525$6,018$5,177
9 years$7,306$6,674$6,093$5,558$5,068$4,267
10 years$6,508$5,883$5,312$4,791$4,318$3,556
11 years$5,856$5,237$4,676$4,170$3,714$2,989
12 years$5,314$4,701$4,150$3,657$3,218$2,531
13 years$4,855$4,248$3,708$3,229$2,806$2,155
14 years$4,461$3,861$3,331$2,866$2,460$1,844
15 years$4,121$3,527$3,008$2,556$2,166$1,584
16 years$3,823$3,236$2,727$2,289$1,914$1,365
17 years$3,561$2,981$2,482$2,056$1,697$1,180
18 years$3,328$2,754$2,265$1,853$1,509$1,022
19 years$3,120$2,553$2,074$1,675$1,345$887
20 years$2,933$2,372$1,903$1,517$1,202$771
21 years$2,764$2,209$1,751$1,376$1,075$672
22 years$2,611$2,062$1,613$1,252$964$586
23 years$2,471$1,929$1,490$1,140$865$511
24 years$2,343$1,807$1,378$1,040$778$447
25 years$2,225$1,696$1,276$949$700$390
26 years$2,117$1,594$1,184$868$630$342
27 years$2,016$1,500$1,099$795$568$299
28 years$1,923$1,414$1,022$728$513$262
29 years$1,837$1,334$951$668$463$230
30 years$1,757$1,259$886$613$418$201
31 years$1,682$1,191$826$563$378$177
32 years$1,611$1,126$770$517$342$155
33 years$1,546$1,067$719$476$310$136
34 years$1,484$1,011$672$438$280$120
35 years$1,425$959$628$403$254$105
36 years$1,371$910$588$371$230$92
37 years$1,319$864$550$342$209$81
38 years$1,270$822$515$315$189$71
39 years$1,224$781$483$290$171$63
40 years$1,180$743$452$268$155$55
41 years$1,138$708$424$247$141$48
42 years$1,099$674$398$228$128$42
43 years$1,061$642$373$211$116$37
44 years$1,025$612$350$194$105$33
45 years$991$584$329$180$96$29
46 years$959$557$309$166$87$25
47 years$928$531$290$153$79$22
48 years$898$507$273$142$72$20
49 years$870$484$256$131$65$17
50 years$843$463$241$121$59$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $863,000, adding $3,324 every year, while hoping to spend $49,143 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: 60/13/27 Blend
39$863,000$863,000$863,000$863,000
40$954,455$908,716$895,339$1,004,584
41$999,521$900,955$873,045$1,031,372
42$1,047,538$891,167$848,357$1,055,022
43$1,098,753$879,200$821,144$1,079,790
44$1,153,439$864,895$791,266$1,105,795
45$1,211,896$848,081$758,579$1,133,171
46$1,274,451$828,578$722,933$1,162,069
47$1,341,463$806,197$684,170$1,192,656
48$1,413,327$780,735$642,123$1,225,119
49$1,490,474$751,978$596,622$1,259,667
50$1,573,379$719,702$547,486$1,296,533
51$1,662,563$683,667$494,526$1,335,976
52$1,758,598$643,620$437,547$1,378,285
53$1,862,112$599,295$376,341$1,423,783
54$1,973,794$550,407$310,696$1,472,825
55$2,094,404$496,659$240,386$1,525,812
56$2,224,772$437,735$165,179$1,583,185
57$2,365,816$373,301$84,829$1,645,436
58$2,518,541$303,005$0$1,713,111
59$2,684,053$226,473$0$1,787,082
60$2,863,569$143,312$0$1,893,855
61$3,058,427$53,108$0$2,009,792
62$3,270,097$0$0$2,135,807
63$3,500,199$0$0$2,279,283
64$3,750,512$0$0$2,443,686
65$4,022,996$0$0$2,622,714
66$4,319,806$0$0$2,817,790
67$4,643,315$0$0$3,030,482
68$4,996,132$0$0$3,262,515
69$5,381,132$0$0$3,515,788
70$5,801,476$0$0$3,792,390
71$6,260,647$0$0$4,094,622
72$6,762,477$0$0$4,425,017
73$7,311,186$0$0$4,786,364
74$7,911,420$0$0$5,181,733
75$8,568,294$0$0$5,614,505
76$9,287,441$0$0$6,088,404
77$10,075,065$0$0$6,607,528
78$10,937,996$0$0$7,176,394
79$11,883,756$0$0$7,799,973
80$12,920,632$0$0$8,483,742
81$14,057,749$0$0$9,233,733
82$15,305,157$0$0$10,056,589
83$16,673,926$0$0$10,959,629
84$18,176,250$0$0$11,950,913
85$19,825,561$0$0$13,039,320
86$21,636,655$0$0$14,234,631
87$23,625,831$0$0$15,547,621
88$25,811,042$0$0$16,990,159
89$28,212,070$0$0$18,575,321
90$30,850,704$0$0$20,317,514
91$33,750,951$0$0$22,232,606
92$36,939,257$0$0$24,338,083
93$40,444,760$0$0$26,653,208
94$44,299,562$0$0$29,199,203
95$48,539,030$0$0$31,999,452
96$53,202,134$0$0$35,079,718
97$58,331,806$0$0$38,468,385
98$63,975,350$0$0$42,196,727
99$70,184,888$0$0$46,299,205
100$77,017,846$0$0$50,813,785