Can I retire at age 40 with 866,000?

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 $866,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$71,513$70,876$70,255$69,648$69,056$66,765
2 years$35,403$34,743$34,104$33,485$32,884$30,598
3 years$23,367$22,705$22,068$21,454$20,863$18,654
4 years$17,351$16,691$16,060$15,456$14,880$12,765
5 years$13,742$13,086$12,463$11,872$11,311$9,296
6 years$11,337$10,685$10,072$9,494$8,950$7,036
7 years$9,619$8,974$8,370$7,806$7,279$5,465
8 years$8,332$7,692$7,098$6,548$6,039$4,324
9 years$7,331$6,697$6,114$5,577$5,085$3,468
10 years$6,531$5,903$5,330$4,808$4,333$2,811
11 years$5,877$5,255$4,693$4,184$3,726$2,296
12 years$5,332$4,717$4,165$3,670$3,229$1,888
13 years$4,871$4,263$3,721$3,240$2,816$1,560
14 years$4,477$3,875$3,343$2,876$2,468$1,294
15 years$4,135$3,540$3,018$2,565$2,173$1,077
16 years$3,837$3,248$2,737$2,297$1,921$899
17 years$3,574$2,991$2,490$2,064$1,703$752
18 years$3,340$2,764$2,273$1,860$1,514$630
19 years$3,131$2,561$2,081$1,680$1,350$529
20 years$2,943$2,380$1,910$1,522$1,206$445
21 years$2,774$2,217$1,757$1,381$1,079$374
22 years$2,620$2,070$1,619$1,256$967$315
23 years$2,479$1,936$1,495$1,144$868$265
24 years$2,351$1,814$1,383$1,043$780$224
25 years$2,233$1,702$1,281$953$702$189
26 years$2,124$1,599$1,188$871$632$159
27 years$2,023$1,505$1,103$797$570$135
28 years$1,930$1,418$1,025$731$515$114
29 years$1,843$1,338$954$670$465$96
30 years$1,763$1,264$889$615$420$81
31 years$1,687$1,195$828$565$380$69
32 years$1,617$1,130$773$519$343$58
33 years$1,551$1,070$722$477$311$49
34 years$1,489$1,015$674$439$281$41
35 years$1,430$962$630$404$255$35
36 years$1,375$913$590$372$231$30
37 years$1,323$867$552$343$209$25
38 years$1,274$824$517$316$190$21
39 years$1,228$784$484$291$172$18
40 years$1,184$746$454$269$156$15
41 years$1,142$710$426$248$142$13
42 years$1,103$676$399$229$128$11
43 years$1,065$644$375$211$117$9
44 years$1,029$614$352$195$106$8
45 years$995$586$330$180$96$7
46 years$962$559$310$166$87$6
47 years$931$533$291$154$79$5
48 years$901$509$274$142$72$4
49 years$873$486$257$131$65$3
50 years$846$464$242$121$59$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $866,000, adding $3,266 every year, while hoping to spend $49,180 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: 48/31/21 Blend
39$866,000$866,000$866,000$866,000
40$957,701$911,803$898,380$997,835
41$1,003,059$904,154$876,148$1,018,480
42$1,051,396$894,482$851,524$1,035,676
43$1,102,963$882,636$824,374$1,053,329
44$1,158,035$868,456$794,561$1,071,503
45$1,216,916$851,772$761,941$1,090,272
46$1,279,937$832,404$726,361$1,109,721
47$1,347,462$810,163$687,665$1,129,944
48$1,419,888$784,846$645,687$1,151,053
49$1,497,654$756,241$600,255$1,173,171
50$1,581,240$724,121$551,188$1,196,441
51$1,671,172$688,249$498,299$1,221,022
52$1,768,029$648,371$441,390$1,247,097
53$1,872,448$604,221$380,257$1,274,870
54$1,985,126$555,516$314,683$1,304,573
55$2,106,830$501,958$244,447$1,336,465
56$2,238,404$443,231$169,313$1,370,839
57$2,380,773$379,001$89,037$1,408,024
58$2,534,957$308,917$3,364$1,448,389
59$2,702,075$232,607$0$1,492,348
60$2,883,358$149,676$0$1,560,097
61$3,080,161$59,710$0$1,634,508
62$3,293,973$0$0$1,715,473
63$3,526,432$0$0$1,816,577
64$3,779,341$0$0$1,948,819
65$4,054,683$0$0$2,092,879
66$4,354,639$0$0$2,249,910
67$4,681,613$0$0$2,421,180
68$5,038,246$0$0$2,608,086
69$5,427,447$0$0$2,812,164
70$5,852,419$0$0$3,035,107
71$6,316,686$0$0$3,278,777
72$6,824,129$0$0$3,545,225
73$7,379,020$0$0$3,836,710
74$7,986,064$0$0$4,155,717
75$8,650,438$0$0$4,504,984
76$9,377,848$0$0$4,887,526
77$10,174,573$0$0$5,306,662
78$11,047,529$0$0$5,766,050
79$12,004,334$0$0$6,269,716
80$13,053,377$0$0$6,822,095
81$14,203,898$0$0$7,428,071
82$15,466,072$0$0$8,093,027
83$16,851,110$0$0$8,822,887
84$18,371,358$0$0$9,624,181
85$20,040,416$0$0$10,504,100
86$21,873,266$0$0$11,470,565
87$23,886,412$0$0$12,532,304
88$26,098,034$0$0$13,698,930
89$28,528,160$0$0$14,981,034
90$31,198,855$0$0$16,390,285
91$34,134,428$0$0$17,939,536
92$37,361,657$0$0$19,642,951
93$40,910,047$0$0$21,516,131
94$44,812,105$0$0$23,576,269
95$49,103,643$0$0$25,842,303
96$53,824,120$0$0$28,335,103
97$59,017,011$0$0$31,077,659
98$64,730,216$0$0$34,095,307
99$71,016,512$0$0$37,415,958
100$77,934,050$0$0$41,070,368