Can I retire at age 40 with 868,000?

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 $868,000?

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$71,679$71,040$70,417$69,809$69,216$68,351
2 years$35,484$34,824$34,183$33,562$32,960$32,089
3 years$23,421$22,758$22,119$21,504$20,911$20,062
4 years$17,391$16,729$16,097$15,492$14,914$14,094
5 years$13,774$13,116$12,492$11,899$11,337$10,547
6 years$11,363$10,710$10,095$9,516$8,971$8,213
7 years$9,642$8,994$8,389$7,824$7,296$6,569
8 years$8,351$7,710$7,115$6,563$6,052$5,358
9 years$7,348$6,713$6,128$5,590$5,097$4,434
10 years$6,546$5,917$5,342$4,819$4,343$3,711
11 years$5,890$5,268$4,703$4,194$3,735$3,133
12 years$5,344$4,728$4,174$3,679$3,237$2,665
13 years$4,883$4,273$3,729$3,248$2,823$2,280
14 years$4,487$3,884$3,351$2,883$2,474$1,959
15 years$4,145$3,548$3,025$2,571$2,178$1,691
16 years$3,846$3,255$2,743$2,302$1,925$1,464
17 years$3,582$2,998$2,496$2,068$1,707$1,272
18 years$3,348$2,770$2,278$1,864$1,518$1,107
19 years$3,138$2,567$2,086$1,684$1,353$966
20 years$2,950$2,386$1,914$1,525$1,208$844
21 years$2,780$2,222$1,761$1,384$1,081$739
22 years$2,626$2,074$1,623$1,259$969$648
23 years$2,485$1,940$1,498$1,146$870$569
24 years$2,356$1,818$1,386$1,046$782$500
25 years$2,238$1,706$1,283$955$704$439
26 years$2,129$1,603$1,190$873$634$386
27 years$2,028$1,509$1,105$799$572$340
28 years$1,935$1,422$1,028$732$516$300
29 years$1,848$1,341$956$671$466$264
30 years$1,767$1,267$891$616$421$233
31 years$1,691$1,197$830$566$380$206
32 years$1,621$1,133$775$520$344$182
33 years$1,554$1,073$723$478$311$160
34 years$1,492$1,017$676$440$282$142
35 years$1,434$965$632$405$255$125
36 years$1,379$915$591$373$231$110
37 years$1,327$870$553$344$210$98
38 years$1,277$826$518$317$190$86
39 years$1,231$786$485$292$172$76
40 years$1,187$748$455$269$156$67
41 years$1,145$712$427$249$142$60
42 years$1,105$678$400$229$129$53
43 years$1,067$646$376$212$117$47
44 years$1,031$616$353$196$106$41
45 years$997$587$331$181$96$36
46 years$964$560$311$167$87$32
47 years$933$534$292$154$79$29
48 years$903$510$274$142$72$25
49 years$875$487$258$132$65$22
50 years$847$465$243$122$59$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $868,000, adding $3,025 every year, while hoping to spend $23,907 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: 68/13/19 Blend
39$868,000$868,000$868,000$868,000
40$959,656$913,652$900,198$1,020,234
41$1,032,104$932,984$904,918$1,080,431
42$1,111,141$952,462$908,995$1,143,181
43$1,197,413$972,069$912,381$1,211,236
44$1,291,632$991,783$915,029$1,285,118
45$1,394,581$1,011,584$916,886$1,365,402
46$1,507,125$1,031,447$917,898$1,452,719
47$1,630,213$1,051,349$918,008$1,547,769
48$1,764,890$1,071,261$917,157$1,651,318
49$1,912,309$1,091,153$915,282$1,764,214
50$2,073,737$1,110,992$912,317$1,887,389
51$2,250,572$1,130,745$908,193$2,021,873
52$2,444,352$1,150,372$902,839$2,168,799
53$2,656,770$1,169,835$896,178$2,329,415
54$2,889,692$1,189,088$888,132$2,505,099
55$3,145,173$1,208,086$878,617$2,697,367
56$3,425,477$1,226,778$867,546$2,907,892
57$3,733,095$1,245,110$854,829$3,138,516
58$4,070,774$1,263,024$840,369$3,391,271
59$4,441,539$1,280,458$824,068$3,668,396
60$4,848,722$1,297,347$805,820$3,972,357
61$5,295,993$1,313,618$785,516$4,305,874
62$5,787,396$1,329,197$763,043$4,671,946
63$6,327,385$1,344,002$738,279$5,073,875
64$6,920,868$1,357,948$711,101$5,515,302
65$7,573,251$1,370,941$681,377$6,000,241
66$8,290,490$1,382,885$648,971$6,533,115
67$9,079,147$1,393,674$613,739$7,118,799
68$9,946,453$1,403,197$575,532$7,762,667
69$10,900,374$1,411,336$534,195$8,470,641
70$11,949,684$1,417,964$489,563$9,249,249
71$13,104,055$1,422,947$441,466$10,105,685
72$14,374,140$1,426,142$389,726$11,047,879
73$15,771,677$1,427,399$334,157$12,084,569
74$17,309,602$1,426,555$274,566$13,225,389
75$19,002,166$1,423,441$210,748$14,480,955
76$20,865,071$1,417,873$142,492$15,862,968
77$22,915,620$1,409,661$69,577$17,384,325
78$25,172,878$1,398,599$0$19,059,238
79$27,657,851$1,384,470$0$20,905,042
80$30,393,689$1,367,046$0$22,952,495
81$33,405,895$1,346,081$0$25,206,557
82$36,722,577$1,321,320$0$27,688,252
83$40,374,702$1,292,487$0$30,420,750
84$44,396,397$1,259,293$0$33,429,584
85$48,825,264$1,221,433$0$36,742,889
86$53,702,738$1,178,581$0$40,391,671
87$59,074,481$1,130,395$0$44,410,099
88$64,990,803$1,076,510$0$48,835,825
89$71,507,149$1,016,543$0$53,710,343
90$78,684,611$950,086$0$59,079,378
91$86,590,513$876,711$0$64,993,319
92$95,299,038$795,963$0$71,507,696
93$104,891,936$707,361$0$78,683,703
94$115,459,290$610,399$0$86,588,773
95$127,100,368$504,539$0$95,297,221
96$139,924,559$389,215$0$104,890,942
97$154,052,407$263,829$0$115,460,183
98$169,616,744$127,749$0$127,104,397
99$186,763,950$0$0$139,933,185
100$205,655,330$0$0$154,070,141