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%13.3%
1 years$71,679$71,040$70,417$69,809$69,216$68,266
2 years$35,484$34,824$34,183$33,562$32,960$32,005
3 years$23,421$22,758$22,119$21,504$20,911$19,980
4 years$17,391$16,729$16,097$15,492$14,914$14,014
5 years$13,774$13,116$12,492$11,899$11,337$10,472
6 years$11,363$10,710$10,095$9,516$8,971$8,140
7 years$9,642$8,994$8,389$7,824$7,296$6,501
8 years$8,351$7,710$7,115$6,563$6,052$5,293
9 years$7,348$6,713$6,128$5,590$5,097$4,372
10 years$6,546$5,917$5,342$4,819$4,343$3,653
11 years$5,890$5,268$4,703$4,194$3,735$3,078
12 years$5,344$4,728$4,174$3,679$3,237$2,613
13 years$4,883$4,273$3,729$3,248$2,823$2,231
14 years$4,487$3,884$3,351$2,883$2,474$1,914
15 years$4,145$3,548$3,025$2,571$2,178$1,648
16 years$3,846$3,255$2,743$2,302$1,925$1,425
17 years$3,582$2,998$2,496$2,068$1,707$1,235
18 years$3,348$2,770$2,278$1,864$1,518$1,073
19 years$3,138$2,567$2,086$1,684$1,353$934
20 years$2,950$2,386$1,914$1,525$1,208$814
21 years$2,780$2,222$1,761$1,384$1,081$711
22 years$2,626$2,074$1,623$1,259$969$622
23 years$2,485$1,940$1,498$1,146$870$545
24 years$2,356$1,818$1,386$1,046$782$477
25 years$2,238$1,706$1,283$955$704$419
26 years$2,129$1,603$1,190$873$634$368
27 years$2,028$1,509$1,105$799$572$323
28 years$1,935$1,422$1,028$732$516$284
29 years$1,848$1,341$956$671$466$250
30 years$1,767$1,267$891$616$421$220
31 years$1,691$1,197$830$566$380$193
32 years$1,621$1,133$775$520$344$170
33 years$1,554$1,073$723$478$311$150
34 years$1,492$1,017$676$440$282$132
35 years$1,434$965$632$405$255$116
36 years$1,379$915$591$373$231$102
37 years$1,327$870$553$344$210$90
38 years$1,277$826$518$317$190$80
39 years$1,231$786$485$292$172$70
40 years$1,187$748$455$269$156$62
41 years$1,145$712$427$249$142$55
42 years$1,105$678$400$229$129$48
43 years$1,067$646$376$212$117$42
44 years$1,031$616$353$196$106$37
45 years$997$587$331$181$96$33
46 years$964$560$311$167$87$29
47 years$933$534$292$154$79$26
48 years$903$510$274$142$72$23
49 years$875$487$258$132$65$20
50 years$847$465$243$122$59$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $868,000, adding $6,658 every year, while hoping to spend $28,591 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: 74/21/5 Blend
39$868,000$868,000$868,000$868,000
40$963,404$917,400$903,946$1,033,841
41$1,031,250$931,932$903,807$1,095,624
42$1,105,059$946,218$902,706$1,158,987
43$1,185,408$960,215$900,579$1,227,570
44$1,272,932$973,879$897,362$1,301,877
45$1,368,333$987,160$892,985$1,382,466
46$1,472,380$1,000,008$887,377$1,469,949
47$1,585,920$1,012,366$880,461$1,565,002
48$1,709,887$1,024,175$872,160$1,668,368
49$1,845,309$1,035,372$862,391$1,780,868
50$1,993,315$1,045,890$851,065$1,903,403
51$2,155,151$1,055,657$838,094$2,036,969
52$2,332,188$1,064,595$823,381$2,182,662
53$2,525,934$1,072,624$806,828$2,341,689
54$2,738,053$1,079,656$788,330$2,515,382
55$2,970,373$1,085,598$767,778$2,705,207
56$3,224,911$1,090,352$745,058$2,912,781
57$3,503,886$1,093,813$720,052$3,139,883
58$3,809,742$1,095,870$692,633$3,388,476
59$4,145,172$1,096,404$662,673$3,660,724
60$4,513,141$1,095,289$630,034$3,959,010
61$4,916,916$1,092,393$594,575$4,285,961
62$5,360,094$1,087,573$556,146$4,644,472
63$5,846,638$1,080,679$514,591$5,037,734
64$6,380,914$1,071,551$469,749$5,469,263
65$6,967,731$1,060,020$421,449$5,942,935
66$7,612,385$1,045,907$369,513$6,463,021
67$8,320,714$1,029,022$313,757$7,034,230
68$9,099,146$1,009,163$253,987$7,661,750
69$9,954,764$986,117$190,001$8,351,300
70$10,895,372$959,659$121,588$9,109,183
71$11,929,566$929,548$48,527$9,942,345
72$13,066,818$895,532$0$10,858,443
73$14,317,564$857,344$0$11,867,487
74$15,693,300$814,699$0$12,980,070
75$17,206,695$767,297$0$14,203,867
76$18,871,706$714,823$0$15,550,189
77$20,703,710$656,939$0$17,031,502
78$22,719,653$593,293$0$18,661,547
79$24,938,202$523,510$0$20,455,465
80$27,379,930$447,193$0$22,429,945
81$30,067,502$363,924$0$24,603,377
82$33,025,893$273,262$0$26,996,033
83$36,282,622$174,740$0$29,630,249
84$39,868,013$67,866$0$32,530,646
85$43,815,477$0$0$35,724,356
86$48,161,831$0$0$39,252,347
87$52,947,645$0$0$43,154,368
88$58,217,621$0$0$47,451,192
89$64,021,018$0$0$52,182,986
90$70,412,115$0$0$57,394,015
91$77,450,725$0$0$63,133,052
92$85,202,754$0$0$69,453,843
93$93,740,830$0$0$76,415,614
94$103,144,983$0$0$84,083,625
95$113,503,401$0$0$92,529,793
96$124,913,263$0$0$101,833,364
97$137,481,656$0$0$112,081,663
98$151,326,582$0$0$123,370,919
99$166,578,077$0$0$135,807,173
100$183,379,435$0$0$149,507,276