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%19.6%
1 years$71,679$71,040$70,417$69,809$69,216$66,548
2 years$35,484$34,824$34,183$33,562$32,960$30,304
3 years$23,421$22,758$22,119$21,504$20,911$18,351
4 years$17,391$16,729$16,097$15,492$14,914$12,469
5 years$13,774$13,116$12,492$11,899$11,337$9,013
6 years$11,363$10,710$10,095$9,516$8,971$6,770
7 years$9,642$8,994$8,389$7,824$7,296$5,217
8 years$8,351$7,710$7,115$6,563$6,052$4,093
9 years$7,348$6,713$6,128$5,590$5,097$3,255
10 years$6,546$5,917$5,342$4,819$4,343$2,615
11 years$5,890$5,268$4,703$4,194$3,735$2,117
12 years$5,344$4,728$4,174$3,679$3,237$1,724
13 years$4,883$4,273$3,729$3,248$2,823$1,411
14 years$4,487$3,884$3,351$2,883$2,474$1,159
15 years$4,145$3,548$3,025$2,571$2,178$955
16 years$3,846$3,255$2,743$2,302$1,925$789
17 years$3,582$2,998$2,496$2,068$1,707$653
18 years$3,348$2,770$2,278$1,864$1,518$542
19 years$3,138$2,567$2,086$1,684$1,353$450
20 years$2,950$2,386$1,914$1,525$1,208$374
21 years$2,780$2,222$1,761$1,384$1,081$311
22 years$2,626$2,074$1,623$1,259$969$259
23 years$2,485$1,940$1,498$1,146$870$216
24 years$2,356$1,818$1,386$1,046$782$180
25 years$2,238$1,706$1,283$955$704$150
26 years$2,129$1,603$1,190$873$634$125
27 years$2,028$1,509$1,105$799$572$105
28 years$1,935$1,422$1,028$732$516$87
29 years$1,848$1,341$956$671$466$73
30 years$1,767$1,267$891$616$421$61
31 years$1,691$1,197$830$566$380$51
32 years$1,621$1,133$775$520$344$43
33 years$1,554$1,073$723$478$311$36
34 years$1,492$1,017$676$440$282$30
35 years$1,434$965$632$405$255$25
36 years$1,379$915$591$373$231$21
37 years$1,327$870$553$344$210$17
38 years$1,277$826$518$317$190$15
39 years$1,231$786$485$292$172$12
40 years$1,187$748$455$269$156$10
41 years$1,145$712$427$249$142$8
42 years$1,105$678$400$229$129$7
43 years$1,067$646$376$212$117$6
44 years$1,031$616$353$196$106$5
45 years$997$587$331$181$96$4
46 years$964$560$311$167$87$3
47 years$933$534$292$154$79$3
48 years$903$510$274$142$72$2
49 years$875$487$258$132$65$2
50 years$847$465$243$122$59$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $868,000, adding $3,246 every year, while hoping to spend $58,798 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: 56/17/27 Blend
39$868,000$868,000$868,000$868,000
40$959,884$913,880$900,426$1,006,346
41$995,232$896,100$868,030$1,020,859
42$1,032,214$875,477$832,578$1,030,258
43$1,070,936$851,812$793,905$1,039,294
44$1,111,511$824,890$751,840$1,047,950
45$1,154,061$794,486$706,203$1,056,213
46$1,198,721$760,361$656,806$1,064,071
47$1,245,635$722,263$603,454$1,071,512
48$1,294,960$679,924$545,940$1,078,529
49$1,346,868$633,063$484,051$1,085,118
50$1,401,545$581,379$417,563$1,091,279
51$1,459,194$524,558$346,243$1,097,015
52$1,520,036$462,266$269,846$1,102,335
53$1,584,312$394,149$188,118$1,107,254
54$1,652,284$319,835$100,793$1,111,794
55$1,724,241$238,931$7,593$1,115,986
56$1,800,495$151,020$0$1,119,866
57$1,881,390$55,664$0$1,149,951
58$1,967,298$0$0$1,183,889
59$2,058,630$0$0$1,228,561
60$2,155,835$0$0$1,287,229
61$2,259,402$0$0$1,349,782
62$2,369,868$0$0$1,416,550
63$2,487,822$0$0$1,487,895
64$2,613,908$0$0$1,564,212
65$2,748,834$0$0$1,645,938
66$2,893,374$0$0$1,733,548
67$3,048,378$0$0$1,827,566
68$3,214,778$0$0$1,928,565
69$3,393,599$0$0$2,037,175
70$3,585,962$0$0$2,154,089
71$3,793,103$0$0$2,280,065
72$4,016,376$0$0$2,415,937
73$4,257,268$0$0$2,562,623
74$4,517,414$0$0$2,721,129
75$4,798,612$0$0$2,892,562
76$5,102,835$0$0$3,078,139
77$5,432,254$0$0$3,279,195
78$5,789,255$0$0$3,497,203
79$6,176,461$0$0$3,733,779
80$6,596,759$0$0$3,990,701
81$7,053,321$0$0$4,269,926
82$7,549,640$0$0$4,573,605
83$8,089,554$0$0$4,904,106
84$8,677,290$0$0$5,264,034
85$9,317,497$0$0$5,656,255
86$10,015,292$0$0$6,083,925
87$10,776,304$0$0$6,550,515
88$11,606,734$0$0$7,059,847
89$12,513,401$0$0$7,616,128
90$13,503,815$0$0$8,223,989
91$14,586,245$0$0$8,888,529
92$15,769,791$0$0$9,615,362
93$17,064,475$0$0$10,410,668
94$18,481,331$0$0$11,281,253
95$20,032,509$0$0$12,234,611
96$21,731,388$0$0$13,278,997
97$23,592,704$0$0$14,423,498
98$25,632,682$0$0$15,678,124
99$27,869,194$0$0$17,053,900
100$30,321,923$0$0$18,562,969