Can I retire at age 40 with 871,000?

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 $871,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.2%
1 years$71,926$71,286$70,661$70,051$69,455$67,969
2 years$35,607$34,944$34,301$33,678$33,074$31,584
3 years$23,502$22,836$22,195$21,578$20,983$19,536
4 years$17,451$16,787$16,152$15,546$14,965$13,572
5 years$13,821$13,161$12,535$11,941$11,377$10,041
6 years$11,402$10,747$10,130$9,549$9,002$7,725
7 years$9,675$9,025$8,418$7,851$7,321$6,104
8 years$8,380$7,736$7,139$6,586$6,073$4,915
9 years$7,374$6,736$6,149$5,610$5,115$4,015
10 years$6,569$5,937$5,361$4,836$4,358$3,315
11 years$5,911$5,286$4,720$4,208$3,748$2,761
12 years$5,363$4,744$4,189$3,691$3,248$2,315
13 years$4,900$4,287$3,742$3,259$2,832$1,952
14 years$4,503$3,897$3,362$2,893$2,483$1,653
15 years$4,159$3,560$3,036$2,580$2,186$1,405
16 years$3,859$3,266$2,752$2,310$1,932$1,198
17 years$3,594$3,008$2,505$2,076$1,713$1,025
18 years$3,359$2,780$2,286$1,870$1,523$878
19 years$3,149$2,576$2,093$1,690$1,358$754
20 years$2,960$2,394$1,921$1,531$1,213$648
21 years$2,790$2,230$1,767$1,389$1,085$558
22 years$2,635$2,081$1,628$1,263$973$481
23 years$2,494$1,947$1,504$1,150$873$415
24 years$2,364$1,824$1,391$1,049$785$358
25 years$2,246$1,712$1,288$958$706$310
26 years$2,136$1,609$1,194$876$636$268
27 years$2,035$1,514$1,109$802$574$232
28 years$1,941$1,427$1,031$735$518$200
29 years$1,854$1,346$960$674$467$173
30 years$1,773$1,271$894$618$422$150
31 years$1,697$1,202$833$568$382$130
32 years$1,626$1,137$777$522$345$113
33 years$1,560$1,077$726$480$313$98
34 years$1,497$1,020$678$442$283$85
35 years$1,439$968$634$407$256$74
36 years$1,383$919$593$374$232$64
37 years$1,331$873$555$345$210$55
38 years$1,282$829$520$318$191$48
39 years$1,235$788$487$293$173$42
40 years$1,191$750$457$270$157$36
41 years$1,149$714$428$249$142$31
42 years$1,109$680$402$230$129$27
43 years$1,071$648$377$213$117$24
44 years$1,035$618$354$196$106$20
45 years$1,000$589$332$181$97$18
46 years$968$562$312$167$88$15
47 years$936$536$293$155$80$13
48 years$906$512$275$143$72$12
49 years$878$489$259$132$66$10
50 years$850$467$243$122$60$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $871,000, adding $2,582 every year, while hoping to spend $42,125 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: 65/25/10 Blend
39$871,000$871,000$871,000$871,000
40$962,505$916,342$902,842$1,022,844
41$1,015,860$916,422$888,266$1,063,466
42$1,073,245$915,095$871,791$1,102,635
43$1,135,028$912,245$853,307$1,144,352
44$1,201,609$907,754$832,702$1,188,860
45$1,273,433$901,494$809,857$1,236,431
46$1,350,984$893,328$784,648$1,287,365
47$1,434,797$883,114$756,946$1,341,994
48$1,525,458$870,698$726,616$1,400,683
49$1,623,613$855,920$693,515$1,463,838
50$1,729,969$838,608$657,496$1,531,907
51$1,845,308$818,582$618,404$1,605,385
52$1,970,486$795,649$576,077$1,684,819
53$2,106,446$769,606$530,346$1,770,814
54$2,254,226$740,239$481,035$1,864,038
55$2,414,966$707,320$427,959$1,965,231
56$2,589,923$670,609$370,925$2,075,209
57$2,780,476$629,850$309,733$2,194,874
58$2,988,148$584,775$244,172$2,325,222
59$3,214,609$535,100$174,022$2,467,355
60$3,461,703$480,523$99,055$2,622,489
61$3,731,455$420,727$19,031$2,791,969
62$4,026,096$355,376$0$2,977,278
63$4,348,082$284,114$0$3,187,138
64$4,700,119$206,567$0$3,418,905
65$5,085,181$122,339$0$3,672,575
66$5,506,548$31,013$0$3,950,386
67$5,967,829$0$0$4,254,807
68$6,472,998$0$0$4,607,231
69$7,026,432$0$0$5,002,731
70$7,632,953$0$0$5,436,227
71$8,297,867$0$0$5,911,521
72$9,027,024$0$0$6,432,800
73$9,826,861$0$0$7,004,676
74$10,704,474$0$0$7,632,229
75$11,667,673$0$0$8,321,054
76$12,725,067$0$0$9,077,316
77$13,886,134$0$0$9,907,802
78$15,161,318$0$0$10,819,993
79$16,562,122$0$0$11,822,127
80$18,101,221$0$0$12,923,282
81$19,792,576$0$0$14,133,457
82$21,651,567$0$0$15,463,668
83$23,695,140$0$0$16,926,050
84$25,941,963$0$0$18,533,976
85$28,412,605$0$0$20,302,177
86$31,129,726$0$0$22,246,883
87$34,118,293$0$0$24,385,977
88$37,405,814$0$0$26,739,160
89$41,022,597$0$0$29,328,141
90$45,002,036$0$0$32,176,838
91$49,380,924$0$0$35,311,604
92$54,199,802$0$0$38,761,478
93$59,503,339$0$0$42,558,454
94$65,340,754$0$0$46,737,785
95$71,766,281$0$0$51,338,317
96$78,839,675$0$0$56,402,851
97$86,626,782$0$0$61,978,551
98$95,200,156$0$0$68,117,384
99$104,639,744$0$0$74,876,615
100$115,033,638$0$0$82,319,341