Can I retire at age 40 with 873,000?

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 $873,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.9%
1 years$72,092$71,449$70,823$70,211$69,614$67,386
2 years$35,689$35,024$34,380$33,755$33,150$30,925
3 years$23,556$22,889$22,246$21,627$21,031$18,881
4 years$17,491$16,826$16,190$15,581$15,000$12,939
5 years$13,853$13,191$12,564$11,968$11,403$9,438
6 years$11,428$10,772$10,153$9,571$9,023$7,155
7 years$9,697$9,046$8,437$7,869$7,338$5,567
8 years$8,399$7,754$7,156$6,601$6,087$4,413
9 years$7,390$6,751$6,163$5,623$5,126$3,546
10 years$6,584$5,951$5,373$4,847$4,368$2,879
11 years$5,924$5,298$4,730$4,218$3,757$2,357
12 years$5,375$4,755$4,198$3,700$3,255$1,941
13 years$4,911$4,297$3,751$3,266$2,839$1,607
14 years$4,513$3,906$3,370$2,900$2,488$1,336
15 years$4,169$3,568$3,043$2,586$2,191$1,115
16 years$3,868$3,274$2,759$2,315$1,936$932
17 years$3,602$3,015$2,510$2,080$1,717$782
18 years$3,367$2,786$2,292$1,875$1,527$656
19 years$3,156$2,582$2,098$1,694$1,361$552
20 years$2,967$2,399$1,925$1,534$1,215$465
21 years$2,796$2,235$1,771$1,392$1,088$392
22 years$2,641$2,086$1,632$1,266$975$331
23 years$2,499$1,951$1,507$1,153$875$280
24 years$2,370$1,828$1,394$1,052$787$236
25 years$2,251$1,716$1,291$960$708$200
26 years$2,141$1,612$1,197$878$638$169
27 years$2,040$1,517$1,112$804$575$143
28 years$1,946$1,430$1,033$736$519$121
29 years$1,858$1,349$962$675$468$103
30 years$1,777$1,274$896$620$423$87
31 years$1,701$1,204$835$569$383$74
32 years$1,630$1,140$779$523$346$62
33 years$1,563$1,079$728$481$313$53
34 years$1,501$1,023$680$443$284$45
35 years$1,442$970$636$407$257$38
36 years$1,387$921$595$375$233$32
37 years$1,334$875$556$346$211$27
38 years$1,285$831$521$319$191$23
39 years$1,238$790$488$294$173$20
40 years$1,194$752$458$271$157$17
41 years$1,151$716$429$250$143$14
42 years$1,111$682$403$231$129$12
43 years$1,073$649$378$213$118$10
44 years$1,037$619$355$197$107$9
45 years$1,003$590$333$182$97$7
46 years$970$563$313$168$88$6
47 years$938$537$294$155$80$5
48 years$908$513$276$143$73$4
49 years$880$490$259$132$66$4
50 years$852$468$244$122$60$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $873,000, adding $3,348 every year, while hoping to spend $38,442 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: 62/10/28 Blend
39$873,000$873,000$873,000$873,000
40$965,499$919,230$905,699$1,017,919
41$1,023,078$923,371$895,138$1,058,075
42$1,085,242$926,426$882,935$1,097,437
43$1,152,417$928,301$868,994$1,139,599
44$1,225,074$928,897$853,215$1,184,844
45$1,303,727$928,109$835,493$1,233,481
46$1,388,944$925,824$815,719$1,285,856
47$1,481,349$921,922$793,778$1,342,349
48$1,581,627$916,276$769,550$1,403,380
49$1,690,533$908,754$742,910$1,469,415
50$1,808,896$899,211$713,726$1,540,967
51$1,937,629$887,498$681,862$1,618,605
52$2,077,735$873,454$647,172$1,702,956
53$2,230,321$856,909$609,509$1,794,714
54$2,396,600$837,685$568,714$1,894,646
55$2,577,912$815,590$524,625$2,003,599
56$2,775,729$790,424$477,070$2,122,508
57$2,991,671$761,972$425,869$2,252,406
58$3,227,524$730,011$370,838$2,394,436
59$3,485,250$694,301$311,780$2,549,858
60$3,767,013$654,589$248,492$2,720,065
61$4,075,193$610,608$180,761$2,906,592
62$4,412,412$562,077$108,366$3,111,138
63$4,781,555$508,697$31,074$3,335,577
64$5,185,803$450,152$0$3,581,978
65$5,628,654$386,108$0$3,867,983
66$6,113,964$316,215$0$4,191,660
67$6,645,978$240,099$0$4,546,576
68$7,229,372$157,368$0$4,935,884
69$7,869,295$67,606$0$5,363,058
70$8,571,420$0$0$5,831,928
71$9,341,995$0$0$6,349,973
72$10,187,901$0$0$6,926,895
73$11,116,720$0$0$7,560,434
74$12,136,803$0$0$8,256,295
75$13,257,348$0$0$9,020,761
76$14,488,491$0$0$9,860,755
77$15,841,396$0$0$10,783,905
78$17,328,362$0$0$11,798,614
79$18,962,940$0$0$12,914,137
80$20,760,057$0$0$14,140,673
81$22,736,162$0$0$15,489,459
82$24,909,375$0$0$16,972,874
83$27,299,661$0$0$18,604,557
84$29,929,015$0$0$20,399,536
85$32,821,675$0$0$22,374,368
86$36,004,343$0$0$24,547,297
87$39,506,441$0$0$26,938,422
88$43,360,388$0$0$29,569,893
89$47,601,901$0$0$32,466,112
90$52,270,340$0$0$35,653,968
91$57,409,071$0$0$39,163,089
92$63,065,878$0$0$43,026,121
93$69,293,413$0$0$47,279,037
94$76,149,693$0$0$51,961,475
95$83,698,647$0$0$57,117,110
96$92,010,718$0$0$62,794,071
97$101,163,526$0$0$69,045,389
98$111,242,603$0$0$75,929,500
99$122,342,199$0$0$83,510,797
100$134,566,169$0$0$91,860,236