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%18.9%
1 years$72,092$71,449$70,823$70,211$69,614$67,118
2 years$35,689$35,024$34,380$33,755$33,150$30,661
3 years$23,556$22,889$22,246$21,627$21,031$18,630
4 years$17,491$16,826$16,190$15,581$15,000$12,703
5 years$13,853$13,191$12,564$11,968$11,403$9,217
6 years$11,428$10,772$10,153$9,571$9,023$6,949
7 years$9,697$9,046$8,437$7,869$7,338$5,376
8 years$8,399$7,754$7,156$6,601$6,087$4,236
9 years$7,390$6,751$6,163$5,623$5,126$3,383
10 years$6,584$5,951$5,373$4,847$4,368$2,730
11 years$5,924$5,298$4,730$4,218$3,757$2,220
12 years$5,375$4,755$4,198$3,700$3,255$1,817
13 years$4,911$4,297$3,751$3,266$2,839$1,494
14 years$4,513$3,906$3,370$2,900$2,488$1,233
15 years$4,169$3,568$3,043$2,586$2,191$1,021
16 years$3,868$3,274$2,759$2,315$1,936$848
17 years$3,602$3,015$2,510$2,080$1,717$706
18 years$3,367$2,786$2,292$1,875$1,527$588
19 years$3,156$2,582$2,098$1,694$1,361$491
20 years$2,967$2,399$1,925$1,534$1,215$411
21 years$2,796$2,235$1,771$1,392$1,088$344
22 years$2,641$2,086$1,632$1,266$975$288
23 years$2,499$1,951$1,507$1,153$875$241
24 years$2,370$1,828$1,394$1,052$787$202
25 years$2,251$1,716$1,291$960$708$170
26 years$2,141$1,612$1,197$878$638$142
27 years$2,040$1,517$1,112$804$575$120
28 years$1,946$1,430$1,033$736$519$100
29 years$1,858$1,349$962$675$468$84
30 years$1,777$1,274$896$620$423$71
31 years$1,701$1,204$835$569$383$60
32 years$1,630$1,140$779$523$346$50
33 years$1,563$1,079$728$481$313$42
34 years$1,501$1,023$680$443$284$35
35 years$1,442$970$636$407$257$30
36 years$1,387$921$595$375$233$25
37 years$1,334$875$556$346$211$21
38 years$1,285$831$521$319$191$18
39 years$1,238$790$488$294$173$15
40 years$1,194$752$458$271$157$12
41 years$1,151$716$429$250$143$11
42 years$1,111$682$403$231$129$9
43 years$1,073$649$378$213$118$7
44 years$1,037$619$355$197$107$6
45 years$1,003$590$333$182$97$5
46 years$970$563$313$168$88$4
47 years$938$537$294$155$80$4
48 years$908$513$276$143$73$3
49 years$880$490$259$132$66$3
50 years$852$468$244$122$60$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $873,000, adding $2,505 every year, while hoping to spend $57,876 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: 49/40/11 Blend
39$873,000$873,000$873,000$873,000
40$964,630$918,361$904,829$1,008,901
41$1,001,443$901,781$873,562$1,022,969
42$1,040,070$882,449$839,307$1,031,963
43$1,080,637$860,169$801,903$1,040,414
44$1,123,278$834,733$761,183$1,048,288
45$1,168,139$805,922$716,969$1,055,553
46$1,215,381$773,503$669,079$1,062,176
47$1,265,175$737,230$617,319$1,068,126
48$1,317,713$696,844$561,488$1,073,373
49$1,373,199$652,069$501,378$1,077,889
50$1,431,858$602,613$436,767$1,081,650
51$1,493,937$548,170$367,428$1,084,632
52$1,559,702$488,415$293,120$1,086,816
53$1,629,448$423,003$213,596$1,088,189
54$1,703,492$351,571$128,592$1,088,742
55$1,782,187$273,736$37,838$1,088,471
56$1,865,913$189,093$0$1,087,382
57$1,955,092$97,213$0$1,092,413
58$2,050,180$0$0$1,101,851
59$2,151,681$0$0$1,112,358
60$2,260,144$0$0$1,169,367
61$2,376,175$0$0$1,230,413
62$2,500,434$0$0$1,295,851
63$2,633,646$0$0$1,366,071
64$2,776,609$0$0$1,441,503
65$2,930,195$0$0$1,522,615
66$3,095,364$0$0$1,609,925
67$3,273,168$0$0$1,703,998
68$3,464,763$0$0$1,805,457
69$3,671,420$0$0$1,914,986
70$3,894,533$0$0$2,033,336
71$4,135,635$0$0$2,161,333
72$4,396,412$0$0$2,299,884
73$4,678,714$0$0$2,449,988
74$4,984,578$0$0$2,612,741
75$5,316,243$0$0$2,789,350
76$5,676,168$0$0$2,981,142
77$6,067,063$0$0$3,189,575
78$6,491,905$0$0$3,416,256
79$6,953,970$0$0$3,662,950
80$7,456,862$0$0$3,931,602
81$8,004,547$0$0$4,224,350
82$8,601,389$0$0$4,543,548
83$9,252,191$0$0$4,891,785
84$9,962,238$0$0$5,271,914
85$10,737,350$0$0$5,687,072
86$11,583,930$0$0$6,140,716
87$12,509,030$0$0$6,636,649
88$13,520,411$0$0$7,179,058
89$14,626,620$0$0$7,772,556
90$15,837,067$0$0$8,422,219
91$17,162,114$0$0$9,133,639
92$18,613,169$0$0$9,912,972
93$20,202,799$0$0$10,767,001
94$21,944,840$0$0$11,703,192
95$23,854,532$0$0$12,729,770
96$25,948,659$0$0$13,855,794
97$28,245,708$0$0$15,091,241
98$30,766,039$0$0$16,447,102
99$33,532,081$0$0$17,935,483
100$36,568,539$0$0$19,569,717