Can I retire at age 40 with 874,000?

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 $874,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$72,174$71,531$70,904$70,292$69,694$68,709
2 years$35,730$35,064$34,419$33,794$33,188$32,197
3 years$23,583$22,915$22,272$21,652$21,056$20,091
4 years$17,511$16,845$16,208$15,599$15,017$14,085
5 years$13,869$13,207$12,578$11,982$11,416$10,519
6 years$11,441$10,784$10,165$9,582$9,033$8,173
7 years$9,708$9,057$8,447$7,878$7,346$6,523
8 years$8,409$7,763$7,164$6,608$6,094$5,308
9 years$7,399$6,759$6,170$5,629$5,132$4,382
10 years$6,591$5,958$5,379$4,852$4,373$3,658
11 years$5,931$5,304$4,736$4,223$3,761$3,081
12 years$5,381$4,761$4,203$3,704$3,259$2,614
13 years$4,916$4,302$3,755$3,270$2,842$2,230
14 years$4,518$3,911$3,374$2,903$2,491$1,912
15 years$4,174$3,572$3,046$2,589$2,194$1,646
16 years$3,872$3,278$2,762$2,318$1,939$1,421
17 years$3,607$3,019$2,513$2,083$1,719$1,231
18 years$3,371$2,789$2,294$1,877$1,528$1,068
19 years$3,160$2,585$2,100$1,696$1,362$929
20 years$2,970$2,402$1,927$1,536$1,217$810
21 years$2,799$2,238$1,773$1,394$1,089$707
22 years$2,644$2,089$1,634$1,268$976$618
23 years$2,502$1,953$1,509$1,154$876$540
24 years$2,372$1,830$1,395$1,053$788$473
25 years$2,253$1,718$1,292$962$709$415
26 years$2,144$1,614$1,199$879$638$364
27 years$2,042$1,519$1,113$805$576$319
28 years$1,948$1,432$1,035$737$519$281
29 years$1,861$1,351$963$676$469$246
30 years$1,779$1,275$897$620$424$217
31 years$1,703$1,206$836$570$383$191
32 years$1,632$1,141$780$524$346$168
33 years$1,565$1,080$728$482$314$147
34 years$1,503$1,024$681$443$284$130
35 years$1,444$971$636$408$257$114
36 years$1,388$922$595$376$233$101
37 years$1,336$876$557$346$211$89
38 years$1,286$832$522$319$191$78
39 years$1,239$791$489$294$174$69
40 years$1,195$753$458$271$157$61
41 years$1,153$717$430$250$143$53
42 years$1,113$682$403$231$130$47
43 years$1,075$650$378$213$118$41
44 years$1,038$620$355$197$107$37
45 years$1,004$591$333$182$97$32
46 years$971$564$313$168$88$28
47 years$940$538$294$155$80$25
48 years$910$514$276$143$73$22
49 years$881$490$260$133$66$19
50 years$853$469$244$123$60$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $874,000, adding $2,952 every year, while hoping to spend $43,121 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: 27/47/26 Blend
39$874,000$874,000$874,000$874,000
40$966,193$919,871$906,324$984,363
41$1,018,864$919,064$890,805$998,367
42$1,075,463$916,773$873,322$1,009,465
43$1,136,344$912,878$853,762$1,020,492
44$1,201,897$907,255$832,009$1,031,470
45$1,272,550$899,770$807,941$1,042,429
46$1,348,773$890,283$781,430$1,053,404
47$1,431,084$878,643$752,344$1,064,440
48$1,520,050$864,691$720,543$1,075,591
49$1,616,294$848,261$685,880$1,086,919
50$1,720,504$829,173$648,205$1,098,500
51$1,833,432$807,239$607,356$1,110,424
52$1,955,908$782,259$563,169$1,122,793
53$2,088,844$754,023$515,468$1,135,728
54$2,233,242$722,307$464,072$1,149,369
55$2,390,206$686,873$408,792$1,163,876
56$2,560,949$647,472$349,429$1,179,434
57$2,746,807$603,839$285,776$1,196,254
58$2,949,249$555,695$217,617$1,214,577
59$3,169,891$502,742$144,725$1,234,679
60$3,410,513$444,670$66,867$1,256,870
61$3,673,073$381,146$0$1,281,505
62$3,959,726$311,823$0$1,313,485
63$4,272,847$236,330$0$1,368,850
64$4,615,046$154,279$0$1,429,616
65$4,989,200$65,259$0$1,496,434
66$5,398,476$0$0$1,570,033
67$5,846,360$0$0$1,667,341
68$6,336,691$0$0$1,810,960
69$6,873,697$0$0$1,968,395
70$7,462,033$0$0$2,141,029
71$8,106,827$0$0$2,330,386
72$8,813,725$0$0$2,538,142
73$9,588,948$0$0$2,766,147
74$10,439,343$0$0$3,016,434
75$11,372,458$0$0$3,291,248
76$12,396,602$0$0$3,593,058
77$13,520,929$0$0$3,924,584
78$14,755,523$0$0$4,288,825
79$16,111,493$0$0$4,689,082
80$17,601,076$0$0$5,128,993
81$19,237,751$0$0$5,612,566
82$21,036,371$0$0$6,144,217
83$23,013,295$0$0$6,728,811
84$25,186,549$0$0$7,371,706
85$27,575,991$0$0$8,078,808
86$30,203,498$0$0$8,856,623
87$33,093,176$0$0$9,712,319
88$36,271,583$0$0$10,653,794
89$39,767,978$0$0$11,689,750
90$43,614,602$0$0$12,829,776
91$47,846,975$0$0$14,084,436
92$52,504,236$0$0$15,465,371
93$57,629,510$0$0$16,985,407
94$63,270,311$0$0$18,658,678
95$69,478,996$0$0$20,500,757
96$76,313,252$0$0$22,528,803
97$83,836,646$0$0$24,761,724
98$92,119,219$0$0$27,220,355
99$101,238,147$0$0$29,927,654
100$111,278,474$0$0$32,908,919