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%16.5%
1 years$72,174$71,531$70,904$70,292$69,694$67,844
2 years$35,730$35,064$34,419$33,794$33,188$31,337
3 years$23,583$22,915$22,272$21,652$21,056$19,262
4 years$17,511$16,845$16,208$15,599$15,017$13,294
5 years$13,869$13,207$12,578$11,982$11,416$9,768
6 years$11,441$10,784$10,165$9,582$9,033$7,462
7 years$9,708$9,057$8,447$7,878$7,346$5,853
8 years$8,409$7,763$7,164$6,608$6,094$4,678
9 years$7,399$6,759$6,170$5,629$5,132$3,791
10 years$6,591$5,958$5,379$4,852$4,373$3,105
11 years$5,931$5,304$4,736$4,223$3,761$2,564
12 years$5,381$4,761$4,203$3,704$3,259$2,132
13 years$4,916$4,302$3,755$3,270$2,842$1,782
14 years$4,518$3,911$3,374$2,903$2,491$1,496
15 years$4,174$3,572$3,046$2,589$2,194$1,260
16 years$3,872$3,278$2,762$2,318$1,939$1,065
17 years$3,607$3,019$2,513$2,083$1,719$902
18 years$3,371$2,789$2,294$1,877$1,528$765
19 years$3,160$2,585$2,100$1,696$1,362$651
20 years$2,970$2,402$1,927$1,536$1,217$554
21 years$2,799$2,238$1,773$1,394$1,089$472
22 years$2,644$2,089$1,634$1,268$976$403
23 years$2,502$1,953$1,509$1,154$876$344
24 years$2,372$1,830$1,395$1,053$788$294
25 years$2,253$1,718$1,292$962$709$251
26 years$2,144$1,614$1,199$879$638$215
27 years$2,042$1,519$1,113$805$576$184
28 years$1,948$1,432$1,035$737$519$158
29 years$1,861$1,351$963$676$469$135
30 years$1,779$1,275$897$620$424$116
31 years$1,703$1,206$836$570$383$99
32 years$1,632$1,141$780$524$346$85
33 years$1,565$1,080$728$482$314$73
34 years$1,503$1,024$681$443$284$63
35 years$1,444$971$636$408$257$54
36 years$1,388$922$595$376$233$46
37 years$1,336$876$557$346$211$39
38 years$1,286$832$522$319$191$34
39 years$1,239$791$489$294$174$29
40 years$1,195$753$458$271$157$25
41 years$1,153$717$430$250$143$21
42 years$1,113$682$403$231$130$18
43 years$1,075$650$378$213$118$16
44 years$1,038$620$355$197$107$14
45 years$1,004$591$333$182$97$12
46 years$971$564$313$168$88$10
47 years$940$538$294$155$80$9
48 years$910$514$276$143$73$7
49 years$881$490$260$133$66$6
50 years$853$469$244$123$60$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $874,000, adding $6,937 every year, while hoping to spend $25,006 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: 63/15/22 Blend
39$874,000$874,000$874,000$874,000
40$970,304$923,982$910,435$1,025,472
41$1,042,668$942,650$914,328$1,082,201
42$1,121,576$961,396$917,514$1,140,724
43$1,207,668$980,196$919,942$1,204,072
44$1,301,650$999,025$921,559$1,272,721
45$1,404,298$1,017,857$922,311$1,347,192
46$1,516,467$1,036,662$922,139$1,428,062
47$1,639,099$1,055,411$920,983$1,515,965
48$1,773,230$1,074,069$918,779$1,611,601
49$1,920,000$1,092,600$915,459$1,715,741
50$2,080,668$1,110,964$910,954$1,829,236
51$2,256,615$1,129,121$905,191$1,953,024
52$2,449,367$1,147,024$898,091$2,088,136
53$2,660,600$1,164,626$889,575$2,235,713
54$2,892,162$1,181,875$879,557$2,397,011
55$3,146,090$1,198,714$867,950$2,573,412
56$3,424,625$1,215,085$854,660$2,766,444
57$3,730,236$1,230,923$839,590$2,977,789
58$4,065,643$1,246,161$822,639$3,209,300
59$4,433,841$1,260,725$803,700$3,463,023
60$4,838,131$1,274,539$782,662$3,741,211
61$5,282,147$1,287,518$759,408$4,046,348
62$5,769,895$1,299,575$733,817$4,381,174
63$6,305,785$1,310,616$705,761$4,748,706
64$6,894,679$1,320,539$675,107$5,152,274
65$7,541,928$1,329,238$641,716$5,595,545
66$8,253,434$1,336,599$605,442$6,082,565
67$9,035,693$1,342,501$566,133$6,617,791
68$9,895,865$1,346,815$523,630$7,206,137
69$10,841,838$1,349,405$477,767$7,853,021
70$11,882,304$1,350,124$428,370$8,564,414
71$13,026,837$1,348,818$375,259$9,346,899
72$14,285,987$1,345,322$318,243$10,207,731
73$15,671,379$1,339,464$257,125$11,154,908
74$17,195,819$1,331,058$191,698$12,197,246
75$18,873,420$1,319,907$121,748$13,344,462
76$20,719,731$1,305,804$47,048$14,607,268
77$22,751,884$1,288,529$0$15,997,471
78$24,988,757$1,267,848$0$17,535,752
79$27,451,150$1,243,513$0$19,241,073
80$30,161,985$1,215,262$0$21,118,247
81$33,146,515$1,182,817$0$23,184,765
82$36,432,569$1,145,885$0$25,459,900
83$40,050,812$1,104,154$0$27,964,891
84$44,035,032$1,057,295$0$30,723,145
85$48,422,463$1,004,960$0$33,760,456
86$53,254,131$946,780$0$37,105,248
87$58,575,245$882,365$0$40,788,847
88$64,435,623$811,303$0$44,845,773
89$70,890,158$733,159$0$49,314,069
90$77,999,343$647,473$0$54,235,658
91$85,829,833$553,756$0$59,656,739
92$94,455,083$451,497$0$65,628,228
93$103,956,031$340,150$0$72,206,231
94$114,421,872$219,144$0$79,452,582
95$125,950,893$87,871$0$87,435,420
96$138,651,400$0$0$96,229,839
97$152,642,744$0$0$105,927,555
98$168,056,446$0$0$116,627,216
99$185,037,436$0$0$128,414,937
100$203,745,423$0$0$141,401,596