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%12%
1 years$72,174$71,531$70,904$70,292$69,694$69,110
2 years$35,730$35,064$34,419$33,794$33,188$32,599
3 years$23,583$22,915$22,272$21,652$21,056$20,481
4 years$17,511$16,845$16,208$15,599$15,017$14,460
5 years$13,869$13,207$12,578$11,982$11,416$10,879
6 years$11,441$10,784$10,165$9,582$9,033$8,516
7 years$9,708$9,057$8,447$7,878$7,346$6,850
8 years$8,409$7,763$7,164$6,608$6,094$5,619
9 years$7,399$6,759$6,170$5,629$5,132$4,677
10 years$6,591$5,958$5,379$4,852$4,373$3,938
11 years$5,931$5,304$4,736$4,223$3,761$3,346
12 years$5,381$4,761$4,203$3,704$3,259$2,864
13 years$4,916$4,302$3,755$3,270$2,842$2,466
14 years$4,518$3,911$3,374$2,903$2,491$2,134
15 years$4,174$3,572$3,046$2,589$2,194$1,854
16 years$3,872$3,278$2,762$2,318$1,939$1,616
17 years$3,607$3,019$2,513$2,083$1,719$1,414
18 years$3,371$2,789$2,294$1,877$1,528$1,240
19 years$3,160$2,585$2,100$1,696$1,362$1,089
20 years$2,970$2,402$1,927$1,536$1,217$959
21 years$2,799$2,238$1,773$1,394$1,089$846
22 years$2,644$2,089$1,634$1,268$976$747
23 years$2,502$1,953$1,509$1,154$876$661
24 years$2,372$1,830$1,395$1,053$788$585
25 years$2,253$1,718$1,292$962$709$518
26 years$2,144$1,614$1,199$879$638$460
27 years$2,042$1,519$1,113$805$576$408
28 years$1,948$1,432$1,035$737$519$362
29 years$1,861$1,351$963$676$469$322
30 years$1,779$1,275$897$620$424$286
31 years$1,703$1,206$836$570$383$255
32 years$1,632$1,141$780$524$346$227
33 years$1,565$1,080$728$482$314$202
34 years$1,503$1,024$681$443$284$180
35 years$1,444$971$636$408$257$160
36 years$1,388$922$595$376$233$143
37 years$1,336$876$557$346$211$127
38 years$1,286$832$522$319$191$113
39 years$1,239$791$489$294$174$101
40 years$1,195$753$458$271$157$90
41 years$1,153$717$430$250$143$80
42 years$1,113$682$403$231$130$72
43 years$1,075$650$378$213$118$64
44 years$1,038$620$355$197$107$57
45 years$1,004$591$333$182$97$51
46 years$971$564$313$168$88$45
47 years$940$538$294$155$80$41
48 years$910$514$276$143$73$36
49 years$881$490$260$133$66$32
50 years$853$469$244$123$60$29

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $874,000, adding $4,691 every year, while hoping to spend $31,394 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: 42/39/19 Blend
39$874,000$874,000$874,000$874,000
40$967,987$921,665$908,118$1,003,077
41$1,033,318$933,423$905,137$1,040,153
42$1,104,262$944,706$901,004$1,076,865
43$1,181,356$955,456$895,647$1,115,967
44$1,265,194$965,613$888,991$1,157,696
45$1,356,429$975,114$880,957$1,202,311
46$1,455,779$983,888$871,463$1,250,101
47$1,564,034$991,864$860,423$1,301,384
48$1,682,063$998,963$847,745$1,356,515
49$1,810,824$1,005,103$833,335$1,415,882
50$1,951,370$1,010,195$817,094$1,479,919
51$2,104,861$1,014,146$798,917$1,549,102
52$2,272,574$1,016,855$778,698$1,623,962
53$2,455,912$1,018,218$756,320$1,705,083
54$2,656,425$1,018,120$731,667$1,793,112
55$2,875,816$1,016,443$704,613$1,888,764
56$3,115,960$1,013,060$675,028$1,992,829
57$3,378,923$1,007,835$642,777$2,106,183
58$3,666,980$1,000,626$607,717$2,229,792
59$3,982,637$991,281$569,700$2,364,724
60$4,328,651$979,639$528,570$2,512,159
61$4,708,062$965,531$484,166$2,673,404
62$5,124,217$948,774$436,318$2,849,900
63$5,580,801$929,178$384,849$3,043,240
64$6,081,876$906,540$329,574$3,255,184
65$6,631,912$880,646$270,300$3,487,676
66$7,235,837$851,268$206,825$3,742,865
67$7,899,078$818,165$138,940$4,023,123
68$8,627,613$781,085$66,423$4,331,069
69$9,428,028$739,756$0$4,669,597
70$10,307,577$693,894$0$5,044,124
71$11,274,254$643,199$0$5,470,470
72$12,336,865$587,352$0$5,939,099
73$13,505,109$526,017$0$6,454,364
74$14,789,676$458,837$0$7,021,066
75$16,202,340$385,438$0$7,644,500
76$17,756,076$305,422$0$8,330,509
77$19,465,178$218,369$0$9,085,537
78$21,345,394$123,838$0$9,916,691
79$23,414,078$21,359$0$10,831,811
80$25,690,348$0$0$11,839,544
81$28,195,271$0$0$12,987,861
82$30,952,058$0$0$14,261,858
83$33,986,285$0$0$15,664,204
84$37,326,132$0$0$17,207,940
85$41,002,650$0$0$18,907,435
86$45,050,055$0$0$20,778,523
87$49,506,047$0$0$22,838,653
88$54,412,168$0$0$25,107,048
89$59,814,194$0$0$27,604,893
90$65,762,563$0$0$30,355,532
91$72,312,857$0$0$33,384,687
92$79,526,320$0$0$36,720,701
93$87,470,438$0$0$40,394,808
94$96,219,579$0$0$44,441,425
95$105,855,688$0$0$48,898,477
96$116,469,063$0$0$53,807,755
97$128,159,210$0$0$59,215,311
98$141,035,776$0$0$65,171,891
99$155,219,588$0$0$71,733,415
100$170,843,791$0$0$78,961,506