Can I retire at age 40 with 893,000?

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 $893,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.8%
1 years$73,743$73,086$72,445$71,820$71,209$68,957
2 years$36,506$35,827$35,168$34,529$33,909$31,661
3 years$24,096$23,413$22,756$22,123$21,513$19,339
4 years$17,892$17,211$16,560$15,938$15,343$13,260
5 years$14,170$13,494$12,852$12,242$11,664$9,677
6 years$11,690$11,019$10,386$9,790$9,229$7,340
7 years$9,919$9,253$8,631$8,049$7,506$5,715
8 years$8,592$7,932$7,320$6,752$6,227$4,532
9 years$7,560$6,906$6,304$5,751$5,244$3,644
10 years$6,735$6,087$5,496$4,958$4,468$2,961
11 years$6,060$5,419$4,839$4,315$3,843$2,425
12 years$5,498$4,864$4,294$3,785$3,330$1,999
13 years$5,023$4,396$3,837$3,341$2,904$1,656
14 years$4,616$3,996$3,447$2,966$2,545$1,378
15 years$4,264$3,650$3,112$2,645$2,241$1,150
16 years$3,956$3,349$2,822$2,368$1,981$963
17 years$3,685$3,084$2,568$2,128$1,756$808
18 years$3,444$2,850$2,344$1,918$1,562$679
19 years$3,229$2,641$2,146$1,733$1,392$571
20 years$3,035$2,454$1,969$1,569$1,243$482
21 years$2,860$2,286$1,811$1,424$1,113$407
22 years$2,701$2,134$1,670$1,295$997$343
23 years$2,557$1,996$1,542$1,179$895$290
24 years$2,424$1,870$1,426$1,076$805$246
25 years$2,302$1,755$1,320$982$724$208
26 years$2,190$1,649$1,225$898$652$176
27 years$2,086$1,552$1,137$822$588$149
28 years$1,990$1,463$1,057$753$531$126
29 years$1,901$1,380$984$691$479$107
30 years$1,818$1,303$916$634$433$91
31 years$1,740$1,232$854$582$391$77
32 years$1,667$1,166$797$535$354$65
33 years$1,599$1,104$744$492$320$55
34 years$1,535$1,046$695$453$290$47
35 years$1,475$992$650$417$263$40
36 years$1,418$942$608$384$238$34
37 years$1,365$895$569$354$216$29
38 years$1,314$850$533$326$196$24
39 years$1,266$808$499$301$177$21
40 years$1,221$769$468$277$161$18
41 years$1,178$732$439$256$146$15
42 years$1,137$697$412$236$132$13
43 years$1,098$664$386$218$120$11
44 years$1,061$633$363$201$109$9
45 years$1,026$604$341$186$99$8
46 years$992$576$320$172$90$7
47 years$960$550$300$159$82$6
48 years$929$525$282$147$74$5
49 years$900$501$265$135$67$4
50 years$872$479$250$125$61$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $893,000, adding $4,653 every year, while hoping to spend $32,946 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: 67/14/19 Blend
39$893,000$893,000$893,000$893,000
40$988,886$941,557$927,715$1,050,190
41$1,054,698$952,639$923,739$1,102,879
42$1,126,118$963,159$918,526$1,156,223
43$1,203,685$973,057$911,999$1,213,759
44$1,287,988$982,264$904,079$1,275,896
45$1,379,679$990,711$894,681$1,343,089
46$1,479,472$998,321$883,719$1,415,837
47$1,588,154$1,005,015$871,100$1,494,692
48$1,706,592$1,010,707$856,728$1,580,262
49$1,835,739$1,015,306$840,502$1,673,217
50$1,976,643$1,018,715$822,318$1,774,298
51$2,130,460$1,020,832$802,065$1,884,320
52$2,298,461$1,021,546$779,628$2,004,183
53$2,482,045$1,020,743$754,886$2,134,881
54$2,682,752$1,018,297$727,713$2,277,506
55$2,902,278$1,014,080$697,978$2,433,268
56$3,142,492$1,007,951$665,541$2,603,497
57$3,405,449$999,764$630,260$2,789,662
58$3,693,414$989,361$591,983$2,993,382
59$4,008,881$976,579$550,553$3,216,444
60$4,354,596$961,240$505,805$3,460,816
61$4,733,583$943,159$457,568$3,728,673
62$5,149,173$922,139$405,661$4,022,407
63$5,605,036$897,971$349,898$4,344,663
64$6,105,212$870,434$290,082$4,698,351
65$6,654,153$839,294$226,009$5,086,685
66$7,256,761$804,304$157,465$5,513,206
67$7,918,438$765,202$84,227$5,981,820
68$8,645,132$721,711$6,063$6,496,834
69$9,443,399$673,538$0$7,062,995
70$10,320,457$620,372$0$7,701,222
71$11,284,261$561,888$0$8,403,936
72$12,343,572$497,738$0$9,176,326
73$13,508,046$427,556$0$10,025,465
74$14,788,317$350,957$0$10,959,149
75$16,196,103$267,531$0$11,985,969
76$17,744,313$176,848$0$13,115,393
77$19,447,172$78,452$0$14,357,856
78$21,320,349$0$0$15,724,857
79$23,381,112$0$0$17,233,404
80$25,648,485$0$0$18,906,557
81$28,143,428$0$0$20,747,705
82$30,889,038$0$0$22,773,899
83$33,910,762$0$0$25,003,928
84$37,236,639$0$0$27,458,494
85$40,897,565$0$0$30,160,406
86$44,927,585$0$0$33,134,799
87$49,364,207$0$0$36,409,369
88$54,248,767$0$0$40,014,631
89$59,626,808$0$0$43,984,213
90$65,548,516$0$0$48,355,166
91$72,069,191$0$0$53,168,321
92$79,249,769$0$0$58,468,667
93$87,157,396$0$0$64,305,779
94$95,866,062$0$0$70,734,286
95$105,457,298$0$0$77,814,384
96$116,020,946$0$0$85,612,406
97$127,656,006$0$0$94,201,446
98$140,471,573$0$0$103,662,050
99$154,587,858$0$0$114,082,976
100$170,137,332$0$0$125,562,029