Can I retire at age 40 with 894,000?

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 $894,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.5%
1 years$73,826$73,168$72,527$71,900$71,289$68,569
2 years$36,547$35,867$35,207$34,567$33,947$31,239
3 years$24,123$23,439$22,781$22,148$21,537$18,926
4 years$17,912$17,230$16,579$15,956$15,361$12,866
5 years$14,186$13,509$12,866$12,256$11,677$9,305
6 years$11,703$11,031$10,398$9,801$9,240$6,993
7 years$9,930$9,264$8,640$8,058$7,514$5,392
8 years$8,601$7,941$7,328$6,760$6,234$4,233
9 years$7,568$6,914$6,311$5,758$5,250$3,368
10 years$6,742$6,094$5,502$4,963$4,473$2,707
11 years$6,067$5,425$4,844$4,320$3,847$2,193
12 years$5,504$4,869$4,299$3,789$3,334$1,787
13 years$5,029$4,401$3,841$3,345$2,907$1,464
14 years$4,622$4,000$3,451$2,969$2,548$1,203
15 years$4,269$3,654$3,116$2,648$2,244$993
16 years$3,961$3,353$2,825$2,371$1,983$821
17 years$3,689$3,088$2,571$2,130$1,758$680
18 years$3,448$2,853$2,347$1,920$1,563$564
19 years$3,232$2,644$2,148$1,735$1,393$469
20 years$3,038$2,457$1,972$1,571$1,245$390
21 years$2,863$2,289$1,813$1,426$1,114$325
22 years$2,704$2,136$1,671$1,297$998$271
23 years$2,559$1,998$1,543$1,181$896$226
24 years$2,427$1,872$1,427$1,077$806$189
25 years$2,305$1,757$1,322$984$725$157
26 years$2,193$1,651$1,226$899$653$131
27 years$2,089$1,554$1,138$823$589$110
28 years$1,993$1,464$1,058$754$531$92
29 years$1,903$1,381$985$692$480$77
30 years$1,820$1,305$917$635$433$64
31 years$1,742$1,233$855$583$392$54
32 years$1,669$1,167$798$536$354$45
33 years$1,601$1,105$745$493$321$38
34 years$1,537$1,047$696$453$290$31
35 years$1,477$993$651$417$263$26
36 years$1,420$943$609$384$238$22
37 years$1,366$896$570$354$216$18
38 years$1,316$851$534$326$196$15
39 years$1,268$809$500$301$178$13
40 years$1,222$770$469$278$161$11
41 years$1,179$733$439$256$146$9
42 years$1,138$698$412$236$133$8
43 years$1,099$665$387$218$120$6
44 years$1,062$634$363$201$109$5
45 years$1,027$605$341$186$99$4
46 years$993$577$320$172$90$4
47 years$961$550$301$159$82$3
48 years$930$525$283$147$74$3
49 years$901$502$266$136$67$2
50 years$873$479$250$125$61$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $894,000, adding $3,634 every year, while hoping to spend $27,555 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: 89/6/5 Blend
39$894,000$894,000$894,000$894,000
40$988,936$941,554$927,697$1,076,772
41$1,060,490$958,372$929,457$1,151,254
42$1,138,418$975,091$930,352$1,228,870
43$1,223,342$991,676$930,324$1,313,296
44$1,315,946$1,008,091$929,313$1,405,194
45$1,416,982$1,024,297$927,254$1,505,299
46$1,527,278$1,040,251$924,081$1,614,415
47$1,647,745$1,055,909$919,723$1,733,430
48$1,779,388$1,071,221$914,107$1,863,323
49$1,923,311$1,086,137$907,155$2,005,168
50$2,080,731$1,100,599$898,787$2,160,153
51$2,252,987$1,114,550$888,917$2,329,583
52$2,441,553$1,127,924$877,458$2,514,895
53$2,648,054$1,140,655$864,315$2,717,673
54$2,874,279$1,152,670$849,393$2,939,662
55$3,122,196$1,163,892$832,588$3,182,784
56$3,393,975$1,174,237$813,795$3,449,155
57$3,692,005$1,183,619$792,901$3,741,108
58$4,018,916$1,191,944$769,791$4,061,211
59$4,377,609$1,199,112$744,342$4,412,295
60$4,771,274$1,205,018$716,426$4,797,477
61$5,203,428$1,209,548$685,911$5,220,192
62$5,677,944$1,212,582$652,655$5,684,224
63$6,199,090$1,213,994$616,515$6,193,744
64$6,771,565$1,213,648$577,336$6,753,344
65$7,400,549$1,211,401$534,961$7,368,087
66$8,091,744$1,207,099$489,222$8,043,549
67$8,851,436$1,200,581$439,945$8,785,875
68$9,686,549$1,191,675$386,949$9,601,834
69$10,604,709$1,180,200$330,044$10,498,888
70$11,614,320$1,165,961$269,031$11,485,256
71$12,724,642$1,148,754$203,705$12,569,995
72$13,945,875$1,128,362$133,849$13,763,086
73$15,289,259$1,104,556$59,237$15,075,526
74$16,767,175$1,077,092$0$16,519,433
75$18,393,270$1,045,712$0$18,109,248
76$20,182,575$1,010,143$0$19,862,040
77$22,151,655$970,097$0$21,790,873
78$24,318,760$925,269$0$23,913,628
79$26,704,001$875,334$0$26,250,008
80$29,329,534$819,951$0$28,821,725
81$32,219,777$758,759$0$31,652,701
82$35,401,632$691,375$0$34,769,299
83$38,904,742$617,396$0$38,200,567
84$42,761,771$536,395$0$41,978,515
85$47,008,713$447,919$0$46,138,415
86$51,685,229$351,494$0$50,719,137
87$56,835,020$246,615$0$55,763,511
88$62,506,243$132,751$0$61,318,735
89$68,751,964$9,340$0$67,436,819
90$75,630,656$0$0$74,175,076
91$83,206,754$0$0$81,604,863
92$91,551,259$0$0$89,788,904
93$100,742,413$0$0$98,803,317
94$110,866,431$0$0$108,732,662
95$122,018,320$0$0$119,670,120
96$134,302,773$0$0$131,718,371
97$147,835,155$0$0$144,990,563
98$162,742,595$0$0$159,611,382
99$179,165,185$0$0$175,718,225
100$197,257,298$0$0$193,462,500