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%15.2%
1 years$73,826$73,168$72,527$71,900$71,289$69,764
2 years$36,547$35,867$35,207$34,567$33,947$32,418
3 years$24,123$23,439$22,781$22,148$21,537$20,052
4 years$17,912$17,230$16,579$15,956$15,361$13,931
5 years$14,186$13,509$12,866$12,256$11,677$10,306
6 years$11,703$11,031$10,398$9,801$9,240$7,929
7 years$9,930$9,264$8,640$8,058$7,514$6,265
8 years$8,601$7,941$7,328$6,760$6,234$5,045
9 years$7,568$6,914$6,311$5,758$5,250$4,121
10 years$6,742$6,094$5,502$4,963$4,473$3,403
11 years$6,067$5,425$4,844$4,320$3,847$2,834
12 years$5,504$4,869$4,299$3,789$3,334$2,376
13 years$5,029$4,401$3,841$3,345$2,907$2,003
14 years$4,622$4,000$3,451$2,969$2,548$1,697
15 years$4,269$3,654$3,116$2,648$2,244$1,442
16 years$3,961$3,353$2,825$2,371$1,983$1,230
17 years$3,689$3,088$2,571$2,130$1,758$1,052
18 years$3,448$2,853$2,347$1,920$1,563$901
19 years$3,232$2,644$2,148$1,735$1,393$773
20 years$3,038$2,457$1,972$1,571$1,245$665
21 years$2,863$2,289$1,813$1,426$1,114$573
22 years$2,704$2,136$1,671$1,297$998$493
23 years$2,559$1,998$1,543$1,181$896$426
24 years$2,427$1,872$1,427$1,077$806$368
25 years$2,305$1,757$1,322$984$725$318
26 years$2,193$1,651$1,226$899$653$275
27 years$2,089$1,554$1,138$823$589$238
28 years$1,993$1,464$1,058$754$531$206
29 years$1,903$1,381$985$692$480$178
30 years$1,820$1,305$917$635$433$154
31 years$1,742$1,233$855$583$392$134
32 years$1,669$1,167$798$536$354$116
33 years$1,601$1,105$745$493$321$100
34 years$1,537$1,047$696$453$290$87
35 years$1,477$993$651$417$263$75
36 years$1,420$943$609$384$238$65
37 years$1,366$896$570$354$216$57
38 years$1,316$851$534$326$196$49
39 years$1,268$809$500$301$178$43
40 years$1,222$770$469$278$161$37
41 years$1,179$733$439$256$146$32
42 years$1,138$698$412$236$133$28
43 years$1,099$665$387$218$120$24
44 years$1,062$634$363$201$109$21
45 years$1,027$605$341$186$99$18
46 years$993$577$320$172$90$16
47 years$961$550$301$159$82$14
48 years$930$525$283$147$74$12
49 years$901$502$266$136$67$10
50 years$873$479$250$125$61$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $894,000, adding $5,879 every year, while hoping to spend $54,799 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: 36/48/16 Blend
39$894,000$894,000$894,000$894,000
40$991,252$943,870$930,013$1,021,896
41$1,034,054$931,814$902,863$1,032,539
42$1,079,385$917,331$872,966$1,038,407
43$1,127,446$900,243$840,174$1,043,571
44$1,178,454$880,364$804,329$1,047,999
45$1,232,650$857,495$765,267$1,051,657
46$1,290,294$831,426$722,818$1,054,517
47$1,351,674$801,936$676,802$1,056,550
48$1,417,102$768,788$627,031$1,057,731
49$1,486,921$731,733$573,312$1,058,039
50$1,561,508$690,510$515,439$1,057,457
51$1,641,276$644,838$453,200$1,055,973
52$1,726,675$594,424$386,371$1,053,581
53$1,818,201$538,956$314,720$1,050,284
54$1,916,398$478,106$238,004$1,046,090
55$2,021,863$411,525$155,969$1,041,020
56$2,135,250$338,847$68,351$1,035,106
57$2,257,278$259,683$0$1,028,390
58$2,388,736$173,623$0$1,025,227
59$2,530,491$80,235$0$1,034,131
60$2,683,495$0$0$1,043,567
61$2,848,795$0$0$1,064,769
62$3,027,541$0$0$1,133,620
63$3,220,996$0$0$1,208,242
64$3,430,549$0$0$1,289,184
65$3,657,729$0$0$1,377,050
66$3,904,215$0$0$1,472,503
67$4,171,854$0$0$1,576,276
68$4,462,680$0$0$1,689,170
69$4,778,926$0$0$1,812,071
70$5,123,052$0$0$1,945,953
71$5,497,765$0$0$2,091,885
72$5,906,041$0$0$2,251,047
73$6,351,158$0$0$2,424,736
74$6,836,722$0$0$2,614,380
75$7,366,703$0$0$2,821,550
76$7,945,469$0$0$3,047,978
77$8,577,832$0$0$3,295,568
78$9,269,086$0$0$3,566,419
79$10,025,063$0$0$3,862,839
80$10,852,180$0$0$4,187,372
81$11,757,507$0$0$4,542,820
82$12,748,827$0$0$4,932,265
83$13,834,712$0$0$5,359,106
84$15,024,600$0$0$5,827,082
85$16,328,887$0$0$6,340,314
86$17,759,023$0$0$6,903,341
87$19,327,617$0$0$7,521,160
88$21,048,558$0$0$8,199,277
89$22,937,146$0$0$8,943,758
90$25,010,231$0$0$9,761,282
91$27,286,376$0$0$10,659,210
92$29,786,028$0$0$11,645,648
93$32,531,713$0$0$12,729,528
94$35,548,244$0$0$13,920,688
95$38,862,958$0$0$15,229,967
96$42,505,969$0$0$16,669,309
97$46,510,456$0$0$18,251,869
98$50,912,970$0$0$19,992,142
99$55,753,782$0$0$21,906,098
100$61,077,258$0$0$24,011,332