Can I retire at age 40 with 895,000?

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 $895,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$73,908$73,250$72,608$71,981$71,369$69,928
2 years$36,588$35,907$35,246$34,606$33,985$32,540
3 years$24,150$23,466$22,807$22,172$21,561$20,157
4 years$17,932$17,250$16,597$15,974$15,378$14,024
5 years$14,202$13,524$12,880$12,270$11,690$10,392
6 years$11,716$11,043$10,409$9,812$9,250$8,009
7 years$9,942$9,274$8,650$8,067$7,523$6,338
8 years$8,611$7,950$7,336$6,767$6,241$5,113
9 years$7,577$6,922$6,318$5,764$5,256$4,184
10 years$6,750$6,101$5,509$4,969$4,478$3,461
11 years$6,074$5,431$4,850$4,324$3,851$2,888
12 years$5,511$4,875$4,304$3,793$3,337$2,426
13 years$5,035$4,406$3,845$3,349$2,910$2,050
14 years$4,627$4,004$3,455$2,973$2,551$1,739
15 years$4,274$3,658$3,119$2,651$2,246$1,482
16 years$3,965$3,356$2,828$2,374$1,985$1,266
17 years$3,693$3,091$2,574$2,133$1,760$1,085
18 years$3,452$2,856$2,349$1,922$1,565$932
19 years$3,236$2,647$2,151$1,737$1,395$802
20 years$3,042$2,460$1,974$1,573$1,246$691
21 years$2,867$2,291$1,816$1,428$1,115$596
22 years$2,707$2,139$1,673$1,298$1,000$515
23 years$2,562$2,000$1,545$1,182$897$445
24 years$2,429$1,874$1,429$1,078$806$385
25 years$2,307$1,759$1,323$985$726$334
26 years$2,195$1,653$1,227$900$654$289
27 years$2,091$1,556$1,140$824$589$251
28 years$1,995$1,466$1,060$755$532$218
29 years$1,905$1,383$986$692$480$189
30 years$1,822$1,306$918$635$434$164
31 years$1,744$1,235$856$584$392$142
32 years$1,671$1,168$799$536$355$124
33 years$1,603$1,106$746$493$321$108
34 years$1,539$1,049$697$454$291$94
35 years$1,478$995$652$418$263$81
36 years$1,421$944$610$385$239$71
37 years$1,368$897$571$354$216$61
38 years$1,317$852$534$327$196$53
39 years$1,269$810$501$301$178$46
40 years$1,224$771$469$278$161$40
41 years$1,180$734$440$256$146$35
42 years$1,139$699$413$237$133$31
43 years$1,100$666$387$218$120$27
44 years$1,063$635$363$202$109$23
45 years$1,028$605$341$186$99$20
46 years$994$577$321$172$90$18
47 years$962$551$301$159$82$15
48 years$931$526$283$147$74$13
49 years$902$502$266$136$68$12
50 years$874$480$250$125$61$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $895,000, adding $2,822 every year, while hoping to spend $23,675 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: 62/26/12 Blend
39$895,000$895,000$895,000$895,000
40$989,201$941,766$927,893$1,047,563
41$1,064,909$962,722$933,788$1,107,985
42$1,147,547$983,912$939,086$1,170,946
43$1,237,794$1,005,322$943,744$1,239,089
44$1,336,403$1,026,937$947,713$1,312,918
45$1,444,199$1,048,739$950,944$1,392,985
46$1,562,092$1,070,712$953,385$1,479,902
47$1,691,084$1,092,835$954,982$1,574,340
48$1,832,276$1,115,086$955,676$1,677,040
49$1,986,885$1,137,442$955,407$1,788,817
50$2,156,247$1,159,876$954,113$1,910,572
51$2,341,834$1,182,360$951,726$2,043,293
52$2,545,270$1,204,864$948,177$2,188,072
53$2,768,340$1,227,355$943,394$2,346,113
54$3,013,011$1,249,797$937,299$2,518,739
55$3,281,452$1,272,150$929,812$2,707,412
56$3,576,049$1,294,374$920,849$2,913,740
57$3,899,431$1,316,424$910,323$3,139,497
58$4,254,495$1,338,251$898,140$3,386,637
59$4,644,431$1,359,802$884,206$3,657,315
60$5,072,754$1,381,023$868,417$3,953,902
61$5,543,335$1,401,854$850,670$4,279,017
62$6,060,440$1,422,230$830,852$4,635,542
63$6,628,768$1,442,082$808,849$5,026,653
64$7,253,496$1,461,337$784,538$5,455,854
65$7,940,326$1,479,917$757,794$5,927,005
66$8,695,543$1,497,736$728,484$6,444,358
67$9,526,069$1,514,706$696,469$7,012,602
68$10,439,531$1,530,730$661,604$7,636,904
69$11,444,334$1,545,706$623,738$8,322,961
70$12,549,735$1,559,525$582,712$9,077,047
71$13,765,937$1,572,070$538,362$9,906,082
72$15,104,179$1,583,218$490,514$10,817,690
73$16,576,847$1,592,838$438,987$11,820,275
74$18,197,586$1,600,787$383,594$12,923,098
75$19,981,432$1,606,919$324,137$14,136,369
76$21,944,953$1,611,073$260,411$15,471,337
77$24,106,404$1,613,081$192,200$16,940,402
78$26,485,899$1,612,764$119,281$18,557,233
79$29,105,603$1,609,932$41,419$20,336,891
80$31,989,939$1,604,382$0$22,295,977
81$35,165,817$1,595,901$0$24,458,125
82$38,662,890$1,584,261$0$26,844,170
83$42,513,836$1,569,220$0$29,471,063
84$46,754,659$1,550,523$0$32,363,335
85$51,425,034$1,527,899$0$35,548,019
86$56,568,683$1,501,061$0$39,054,909
87$62,233,779$1,469,704$0$42,916,836
88$68,473,411$1,433,506$0$47,169,984
89$75,346,076$1,392,125$0$51,854,228
90$82,916,237$1,345,201$0$57,013,512
91$91,254,928$1,292,350$0$62,696,265
92$100,440,424$1,233,169$0$68,955,857
93$110,558,982$1,167,228$0$75,851,106
94$121,705,652$1,094,077$0$83,446,831
95$133,985,177$1,013,234$0$91,814,463
96$147,512,978$924,196$0$101,032,727
97$162,416,246$826,426$0$111,188,378
98$178,835,141$719,358$0$122,377,024
99$196,924,115$602,397$0$134,704,030
100$216,853,370$474,909$0$148,285,512