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%16.2%
1 years$73,908$73,250$72,608$71,981$71,369$69,559
2 years$36,588$35,907$35,246$34,606$33,985$32,173
3 years$24,150$23,466$22,807$22,172$21,561$19,805
4 years$17,932$17,250$16,597$15,974$15,378$13,689
5 years$14,202$13,524$12,880$12,270$11,690$10,075
6 years$11,716$11,043$10,409$9,812$9,250$7,709
7 years$9,942$9,274$8,650$8,067$7,523$6,057
8 years$8,611$7,950$7,336$6,767$6,241$4,849
9 years$7,577$6,922$6,318$5,764$5,256$3,937
10 years$6,750$6,101$5,509$4,969$4,478$3,231
11 years$6,074$5,431$4,850$4,324$3,851$2,673
12 years$5,511$4,875$4,304$3,793$3,337$2,227
13 years$5,035$4,406$3,845$3,349$2,910$1,865
14 years$4,627$4,004$3,455$2,973$2,551$1,569
15 years$4,274$3,658$3,119$2,651$2,246$1,324
16 years$3,965$3,356$2,828$2,374$1,985$1,121
17 years$3,693$3,091$2,574$2,133$1,760$952
18 years$3,452$2,856$2,349$1,922$1,565$810
19 years$3,236$2,647$2,151$1,737$1,395$690
20 years$3,042$2,460$1,974$1,573$1,246$589
21 years$2,867$2,291$1,816$1,428$1,115$503
22 years$2,707$2,139$1,673$1,298$1,000$430
23 years$2,562$2,000$1,545$1,182$897$368
24 years$2,429$1,874$1,429$1,078$806$315
25 years$2,307$1,759$1,323$985$726$270
26 years$2,195$1,653$1,227$900$654$232
27 years$2,091$1,556$1,140$824$589$199
28 years$1,995$1,466$1,060$755$532$171
29 years$1,905$1,383$986$692$480$147
30 years$1,822$1,306$918$635$434$126
31 years$1,744$1,235$856$584$392$108
32 years$1,671$1,168$799$536$355$93
33 years$1,603$1,106$746$493$321$80
34 years$1,539$1,049$697$454$291$69
35 years$1,478$995$652$418$263$59
36 years$1,421$944$610$385$239$51
37 years$1,368$897$571$354$216$44
38 years$1,317$852$534$327$196$38
39 years$1,269$810$501$301$178$32
40 years$1,224$771$469$278$161$28
41 years$1,180$734$440$256$146$24
42 years$1,139$699$413$237$133$21
43 years$1,100$666$387$218$120$18
44 years$1,063$635$363$202$109$15
45 years$1,028$605$341$186$99$13
46 years$994$577$321$172$90$11
47 years$962$551$301$159$82$10
48 years$931$526$283$147$74$8
49 years$902$502$266$136$68$7
50 years$874$480$250$125$61$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $895,000, adding $2,224 every year, while hoping to spend $48,035 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: 76/16/8 Blend
39$895,000$895,000$895,000$895,000
40$988,584$941,149$927,277$1,062,387
41$1,038,311$936,156$907,231$1,106,240
42$1,091,500$929,309$884,905$1,147,933
43$1,148,453$920,466$860,170$1,192,250
44$1,209,503$909,477$832,893$1,239,431
45$1,275,013$896,182$802,936$1,289,745
46$1,345,382$880,413$770,152$1,343,484
47$1,421,050$861,991$734,390$1,400,973
48$1,502,496$840,727$695,491$1,462,572
49$1,590,249$816,422$653,289$1,528,674
50$1,684,890$788,862$607,610$1,599,717
51$1,787,056$757,823$558,272$1,676,181
52$1,897,447$723,068$505,086$1,758,599
53$2,016,834$684,346$447,853$1,847,556
54$2,146,062$641,390$386,368$1,943,700
55$2,286,063$593,921$320,413$2,047,745
56$2,437,858$541,639$249,764$2,160,479
57$2,602,573$484,233$174,184$2,282,773
58$2,781,444$421,369$93,428$2,415,586
59$2,975,833$352,698$7,239$2,559,978
60$3,187,235$277,848$0$2,717,120
61$3,417,299$196,428$0$2,895,534
62$3,667,835$108,025$0$3,090,542
63$3,940,839$12,202$0$3,303,121
64$4,238,503$0$0$3,535,033
65$4,563,244$0$0$3,804,328
66$4,917,719$0$0$4,100,657
67$5,304,856$0$0$4,424,323
68$5,727,874$0$0$4,778,024
69$6,190,320$0$0$5,164,728
70$6,696,100$0$0$5,587,705
71$7,249,512$0$0$6,050,555
72$7,855,289$0$0$6,557,243
73$8,518,646$0$0$7,112,133
74$9,245,321$0$0$7,720,032
75$10,041,637$0$0$8,386,235
76$10,914,556$0$0$9,116,571
77$11,871,745$0$0$9,917,462
78$12,921,652$0$0$10,795,981
79$14,073,576$0$0$11,759,916
80$15,337,766$0$0$12,817,850
81$16,725,506$0$0$13,979,234
82$18,249,230$0$0$15,254,478
83$19,922,631$0$0$16,655,052
84$21,760,797$0$0$18,193,591
85$23,780,346$0$0$19,884,011
86$25,999,588$0$0$21,741,647
87$28,438,692$0$0$23,783,389
88$31,119,881$0$0$26,027,849
89$34,067,634$0$0$28,495,527
90$37,308,924$0$0$31,209,013
91$40,873,467$0$0$34,193,194
92$44,794,003$0$0$37,475,488
93$49,106,604$0$0$41,086,105
94$53,851,015$0$0$45,058,332
95$59,071,024$0$0$49,428,841
96$64,814,882$0$0$54,238,040
97$71,135,749$0$0$59,530,452
98$78,092,202$0$0$65,355,135
99$85,748,782$0$0$71,766,142
100$94,176,605$0$0$78,823,032