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%13.5%
1 years$73,908$73,250$72,608$71,981$71,369$70,331
2 years$36,588$35,907$35,246$34,606$33,985$32,942
3 years$24,150$23,466$22,807$22,172$21,561$20,545
4 years$17,932$17,250$16,597$15,974$15,378$14,396
5 years$14,202$13,524$12,880$12,270$11,690$10,746
6 years$11,716$11,043$10,409$9,812$9,250$8,344
7 years$9,942$9,274$8,650$8,067$7,523$6,656
8 years$8,611$7,950$7,336$6,767$6,241$5,413
9 years$7,577$6,922$6,318$5,764$5,256$4,466
10 years$6,750$6,101$5,509$4,969$4,478$3,727
11 years$6,074$5,431$4,850$4,324$3,851$3,137
12 years$5,511$4,875$4,304$3,793$3,337$2,659
13 years$5,035$4,406$3,845$3,349$2,910$2,267
14 years$4,627$4,004$3,455$2,973$2,551$1,943
15 years$4,274$3,658$3,119$2,651$2,246$1,671
16 years$3,965$3,356$2,828$2,374$1,985$1,442
17 years$3,693$3,091$2,574$2,133$1,760$1,248
18 years$3,452$2,856$2,349$1,922$1,565$1,083
19 years$3,236$2,647$2,151$1,737$1,395$941
20 years$3,042$2,460$1,974$1,573$1,246$819
21 years$2,867$2,291$1,816$1,428$1,115$715
22 years$2,707$2,139$1,673$1,298$1,000$624
23 years$2,562$2,000$1,545$1,182$897$546
24 years$2,429$1,874$1,429$1,078$806$477
25 years$2,307$1,759$1,323$985$726$418
26 years$2,195$1,653$1,227$900$654$366
27 years$2,091$1,556$1,140$824$589$321
28 years$1,995$1,466$1,060$755$532$282
29 years$1,905$1,383$986$692$480$248
30 years$1,822$1,306$918$635$434$217
31 years$1,744$1,235$856$584$392$191
32 years$1,671$1,168$799$536$355$168
33 years$1,603$1,106$746$493$321$148
34 years$1,539$1,049$697$454$291$130
35 years$1,478$995$652$418$263$114
36 years$1,421$944$610$385$239$101
37 years$1,368$897$571$354$216$88
38 years$1,317$852$534$327$196$78
39 years$1,269$810$501$301$178$69
40 years$1,224$771$469$278$161$60
41 years$1,180$734$440$256$146$53
42 years$1,139$699$413$237$133$47
43 years$1,100$666$387$218$120$41
44 years$1,063$635$363$202$109$36
45 years$1,028$605$341$186$99$32
46 years$994$577$321$172$90$28
47 years$962$551$301$159$82$25
48 years$931$526$283$147$74$22
49 years$902$502$266$136$68$19
50 years$874$480$250$125$61$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $895,000, adding $6,642 every year, while hoping to spend $29,936 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: 73/12/15 Blend
39$895,000$895,000$895,000$895,000
40$993,141$945,706$931,834$1,061,861
41$1,062,590$960,194$931,198$1,122,758
42$1,138,119$974,389$929,539$1,185,134
43$1,220,317$988,244$926,788$1,252,665
44$1,309,832$1,001,710$922,878$1,325,856
45$1,407,377$1,014,735$917,736$1,405,263
46$1,513,734$1,027,263$911,286$1,491,498
47$1,629,769$1,039,233$903,448$1,585,235
48$1,756,431$1,050,581$894,138$1,687,218
49$1,894,766$1,061,238$883,271$1,798,266
50$2,045,925$1,071,131$870,753$1,919,282
51$2,211,176$1,080,183$856,490$2,051,261
52$2,391,914$1,088,311$840,381$2,195,300
53$2,589,676$1,095,425$822,321$2,352,608
54$2,806,155$1,101,432$802,200$2,524,518
55$3,043,212$1,106,232$779,904$2,712,497
56$3,302,901$1,109,719$755,311$2,918,165
57$3,587,480$1,111,778$728,298$3,143,305
58$3,899,439$1,112,291$698,731$3,389,885
59$4,241,517$1,111,128$666,474$3,660,071
60$4,616,734$1,108,156$631,383$3,956,254
61$5,028,414$1,103,229$593,308$4,281,066
62$5,480,220$1,096,195$552,091$4,637,410
63$5,976,186$1,086,892$507,569$5,028,486
64$6,520,755$1,075,148$459,571$5,457,820
65$7,118,823$1,060,781$407,918$5,929,300
66$7,775,781$1,043,598$352,422$6,447,211
67$8,497,571$1,023,394$292,888$7,016,276
68$9,290,736$999,953$229,113$7,641,700
69$10,162,486$973,046$160,883$8,329,221
70$11,120,764$942,429$87,976$9,085,165
71$12,174,320$907,846$10,161$9,916,502
72$13,332,794$869,024$0$10,830,917
73$14,606,808$825,675$0$11,848,543
74$16,008,065$777,496$0$12,969,545
75$17,549,458$724,164$0$14,202,626
76$19,245,194$665,339$0$15,559,172
77$21,110,923$600,660$0$17,051,728
78$23,163,893$529,748$0$18,694,120
79$25,423,104$452,200$0$20,501,583
80$27,909,495$367,592$0$22,490,908
81$30,646,135$275,475$0$24,680,595
82$33,658,443$175,375$0$27,091,034
83$36,974,427$66,792$0$29,744,693
84$40,624,952$0$0$32,666,334
85$44,644,022$0$0$35,889,951
86$49,069,110$0$0$39,448,989
87$53,941,506$0$0$43,367,845
88$59,306,709$0$0$47,683,119
89$65,214,851$0$0$52,435,140
90$71,721,178$0$0$57,668,351
91$78,886,565$0$0$63,431,721
92$86,778,090$0$0$69,779,212
93$95,469,672$0$0$76,770,288
94$105,042,761$0$0$84,470,472
95$115,587,114$0$0$92,951,967
96$127,201,636$0$0$102,294,338
97$139,995,315$0$0$112,585,261
98$154,088,252$0$0$123,921,350
99$169,612,790$0$0$136,409,071
100$186,714,769$0$0$150,165,743