Can I retire at age 40 with 896,000?

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 $896,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.1%
1 years$73,991$73,332$72,689$72,061$71,448$69,665
2 years$36,629$35,947$35,286$34,645$34,023$32,237
3 years$24,177$23,492$22,832$22,197$21,586$19,854
4 years$17,952$17,269$16,616$15,992$15,395$13,730
5 years$14,218$13,539$12,895$12,283$11,703$10,110
6 years$11,729$11,056$10,421$9,823$9,260$7,740
7 years$9,953$9,285$8,660$8,076$7,531$6,085
8 years$8,621$7,959$7,344$6,775$6,248$4,874
9 years$7,585$6,929$6,326$5,771$5,261$3,960
10 years$6,757$6,108$5,515$4,974$4,483$3,251
11 years$6,080$5,437$4,855$4,329$3,856$2,692
12 years$5,517$4,880$4,309$3,797$3,341$2,244
13 years$5,040$4,410$3,850$3,352$2,914$1,881
14 years$4,632$4,009$3,459$2,976$2,554$1,583
15 years$4,279$3,662$3,123$2,654$2,249$1,337
16 years$3,970$3,360$2,831$2,376$1,987$1,133
17 years$3,697$3,094$2,576$2,135$1,762$963
18 years$3,456$2,859$2,352$1,924$1,567$819
19 years$3,239$2,650$2,153$1,739$1,397$699
20 years$3,045$2,463$1,976$1,575$1,247$597
21 years$2,870$2,294$1,818$1,429$1,116$510
22 years$2,710$2,141$1,675$1,299$1,001$437
23 years$2,565$2,003$1,547$1,183$898$374
24 years$2,432$1,876$1,430$1,079$807$321
25 years$2,310$1,761$1,325$986$726$275
26 years$2,197$1,655$1,229$901$654$236
27 years$2,093$1,557$1,141$825$590$203
28 years$1,997$1,468$1,061$756$532$174
29 years$1,907$1,384$987$693$481$150
30 years$1,824$1,308$919$636$434$129
31 years$1,746$1,236$857$584$393$111
32 years$1,673$1,170$800$537$355$95
33 years$1,605$1,108$747$494$321$82
34 years$1,540$1,050$698$454$291$71
35 years$1,480$996$652$418$264$61
36 years$1,423$945$610$385$239$52
37 years$1,369$898$571$355$216$45
38 years$1,319$853$535$327$196$39
39 years$1,271$811$501$302$178$33
40 years$1,225$772$470$278$161$29
41 years$1,182$735$440$257$146$25
42 years$1,141$700$413$237$133$21
43 years$1,102$667$388$219$121$18
44 years$1,065$635$364$202$109$16
45 years$1,029$606$342$186$99$14
46 years$995$578$321$172$90$12
47 years$963$552$301$159$82$10
48 years$932$527$283$147$74$9
49 years$903$503$266$136$68$7
50 years$875$480$250$126$61$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $896,000, adding $2,588 every year, while hoping to spend $29,106 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: 65/29/6 Blend
39$896,000$896,000$896,000$896,000
40$990,062$942,574$928,686$1,053,289
41$1,060,079$957,791$928,828$1,110,857
42$1,136,263$972,779$928,000$1,170,016
43$1,219,212$987,495$926,137$1,233,876
44$1,309,583$1,001,894$923,175$1,302,891
45$1,408,102$1,015,928$919,042$1,377,561
46$1,515,565$1,029,545$913,667$1,458,438
47$1,632,850$1,042,690$906,972$1,546,127
48$1,760,924$1,055,304$898,878$1,641,298
49$1,900,848$1,067,325$889,301$1,744,689
50$2,053,795$1,078,684$878,153$1,857,113
51$2,221,053$1,089,311$865,342$1,979,464
52$2,404,041$1,099,127$850,772$2,112,731
53$2,604,322$1,108,053$834,341$2,258,002
54$2,823,615$1,116,001$815,945$2,416,476
55$3,063,817$1,122,878$795,472$2,589,475
56$3,327,014$1,128,586$772,807$2,778,458
57$3,615,503$1,133,021$747,830$2,985,032
58$3,931,816$1,136,070$720,414$3,210,966
59$4,278,740$1,137,616$690,427$3,458,215
60$4,659,346$1,137,534$657,730$3,728,931
61$5,077,014$1,135,688$622,180$4,025,486
62$5,535,472$1,131,939$583,624$4,350,497
63$6,038,820$1,126,134$541,906$4,706,848
64$6,591,580$1,118,115$496,861$5,097,716
65$7,198,731$1,107,713$448,315$5,526,608
66$7,865,758$1,094,747$396,090$5,997,386
67$8,598,704$1,079,028$339,997$6,514,309
68$9,404,225$1,060,353$279,840$7,082,073
69$10,289,655$1,038,510$215,414$7,705,853
70$11,263,075$1,013,272$146,505$8,391,354
71$12,333,385$984,399$72,890$9,144,867
72$13,510,393$951,638$0$9,973,325
73$14,804,906$914,720$0$10,884,734
74$16,228,826$873,361$0$11,892,161
75$17,795,272$827,261$0$13,000,238
76$19,518,695$776,103$0$14,219,220
77$21,415,019$719,549$0$15,560,412
78$23,501,788$657,244$0$17,036,272
79$25,798,335$588,813$0$18,660,534
80$28,325,959$513,859$0$20,448,335
81$31,108,132$431,963$0$22,416,358
82$34,170,713$342,681$0$24,582,994
83$37,542,198$245,545$0$26,968,510
84$41,253,986$140,060$0$29,595,248
85$45,340,674$25,705$0$32,487,831
86$49,840,387$0$0$35,673,399
87$54,795,131$0$0$39,213,162
88$60,251,197$0$0$43,120,190
89$66,259,591$0$0$47,422,813
90$72,876,518$0$0$52,161,292
91$80,163,912$0$0$57,379,987
92$88,190,022$0$0$63,127,785
93$97,030,051$0$0$69,458,552
94$106,766,869$0$0$76,431,646
95$117,491,795$0$0$84,112,478
96$129,305,456$0$0$92,573,127
97$142,318,740$0$0$101,893,018
98$156,653,839$0$0$112,159,678
99$172,445,404$0$0$123,469,555
100$189,841,813$0$0$135,928,931