Can I retire at age 40 with 897,000?

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 $897,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$74,073$73,414$72,770$72,142$71,528$71,167
2 years$36,670$35,987$35,325$34,683$34,061$33,696
3 years$24,204$23,518$22,858$22,222$21,610$21,253
4 years$17,972$17,288$16,635$16,010$15,412$15,066
5 years$14,234$13,554$12,909$12,297$11,716$11,382
6 years$11,743$11,068$10,432$9,834$9,271$8,949
7 years$9,964$9,295$8,669$8,085$7,539$7,230
8 years$8,630$7,967$7,352$6,782$6,255$5,957
9 years$7,594$6,937$6,333$5,777$5,267$4,982
10 years$6,765$6,115$5,521$4,980$4,488$4,215
11 years$6,087$5,444$4,861$4,334$3,860$3,599
12 years$5,523$4,886$4,314$3,802$3,345$3,096
13 years$5,046$4,415$3,854$3,356$2,917$2,679
14 years$4,637$4,013$3,463$2,979$2,557$2,330
15 years$4,283$3,666$3,126$2,657$2,251$2,036
16 years$3,974$3,364$2,835$2,379$1,990$1,785
17 years$3,701$3,098$2,579$2,138$1,764$1,570
18 years$3,459$2,863$2,355$1,926$1,569$1,384
19 years$3,243$2,653$2,156$1,741$1,398$1,223
20 years$3,049$2,465$1,978$1,576$1,249$1,083
21 years$2,873$2,296$1,820$1,431$1,118$961
22 years$2,713$2,144$1,677$1,301$1,002$854
23 years$2,568$2,005$1,548$1,185$899$760
24 years$2,435$1,878$1,432$1,081$808$677
25 years$2,313$1,763$1,326$987$727$603
26 years$2,200$1,657$1,230$902$655$538
27 years$2,096$1,559$1,142$826$591$481
28 years$1,999$1,469$1,062$757$533$430
29 years$1,909$1,386$988$694$481$385
30 years$1,826$1,309$920$637$435$344
31 years$1,748$1,237$858$585$393$308
32 years$1,675$1,171$801$538$356$276
33 years$1,606$1,109$748$494$322$247
34 years$1,542$1,051$698$455$291$222
35 years$1,482$997$653$419$264$199
36 years$1,425$946$611$386$239$178
37 years$1,371$899$572$355$217$160
38 years$1,320$854$535$327$196$144
39 years$1,272$812$502$302$178$129
40 years$1,226$773$470$278$162$116
41 years$1,183$735$441$257$147$104
42 years$1,142$700$414$237$133$93
43 years$1,103$667$388$219$121$84
44 years$1,066$636$364$202$110$75
45 years$1,030$607$342$187$99$68
46 years$997$579$321$172$90$61
47 years$964$552$302$159$82$55
48 years$933$527$284$147$74$49
49 years$904$503$267$136$68$44
50 years$876$481$251$126$61$40

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $897,000, adding $2,816 every year, while hoping to spend $56,245 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: 57/29/14 Blend
39$897,000$897,000$897,000$897,000
40$991,399$943,858$929,954$1,044,199
41$1,032,677$930,262$901,263$1,066,675
42$1,076,281$914,116$869,726$1,084,735
43$1,122,388$895,234$835,188$1,103,105
44$1,171,192$873,421$797,488$1,121,824
45$1,222,905$848,470$756,455$1,140,939
46$1,277,759$820,162$711,914$1,160,503
47$1,336,006$788,267$663,679$1,180,579
48$1,397,924$752,537$611,558$1,201,236
49$1,463,816$712,715$555,348$1,222,558
50$1,534,013$668,525$494,840$1,244,640
51$1,608,877$619,679$429,813$1,267,589
52$1,688,808$565,868$360,036$1,291,529
53$1,774,239$506,768$285,271$1,316,600
54$1,865,650$442,038$205,266$1,342,962
55$1,963,563$371,315$119,759$1,370,796
56$2,068,554$294,217$28,478$1,400,307
57$2,181,252$210,339$0$1,431,728
58$2,302,348$119,254$0$1,475,616
59$2,432,603$20,513$0$1,527,180
60$2,572,849$0$0$1,582,540
61$2,724,003$0$0$1,669,675
62$2,887,068$0$0$1,770,800
63$3,063,151$0$0$1,880,060
64$3,253,464$0$0$1,998,217
65$3,459,343$0$0$2,126,107
66$3,682,253$0$0$2,264,650
67$3,923,806$0$0$2,414,857
68$4,185,776$0$0$2,577,841
69$4,470,112$0$0$2,754,824
70$4,778,957$0$0$2,947,151
71$5,114,671$0$0$3,156,304
72$5,479,848$0$0$3,383,908
73$5,877,343$0$0$3,631,757
74$6,310,296$0$0$3,901,821
75$6,782,165$0$0$4,196,270
76$7,296,753$0$0$4,517,492
77$7,858,248$0$0$4,868,113
78$8,471,257$0$0$5,251,028
79$9,140,855$0$0$5,669,421
80$9,872,627$0$0$6,126,798
81$10,672,720$0$0$6,627,019
82$11,547,904$0$0$7,174,334
83$12,505,635$0$0$7,773,422
84$13,554,119$0$0$8,429,438
85$14,702,395$0$0$9,148,056
86$15,960,416$0$0$9,935,526
87$17,339,145$0$0$10,798,730
88$18,850,653$0$0$11,745,250
89$20,508,237$0$0$12,783,433
90$22,326,541$0$0$13,922,476
91$24,321,695$0$0$15,172,508
92$26,511,468$0$0$16,544,687
93$28,915,429$0$0$18,051,302
94$31,555,138$0$0$19,705,893
95$34,454,343$0$0$21,523,372
96$37,639,206$0$0$23,520,170
97$41,138,545$0$0$25,714,386
98$44,984,112$0$0$28,125,959
99$49,210,883$0$0$30,776,857
100$53,857,395$0$0$33,691,281