Can I retire at age 40 with 898,000?

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 $898,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$74,156$73,495$72,851$72,222$71,608$70,364
2 years$36,711$36,027$35,365$34,722$34,099$32,849
3 years$24,231$23,544$22,883$22,247$21,634$20,418
4 years$17,992$17,307$16,653$16,028$15,429$14,257
5 years$14,250$13,569$12,924$12,311$11,729$10,603
6 years$11,756$11,080$10,444$9,845$9,281$8,202
7 years$9,975$9,305$8,679$8,094$7,548$6,517
8 years$8,640$7,976$7,361$6,790$6,262$5,279
9 years$7,602$6,945$6,340$5,784$5,273$4,337
10 years$6,772$6,122$5,527$4,985$4,493$3,603
11 years$6,094$5,450$4,866$4,339$3,864$3,020
12 years$5,529$4,891$4,318$3,806$3,349$2,549
13 years$5,051$4,420$3,858$3,360$2,920$2,163
14 years$4,642$4,018$3,467$2,983$2,560$1,845
15 years$4,288$3,670$3,130$2,660$2,254$1,579
16 years$3,978$3,368$2,838$2,382$1,992$1,356
17 years$3,706$3,101$2,582$2,140$1,766$1,168
18 years$3,463$2,866$2,357$1,928$1,570$1,008
19 years$3,247$2,656$2,158$1,743$1,400$872
20 years$3,052$2,468$1,980$1,578$1,250$755
21 years$2,876$2,299$1,822$1,432$1,119$655
22 years$2,716$2,146$1,679$1,302$1,003$569
23 years$2,571$2,007$1,550$1,186$900$495
24 years$2,438$1,881$1,434$1,082$809$430
25 years$2,315$1,765$1,328$988$728$375
26 years$2,202$1,659$1,231$903$656$327
27 years$2,098$1,561$1,144$827$591$285
28 years$2,001$1,471$1,063$758$534$249
29 years$1,912$1,388$989$695$482$217
30 years$1,828$1,310$921$638$435$190
31 years$1,750$1,239$859$586$394$166
32 years$1,677$1,172$802$538$356$145
33 years$1,608$1,110$748$495$322$127
34 years$1,544$1,052$699$455$292$111
35 years$1,483$998$654$419$264$97
36 years$1,426$947$612$386$239$85
37 years$1,372$900$572$356$217$74
38 years$1,322$855$536$328$197$65
39 years$1,273$813$502$302$178$57
40 years$1,228$773$471$279$162$50
41 years$1,184$736$441$257$147$43
42 years$1,143$701$414$237$133$38
43 years$1,104$668$389$219$121$33
44 years$1,067$637$365$202$110$29
45 years$1,031$607$342$187$100$25
46 years$998$579$322$173$90$22
47 years$965$553$302$159$82$20
48 years$935$528$284$147$75$17
49 years$905$504$267$136$68$15
50 years$877$481$251$126$62$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $898,000, adding $2,859 every year, while hoping to spend $40,204 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: 62/23/15 Blend
39$898,000$898,000$898,000$898,000
40$992,545$944,951$931,032$1,050,234
41$1,051,008$948,477$919,445$1,092,869
42$1,114,087$950,828$906,122$1,134,576
43$1,182,209$951,905$890,963$1,179,140
44$1,255,847$951,600$873,862$1,226,842
45$1,335,516$949,802$854,710$1,277,990
46$1,421,787$946,390$833,391$1,332,927
47$1,515,284$941,237$809,784$1,392,030
48$1,616,694$934,209$783,763$1,455,717
49$1,726,774$925,163$755,196$1,524,450
50$1,846,355$913,946$723,945$1,598,739
51$1,976,352$900,398$689,867$1,679,148
52$2,117,772$884,349$652,809$1,766,300
53$2,271,720$865,619$612,614$1,860,885
54$2,439,417$844,015$569,118$1,963,662
55$2,622,202$819,336$522,148$2,075,473
56$2,821,551$791,368$471,524$2,197,246
57$3,039,088$759,884$417,059$2,330,007
58$3,276,601$724,644$358,556$2,474,889
59$3,536,057$685,394$295,810$2,633,144
60$3,819,622$641,866$228,608$2,806,155
61$4,129,683$593,777$156,725$2,995,447
62$4,468,863$540,825$79,928$3,202,708
63$4,840,056$482,694$0$3,429,797
64$5,246,445$419,049$0$3,679,095
65$5,691,535$349,535$0$3,966,219
66$6,179,188$273,779$0$4,280,912
67$6,713,656$191,385$0$4,625,981
68$7,299,622$101,935$0$5,004,527
69$7,942,243$4,990$0$5,419,966
70$8,647,200$0$0$5,876,068
71$9,420,751$0$0$6,402,277
72$10,269,787$0$0$6,981,290
73$11,201,901$0$0$7,617,031
74$12,225,455$0$0$8,315,213
75$13,349,661$0$0$9,082,128
76$14,584,669$0$0$9,924,710
77$15,941,659$0$0$10,850,595
78$17,432,945$0$0$11,868,198
79$19,072,098$0$0$12,986,788
80$20,874,066$0$0$14,216,578
81$22,855,317$0$0$15,568,817
82$25,033,998$0$0$17,055,903
83$27,430,098$0$0$18,691,492
84$30,065,643$0$0$20,490,632
85$32,964,901$0$0$22,469,901
86$36,154,608$0$0$24,647,566
87$39,664,226$0$0$27,043,754
88$43,526,212$0$0$29,680,640
89$47,776,333$0$0$32,582,659
90$52,453,995$0$0$35,776,733
91$57,602,619$0$0$39,292,528
92$63,270,050$0$0$43,162,732
93$69,509,006$0$0$47,423,360
94$76,377,576$0$0$52,114,101
95$83,939,767$0$0$57,278,684
96$92,266,110$0$0$62,965,296
97$101,434,322$0$0$69,227,035
98$111,530,038$0$0$76,122,408
99$122,647,624$0$0$83,715,887
100$134,891,062$0$0$92,078,515