Can I retire at age 40 with 905,000?

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 $905,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$74,734$74,068$73,419$72,785$72,166$71,862
2 years$36,997$36,308$35,640$34,993$34,365$34,058
3 years$24,420$23,728$23,062$22,420$21,802$21,502
4 years$18,132$17,442$16,783$16,152$15,550$15,258
5 years$14,361$13,675$13,024$12,407$11,821$11,539
6 years$11,847$11,167$10,526$9,922$9,353$9,082
7 years$10,053$9,378$8,747$8,157$7,607$7,345
8 years$8,707$8,038$7,418$6,843$6,310$6,059
9 years$7,661$6,999$6,389$5,829$5,314$5,074
10 years$6,825$6,169$5,570$5,024$4,528$4,297
11 years$6,141$5,492$4,904$4,373$3,894$3,674
12 years$5,572$4,929$4,352$3,835$3,375$3,164
13 years$5,091$4,455$3,888$3,386$2,943$2,742
14 years$4,678$4,049$3,494$3,006$2,580$2,388
15 years$4,322$3,699$3,154$2,681$2,271$2,089
16 years$4,009$3,394$2,860$2,400$2,007$1,834
17 years$3,734$3,126$2,602$2,157$1,780$1,615
18 years$3,490$2,888$2,376$1,944$1,583$1,426
19 years$3,272$2,677$2,175$1,756$1,411$1,262
20 years$3,076$2,487$1,996$1,591$1,260$1,119
21 years$2,899$2,317$1,836$1,443$1,128$994
22 years$2,738$2,163$1,692$1,312$1,011$885
23 years$2,591$2,023$1,562$1,195$907$788
24 years$2,457$1,895$1,445$1,090$815$703
25 years$2,333$1,779$1,338$996$734$628
26 years$2,220$1,672$1,241$910$661$561
27 years$2,114$1,573$1,152$833$596$502
28 years$2,017$1,482$1,071$763$538$450
29 years$1,927$1,398$997$700$486$403
30 years$1,842$1,321$929$643$439$361
31 years$1,763$1,248$866$590$397$324
32 years$1,690$1,181$808$542$359$291
33 years$1,621$1,119$754$499$325$261
34 years$1,556$1,060$705$459$294$234
35 years$1,495$1,006$659$422$266$210
36 years$1,437$955$616$389$241$189
37 years$1,383$907$577$358$219$170
38 years$1,332$862$540$330$198$153
39 years$1,283$819$506$305$180$137
40 years$1,237$779$474$281$163$124
41 years$1,194$742$445$259$148$111
42 years$1,152$707$417$239$134$100
43 years$1,113$673$392$221$122$90
44 years$1,075$642$368$204$111$81
45 years$1,040$612$345$188$100$73
46 years$1,005$584$324$174$91$66
47 years$973$557$305$161$83$59
48 years$942$532$286$149$75$53
49 years$912$508$269$137$68$48
50 years$884$485$253$127$62$43

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $905,000, adding $6,948 every year, while hoping to spend $30,722 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: 55/26/19 Blend
39$905,000$905,000$905,000$905,000
40$1,004,477$956,512$942,484$1,054,224
41$1,074,246$970,693$941,370$1,103,157
42$1,150,101$984,539$939,188$1,152,559
43$1,232,631$998,002$935,871$1,205,681
44$1,322,485$1,011,029$931,347$1,262,888
45$1,420,373$1,023,564$925,542$1,324,582
46$1,527,080$1,035,547$918,377$1,391,206
47$1,643,468$1,046,916$909,769$1,463,250
48$1,770,488$1,057,601$899,632$1,541,254
49$1,909,185$1,067,530$887,877$1,625,814
50$2,060,709$1,076,627$874,408$1,717,588
51$2,226,328$1,084,807$859,127$1,817,302
52$2,407,435$1,091,985$841,930$1,925,758
53$2,605,567$1,098,066$822,708$2,043,839
54$2,822,415$1,102,951$801,349$2,172,521
55$3,059,840$1,106,535$777,733$2,312,880
56$3,319,893$1,108,704$751,736$2,466,105
57$3,604,832$1,109,340$723,229$2,633,505
58$3,917,144$1,108,317$692,076$2,816,527
59$4,259,566$1,105,498$658,134$3,016,767
60$4,635,116$1,100,742$621,256$3,235,985
61$5,047,117$1,093,897$581,287$3,476,122
62$5,499,226$1,084,801$538,063$3,739,322
63$5,995,476$1,073,285$491,417$4,027,947
64$6,540,306$1,059,168$441,171$4,344,605
65$7,138,608$1,042,257$387,141$4,692,171
66$7,795,769$1,022,351$329,133$5,073,819
67$8,517,724$999,233$266,946$5,493,048
68$9,311,013$972,676$200,370$5,953,718
69$10,182,838$942,439$129,184$6,460,085
70$11,141,136$908,267$53,160$7,016,845
71$12,194,649$869,889$0$7,629,177
72$13,353,009$827,020$0$8,308,462
73$14,626,830$779,358$0$9,067,199
74$16,027,802$726,581$0$9,901,597
75$17,568,807$668,354$0$10,819,372
76$19,264,040$604,318$0$11,829,030
77$21,129,138$534,095$0$12,939,943
78$23,181,330$457,286$0$14,162,448
79$25,439,603$373,470$0$15,507,934
80$27,924,873$282,201$0$16,988,958
81$30,660,190$183,008$0$18,619,361
82$33,670,949$75,395$0$20,414,400
83$36,985,133$0$0$22,390,892
84$40,633,575$0$0$24,579,150
85$44,650,252$0$0$27,012,119
86$49,072,599$0$0$29,690,916
87$53,941,868$0$0$32,640,542
88$59,303,514$0$0$35,888,547
89$65,207,625$0$0$39,465,286
90$71,709,393$0$0$43,404,210
91$78,869,634$0$0$47,742,179
92$86,755,366$0$0$52,519,808
93$95,440,434$0$0$57,781,856
94$105,006,214$0$0$63,577,640
95$115,542,375$0$0$69,961,509
96$127,147,730$0$0$76,993,349
97$139,931,161$0$0$84,739,154
98$154,012,654$0$0$93,271,644
99$169,524,429$0$0$102,670,954
100$186,612,182$0$0$113,025,391