Can I retire at age 40 with 796,000?

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 $796,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$65,733$65,147$64,576$64,019$63,474$62,733
2 years$32,541$31,935$31,348$30,778$30,226$29,480
3 years$21,479$20,870$20,284$19,720$19,176$18,449
4 years$15,948$15,342$14,762$14,207$13,677$12,973
5 years$12,631$12,028$11,456$10,912$10,397$9,719
6 years$10,420$9,822$9,258$8,727$8,227$7,576
7 years$8,842$8,248$7,693$7,175$6,691$6,067
8 years$7,659$7,070$6,525$6,019$5,550$4,954
9 years$6,739$6,156$5,620$5,127$4,674$4,104
10 years$6,003$5,426$4,899$4,419$3,983$3,439
11 years$5,402$4,831$4,313$3,846$3,425$2,907
12 years$4,901$4,336$3,828$3,373$2,968$2,476
13 years$4,478$3,918$3,420$2,978$2,588$2,121
14 years$4,115$3,562$3,073$2,644$2,269$1,825
15 years$3,801$3,254$2,774$2,358$1,998$1,577
16 years$3,527$2,985$2,515$2,111$1,766$1,368
17 years$3,285$2,749$2,289$1,897$1,566$1,190
18 years$3,070$2,540$2,089$1,709$1,392$1,037
19 years$2,878$2,354$1,913$1,545$1,241$906
20 years$2,705$2,188$1,755$1,399$1,108$793
21 years$2,549$2,038$1,615$1,270$992$695
22 years$2,408$1,902$1,488$1,154$889$611
23 years$2,279$1,779$1,374$1,051$798$537
24 years$2,161$1,667$1,271$959$717$472
25 years$2,052$1,564$1,177$876$645$416
26 years$1,952$1,470$1,092$801$581$366
27 years$1,860$1,384$1,014$733$524$323
28 years$1,774$1,304$942$671$473$285
29 years$1,694$1,230$877$616$427$252
30 years$1,620$1,162$817$565$386$222
31 years$1,551$1,098$761$519$349$197
32 years$1,486$1,039$710$477$316$174
33 years$1,426$984$663$439$286$154
34 years$1,368$933$620$404$259$136
35 years$1,315$885$579$372$234$120
36 years$1,264$840$542$342$212$106
37 years$1,217$797$507$315$192$94
38 years$1,171$758$475$291$174$83
39 years$1,129$721$445$268$158$74
40 years$1,088$686$417$247$143$65
41 years$1,050$653$391$228$130$58
42 years$1,013$622$367$210$118$51
43 years$979$592$344$194$107$45
44 years$946$564$323$179$97$40
45 years$914$538$304$166$88$36
46 years$884$513$285$153$80$32
47 years$856$490$268$141$73$28
48 years$828$468$252$131$66$25
49 years$802$447$237$121$60$22
50 years$777$427$222$112$55$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $796,000, adding $4,300 every year, while hoping to spend $48,258 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: 68/18/14 Blend
39$796,000$796,000$796,000$796,000
40$881,627$839,439$827,101$938,465
41$920,207$829,226$803,463$966,649
42$961,105$816,894$777,416$991,333
43$1,004,506$802,290$748,827$1,017,100
44$1,050,613$785,250$717,560$1,044,052
45$1,099,647$765,599$683,470$1,072,300
46$1,151,852$743,154$646,408$1,101,972
47$1,207,493$717,721$606,215$1,133,206
48$1,266,862$689,094$562,727$1,166,158
49$1,330,276$657,054$515,773$1,201,001
50$1,398,086$621,371$465,173$1,237,928
51$1,470,675$581,802$410,740$1,277,153
52$1,548,461$538,089$352,278$1,318,913
53$1,631,908$489,958$289,582$1,363,473
54$1,721,519$437,122$222,440$1,411,127
55$1,817,849$379,277$150,627$1,462,201
56$1,921,509$316,101$73,912$1,517,058
57$2,033,166$247,253$0$1,576,099
58$2,153,556$172,375$0$1,640,959
59$2,283,486$91,088$0$1,722,805
60$2,423,841$2,992$0$1,811,172
61$2,575,597$0$0$1,906,712
62$2,739,825$0$0$2,028,432
63$2,917,702$0$0$2,160,948
64$3,110,522$0$0$2,304,638
65$3,319,710$0$0$2,460,567
66$3,546,829$0$0$2,629,908
67$3,793,603$0$0$2,813,950
68$4,061,925$0$0$3,014,112
69$4,353,880$0$0$3,231,955
70$4,671,759$0$0$3,469,195
71$5,018,087$0$0$3,727,722
72$5,395,638$0$0$4,009,616
73$5,807,470$0$0$4,317,166
74$6,256,945$0$0$4,652,891
75$6,747,766$0$0$5,019,564
76$7,284,007$0$0$5,420,239
77$7,870,156$0$0$5,858,275
78$8,511,153$0$0$6,337,374
79$9,212,436$0$0$6,861,610
80$9,979,994$0$0$7,435,470
81$10,820,421$0$0$8,063,894
82$11,740,979$0$0$8,752,322
83$12,749,666$0$0$9,506,746
84$13,855,289$0$0$10,333,764
85$15,067,548$0$0$11,240,644
86$16,397,127$0$0$12,235,390
87$17,855,792$0$0$13,326,819
88$19,456,505$0$0$14,524,641
89$21,213,543$0$0$15,839,553
90$23,142,631$0$0$17,283,338
91$25,261,093$0$0$18,868,977
92$27,588,013$0$0$20,610,766
93$30,144,413$0$0$22,524,458
94$32,953,452$0$0$24,627,406
95$36,040,644$0$0$26,938,726
96$39,434,096$0$0$29,479,480
97$43,164,776$0$0$32,272,870
98$47,266,800$0$0$35,344,461
99$51,777,755$0$0$38,722,415
100$56,739,055$0$0$42,437,765