Can I retire at age 40 with 821,000?

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 $821,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$67,797$67,194$66,604$66,029$65,468$64,251
2 years$33,563$32,938$32,332$31,745$31,175$29,954
3 years$22,153$21,525$20,921$20,339$19,779$18,591
4 years$16,449$15,823$15,225$14,653$14,106$12,961
5 years$13,028$12,406$11,815$11,255$10,723$9,624
6 years$10,748$10,130$9,549$9,001$8,485$7,433
7 years$9,120$8,507$7,935$7,400$6,901$5,896
8 years$7,899$7,292$6,729$6,208$5,725$4,767
9 years$6,950$6,349$5,796$5,288$4,821$3,910
10 years$6,192$5,597$5,053$4,558$4,108$3,243
11 years$5,571$4,982$4,449$3,967$3,533$2,712
12 years$5,055$4,472$3,948$3,479$3,061$2,285
13 years$4,618$4,041$3,527$3,072$2,670$1,935
14 years$4,244$3,673$3,169$2,727$2,340$1,647
15 years$3,920$3,356$2,862$2,432$2,061$1,407
16 years$3,637$3,079$2,594$2,177$1,821$1,206
17 years$3,388$2,835$2,361$1,956$1,615$1,036
18 years$3,166$2,620$2,155$1,763$1,436$892
19 years$2,968$2,428$1,973$1,593$1,280$770
20 years$2,790$2,256$1,811$1,443$1,143$665
21 years$2,630$2,102$1,665$1,310$1,023$576
22 years$2,484$1,962$1,535$1,191$917$499
23 years$2,350$1,835$1,417$1,084$823$433
24 years$2,229$1,719$1,311$989$740$376
25 years$2,117$1,613$1,214$903$666$327
26 years$2,014$1,516$1,126$826$600$284
27 years$1,918$1,427$1,045$756$541$247
28 years$1,830$1,345$972$693$488$215
29 years$1,748$1,269$904$635$440$187
30 years$1,671$1,198$842$583$398$163
31 years$1,600$1,133$785$535$360$142
32 years$1,533$1,072$733$492$325$124
33 years$1,470$1,015$684$452$295$108
34 years$1,411$962$639$416$267$94
35 years$1,356$912$598$383$242$82
36 years$1,304$866$559$353$219$72
37 years$1,255$822$523$325$198$63
38 years$1,208$782$490$300$180$55
39 years$1,164$743$459$276$163$48
40 years$1,122$707$430$255$148$42
41 years$1,083$673$404$235$134$36
42 years$1,045$641$379$217$122$32
43 years$1,009$611$355$200$111$28
44 years$975$582$333$185$100$24
45 years$943$555$313$171$91$21
46 years$912$530$294$158$83$18
47 years$883$505$276$146$75$16
48 years$854$482$260$135$68$14
49 years$827$461$244$125$62$12
50 years$802$440$229$115$56$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $821,000, adding $5,002 every year, while hoping to spend $36,424 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: 34/45/21 Blend
39$821,000$821,000$821,000$821,000
40$909,902$866,389$853,663$934,846
41$963,957$870,087$843,506$957,441
42$1,022,305$872,745$831,788$978,093
43$1,085,345$874,275$818,418$999,613
44$1,153,516$874,581$803,301$1,022,102
45$1,227,301$873,562$786,338$1,045,670
46$1,307,230$871,111$767,425$1,070,445
47$1,393,887$867,114$746,452$1,096,565
48$1,487,912$861,451$723,307$1,124,192
49$1,590,010$853,994$697,869$1,153,502
50$1,700,958$844,606$670,015$1,184,695
51$1,821,609$833,145$639,614$1,217,995
52$1,952,902$819,458$606,529$1,253,652
53$2,095,870$803,383$570,619$1,291,947
54$2,251,649$784,749$531,736$1,333,192
55$2,421,490$763,375$489,722$1,377,737
56$2,606,771$739,069$444,416$1,425,971
57$2,809,006$711,628$395,649$1,478,331
58$3,029,864$680,837$343,243$1,535,301
59$3,271,182$646,470$287,013$1,597,423
60$3,534,980$608,285$226,766$1,665,298
61$3,823,486$566,028$162,300$1,739,597
62$4,139,148$519,431$93,404$1,821,065
63$4,484,667$468,209$19,859$1,910,532
64$4,863,014$412,061$0$2,008,920
65$5,277,461$350,672$0$2,130,390
66$5,731,611$283,704$0$2,268,545
67$6,229,434$210,804$0$2,420,250
68$6,775,301$131,598$0$2,586,967
69$7,374,026$45,690$0$2,770,313
70$8,030,911$0$0$2,972,076
71$8,751,798$0$0$3,217,676
72$9,543,120$0$0$3,512,233
73$10,411,964$0$0$3,835,775
74$11,366,137$0$0$4,191,225
75$12,414,238$0$0$4,581,803
76$13,565,741$0$0$5,011,057
77$14,831,083$0$0$5,482,895
78$16,221,762$0$0$6,001,623
79$17,750,443$0$0$6,571,985
80$19,431,083$0$0$7,199,206
81$21,279,057$0$0$7,889,046
82$23,311,303$0$0$8,647,848
83$25,546,484$0$0$9,482,603
84$28,005,162$0$0$10,401,013
85$30,709,993$0$0$11,411,562
86$33,685,939$0$0$12,523,601
87$36,960,502$0$0$13,747,433
88$40,563,986$0$0$15,094,407
89$44,529,782$0$0$16,577,032
90$48,894,679$0$0$18,209,089
91$53,699,215$0$0$20,005,763
92$58,988,059$0$0$21,983,788
93$64,810,427$0$0$24,161,600
94$71,220,553$0$0$26,559,517
95$78,278,196$0$0$29,199,924
96$86,049,201$0$0$32,107,490
97$94,606,128$0$0$35,309,397
98$104,028,929$0$0$38,835,596
99$114,405,704$0$0$42,719,095
100$125,833,534$0$0$46,996,261