Can I retire at age 40 with 825,000?

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 $825,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.6%
1 years$68,128$67,521$66,929$66,351$65,787$64,804
2 years$33,727$33,098$32,490$31,899$31,327$30,339
3 years$22,261$21,630$21,023$20,438$19,875$18,912
4 years$16,529$15,900$15,299$14,725$14,175$13,245
5 years$13,091$12,466$11,873$11,310$10,776$9,882
6 years$10,800$10,180$9,595$9,045$8,526$7,669
7 years$9,164$8,549$7,974$7,436$6,934$6,114
8 years$7,938$7,328$6,762$6,238$5,753$4,969
9 years$6,984$6,380$5,824$5,313$4,845$4,098
10 years$6,222$5,624$5,078$4,580$4,128$3,417
11 years$5,599$5,007$4,470$3,986$3,550$2,875
12 years$5,080$4,494$3,967$3,496$3,076$2,435
13 years$4,641$4,061$3,545$3,087$2,683$2,075
14 years$4,265$3,691$3,185$2,740$2,352$1,777
15 years$3,940$3,372$2,875$2,444$2,071$1,527
16 years$3,655$3,094$2,607$2,188$1,830$1,317
17 years$3,404$2,849$2,372$1,966$1,623$1,139
18 years$3,182$2,633$2,166$1,772$1,443$987
19 years$2,983$2,440$1,982$1,601$1,286$858
20 years$2,804$2,267$1,819$1,450$1,149$746
21 years$2,642$2,112$1,674$1,316$1,028$650
22 years$2,496$1,972$1,542$1,196$921$567
23 years$2,362$1,844$1,424$1,090$827$496
24 years$2,239$1,728$1,317$994$743$433
25 years$2,127$1,621$1,220$908$669$379
26 years$2,023$1,524$1,131$830$603$332
27 years$1,928$1,434$1,051$760$543$291
28 years$1,839$1,351$977$696$490$255
29 years$1,756$1,275$909$638$443$224
30 years$1,679$1,204$847$586$400$197
31 years$1,608$1,138$789$538$362$173
32 years$1,540$1,077$736$494$327$152
33 years$1,477$1,020$688$455$296$133
34 years$1,418$967$642$418$268$117
35 years$1,363$917$601$385$243$103
36 years$1,310$870$562$355$220$90
37 years$1,261$826$526$327$199$79
38 years$1,214$785$492$301$181$70
39 years$1,170$747$461$278$164$61
40 years$1,128$711$432$256$149$54
41 years$1,088$676$406$236$135$48
42 years$1,050$644$380$218$122$42
43 years$1,014$614$357$201$111$37
44 years$980$585$335$186$101$32
45 years$948$558$315$172$92$28
46 years$917$532$295$159$83$25
47 years$887$508$278$147$75$22
48 years$859$485$261$135$69$19
49 years$831$463$245$125$62$17
50 years$805$442$231$116$57$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $825,000, adding $5,854 every year, while hoping to spend $26,344 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: 37/48/15 Blend
39$825,000$825,000$825,000$825,000
40$915,188$871,463$858,676$944,674
41$980,508$886,135$859,412$981,067
42$1,051,607$900,643$859,289$1,017,402
43$1,129,047$914,951$858,252$1,056,081
44$1,213,447$929,021$856,240$1,097,329
45$1,305,487$942,811$853,193$1,141,393
46$1,405,915$956,277$849,043$1,188,545
47$1,515,556$969,372$843,723$1,239,087
48$1,635,316$982,045$837,162$1,293,353
49$1,766,195$994,242$829,284$1,351,710
50$1,909,293$1,005,906$820,010$1,414,567
51$2,065,818$1,016,973$809,258$1,482,372
52$2,237,106$1,027,379$796,943$1,555,623
53$2,424,623$1,037,052$782,972$1,634,868
54$2,629,986$1,045,919$767,253$1,720,716
55$2,854,974$1,053,899$749,686$1,813,835
56$3,101,548$1,060,907$730,167$1,914,966
57$3,371,867$1,066,852$708,589$2,024,927
58$3,668,308$1,071,638$684,837$2,144,622
59$3,993,490$1,075,163$658,793$2,275,048
60$4,350,297$1,077,318$630,335$2,417,308
61$4,741,908$1,077,986$599,331$2,572,619
62$5,171,820$1,077,046$565,647$2,742,325
63$5,643,891$1,074,366$529,140$2,927,910
64$6,162,365$1,069,807$489,664$3,131,014
65$6,731,923$1,063,224$447,064$3,353,446
66$7,357,716$1,054,459$401,178$3,597,203
67$8,045,423$1,043,348$351,838$3,864,492
68$8,801,299$1,029,715$298,867$4,157,748
69$9,632,234$1,013,373$242,082$4,479,657
70$10,545,821$994,127$181,290$4,833,187
71$11,550,423$971,768$116,291$5,221,613
72$12,655,255$946,074$46,877$5,648,547
73$13,870,471$916,812$0$6,117,979
74$15,207,258$883,733$0$6,638,663
75$16,677,939$846,577$0$7,219,392
76$18,296,095$805,066$0$7,858,052
77$20,076,690$758,907$0$8,560,597
78$22,036,208$707,789$0$9,333,593
79$24,192,815$651,385$0$10,184,281
80$26,566,527$589,348$0$11,120,647
81$29,179,398$521,311$0$12,151,498
82$32,055,729$446,888$0$13,286,549
83$35,222,297$365,669$0$14,536,510
84$38,708,607$277,222$0$15,913,195
85$42,547,169$181,091$0$17,429,630
86$46,773,810$76,793$0$19,100,177
87$51,428,002$0$0$20,940,677
88$56,553,245$0$0$22,987,704
89$62,197,470$0$0$25,286,834
90$68,413,493$0$0$27,819,038
91$75,259,515$0$0$30,608,045
92$82,799,668$0$0$33,680,001
93$91,104,623$0$0$37,063,721
94$100,252,254$0$0$40,790,952
95$110,328,375$0$0$44,896,684
96$121,427,547$0$0$49,419,469
97$133,653,974$0$0$54,401,793
98$147,122,481$0$0$59,890,473
99$161,959,605$0$0$65,937,098
100$178,304,780$0$0$72,598,520