Can I retire at age 40 with 842,000?

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 $842,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$69,532$68,912$68,308$67,718$67,142$65,334
2 years$34,422$33,781$33,159$32,557$31,973$30,163
3 years$22,720$22,076$21,456$20,859$20,285$18,531
4 years$16,870$16,228$15,615$15,028$14,467$12,783
5 years$13,361$12,723$12,118$11,543$10,998$9,388
6 years$11,023$10,389$9,793$9,231$8,702$7,168
7 years$9,353$8,725$8,138$7,589$7,077$5,619
8 years$8,101$7,479$6,902$6,367$5,871$4,488
9 years$7,128$6,512$5,944$5,423$4,944$3,635
10 years$6,350$5,740$5,182$4,675$4,213$2,975
11 years$5,714$5,110$4,562$4,068$3,623$2,456
12 years$5,184$4,586$4,049$3,568$3,140$2,040
13 years$4,736$4,145$3,618$3,150$2,738$1,704
14 years$4,353$3,767$3,250$2,797$2,400$1,430
15 years$4,021$3,442$2,935$2,494$2,113$1,204
16 years$3,730$3,158$2,661$2,233$1,868$1,016
17 years$3,474$2,908$2,421$2,006$1,656$860
18 years$3,247$2,687$2,210$1,808$1,472$729
19 years$3,044$2,490$2,023$1,634$1,312$620
20 years$2,862$2,314$1,857$1,480$1,172$527
21 years$2,697$2,156$1,708$1,343$1,049$449
22 years$2,547$2,012$1,574$1,221$940$383
23 years$2,411$1,882$1,453$1,112$844$327
24 years$2,286$1,763$1,344$1,014$759$279
25 years$2,171$1,655$1,245$926$683$238
26 years$2,065$1,555$1,155$847$615$204
27 years$1,967$1,464$1,072$775$554$174
28 years$1,877$1,379$997$710$500$149
29 years$1,792$1,301$928$651$452$128
30 years$1,714$1,229$864$598$408$109
31 years$1,641$1,162$806$549$369$94
32 years$1,572$1,099$752$505$334$80
33 years$1,508$1,041$702$464$302$69
34 years$1,448$986$656$427$274$59
35 years$1,391$936$613$393$248$50
36 years$1,337$888$573$362$224$43
37 years$1,287$843$537$333$203$37
38 years$1,239$802$503$307$184$32
39 years$1,194$762$471$283$167$27
40 years$1,151$725$441$261$152$23
41 years$1,111$690$414$241$138$20
42 years$1,072$657$388$223$125$17
43 years$1,035$626$364$205$113$15
44 years$1,000$597$342$190$103$13
45 years$967$569$321$175$93$11
46 years$935$543$302$162$85$9
47 years$905$518$283$150$77$8
48 years$876$495$266$138$70$7
49 years$849$473$250$128$64$6
50 years$822$451$235$118$58$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $842,000, adding $2,123 every year, while hoping to spend $20,759 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: 76/9/15 Blend
39$842,000$842,000$842,000$842,000
40$930,074$885,448$872,397$997,604
41$1,002,854$906,747$879,535$1,063,787
42$1,082,362$928,395$886,216$1,133,516
43$1,169,262$950,385$892,403$1,209,395
44$1,264,286$972,713$898,058$1,292,028
45$1,368,238$995,371$903,138$1,382,083
46$1,482,006$1,018,352$907,601$1,480,296
47$1,606,566$1,041,647$911,401$1,587,476
48$1,742,993$1,065,244$914,490$1,704,516
49$1,892,471$1,089,134$916,818$1,832,398
50$2,056,304$1,113,303$918,332$1,972,206
51$2,235,928$1,137,736$918,977$2,125,131
52$2,432,925$1,162,417$918,696$2,292,489
53$2,649,037$1,187,330$917,426$2,475,728
54$2,886,183$1,212,453$915,104$2,676,442
55$3,146,477$1,237,767$911,663$2,896,390
56$3,432,247$1,263,246$907,033$3,137,510
57$3,746,057$1,288,866$901,140$3,401,934
58$4,090,733$1,314,599$893,906$3,692,014
59$4,469,388$1,340,414$885,252$4,010,343
60$4,885,449$1,366,278$875,092$4,359,775
61$5,342,695$1,392,156$863,337$4,743,457
62$5,845,285$1,418,007$849,894$5,164,856
63$6,397,806$1,443,791$834,667$5,627,793
64$7,005,307$1,469,461$817,553$6,136,477
65$7,673,353$1,494,970$798,446$6,695,549
66$8,408,076$1,520,264$777,235$7,310,121
67$9,216,229$1,545,287$753,802$7,985,826
68$10,105,256$1,569,977$728,026$8,728,875
69$11,083,356$1,594,270$699,778$9,546,107
70$12,159,564$1,618,095$668,927$10,445,064
71$13,343,835$1,641,377$635,331$11,434,053
72$14,647,138$1,664,036$598,847$12,522,232
73$16,081,557$1,685,986$559,320$13,719,690
74$17,660,411$1,707,134$516,592$15,037,547
75$19,398,372$1,727,382$470,496$16,488,058
76$21,311,607$1,746,625$420,859$18,084,726
77$23,417,932$1,764,751$367,499$19,842,434
78$25,736,978$1,781,640$310,227$21,777,582
79$28,290,374$1,797,165$248,844$23,908,243
80$31,101,956$1,811,190$183,144$26,254,334
81$34,197,987$1,823,570$112,911$28,837,806
82$37,607,407$1,834,151$37,920$31,682,846
83$41,362,107$1,842,769$0$34,816,112
84$45,497,227$1,849,249$0$38,273,720
85$50,051,489$1,853,407$0$42,088,219
86$55,067,563$1,855,046$0$46,289,250
87$60,592,467$1,853,955$0$50,916,173
88$66,678,013$1,849,914$0$56,012,361
89$73,381,296$1,842,685$0$61,625,609
90$80,765,231$1,832,020$0$67,808,585
91$88,899,147$1,817,651$0$74,619,330
92$97,859,443$1,799,299$0$82,121,800
93$107,730,304$1,776,663$0$90,386,477
94$118,604,504$1,749,428$0$99,491,028
95$130,584,272$1,717,258$0$109,521,041
96$143,782,262$1,679,798$0$120,570,832
97$158,322,617$1,636,673$0$132,744,338
98$174,342,136$1,587,482$0$146,156,093
99$191,991,571$1,531,806$0$160,932,314
100$211,437,045$1,469,198$0$177,212,090