Can I retire at age 40 with 846,000?

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 $846,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17%
1 years$69,862$69,240$68,632$68,040$67,461$65,538
2 years$34,585$33,941$33,317$32,711$32,124$30,202
3 years$22,828$22,181$21,558$20,959$20,381$18,519
4 years$16,950$16,305$15,689$15,099$14,536$12,749
5 years$13,425$12,784$12,175$11,598$11,050$9,343
6 years$11,075$10,439$9,839$9,275$8,743$7,118
7 years$9,397$8,766$8,177$7,625$7,111$5,567
8 years$8,140$7,514$6,934$6,397$5,899$4,436
9 years$7,162$6,543$5,973$5,449$4,968$3,584
10 years$6,380$5,767$5,207$4,697$4,233$2,927
11 years$5,741$5,134$4,584$4,088$3,640$2,409
12 years$5,209$4,608$4,068$3,585$3,155$1,997
13 years$4,759$4,164$3,635$3,165$2,751$1,663
14 years$4,373$3,785$3,266$2,810$2,411$1,391
15 years$4,040$3,458$2,949$2,506$2,123$1,168
16 years$3,748$3,173$2,673$2,244$1,877$983
17 years$3,491$2,922$2,433$2,016$1,664$830
18 years$3,263$2,700$2,221$1,817$1,479$702
19 years$3,059$2,502$2,033$1,642$1,319$594
20 years$2,875$2,325$1,866$1,487$1,178$504
21 years$2,710$2,166$1,716$1,349$1,054$428
22 years$2,559$2,022$1,582$1,227$945$364
23 years$2,422$1,891$1,460$1,117$848$309
24 years$2,296$1,772$1,351$1,019$762$263
25 years$2,181$1,663$1,251$931$686$224
26 years$2,075$1,563$1,160$851$618$191
27 years$1,977$1,471$1,077$779$557$163
28 years$1,886$1,386$1,002$714$503$139
29 years$1,801$1,307$932$654$454$119
30 years$1,722$1,235$868$601$410$101
31 years$1,648$1,167$809$552$371$86
32 years$1,580$1,104$755$507$335$74
33 years$1,515$1,046$705$466$304$63
34 years$1,454$991$659$429$275$54
35 years$1,397$940$616$395$249$46
36 years$1,344$892$576$364$226$39
37 years$1,293$847$539$335$204$34
38 years$1,245$805$505$309$185$29
39 years$1,200$766$473$285$168$24
40 years$1,157$729$443$263$152$21
41 years$1,116$694$416$242$138$18
42 years$1,077$661$390$224$125$15
43 years$1,040$629$366$206$114$13
44 years$1,005$600$344$191$103$11
45 years$972$572$323$176$94$10
46 years$940$546$303$163$85$8
47 years$909$521$285$150$77$7
48 years$880$497$268$139$70$6
49 years$853$475$251$128$64$5
50 years$826$454$236$119$58$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $846,000, adding $3,640 every year, while hoping to spend $52,151 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: 70/18/12 Blend
39$846,000$846,000$846,000$846,000
40$936,047$891,209$878,096$998,930
41$976,035$879,390$852,024$1,029,302
42$1,018,355$865,244$823,330$1,055,865
43$1,063,188$848,601$791,873$1,083,557
44$1,110,734$829,284$757,502$1,112,481
45$1,161,212$807,102$720,061$1,142,749
46$1,214,860$781,854$679,387$1,174,488
47$1,271,938$753,328$635,310$1,207,838
48$1,332,734$721,299$587,650$1,242,954
49$1,397,559$685,528$536,222$1,280,011
50$1,466,755$645,765$480,832$1,319,201
51$1,540,700$601,743$421,275$1,360,737
52$1,619,803$553,180$357,340$1,404,860
53$1,704,516$499,779$288,804$1,451,831
54$1,795,334$441,226$215,436$1,501,947
55$1,892,800$377,188$136,995$1,555,532
56$1,997,509$307,313$53,227$1,612,949
57$2,110,115$231,231$0$1,674,600
58$2,231,335$148,551$0$1,745,562
59$2,361,959$58,858$0$1,829,271
60$2,502,853$0$0$1,919,492
61$2,654,966$0$0$2,024,454
62$2,819,345$0$0$2,150,513
63$2,997,137$0$0$2,286,896
64$3,189,607$0$0$2,434,577
65$3,398,142$0$0$2,594,625
66$3,624,267$0$0$2,768,217
67$3,869,663$0$0$2,956,647
68$4,136,174$0$0$3,161,339
69$4,425,830$0$0$3,383,857
70$4,740,867$0$0$3,625,924
71$5,083,740$0$0$3,889,434
72$5,457,155$0$0$4,176,474
73$5,864,087$0$0$4,489,336
74$6,307,810$0$0$4,830,546
75$6,791,929$0$0$5,202,883
76$7,320,411$0$0$5,609,407
77$7,897,622$0$0$6,053,485
78$8,528,371$0$0$6,538,824
79$9,217,950$0$0$7,069,507
80$9,972,186$0$0$7,650,026
81$10,797,495$0$0$8,285,330
82$11,700,943$0$0$8,980,868
83$12,690,308$0$0$9,742,639
84$13,774,158$0$0$10,577,251
85$14,961,928$0$0$11,491,981
86$16,264,010$0$0$12,494,843
87$17,691,846$0$0$13,594,663
88$19,258,043$0$0$14,801,162
89$20,976,483$0$0$16,125,050
90$22,862,458$0$0$17,578,121
91$24,932,814$0$0$19,173,367
92$27,206,105$0$0$20,925,100
93$29,702,771$0$0$22,849,085
94$32,445,329$0$0$24,962,690
95$35,458,583$0$0$27,285,047
96$38,769,861$0$0$29,837,234
97$42,409,265$0$0$32,642,470
98$46,409,962$0$0$35,726,339
99$50,808,491$0$0$39,117,024
100$55,645,109$0$0$42,845,576