Can I retire at age 40 with 854,000?

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 $854,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.9%
1 years$70,523$69,894$69,281$68,683$68,099$66,185
2 years$34,912$34,262$33,632$33,021$32,428$30,514
3 years$23,044$22,391$21,762$21,157$20,574$18,720
4 years$17,110$16,459$15,837$15,242$14,673$12,894
5 years$13,551$12,904$12,290$11,708$11,154$9,454
6 years$11,180$10,537$9,932$9,363$8,826$7,207
7 years$9,486$8,849$8,254$7,697$7,178$5,640
8 years$8,217$7,585$7,000$6,457$5,955$4,497
9 years$7,230$6,605$6,029$5,500$5,015$3,635
10 years$6,441$5,822$5,256$4,741$4,273$2,970
11 years$5,795$5,183$4,628$4,126$3,675$2,447
12 years$5,258$4,652$4,107$3,619$3,185$2,029
13 years$4,804$4,204$3,669$3,195$2,777$1,691
14 years$4,415$3,821$3,297$2,836$2,434$1,416
15 years$4,078$3,491$2,977$2,530$2,143$1,189
16 years$3,784$3,203$2,699$2,265$1,894$1,002
17 years$3,524$2,949$2,456$2,035$1,680$846
18 years$3,294$2,725$2,242$1,834$1,493$716
19 years$3,088$2,526$2,052$1,657$1,331$607
20 years$2,902$2,347$1,883$1,501$1,189$515
21 years$2,735$2,186$1,732$1,362$1,064$438
22 years$2,583$2,041$1,597$1,239$954$372
23 years$2,445$1,909$1,474$1,128$856$317
24 years$2,318$1,788$1,363$1,029$770$270
25 years$2,202$1,678$1,263$940$692$230
26 years$2,094$1,577$1,171$859$624$196
27 years$1,995$1,484$1,088$786$562$168
28 years$1,903$1,399$1,011$720$507$143
29 years$1,818$1,320$941$661$458$122
30 years$1,738$1,246$876$606$414$104
31 years$1,664$1,178$817$557$374$89
32 years$1,595$1,115$762$512$339$76
33 years$1,529$1,056$712$471$306$65
34 years$1,468$1,001$665$433$277$56
35 years$1,411$949$622$399$251$48
36 years$1,356$901$582$367$228$41
37 years$1,305$855$544$338$206$35
38 years$1,257$813$510$312$187$30
39 years$1,211$773$478$287$170$25
40 years$1,168$736$448$265$154$22
41 years$1,126$700$420$245$140$19
42 years$1,087$667$394$226$127$16
43 years$1,050$635$369$208$115$14
44 years$1,015$606$347$192$104$12
45 years$981$577$326$178$95$10
46 years$949$551$306$164$86$9
47 years$918$526$287$152$78$7
48 years$889$502$270$140$71$6
49 years$861$479$254$130$64$5
50 years$834$458$239$120$59$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $854,000, adding $2,518 every year, while hoping to spend $20,942 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: 62/26/12 Blend
39$854,000$854,000$854,000$854,000
40$943,705$898,443$885,206$999,394
41$1,017,681$920,185$892,579$1,058,772
42$1,098,501$942,290$899,496$1,120,934
43$1,186,840$964,754$905,921$1,188,272
44$1,283,442$987,572$911,815$1,261,289
45$1,389,128$1,010,738$917,135$1,340,538
46$1,504,800$1,034,245$921,840$1,426,627
47$1,631,450$1,058,083$925,882$1,520,229
48$1,770,173$1,082,245$929,214$1,622,080
49$1,922,174$1,106,718$931,786$1,732,997
50$2,088,779$1,131,490$933,544$1,853,875
51$2,271,451$1,156,549$934,434$1,985,702
52$2,471,797$1,181,879$934,396$2,129,567
53$2,691,592$1,207,462$933,370$2,286,669
54$2,932,787$1,233,281$931,290$2,458,329
55$3,197,534$1,259,314$928,091$2,646,002
56$3,488,202$1,285,540$923,701$2,851,293
57$3,807,400$1,311,932$918,047$3,075,968
58$4,158,003$1,338,466$911,050$3,321,976
59$4,543,179$1,365,110$902,629$3,591,461
60$4,966,416$1,391,833$892,700$3,886,788
61$5,431,557$1,418,600$881,173$4,210,564
62$5,942,839$1,445,374$867,955$4,565,659
63$6,504,924$1,472,114$852,948$4,955,238
64$7,122,954$1,498,775$836,049$5,382,788
65$7,802,590$1,525,310$817,152$5,852,150
66$8,550,072$1,551,668$796,144$6,367,562
67$9,372,273$1,577,793$772,908$6,933,688
68$10,276,767$1,603,626$747,322$7,555,672
69$11,271,897$1,629,104$719,257$8,239,183
70$12,366,857$1,654,157$688,580$8,990,466
71$13,571,779$1,678,713$655,149$9,816,406
72$14,897,823$1,702,692$618,819$10,724,589
73$16,357,287$1,726,010$579,436$11,723,375
74$17,963,723$1,748,578$536,840$12,821,981
75$19,732,063$1,770,298$490,863$14,030,559
76$21,678,758$1,791,067$441,332$15,360,302
77$23,821,938$1,810,776$388,064$16,823,544
78$26,181,579$1,829,307$330,867$18,433,877
79$28,779,691$1,846,535$269,543$20,206,282
80$31,640,531$1,862,326$203,883$22,157,268
81$34,790,823$1,876,539$133,672$24,305,031
82$38,260,019$1,889,021$58,681$26,669,622
83$42,080,569$1,899,611$0$29,273,141
84$46,288,233$1,908,138$0$32,142,676
85$50,922,416$1,914,419$0$35,310,531
86$56,026,537$1,918,261$0$38,798,798
87$61,648,446$1,919,457$0$42,640,112
88$67,840,865$1,917,789$0$46,870,437
89$74,661,897$1,913,024$0$51,529,406
90$82,175,563$1,904,915$0$56,660,695
91$90,452,415$1,893,200$0$62,312,435
92$99,570,197$1,877,602$0$68,537,668
93$109,614,579$1,857,827$0$75,394,848
94$120,679,967$1,833,561$0$82,948,390
95$132,870,392$1,804,475$0$91,269,284
96$146,300,495$1,770,217$0$100,435,759
97$161,096,604$1,730,416$0$110,534,027
98$177,397,930$1,684,678$0$121,659,095
99$195,357,879$1,632,588$0$133,915,662
100$215,145,502$1,573,704$0$147,419,111