Can I retire at age 40 with 862,000?

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 $862,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$71,183$70,549$69,930$69,327$68,737$67,212
2 years$35,239$34,583$33,947$33,330$32,732$31,203
3 years$23,259$22,600$21,966$21,355$20,766$19,282
4 years$17,271$16,614$15,986$15,385$14,811$13,382
5 years$13,678$13,025$12,405$11,817$11,259$9,890
6 years$11,284$10,636$10,025$9,450$8,909$7,601
7 years$9,575$8,932$8,331$7,770$7,245$5,999
8 years$8,294$7,657$7,065$6,518$6,011$4,825
9 years$7,297$6,666$6,086$5,552$5,062$3,936
10 years$6,501$5,876$5,305$4,786$4,313$3,246
11 years$5,850$5,231$4,671$4,165$3,709$2,700
12 years$5,307$4,695$4,145$3,653$3,214$2,261
13 years$4,849$4,243$3,704$3,225$2,803$1,904
14 years$4,456$3,857$3,328$2,863$2,457$1,610
15 years$4,116$3,523$3,004$2,553$2,163$1,367
16 years$3,819$3,233$2,724$2,286$1,912$1,164
17 years$3,557$2,977$2,479$2,054$1,695$994
18 years$3,324$2,751$2,263$1,851$1,507$850
19 years$3,117$2,550$2,071$1,673$1,344$729
20 years$2,930$2,369$1,901$1,515$1,200$626
21 years$2,761$2,207$1,749$1,375$1,074$538
22 years$2,608$2,060$1,612$1,250$963$463
23 years$2,468$1,927$1,488$1,138$864$399
24 years$2,340$1,805$1,376$1,038$777$344
25 years$2,222$1,694$1,275$948$699$297
26 years$2,114$1,592$1,182$867$630$256
27 years$2,014$1,498$1,098$794$568$221
28 years$1,921$1,412$1,020$727$512$191
29 years$1,835$1,332$950$667$462$165
30 years$1,755$1,258$885$612$418$143
31 years$1,680$1,189$825$562$378$124
32 years$1,609$1,125$769$517$342$107
33 years$1,544$1,066$718$475$309$92
34 years$1,482$1,010$671$437$280$80
35 years$1,424$958$628$402$254$69
36 years$1,369$909$587$371$230$60
37 years$1,317$863$549$341$208$52
38 years$1,269$821$515$315$189$45
39 years$1,222$780$482$290$171$39
40 years$1,178$742$452$268$155$34
41 years$1,137$707$424$247$141$29
42 years$1,097$673$397$228$128$25
43 years$1,060$641$373$210$116$22
44 years$1,024$611$350$194$105$19
45 years$990$583$329$179$96$16
46 years$958$556$309$166$87$14
47 years$927$531$290$153$79$12
48 years$897$507$273$141$72$11
49 years$869$484$256$131$65$9
50 years$842$462$241$121$59$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $862,000, adding $3,131 every year, while hoping to spend $20,562 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: 61/33/6 Blend
39$862,000$862,000$862,000$862,000
40$953,154$907,468$894,107$1,010,051
41$1,028,497$930,056$902,181$1,071,037
42$1,110,837$953,062$909,838$1,134,882
43$1,200,865$976,484$917,039$1,204,012
44$1,299,342$1,000,320$923,749$1,278,937
45$1,407,107$1,024,569$929,927$1,360,217
46$1,525,085$1,049,225$935,532$1,448,469
47$1,654,291$1,074,285$940,520$1,544,373
48$1,795,846$1,099,742$944,845$1,648,677
49$1,950,984$1,125,591$948,459$1,762,204
50$2,121,063$1,151,823$951,310$1,885,863
51$2,307,578$1,178,429$953,346$2,020,652
52$2,512,178$1,205,399$954,511$2,167,673
53$2,736,678$1,232,722$954,745$2,328,137
54$2,983,078$1,260,384$953,987$2,503,381
55$3,253,578$1,288,369$952,172$2,694,875
56$3,550,606$1,316,662$949,233$2,904,240
57$3,876,834$1,345,244$945,097$3,133,263
58$4,235,204$1,374,094$939,692$3,383,910
59$4,628,961$1,403,191$932,937$3,658,348
60$5,061,677$1,432,509$924,752$3,958,967
61$5,537,287$1,462,021$915,051$4,288,396
62$6,060,128$1,491,698$903,743$4,649,535
63$6,634,977$1,521,507$890,734$5,045,579
64$7,267,097$1,551,414$875,927$5,480,047
65$7,962,287$1,581,379$859,216$5,956,818
66$8,726,936$1,611,362$840,496$6,480,165
67$9,568,083$1,641,318$819,651$7,054,798
68$10,493,483$1,671,199$796,565$7,685,907
69$11,511,682$1,700,951$771,114$8,379,209
70$12,632,094$1,730,518$743,167$9,141,008
71$13,865,095$1,759,841$712,590$9,978,246
72$15,222,114$1,788,853$679,242$10,898,577
73$16,715,747$1,817,484$642,974$11,910,434
74$18,359,872$1,845,659$603,631$13,023,111
75$20,169,779$1,873,296$561,053$14,246,848
76$22,162,318$1,900,310$515,071$15,592,932
77$24,356,056$1,926,607$465,507$17,073,800
78$26,771,451$1,952,087$412,178$18,703,159
79$29,431,045$1,976,645$354,892$20,496,115
80$32,359,677$2,000,167$293,447$22,469,313
81$35,584,721$2,022,532$227,634$24,641,098
82$39,136,336$2,043,609$157,233$27,031,687
83$43,047,758$2,063,261$82,016$29,663,360
84$47,355,609$2,081,342$1,744$32,560,669
85$52,100,247$2,097,693$0$35,750,673
86$57,326,140$2,112,147$0$39,268,564
87$63,082,291$2,124,528$0$43,142,301
88$69,422,700$2,134,645$0$47,408,006
89$76,406,870$2,142,297$0$52,105,608
90$84,100,372$2,147,271$0$57,279,112
91$92,575,461$2,149,338$0$62,977,009
92$101,911,759$2,148,257$0$69,252,742
93$112,197,009$2,143,772$0$76,165,201
94$123,527,897$2,135,610$0$83,779,289
95$136,010,969$2,123,481$0$92,166,527
96$149,763,637$2,107,081$0$101,405,735
97$164,915,282$2,086,082$0$111,583,775
98$181,608,482$2,060,141$0$122,796,369
99$200,000,351$2,028,891$0$135,149,008
100$220,264,026$1,991,947$0$148,757,943