Can I retire at age 40 with 868,000?

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 $868,000?

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$71,679$71,040$70,417$69,809$69,216$67,270
2 years$35,484$34,824$34,183$33,562$32,960$31,014
3 years$23,421$22,758$22,119$21,504$20,911$19,027
4 years$17,391$16,729$16,097$15,492$14,914$13,105
5 years$13,774$13,116$12,492$11,899$11,337$9,609
6 years$11,363$10,710$10,095$9,516$8,971$7,325
7 years$9,642$8,994$8,389$7,824$7,296$5,732
8 years$8,351$7,710$7,115$6,563$6,052$4,570
9 years$7,348$6,713$6,128$5,590$5,097$3,695
10 years$6,546$5,917$5,342$4,819$4,343$3,019
11 years$5,890$5,268$4,703$4,194$3,735$2,487
12 years$5,344$4,728$4,174$3,679$3,237$2,062
13 years$4,883$4,273$3,729$3,248$2,823$1,719
14 years$4,487$3,884$3,351$2,883$2,474$1,439
15 years$4,145$3,548$3,025$2,571$2,178$1,209
16 years$3,846$3,255$2,743$2,302$1,925$1,018
17 years$3,582$2,998$2,496$2,068$1,707$860
18 years$3,348$2,770$2,278$1,864$1,518$728
19 years$3,138$2,567$2,086$1,684$1,353$617
20 years$2,950$2,386$1,914$1,525$1,208$524
21 years$2,780$2,222$1,761$1,384$1,081$445
22 years$2,626$2,074$1,623$1,259$969$378
23 years$2,485$1,940$1,498$1,146$870$322
24 years$2,356$1,818$1,386$1,046$782$274
25 years$2,238$1,706$1,283$955$704$234
26 years$2,129$1,603$1,190$873$634$200
27 years$2,028$1,509$1,105$799$572$170
28 years$1,935$1,422$1,028$732$516$145
29 years$1,848$1,341$956$671$466$124
30 years$1,767$1,267$891$616$421$106
31 years$1,691$1,197$830$566$380$91
32 years$1,621$1,133$775$520$344$77
33 years$1,554$1,073$723$478$311$66
34 years$1,492$1,017$676$440$282$57
35 years$1,434$965$632$405$255$48
36 years$1,379$915$591$373$231$41
37 years$1,327$870$553$344$210$35
38 years$1,277$826$518$317$190$30
39 years$1,231$786$485$292$172$26
40 years$1,187$748$455$269$156$22
41 years$1,145$712$427$249$142$19
42 years$1,105$678$400$229$129$16
43 years$1,067$646$376$212$117$14
44 years$1,031$616$353$196$106$12
45 years$997$587$331$181$96$10
46 years$964$560$311$167$87$9
47 years$933$534$292$154$79$7
48 years$903$510$274$142$72$6
49 years$875$487$258$132$65$5
50 years$847$465$243$122$59$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $868,000, adding $6,158 every year, while hoping to spend $56,741 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: 24/47/29 Blend
39$868,000$868,000$868,000$868,000
40$962,888$916,884$903,430$977,124
41$1,000,731$901,439$873,323$974,313
42$1,040,531$883,336$840,306$966,127
43$1,082,430$862,384$804,220$956,175
44$1,126,579$838,382$764,903$944,350
45$1,173,145$811,117$722,181$930,538
46$1,222,307$780,363$675,876$914,622
47$1,274,262$745,881$625,798$896,481
48$1,329,227$707,420$571,752$875,988
49$1,387,435$664,710$513,533$853,012
50$1,449,143$617,471$450,926$827,417
51$1,514,632$565,402$383,708$799,064
52$1,584,207$508,190$311,645$767,808
53$1,658,203$445,499$234,492$733,499
54$1,736,989$376,977$151,996$695,985
55$1,820,964$302,251$63,891$655,109
56$1,910,569$220,928$0$610,710
57$2,006,285$132,592$0$571,948
58$2,108,641$36,804$0$551,036
59$2,218,216$0$0$528,106
60$2,335,643$0$0$537,684
61$2,461,620$0$0$568,481
62$2,596,910$0$0$601,661
63$2,742,353$0$0$637,445
64$2,898,868$0$0$676,073
65$3,067,467$0$0$717,809
66$3,249,259$0$0$762,945
67$3,445,465$0$0$811,801
68$3,657,425$0$0$864,727
69$3,886,611$0$0$922,111
70$4,134,642$0$0$984,377
71$4,403,298$0$0$1,051,992
72$4,694,535$0$0$1,125,472
73$5,010,504$0$0$1,205,381
74$5,353,571$0$0$1,292,342
75$5,726,339$0$0$1,387,039
76$6,131,670$0$0$1,490,226
77$6,572,714$0$0$1,602,732
78$7,052,937$0$0$1,725,469
79$7,576,152$0$0$1,859,442
80$8,146,554$0$0$2,005,757
81$8,768,763$0$0$2,165,630
82$9,447,862$0$0$2,340,402
83$10,189,447$0$0$2,531,548
84$10,999,677$0$0$2,740,692
85$11,885,334$0$0$2,969,623
86$12,853,885$0$0$3,220,310
87$13,913,549$0$0$3,494,922
88$15,073,379$0$0$3,795,849
89$16,343,342$0$0$4,125,720
90$17,734,415$0$0$4,487,433
91$19,258,684$0$0$4,884,178
92$20,929,463$0$0$5,319,471
93$22,761,413$0$0$5,797,182
94$24,770,682$0$0$6,321,577
95$26,975,055$0$0$6,897,352
96$29,394,125$0$0$7,529,681
97$32,049,469$0$0$8,224,266
98$34,964,858$0$0$8,987,384
99$38,166,477$0$0$9,825,954
100$41,683,170$0$0$10,747,597