Can I retire at age 40 with 871,000?

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 $871,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$71,926$71,286$70,661$70,051$69,455$68,502
2 years$35,607$34,944$34,301$33,678$33,074$32,115
3 years$23,502$22,836$22,195$21,578$20,983$20,049
4 years$17,451$16,787$16,152$15,546$14,965$14,063
5 years$13,821$13,161$12,535$11,941$11,377$10,508
6 years$11,402$10,747$10,130$9,549$9,002$8,169
7 years$9,675$9,025$8,418$7,851$7,321$6,523
8 years$8,380$7,736$7,139$6,586$6,073$5,311
9 years$7,374$6,736$6,149$5,610$5,115$4,387
10 years$6,569$5,937$5,361$4,836$4,358$3,665
11 years$5,911$5,286$4,720$4,208$3,748$3,089
12 years$5,363$4,744$4,189$3,691$3,248$2,622
13 years$4,900$4,287$3,742$3,259$2,832$2,239
14 years$4,503$3,897$3,362$2,893$2,483$1,920
15 years$4,159$3,560$3,036$2,580$2,186$1,654
16 years$3,859$3,266$2,752$2,310$1,932$1,429
17 years$3,594$3,008$2,505$2,076$1,713$1,239
18 years$3,359$2,780$2,286$1,870$1,523$1,076
19 years$3,149$2,576$2,093$1,690$1,358$937
20 years$2,960$2,394$1,921$1,531$1,213$817
21 years$2,790$2,230$1,767$1,389$1,085$714
22 years$2,635$2,081$1,628$1,263$973$624
23 years$2,494$1,947$1,504$1,150$873$546
24 years$2,364$1,824$1,391$1,049$785$479
25 years$2,246$1,712$1,288$958$706$420
26 years$2,136$1,609$1,194$876$636$369
27 years$2,035$1,514$1,109$802$574$324
28 years$1,941$1,427$1,031$735$518$285
29 years$1,854$1,346$960$674$467$250
30 years$1,773$1,271$894$618$422$220
31 years$1,697$1,202$833$568$382$194
32 years$1,626$1,137$777$522$345$171
33 years$1,560$1,077$726$480$313$150
34 years$1,497$1,020$678$442$283$132
35 years$1,439$968$634$407$256$117
36 years$1,383$919$593$374$232$103
37 years$1,331$873$555$345$210$91
38 years$1,282$829$520$318$191$80
39 years$1,235$788$487$293$173$70
40 years$1,191$750$457$270$157$62
41 years$1,149$714$428$249$142$55
42 years$1,109$680$402$230$129$48
43 years$1,071$648$377$213$117$43
44 years$1,035$618$354$196$106$38
45 years$1,000$589$332$181$97$33
46 years$968$562$312$167$88$29
47 years$936$536$293$155$80$26
48 years$906$512$275$143$72$23
49 years$878$489$259$132$66$20
50 years$850$467$243$122$60$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $871,000, adding $4,516 every year, while hoping to spend $49,076 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: 44/45/11 Blend
39$871,000$871,000$871,000$871,000
40$964,500$918,337$904,837$1,003,705
41$1,010,663$911,119$882,932$1,024,207
42$1,059,889$901,903$858,649$1,041,081
43$1,112,440$890,538$831,856$1,058,271
44$1,168,601$876,867$802,415$1,075,825
45$1,228,685$860,720$770,183$1,093,800
46$1,293,035$841,920$735,009$1,112,260
47$1,362,029$820,278$696,736$1,131,283
48$1,436,079$795,594$655,199$1,150,954
49$1,515,638$767,657$610,227$1,171,374
50$1,601,204$736,244$561,641$1,192,660
51$1,693,324$701,116$509,253$1,214,943
52$1,792,596$662,025$452,867$1,238,374
53$1,899,682$618,705$392,278$1,263,123
54$2,015,303$570,875$327,273$1,289,386
55$2,140,256$518,240$257,629$1,317,383
56$2,275,415$460,487$183,113$1,347,365
57$2,421,742$397,285$103,481$1,379,613
58$2,580,291$328,284$18,480$1,414,446
59$2,752,227$253,115$0$1,452,224
60$2,938,825$171,389$0$1,501,828
61$3,141,491$82,693$0$1,558,100
62$3,361,771$0$0$1,619,413
63$3,601,364$0$0$1,693,014
64$3,862,142$0$0$1,817,784
65$4,146,162$0$0$1,953,770
66$4,455,691$0$0$2,102,071
67$4,793,219$0$0$2,263,892
68$5,161,491$0$0$2,440,562
69$5,563,527$0$0$2,633,544
70$6,002,651$0$0$2,844,447
71$6,482,523$0$0$3,075,044
72$7,007,171$0$0$3,327,287
73$7,581,031$0$0$3,603,324
74$8,208,987$0$0$3,905,522
75$8,896,417$0$0$4,236,485
76$9,649,244$0$0$4,599,084
77$10,473,990$0$0$4,996,478
78$11,377,835$0$0$5,432,147
79$12,368,691$0$0$5,909,924
80$13,455,270$0$0$6,434,031
81$14,647,166$0$0$7,009,117
82$15,954,948$0$0$7,640,305
83$17,390,258$0$0$8,333,237
84$18,965,919$0$0$9,094,126
85$20,696,055$0$0$9,929,819
86$22,596,228$0$0$10,847,858
87$24,683,576$0$0$11,856,551
88$26,976,984$0$0$12,965,050
89$29,497,254$0$0$14,183,439
90$32,267,303$0$0$15,522,826
91$35,312,379$0$0$16,995,449
92$38,660,297$0$0$18,614,793
93$42,341,704$0$0$20,395,713
94$46,390,363$0$0$22,354,576
95$50,843,474$0$0$24,509,417
96$55,742,023$0$0$26,880,103
97$61,131,168$0$0$29,488,527
98$67,060,665$0$0$32,358,810
99$73,585,336$0$0$35,517,529
100$80,765,584$0$0$38,993,968