Can I retire at age 40 with 895,000?

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 $895,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$73,908$73,250$72,608$71,981$71,369$70,535
2 years$36,588$35,907$35,246$34,606$33,985$33,146
3 years$24,150$23,466$22,807$22,172$21,561$20,743
4 years$17,932$17,250$16,597$15,974$15,378$14,587
5 years$14,202$13,524$12,880$12,270$11,690$10,928
6 years$11,716$11,043$10,409$9,812$9,250$8,518
7 years$9,942$9,274$8,650$8,067$7,523$6,821
8 years$8,611$7,950$7,336$6,767$6,241$5,570
9 years$7,577$6,922$6,318$5,764$5,256$4,615
10 years$6,750$6,101$5,509$4,969$4,478$3,867
11 years$6,074$5,431$4,850$4,324$3,851$3,269
12 years$5,511$4,875$4,304$3,793$3,337$2,784
13 years$5,035$4,406$3,845$3,349$2,910$2,384
14 years$4,627$4,004$3,455$2,973$2,551$2,052
15 years$4,274$3,658$3,119$2,651$2,246$1,774
16 years$3,965$3,356$2,828$2,374$1,985$1,538
17 years$3,693$3,091$2,574$2,133$1,760$1,338
18 years$3,452$2,856$2,349$1,922$1,565$1,166
19 years$3,236$2,647$2,151$1,737$1,395$1,019
20 years$3,042$2,460$1,974$1,573$1,246$892
21 years$2,867$2,291$1,816$1,428$1,115$782
22 years$2,707$2,139$1,673$1,298$1,000$687
23 years$2,562$2,000$1,545$1,182$897$603
24 years$2,429$1,874$1,429$1,078$806$531
25 years$2,307$1,759$1,323$985$726$468
26 years$2,195$1,653$1,227$900$654$412
27 years$2,091$1,556$1,140$824$589$363
28 years$1,995$1,466$1,060$755$532$321
29 years$1,905$1,383$986$692$480$283
30 years$1,822$1,306$918$635$434$250
31 years$1,744$1,235$856$584$392$221
32 years$1,671$1,168$799$536$355$195
33 years$1,603$1,106$746$493$321$173
34 years$1,539$1,049$697$454$291$153
35 years$1,478$995$652$418$263$135
36 years$1,421$944$610$385$239$120
37 years$1,368$897$571$354$216$106
38 years$1,317$852$534$327$196$94
39 years$1,269$810$501$301$178$83
40 years$1,224$771$469$278$161$74
41 years$1,180$734$440$256$146$65
42 years$1,139$699$413$237$133$58
43 years$1,100$666$387$218$120$51
44 years$1,063$635$363$202$109$45
45 years$1,028$605$341$186$99$40
46 years$994$577$321$172$90$36
47 years$962$551$301$159$82$32
48 years$931$526$283$147$74$28
49 years$902$502$266$136$68$25
50 years$874$480$250$125$61$22

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $895,000, adding $6,178 every year, while hoping to spend $25,164 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: 40/35/25 Blend
39$895,000$895,000$895,000$895,000
40$992,663$945,228$931,355$1,024,822
41$1,067,140$964,769$935,781$1,068,169
42$1,148,370$984,425$939,512$1,112,212
43$1,237,017$1,004,175$942,498$1,159,367
44$1,333,807$1,023,994$944,687$1,209,934
45$1,439,545$1,043,859$946,023$1,264,243
46$1,555,113$1,063,743$946,450$1,322,660
47$1,681,484$1,083,616$945,905$1,385,585
48$1,819,730$1,103,447$944,327$1,453,464
49$1,971,028$1,123,202$941,648$1,526,787
50$2,136,678$1,142,844$937,798$1,606,094
51$2,318,109$1,162,333$932,705$1,691,982
52$2,516,896$1,181,628$926,290$1,785,111
53$2,734,774$1,200,681$918,475$1,886,206
54$2,973,651$1,219,445$909,174$1,996,070
55$3,235,631$1,237,866$898,299$2,115,588
56$3,523,031$1,255,887$885,758$2,245,736
57$3,838,403$1,273,448$871,454$2,387,593
58$4,184,558$1,290,485$855,285$2,542,348
59$4,564,592$1,306,928$837,146$2,711,312
60$4,981,915$1,322,702$816,925$2,895,932
61$5,440,285$1,337,729$794,507$3,097,807
62$5,943,840$1,351,924$769,769$3,318,699
63$6,497,141$1,365,197$742,585$3,560,550
64$7,105,209$1,377,451$712,822$3,825,507
65$7,773,579$1,388,585$680,340$4,115,934
66$8,508,348$1,398,489$644,995$4,434,442
67$9,316,232$1,407,048$606,634$4,783,909
68$10,204,630$1,414,136$565,100$5,167,511
69$11,181,697$1,419,623$520,225$5,588,752
70$12,256,415$1,423,370$471,838$6,051,494
71$13,438,681$1,425,227$419,756$6,560,000
72$14,739,400$1,425,036$363,791$7,118,969
73$16,170,586$1,422,630$303,745$7,733,584
74$17,745,478$1,417,831$239,413$8,409,563
75$19,478,662$1,410,450$170,578$9,153,211
76$21,386,209$1,400,286$97,017$9,971,481
77$23,485,830$1,387,127$18,494$10,872,039
78$25,797,035$1,370,747$0$11,863,342
79$28,341,327$1,350,908$0$12,972,133
80$31,142,396$1,327,355$0$14,197,671
81$34,226,346$1,299,822$0$15,546,424
82$37,621,944$1,268,024$0$17,030,969
83$41,360,885$1,231,659$0$18,665,165
84$45,478,095$1,190,410$0$20,464,291
85$50,012,059$1,143,940$0$22,445,186
86$55,005,188$1,091,891$0$24,626,413
87$60,504,210$1,033,886$0$27,028,432
88$66,560,619$969,527$0$29,673,793
89$73,231,160$898,391$0$32,587,354
90$80,578,358$820,032$0$35,796,512
91$88,671,115$733,979$0$39,331,465
92$97,585,358$639,732$0$43,225,496
93$107,404,751$536,766$0$47,515,293
94$118,221,492$424,524$0$52,241,290
95$130,137,176$302,417$0$57,448,054
96$143,263,758$169,826$0$63,184,706
97$157,724,609$26,095$0$69,505,386
98$173,655,676$0$0$76,469,766
99$191,206,772$0$0$84,193,476
100$210,542,983$0$0$92,714,028