Can I retire at age 40 with 897,000?

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 $897,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$74,073$73,414$72,770$72,142$71,528$70,170
2 years$36,670$35,987$35,325$34,683$34,061$32,698
3 years$24,204$23,518$22,858$22,222$21,610$20,284
4 years$17,972$17,288$16,635$16,010$15,412$14,135
5 years$14,234$13,554$12,909$12,297$11,716$10,490
6 years$11,743$11,068$10,432$9,834$9,271$8,097
7 years$9,964$9,295$8,669$8,085$7,539$6,419
8 years$8,630$7,967$7,352$6,782$6,255$5,187
9 years$7,594$6,937$6,333$5,777$5,267$4,252
10 years$6,765$6,115$5,521$4,980$4,488$3,524
11 years$6,087$5,444$4,861$4,334$3,860$2,946
12 years$5,523$4,886$4,314$3,802$3,345$2,480
13 years$5,046$4,415$3,854$3,356$2,917$2,099
14 years$4,637$4,013$3,463$2,979$2,557$1,785
15 years$4,283$3,666$3,126$2,657$2,251$1,524
16 years$3,974$3,364$2,835$2,379$1,990$1,305
17 years$3,701$3,098$2,579$2,138$1,764$1,121
18 years$3,459$2,863$2,355$1,926$1,569$964
19 years$3,243$2,653$2,156$1,741$1,398$832
20 years$3,049$2,465$1,978$1,576$1,249$718
21 years$2,873$2,296$1,820$1,431$1,118$621
22 years$2,713$2,144$1,677$1,301$1,002$538
23 years$2,568$2,005$1,548$1,185$899$466
24 years$2,435$1,878$1,432$1,081$808$404
25 years$2,313$1,763$1,326$987$727$351
26 years$2,200$1,657$1,230$902$655$305
27 years$2,096$1,559$1,142$826$591$265
28 years$1,999$1,469$1,062$757$533$231
29 years$1,909$1,386$988$694$481$201
30 years$1,826$1,309$920$637$435$175
31 years$1,748$1,237$858$585$393$152
32 years$1,675$1,171$801$538$356$132
33 years$1,606$1,109$748$494$322$115
34 years$1,542$1,051$698$455$291$101
35 years$1,482$997$653$419$264$88
36 years$1,425$946$611$386$239$76
37 years$1,371$899$572$355$217$67
38 years$1,320$854$535$327$196$58
39 years$1,272$812$502$302$178$51
40 years$1,226$773$470$278$162$44
41 years$1,183$735$441$257$147$39
42 years$1,142$700$414$237$133$34
43 years$1,103$667$388$219$121$29
44 years$1,066$636$364$202$110$26
45 years$1,030$607$342$187$99$22
46 years$997$579$321$172$90$19
47 years$964$552$302$159$82$17
48 years$933$527$284$147$74$15
49 years$904$503$267$136$68$13
50 years$876$481$251$126$61$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $897,000, adding $4,058 every year, while hoping to spend $59,748 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: 60/26/14 Blend
39$897,000$897,000$897,000$897,000
40$992,680$945,139$931,235$1,048,548
41$1,030,362$927,879$898,860$1,069,400
42$1,069,885$907,771$863,398$1,085,075
43$1,111,374$884,613$824,683$1,100,751
44$1,154,963$858,189$782,539$1,116,436
45$1,200,802$828,272$736,786$1,132,138
46$1,249,049$794,622$687,234$1,147,869
47$1,299,878$756,986$633,683$1,163,648
48$1,353,481$715,093$575,926$1,179,497
49$1,410,062$668,659$513,746$1,195,443
50$1,469,849$617,383$446,917$1,211,522
51$1,533,087$560,948$375,202$1,227,774
52$1,600,044$499,017$298,353$1,244,250
53$1,671,014$431,234$216,114$1,261,011
54$1,746,318$357,225$128,214$1,278,127
55$1,826,305$276,592$34,372$1,295,681
56$1,911,360$188,918$0$1,313,770
57$2,001,903$93,758$0$1,342,332
58$2,098,391$0$0$1,377,790
59$2,201,328$0$0$1,417,878
60$2,311,266$0$0$1,489,383
61$2,428,807$0$0$1,565,878
62$2,554,614$0$0$1,647,800
63$2,689,412$0$0$1,735,628
64$2,833,998$0$0$1,829,886
65$2,989,245$0$0$1,931,151
66$3,156,112$0$0$2,040,055
67$3,335,652$0$0$2,157,293
68$3,529,019$0$0$2,283,628
69$3,737,483$0$0$2,419,897
70$3,962,438$0$0$2,567,021
71$4,205,417$0$0$2,726,010
72$4,468,101$0$0$2,897,977
73$4,752,343$0$0$3,084,143
74$5,060,174$0$0$3,285,851
75$5,393,832$0$0$3,504,577
76$5,755,774$0$0$3,741,946
77$6,148,705$0$0$3,999,743
78$6,575,600$0$0$4,279,934
79$7,039,729$0$0$4,584,679
80$7,544,692$0$0$4,916,356
81$8,094,449$0$0$5,277,581
82$8,693,357$0$0$5,671,233
83$9,346,212$0$0$6,100,481
84$10,058,292$0$0$6,568,812
85$10,835,404$0$0$7,080,065
86$11,683,944$0$0$7,638,464
87$12,610,950$0$0$8,248,661
88$13,624,171$0$0$8,915,777
89$14,732,137$0$0$9,645,450
90$15,944,243$0$0$10,443,888
91$17,270,831$0$0$11,317,926
92$18,723,289$0$0$12,275,093
93$20,314,159$0$0$13,323,677
94$22,057,252$0$0$14,472,806
95$23,967,779$0$0$15,732,536
96$26,062,491$0$0$17,113,939
97$28,359,839$0$0$18,629,210
98$30,880,144$0$0$20,291,782
99$33,645,789$0$0$22,116,453
100$36,681,430$0$0$24,119,519