Can I retire at age 40 with 898,000?

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 $898,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$74,156$73,495$72,851$72,222$71,608$69,205
2 years$36,711$36,027$35,365$34,722$34,099$31,702
3 years$24,231$23,544$22,883$22,247$21,634$19,318
4 years$17,992$17,307$16,653$16,028$15,429$13,212
5 years$14,250$13,569$12,924$12,311$11,729$9,616
6 years$11,756$11,080$10,444$9,845$9,281$7,274
7 years$9,975$9,305$8,679$8,094$7,548$5,647
8 years$8,640$7,976$7,361$6,790$6,262$4,466
9 years$7,602$6,945$6,340$5,784$5,273$3,580
10 years$6,772$6,122$5,527$4,985$4,493$2,899
11 years$6,094$5,450$4,866$4,339$3,864$2,367
12 years$5,529$4,891$4,318$3,806$3,349$1,944
13 years$5,051$4,420$3,858$3,360$2,920$1,606
14 years$4,642$4,018$3,467$2,983$2,560$1,331
15 years$4,288$3,670$3,130$2,660$2,254$1,107
16 years$3,978$3,368$2,838$2,382$1,992$923
17 years$3,706$3,101$2,582$2,140$1,766$772
18 years$3,463$2,866$2,357$1,928$1,570$646
19 years$3,247$2,656$2,158$1,743$1,400$542
20 years$3,052$2,468$1,980$1,578$1,250$455
21 years$2,876$2,299$1,822$1,432$1,119$383
22 years$2,716$2,146$1,679$1,302$1,003$322
23 years$2,571$2,007$1,550$1,186$900$271
24 years$2,438$1,881$1,434$1,082$809$228
25 years$2,315$1,765$1,328$988$728$193
26 years$2,202$1,659$1,231$903$656$162
27 years$2,098$1,561$1,144$827$591$137
28 years$2,001$1,471$1,063$758$534$116
29 years$1,912$1,388$989$695$482$98
30 years$1,828$1,310$921$638$435$82
31 years$1,750$1,239$859$586$394$70
32 years$1,677$1,172$802$538$356$59
33 years$1,608$1,110$748$495$322$50
34 years$1,544$1,052$699$455$292$42
35 years$1,483$998$654$419$264$35
36 years$1,426$947$612$386$239$30
37 years$1,372$900$572$356$217$25
38 years$1,322$855$536$328$197$21
39 years$1,273$813$502$302$178$18
40 years$1,228$773$471$279$162$15
41 years$1,184$736$441$257$147$13
42 years$1,143$701$414$237$133$11
43 years$1,104$668$389$219$121$9
44 years$1,067$637$365$202$110$8
45 years$1,031$607$342$187$100$7
46 years$998$579$322$173$90$6
47 years$965$553$302$159$82$5
48 years$935$528$284$147$75$4
49 years$905$504$267$136$68$3
50 years$877$481$251$126$62$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $898,000, adding $4,549 every year, while hoping to spend $52,728 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: 81/7/12 Blend
39$898,000$898,000$898,000$898,000
40$994,288$946,694$932,775$1,072,298
41$1,039,604$936,980$907,921$1,114,427
42$1,087,774$925,023$880,467$1,153,301
43$1,139,034$910,657$850,270$1,194,421
44$1,193,643$893,706$817,182$1,237,987
45$1,251,883$873,986$781,045$1,284,218
46$1,314,062$851,298$741,698$1,333,355
47$1,380,520$825,435$698,968$1,385,664
48$1,451,628$796,177$652,678$1,441,439
49$1,527,793$763,288$602,642$1,501,003
50$1,609,462$726,524$548,665$1,564,712
51$1,697,126$685,622$490,544$1,632,961
52$1,791,321$640,306$428,065$1,706,183
53$1,892,638$590,283$361,008$1,784,855
54$2,001,726$535,246$289,140$1,869,505
55$2,119,295$474,866$212,220$1,960,715
56$2,246,129$408,801$129,995$2,059,127
57$2,383,086$336,683$42,202$2,165,447
58$2,531,110$258,130$0$2,280,456
59$2,691,238$172,733$0$2,411,608
60$2,864,611$80,064$0$2,559,454
61$3,052,482$0$0$2,719,672
62$3,256,230$0$0$2,895,021
63$3,477,370$0$0$3,092,052
64$3,717,571$0$0$3,306,084
65$3,978,665$0$0$3,538,755
66$4,262,671$0$0$3,791,865
67$4,571,809$0$0$4,067,395
68$4,908,520$0$0$4,367,526
69$5,275,493$0$0$4,694,655
70$5,675,686$0$0$5,051,423
71$6,112,355$0$0$5,440,735
72$6,589,083$0$0$5,865,791
73$7,109,815$0$0$6,330,110
74$7,678,894$0$0$6,837,570
75$8,301,101$0$0$7,392,436
76$8,981,701$0$0$7,999,408
77$9,726,489$0$0$8,663,659
78$10,541,848$0$0$9,390,886
79$11,434,806$0$0$10,187,360
80$12,413,104$0$0$11,059,992
81$13,485,264$0$0$12,016,387
82$14,660,674$0$0$13,064,926
83$15,949,673$0$0$14,214,835
84$17,363,649$0$0$15,476,280
85$18,915,145$0$0$16,860,456
86$20,617,976$0$0$18,379,694
87$22,487,360$0$0$20,047,578
88$24,540,061$0$0$21,879,070
89$26,794,546$0$0$23,890,653
90$29,271,158$0$0$26,100,486
91$31,992,307$0$0$28,528,570
92$34,982,680$0$0$31,196,942
93$38,269,478$0$0$34,129,881
94$41,882,663$0$0$37,354,130
95$45,855,249$0$0$40,899,158
96$50,223,606$0$0$44,797,428
97$55,027,806$0$0$49,084,708
98$60,311,997$0$0$53,800,405
99$66,124,825$0$0$58,987,940
100$72,519,882$0$0$64,695,149