Can I retire at age 40 with 870,000?

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 $870,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.5%
1 years$71,844$71,204$70,579$69,970$69,375$66,728
2 years$35,566$34,904$34,262$33,639$33,036$30,400
3 years$23,475$22,810$22,170$21,553$20,959$18,418
4 years$17,431$16,768$16,134$15,528$14,948$12,520
5 years$13,805$13,146$12,521$11,927$11,363$9,056
6 years$11,389$10,735$10,118$9,538$8,992$6,805
7 years$9,664$9,015$8,408$7,842$7,313$5,247
8 years$8,371$7,728$7,131$6,578$6,066$4,120
9 years$7,365$6,728$6,142$5,603$5,109$3,278
10 years$6,561$5,931$5,355$4,830$4,353$2,635
11 years$5,904$5,280$4,714$4,204$3,744$2,134
12 years$5,357$4,739$4,184$3,687$3,244$1,739
13 years$4,894$4,282$3,738$3,255$2,829$1,425
14 years$4,498$3,893$3,359$2,890$2,480$1,171
15 years$4,154$3,556$3,032$2,577$2,183$966
16 years$3,854$3,263$2,749$2,307$1,930$799
17 years$3,590$3,005$2,502$2,073$1,711$662
18 years$3,355$2,776$2,284$1,868$1,521$549
19 years$3,145$2,573$2,091$1,688$1,356$456
20 years$2,957$2,391$1,919$1,529$1,211$380
21 years$2,786$2,227$1,765$1,388$1,084$316
22 years$2,632$2,079$1,627$1,262$972$264
23 years$2,491$1,945$1,502$1,149$872$220
24 years$2,362$1,822$1,389$1,048$784$183
25 years$2,243$1,710$1,286$957$705$153
26 years$2,134$1,607$1,193$875$635$128
27 years$2,033$1,512$1,108$801$573$107
28 years$1,939$1,425$1,030$734$517$89
29 years$1,852$1,344$958$673$467$75
30 years$1,771$1,270$893$618$422$62
31 years$1,695$1,200$832$567$381$52
32 years$1,624$1,136$777$521$345$44
33 years$1,558$1,075$725$479$312$37
34 years$1,496$1,019$677$441$283$31
35 years$1,437$967$633$406$256$26
36 years$1,382$918$593$374$232$21
37 years$1,330$872$555$345$210$18
38 years$1,280$828$519$318$191$15
39 years$1,234$788$487$293$173$13
40 years$1,189$749$456$270$157$10
41 years$1,147$713$428$249$142$9
42 years$1,108$679$401$230$129$7
43 years$1,070$647$376$212$117$6
44 years$1,034$617$353$196$106$5
45 years$999$588$332$181$97$4
46 years$967$561$312$167$88$4
47 years$935$536$293$154$80$3
48 years$905$511$275$143$72$3
49 years$877$488$259$132$66$2
50 years$849$466$243$122$60$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $870,000, adding $5,627 every year, while hoping to spend $54,427 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: 62/28/10 Blend
39$870,000$870,000$870,000$870,000
40$964,544$918,434$904,949$1,021,838
41$1,005,018$905,528$877,355$1,047,965
42$1,047,796$890,164$847,012$1,069,691
43$1,093,055$872,167$813,772$1,092,043
44$1,140,990$851,346$777,476$1,115,084
45$1,191,812$827,504$737,963$1,138,882
46$1,245,754$800,428$695,061$1,163,516
47$1,303,067$769,895$648,592$1,189,075
48$1,364,028$735,669$598,369$1,215,659
49$1,428,942$697,499$544,197$1,243,383
50$1,498,138$655,121$485,872$1,272,373
51$1,571,981$608,255$423,182$1,302,775
52$1,650,869$556,605$355,904$1,334,750
53$1,735,238$499,858$283,806$1,368,481
54$1,825,565$437,684$206,647$1,404,173
55$1,922,376$369,734$124,173$1,442,055
56$2,026,245$295,638$36,120$1,482,385
57$2,137,805$215,007$0$1,525,452
58$2,257,747$127,429$0$1,577,751
59$2,386,833$32,468$0$1,637,985
60$2,525,898$0$0$1,702,731
61$2,675,859$0$0$1,794,145
62$2,837,724$0$0$1,903,663
63$3,012,600$0$0$2,022,038
64$3,201,705$0$0$2,150,098
65$3,406,376$0$0$2,288,759
66$3,628,084$0$0$2,439,022
67$3,868,444$0$0$2,601,991
68$4,129,236$0$0$2,778,880
69$4,412,414$0$0$2,971,024
70$4,720,130$0$0$3,179,890
71$5,054,748$0$0$3,407,094
72$5,418,872$0$0$3,654,413
73$5,815,365$0$0$3,923,802
74$6,247,380$0$0$4,217,413
75$6,718,384$0$0$4,537,614
76$7,232,193$0$0$4,887,011
77$7,793,011$0$0$5,268,473
78$8,405,460$0$0$5,685,158
79$9,074,633$0$0$6,140,543
80$9,806,133$0$0$6,638,455
81$10,606,132$0$0$7,183,110
82$11,481,423$0$0$7,779,146
83$12,439,489$0$0$8,431,674
84$13,488,566$0$0$9,146,320
85$14,637,727$0$0$9,929,280
86$15,896,963$0$0$10,787,378
87$17,277,275$0$0$11,728,130
88$18,790,782$0$0$12,759,812
89$20,450,830$0$0$13,891,541
90$22,272,120$0$0$15,133,359
91$24,270,844$0$0$16,496,326
92$26,464,837$0$0$17,992,625
93$28,873,746$0$0$19,635,678
94$31,519,213$0$0$21,440,268
95$34,425,078$0$0$23,422,681
96$37,617,605$0$0$25,600,859
97$41,125,726$0$0$27,994,567
98$44,981,316$0$0$30,625,579
99$49,219,491$0$0$33,517,884
100$53,878,937$0$0$36,697,913