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%17.6%
1 years$71,844$71,204$70,579$69,970$69,375$67,235
2 years$35,566$34,904$34,262$33,639$33,036$30,898
3 years$23,475$22,810$22,170$21,553$20,959$18,892
4 years$17,431$16,768$16,134$15,528$14,948$12,966
5 years$13,805$13,146$12,521$11,927$11,363$9,472
6 years$11,389$10,735$10,118$9,538$8,992$7,193
7 years$9,664$9,015$8,408$7,842$7,313$5,607
8 years$8,371$7,728$7,131$6,578$6,066$4,452
9 years$7,365$6,728$6,142$5,603$5,109$3,584
10 years$6,561$5,931$5,355$4,830$4,353$2,915
11 years$5,904$5,280$4,714$4,204$3,744$2,391
12 years$5,357$4,739$4,184$3,687$3,244$1,973
13 years$4,894$4,282$3,738$3,255$2,829$1,637
14 years$4,498$3,893$3,359$2,890$2,480$1,364
15 years$4,154$3,556$3,032$2,577$2,183$1,140
16 years$3,854$3,263$2,749$2,307$1,930$956
17 years$3,590$3,005$2,502$2,073$1,711$803
18 years$3,355$2,776$2,284$1,868$1,521$676
19 years$3,145$2,573$2,091$1,688$1,356$570
20 years$2,957$2,391$1,919$1,529$1,211$481
21 years$2,786$2,227$1,765$1,388$1,084$407
22 years$2,632$2,079$1,627$1,262$972$344
23 years$2,491$1,945$1,502$1,149$872$291
24 years$2,362$1,822$1,389$1,048$784$247
25 years$2,243$1,710$1,286$957$705$209
26 years$2,134$1,607$1,193$875$635$177
27 years$2,033$1,512$1,108$801$573$151
28 years$1,939$1,425$1,030$734$517$128
29 years$1,852$1,344$958$673$467$108
30 years$1,771$1,270$893$618$422$92
31 years$1,695$1,200$832$567$381$78
32 years$1,624$1,136$777$521$345$66
33 years$1,558$1,075$725$479$312$56
34 years$1,496$1,019$677$441$283$48
35 years$1,437$967$633$406$256$41
36 years$1,382$918$593$374$232$35
37 years$1,330$872$555$345$210$29
38 years$1,280$828$519$318$191$25
39 years$1,234$788$487$293$173$21
40 years$1,189$749$456$270$157$18
41 years$1,147$713$428$249$142$15
42 years$1,108$679$401$230$129$13
43 years$1,070$647$376$212$117$11
44 years$1,034$617$353$196$106$9
45 years$999$588$332$181$97$8
46 years$967$561$312$167$88$7
47 years$935$536$293$154$80$6
48 years$905$511$275$143$72$5
49 years$877$488$259$132$66$4
50 years$849$466$243$122$60$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $870,000, adding $5,542 every year, while hoping to spend $50,726 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: 59/36/5 Blend
39$870,000$870,000$870,000$870,000
40$964,457$918,347$904,862$1,020,179
41$1,008,859$909,373$881,202$1,049,182
42$1,056,091$898,261$855,050$1,074,478
43$1,106,386$884,849$826,269$1,100,767
44$1,160,002$868,972$794,714$1,128,145
45$1,217,222$850,451$760,236$1,156,720
46$1,278,353$829,098$722,679$1,186,615
47$1,343,735$804,713$681,878$1,217,965
48$1,413,737$777,086$637,662$1,250,924
49$1,488,768$745,992$589,853$1,285,663
50$1,569,272$711,196$538,264$1,322,372
51$1,655,741$672,447$482,698$1,361,267
52$1,748,711$629,482$422,953$1,402,585
53$1,848,772$582,020$358,815$1,446,595
54$1,956,574$529,765$290,062$1,493,595
55$2,072,826$472,406$216,461$1,543,918
56$2,198,312$409,611$137,770$1,597,935
57$2,333,890$341,032$53,736$1,656,060
58$2,480,505$266,301$0$1,718,754
59$2,639,194$185,027$0$1,788,449
60$2,811,098$96,800$0$1,866,982
61$2,997,472$1,185$0$1,952,135
62$3,199,694$0$0$2,044,633
63$3,419,282$0$0$2,185,795
64$3,657,905$0$0$2,339,766
65$3,917,398$0$0$2,507,269
66$4,199,780$0$0$2,689,616
67$4,507,273$0$0$2,888,251
68$4,842,323$0$0$3,104,762
69$5,207,620$0$0$3,340,897
70$5,606,126$0$0$3,598,580
71$6,041,101$0$0$3,879,930
72$6,516,132$0$0$4,187,278
73$7,035,170$0$0$4,523,190
74$7,602,563$0$0$4,890,493
75$8,223,098$0$0$5,292,298
76$8,902,049$0$0$5,732,031
77$9,645,218$0$0$6,213,464
78$10,458,998$0$0$6,740,751
79$11,350,428$0$0$7,318,467
80$12,327,259$0$0$7,951,650
81$13,398,028$0$0$8,645,850
82$14,572,137$0$0$9,407,175
83$15,859,942$0$0$10,242,359
84$17,272,849$0$0$11,158,815
85$18,823,420$0$0$12,164,709
86$20,525,495$0$0$13,269,036
87$22,394,318$0$0$14,481,706
88$24,446,680$0$0$15,813,633
89$26,701,079$0$0$17,276,844
90$29,177,893$0$0$18,884,584
91$31,899,572$0$0$20,651,446
92$34,890,846$0$0$22,593,509
93$38,178,962$0$0$24,728,484
94$41,793,937$0$0$27,075,885
95$45,768,842$0$0$29,657,211
96$50,140,113$0$0$32,496,150
97$54,947,894$0$0$35,618,798
98$60,236,413$0$0$39,053,910
99$66,054,402$0$0$42,833,166
100$72,455,552$0$0$46,991,472