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%19.8%
1 years$71,844$71,204$70,579$69,970$69,375$66,649
2 years$35,566$34,904$34,262$33,639$33,036$30,322
3 years$23,475$22,810$22,170$21,553$20,959$18,344
4 years$17,431$16,768$16,134$15,528$14,948$12,452
5 years$13,805$13,146$12,521$11,927$11,363$8,992
6 years$11,389$10,735$10,118$9,538$8,992$6,746
7 years$9,664$9,015$8,408$7,842$7,313$5,192
8 years$8,371$7,728$7,131$6,578$6,066$4,069
9 years$7,365$6,728$6,142$5,603$5,109$3,232
10 years$6,561$5,931$5,355$4,830$4,353$2,593
11 years$5,904$5,280$4,714$4,204$3,744$2,096
12 years$5,357$4,739$4,184$3,687$3,244$1,705
13 years$4,894$4,282$3,738$3,255$2,829$1,394
14 years$4,498$3,893$3,359$2,890$2,480$1,143
15 years$4,154$3,556$3,032$2,577$2,183$941
16 years$3,854$3,263$2,749$2,307$1,930$776
17 years$3,590$3,005$2,502$2,073$1,711$642
18 years$3,355$2,776$2,284$1,868$1,521$531
19 years$3,145$2,573$2,091$1,688$1,356$441
20 years$2,957$2,391$1,919$1,529$1,211$366
21 years$2,786$2,227$1,765$1,388$1,084$304
22 years$2,632$2,079$1,627$1,262$972$253
23 years$2,491$1,945$1,502$1,149$872$210
24 years$2,362$1,822$1,389$1,048$784$175
25 years$2,243$1,710$1,286$957$705$146
26 years$2,134$1,607$1,193$875$635$121
27 years$2,033$1,512$1,108$801$573$101
28 years$1,939$1,425$1,030$734$517$84
29 years$1,852$1,344$958$673$467$70
30 years$1,771$1,270$893$618$422$59
31 years$1,695$1,200$832$567$381$49
32 years$1,624$1,136$777$521$345$41
33 years$1,558$1,075$725$479$312$34
34 years$1,496$1,019$677$441$283$28
35 years$1,437$967$633$406$256$24
36 years$1,382$918$593$374$232$20
37 years$1,330$872$555$345$210$17
38 years$1,280$828$519$318$191$14
39 years$1,234$788$487$293$173$12
40 years$1,189$749$456$270$157$10
41 years$1,147$713$428$249$142$8
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$3
47 years$935$536$293$154$80$3
48 years$905$511$275$143$72$2
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 $6,639 every year, while hoping to spend $25,552 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: 47/48/5 Blend
39$870,000$870,000$870,000$870,000
40$965,588$919,478$905,993$1,009,409
41$1,036,891$937,345$909,157$1,057,988
42$1,114,610$955,232$911,570$1,107,436
43$1,199,374$973,111$913,181$1,160,489
44$1,291,872$990,956$913,934$1,217,488
45$1,392,865$1,008,734$913,773$1,278,808
46$1,503,189$1,026,415$912,637$1,344,865
47$1,623,767$1,043,962$910,463$1,416,113
48$1,755,612$1,061,337$907,184$1,493,055
49$1,899,842$1,078,499$902,732$1,576,247
50$2,057,685$1,095,405$897,032$1,666,298
51$2,230,496$1,112,007$890,010$1,763,883
52$2,419,766$1,128,255$881,585$1,869,745
53$2,627,137$1,144,094$871,673$1,984,702
54$2,854,417$1,159,467$860,186$2,109,657
55$3,103,598$1,174,311$847,033$2,245,607
56$3,376,874$1,188,561$832,117$2,393,648
57$3,676,659$1,202,146$815,338$2,554,992
58$4,005,617$1,214,989$796,590$2,730,973
59$4,366,677$1,227,011$775,763$2,923,064
60$4,763,069$1,238,125$752,742$3,132,887
61$5,198,349$1,248,240$727,406$3,362,232
62$5,676,435$1,257,258$699,628$3,613,074
63$6,201,643$1,265,076$669,278$3,887,589
64$6,778,728$1,271,582$636,216$4,188,176
65$7,412,929$1,276,659$600,299$4,517,482
66$8,110,014$1,280,183$561,376$4,878,425
67$8,876,343$1,282,019$519,290$5,274,223
68$9,718,920$1,282,028$473,875$5,708,425
69$10,645,461$1,280,058$424,961$6,184,943
70$11,664,468$1,275,951$372,367$6,708,091
71$12,785,308$1,269,537$315,907$7,282,626
72$14,018,303$1,260,638$255,383$7,913,794
73$15,374,824$1,249,063$190,592$8,607,377
74$16,867,399$1,234,610$121,320$9,369,754
75$18,509,833$1,217,066$47,344$10,207,954
76$20,317,338$1,196,204$0$11,129,731
77$22,306,673$1,171,784$0$12,145,317
78$24,496,304$1,143,552$0$13,265,255
79$26,906,579$1,111,238$0$14,497,420
80$29,559,920$1,074,559$0$15,853,282
81$32,481,031$1,033,211$0$17,345,485
82$35,697,134$986,876$0$18,987,966
83$39,238,225$935,217$0$20,796,093
84$43,137,357$877,876$0$22,786,805
85$47,430,951$814,475$0$24,978,775
86$52,159,139$744,615$0$27,392,589
87$57,366,145$667,875$0$30,050,939
88$63,100,699$583,808$0$32,978,841
89$69,416,498$491,942$0$36,203,869
90$76,372,714$391,780$0$39,756,419
91$84,034,549$282,796$0$43,669,999
92$92,473,854$164,434$0$47,981,541
93$101,769,803$36,107$0$52,731,759
94$112,009,643$0$0$57,965,530
95$123,289,515$0$0$63,786,619
96$135,715,363$0$0$70,220,259
97$149,403,932$0$0$77,307,844
98$164,483,872$0$0$85,116,003
99$181,096,949$0$0$93,718,162
100$199,399,386$0$0$103,195,232