Can I retire at age 40 with 872,000?

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 $872,000?

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$72,009$71,368$70,742$70,131$69,535$66,881
2 years$35,648$34,984$34,341$33,717$33,112$30,470
3 years$23,529$22,862$22,221$21,603$21,007$18,460
4 years$17,471$16,806$16,171$15,564$14,983$12,549
5 years$13,837$13,176$12,549$11,954$11,390$9,076
6 years$11,415$10,760$10,142$9,560$9,012$6,821
7 years$9,686$9,036$8,428$7,860$7,329$5,259
8 years$8,390$7,745$7,147$6,593$6,080$4,129
9 years$7,382$6,744$6,156$5,616$5,121$3,286
10 years$6,576$5,944$5,367$4,841$4,363$2,641
11 years$5,918$5,292$4,725$4,213$3,752$2,139
12 years$5,369$4,750$4,193$3,696$3,252$1,743
13 years$4,905$4,292$3,746$3,263$2,836$1,428
14 years$4,508$3,902$3,366$2,896$2,486$1,174
15 years$4,164$3,564$3,039$2,583$2,189$968
16 years$3,863$3,270$2,756$2,313$1,934$800
17 years$3,598$3,012$2,507$2,078$1,715$663
18 years$3,363$2,783$2,289$1,873$1,525$550
19 years$3,153$2,579$2,095$1,692$1,359$457
20 years$2,964$2,397$1,923$1,533$1,214$381
21 years$2,793$2,232$1,769$1,391$1,086$317
22 years$2,638$2,084$1,630$1,265$974$264
23 years$2,496$1,949$1,505$1,152$874$220
24 years$2,367$1,826$1,392$1,050$786$184
25 years$2,248$1,714$1,289$959$707$154
26 years$2,139$1,611$1,196$877$637$128
27 years$2,037$1,516$1,110$803$574$107
28 years$1,943$1,428$1,032$736$518$90
29 years$1,856$1,347$961$675$468$75
30 years$1,775$1,272$895$619$423$63
31 years$1,699$1,203$834$569$382$52
32 years$1,628$1,138$778$523$346$44
33 years$1,562$1,078$727$481$313$37
34 years$1,499$1,022$679$442$283$31
35 years$1,440$969$635$407$257$26
36 years$1,385$920$594$375$232$21
37 years$1,333$874$556$345$211$18
38 years$1,283$830$521$318$191$15
39 years$1,236$789$488$294$173$13
40 years$1,192$751$457$271$157$10
41 years$1,150$715$429$250$143$9
42 years$1,110$681$402$231$129$7
43 years$1,072$649$377$213$117$6
44 years$1,036$618$354$196$107$5
45 years$1,002$590$333$181$97$4
46 years$969$563$312$168$88$4
47 years$937$537$293$155$80$3
48 years$907$512$276$143$72$3
49 years$879$489$259$132$66$2
50 years$851$467$244$122$60$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $872,000, adding $4,280 every year, while hoping to spend $50,283 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: 28/49/23 Blend
39$872,000$872,000$872,000$872,000
40$965,359$919,143$905,627$985,326
41$1,010,325$910,680$882,465$992,835
42$1,058,192$900,117$856,841$996,187
43$1,109,203$887,299$828,621$998,735
44$1,163,624$872,059$797,662$1,000,442
45$1,221,747$854,223$763,817$1,001,275
46$1,283,890$833,605$726,930$1,001,199
47$1,350,404$810,009$686,839$1,000,183
48$1,421,672$783,226$643,375$998,197
49$1,498,116$753,037$596,362$995,219
50$1,580,197$719,210$545,613$991,225
51$1,668,423$681,496$490,937$986,200
52$1,763,350$639,637$432,131$980,135
53$1,865,588$593,356$368,984$973,025
54$1,975,810$542,363$301,277$964,877
55$2,094,753$486,348$228,779$955,705
56$2,223,226$424,988$151,252$945,535
57$2,362,119$357,937$68,443$934,404
58$2,512,412$284,832$0$922,368
59$2,675,179$205,290$0$914,385
60$2,851,603$118,905$0$923,897
61$3,042,985$25,250$0$934,271
62$3,250,754$0$0$945,715
63$3,476,483$0$0$999,516
64$3,721,902$0$0$1,072,937
65$3,988,914$0$0$1,152,948
66$4,279,615$0$0$1,240,194
67$4,596,307$0$0$1,335,382
68$4,941,527$0$0$1,439,294
69$5,318,066$0$0$1,552,786
70$5,728,997$0$0$1,676,806
71$6,177,699$0$0$1,812,393
72$6,667,896$0$0$1,960,694
73$7,203,685$0$0$2,122,969
74$7,789,578$0$0$2,300,609
75$8,430,543$0$0$2,495,142
76$9,132,048$0$0$2,708,254
77$9,900,117$0$0$2,941,799
78$10,741,382$0$0$3,197,821
79$11,663,147$0$0$3,478,569
80$12,673,455$0$0$3,786,523
81$13,781,165$0$0$4,124,413
82$14,996,036$0$0$4,495,244
83$16,328,812$0$0$4,902,330
84$17,791,332$0$0$5,349,318
85$19,396,634$0$0$5,840,228
86$21,159,080$0$0$6,379,487
87$23,094,491$0$0$6,971,973
88$25,220,295$0$0$7,623,058
89$27,555,692$0$0$8,338,662
90$30,121,831$0$0$9,125,307
91$32,942,014$0$0$9,990,176
92$36,041,909$0$0$10,941,186
93$39,449,798$0$0$11,987,057
94$43,196,838$0$0$13,137,398
95$47,317,354$0$0$14,402,795
96$51,849,169$0$0$15,794,912
97$56,833,950$0$0$17,326,600
98$62,317,608$0$0$19,012,020
99$68,350,727$0$0$20,866,773
100$74,989,040$0$0$22,908,050