Can I retire at age 40 with 875,000?

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 $875,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$72,257$71,613$70,985$70,372$69,774$68,561
2 years$35,771$35,104$34,459$33,833$33,226$32,008
3 years$23,610$22,941$22,297$21,677$21,080$19,895
4 years$17,531$16,864$16,227$15,617$15,034$13,891
5 years$13,885$13,222$12,593$11,995$11,429$10,331
6 years$11,455$10,797$10,177$9,593$9,043$7,992
7 years$9,719$9,067$8,457$7,887$7,355$6,350
8 years$8,419$7,772$7,172$6,616$6,101$5,143
9 years$7,407$6,767$6,177$5,635$5,138$4,226
10 years$6,599$5,965$5,385$4,858$4,378$3,511
11 years$5,938$5,310$4,741$4,228$3,765$2,943
12 years$5,387$4,766$4,208$3,708$3,263$2,483
13 years$4,922$4,307$3,759$3,274$2,845$2,108
14 years$4,523$3,915$3,378$2,906$2,494$1,797
15 years$4,178$3,576$3,050$2,592$2,196$1,538
16 years$3,877$3,281$2,765$2,321$1,941$1,321
17 years$3,611$3,022$2,516$2,085$1,721$1,138
18 years$3,375$2,792$2,297$1,879$1,530$982
19 years$3,164$2,588$2,103$1,698$1,364$849
20 years$2,974$2,405$1,930$1,538$1,218$736
21 years$2,802$2,240$1,775$1,396$1,090$638
22 years$2,647$2,091$1,636$1,269$977$554
23 years$2,505$1,956$1,510$1,156$877$482
24 years$2,375$1,832$1,397$1,054$788$419
25 years$2,256$1,720$1,294$963$709$365
26 years$2,146$1,616$1,200$880$639$318
27 years$2,044$1,521$1,114$806$576$278
28 years$1,950$1,433$1,036$738$520$242
29 years$1,863$1,352$964$677$469$212
30 years$1,781$1,277$898$621$424$185
31 years$1,705$1,207$837$571$383$161
32 years$1,634$1,142$781$524$347$141
33 years$1,567$1,082$729$482$314$123
34 years$1,504$1,025$681$444$284$108
35 years$1,445$972$637$408$257$94
36 years$1,390$923$596$376$233$82
37 years$1,337$877$558$347$211$72
38 years$1,288$833$522$319$192$63
39 years$1,241$792$489$295$174$55
40 years$1,196$754$459$272$158$48
41 years$1,154$717$430$251$143$42
42 years$1,114$683$403$231$130$37
43 years$1,076$651$379$214$118$32
44 years$1,040$620$355$197$107$28
45 years$1,005$592$334$182$97$25
46 years$972$564$313$168$88$22
47 years$941$539$294$155$80$19
48 years$911$514$277$144$73$17
49 years$882$491$260$133$66$15
50 years$854$469$244$123$60$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $875,000, adding $5,445 every year, while hoping to spend $34,877 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: 43/49/8 Blend
39$875,000$875,000$875,000$875,000
40$969,867$923,492$909,929$1,009,102
41$1,031,684$931,634$903,303$1,045,046
42$1,098,638$939,006$895,286$1,079,982
43$1,171,216$945,534$885,794$1,117,029
44$1,249,952$951,138$874,741$1,156,394
45$1,335,437$955,733$862,035$1,198,304
46$1,428,318$959,231$847,579$1,243,012
47$1,529,308$961,534$831,275$1,290,800
48$1,639,191$962,543$813,016$1,341,977
49$1,758,830$962,149$792,693$1,396,888
50$1,889,174$960,237$770,191$1,455,916
51$2,031,267$956,687$745,390$1,519,482
52$2,186,260$951,368$718,165$1,588,054
53$2,355,418$944,145$688,383$1,662,152
54$2,540,134$934,871$655,907$1,742,350
55$2,741,942$923,394$620,595$1,829,283
56$2,962,530$909,550$582,294$1,923,655
57$3,203,757$893,167$540,849$2,026,246
58$3,467,668$874,060$496,096$2,137,918
59$3,756,518$852,037$447,863$2,259,624
60$4,072,788$826,892$395,972$2,392,421
61$4,419,211$798,408$340,235$2,537,475
62$4,798,794$766,354$280,457$2,696,080
63$5,214,854$730,488$216,435$2,869,663
64$5,671,039$690,551$147,955$3,059,804
65$6,171,369$646,272$74,796$3,268,250
66$6,720,272$597,363$0$3,496,932
67$7,322,625$543,519$0$3,748,265
68$7,983,800$484,419$0$4,031,160
69$8,709,714$419,722$0$4,341,854
70$9,506,886$349,069$0$4,683,252
71$10,382,496$272,081$0$5,058,561
72$11,344,454$188,357$0$5,471,323
73$12,401,475$97,473$0$5,925,451
74$13,563,158$0$0$6,425,262
75$14,840,080$0$0$6,976,076
76$16,243,893$0$0$7,639,521
77$17,787,433$0$0$8,369,122
78$19,484,845$0$0$9,171,579
79$21,351,710$0$0$10,054,274
80$23,405,196$0$0$11,025,341
81$25,664,220$0$0$12,093,741
82$28,149,623$0$0$13,269,347
83$30,884,368$0$0$14,563,040
84$33,893,757$0$0$15,986,806
85$37,205,668$0$0$17,553,854
86$40,850,818$0$0$19,278,738
87$44,863,053$0$0$21,177,493
88$49,279,669$0$0$23,267,789
89$54,141,758$0$0$25,569,096
90$59,494,600$0$0$28,102,869
91$65,388,089$0$0$30,892,746
92$71,877,203$0$0$33,964,778
93$79,022,521$0$0$37,347,668
94$86,890,798$0$0$41,073,044
95$95,555,591$0$0$45,175,760
96$105,097,953$0$0$49,694,221
97$115,607,200$0$0$54,670,747
98$127,181,753$0$0$60,151,972
99$139,930,062$0$0$66,189,283
100$153,971,635$0$0$72,839,307