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%
1 years$72,257$71,613$70,985$70,372$69,774$68,618
2 years$35,771$35,104$34,459$33,833$33,226$32,064
3 years$23,610$22,941$22,297$21,677$21,080$19,949
4 years$17,531$16,864$16,227$15,617$15,034$13,943
5 years$13,885$13,222$12,593$11,995$11,429$10,381
6 years$11,455$10,797$10,177$9,593$9,043$8,039
7 years$9,719$9,067$8,457$7,887$7,355$6,395
8 years$8,419$7,772$7,172$6,616$6,101$5,185
9 years$7,407$6,767$6,177$5,635$5,138$4,266
10 years$6,599$5,965$5,385$4,858$4,378$3,548
11 years$5,938$5,310$4,741$4,228$3,765$2,978
12 years$5,387$4,766$4,208$3,708$3,263$2,516
13 years$4,922$4,307$3,759$3,274$2,845$2,138
14 years$4,523$3,915$3,378$2,906$2,494$1,826
15 years$4,178$3,576$3,050$2,592$2,196$1,565
16 years$3,877$3,281$2,765$2,321$1,941$1,346
17 years$3,611$3,022$2,516$2,085$1,721$1,161
18 years$3,375$2,792$2,297$1,879$1,530$1,003
19 years$3,164$2,588$2,103$1,698$1,364$869
20 years$2,974$2,405$1,930$1,538$1,218$754
21 years$2,802$2,240$1,775$1,396$1,090$655
22 years$2,647$2,091$1,636$1,269$977$570
23 years$2,505$1,956$1,510$1,156$877$496
24 years$2,375$1,832$1,397$1,054$788$432
25 years$2,256$1,720$1,294$963$709$377
26 years$2,146$1,616$1,200$880$639$329
27 years$2,044$1,521$1,114$806$576$288
28 years$1,950$1,433$1,036$738$520$251
29 years$1,863$1,352$964$677$469$220
30 years$1,781$1,277$898$621$424$192
31 years$1,705$1,207$837$571$383$168
32 years$1,634$1,142$781$524$347$147
33 years$1,567$1,082$729$482$314$129
34 years$1,504$1,025$681$444$284$113
35 years$1,445$972$637$408$257$99
36 years$1,390$923$596$376$233$87
37 years$1,337$877$558$347$211$76
38 years$1,288$833$522$319$192$67
39 years$1,241$792$489$295$174$58
40 years$1,196$754$459$272$158$51
41 years$1,154$717$430$251$143$45
42 years$1,114$683$403$231$130$39
43 years$1,076$651$379$214$118$34
44 years$1,040$620$355$197$107$30
45 years$1,005$592$334$182$97$26
46 years$972$564$313$168$88$23
47 years$941$539$294$155$80$20
48 years$911$514$277$144$73$18
49 years$882$491$260$133$66$16
50 years$854$469$244$123$60$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $875,000, adding $6,692 every year, while hoping to spend $30,094 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: 68/11/21 Blend
39$875,000$875,000$875,000$875,000
40$971,153$924,778$911,215$1,031,654
41$1,038,191$938,072$909,721$1,086,283
42$1,111,058$951,009$907,168$1,141,908
43$1,190,317$963,540$903,490$1,202,034
44$1,276,587$975,611$898,615$1,267,104
45$1,370,550$987,167$892,469$1,337,606
46$1,472,955$998,148$884,976$1,414,079
47$1,584,628$1,008,488$876,054$1,497,115
48$1,706,477$1,018,121$865,619$1,587,370
49$1,839,501$1,026,972$853,580$1,685,564
50$1,984,800$1,034,964$839,846$1,792,492
51$2,143,587$1,042,015$824,318$1,909,034
52$2,317,195$1,048,036$806,895$2,036,154
53$2,507,092$1,052,933$787,469$2,174,920
54$2,714,896$1,056,606$765,929$2,326,508
55$2,942,385$1,058,950$742,158$2,492,215
56$3,191,522$1,059,852$716,033$2,673,469
57$3,464,464$1,059,192$687,428$2,871,848
58$3,763,590$1,056,843$656,207$3,089,090
59$4,091,518$1,052,670$622,232$3,327,110
60$4,451,132$1,046,530$585,356$3,588,023
61$4,845,608$1,038,271$545,426$3,874,157
62$5,278,445$1,027,731$502,283$4,188,082
63$5,753,498$1,014,741$455,760$4,532,629
64$6,275,010$999,118$405,683$4,910,921
65$6,847,658$980,672$351,871$5,326,401
66$7,476,592$959,199$294,132$5,782,864
67$8,167,488$934,483$232,269$6,284,495
68$8,926,597$906,297$166,074$6,835,906
69$9,760,804$874,400$95,332$7,442,184
70$10,677,696$838,536$19,817$8,108,935
71$11,685,633$798,436$0$8,842,342
72$12,793,821$753,813$0$9,662,834
73$14,012,407$704,366$0$10,569,931
74$15,352,567$649,775$0$11,567,526
75$16,826,617$589,702$0$12,664,808
76$18,448,125$523,790$0$13,871,904
77$20,232,040$451,662$0$15,199,972
78$22,194,834$372,919$0$16,661,309
79$24,354,655$287,140$0$18,269,465
80$26,731,501$193,881$0$20,039,373
81$29,347,404$92,671$0$21,987,490
82$32,226,641$0$0$24,131,951
83$35,395,964$0$0$26,494,795
84$38,884,847$0$0$29,108,295
85$42,725,768$0$0$31,985,568
86$46,954,516$0$0$35,153,433
87$51,610,523$0$0$38,641,438
88$56,737,243$0$0$42,482,144
89$62,382,555$0$0$46,711,429
90$68,599,220$0$0$51,368,829
91$75,445,374$0$0$56,497,907
92$82,985,080$0$0$62,146,670
93$91,288,931$0$0$68,368,014
94$100,434,716$0$0$75,220,231
95$110,508,151$0$0$82,767,552
96$121,603,693$0$0$91,080,758
97$133,825,427$0$0$100,237,845
98$147,288,050$0$0$110,324,761
99$162,117,952$0$0$121,436,215
100$178,454,410$0$0$133,676,575