Can I retire at age 40 with 877,000?

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 $877,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$72,422$71,777$71,147$70,533$69,933$67,668
2 years$35,852$35,185$34,538$33,910$33,302$31,040
3 years$23,664$22,994$22,348$21,727$21,128$18,942
4 years$17,571$16,903$16,264$15,653$15,069$12,974
5 years$13,916$13,252$12,621$12,023$11,455$9,458
6 years$11,481$10,821$10,200$9,615$9,064$7,167
7 years$9,742$9,088$8,476$7,905$7,371$5,573
8 years$8,438$7,790$7,188$6,631$6,115$4,415
9 years$7,424$6,782$6,191$5,648$5,150$3,545
10 years$6,614$5,978$5,398$4,869$4,388$2,877
11 years$5,951$5,322$4,752$4,237$3,774$2,353
12 years$5,400$4,777$4,217$3,717$3,270$1,937
13 years$4,933$4,317$3,768$3,281$2,852$1,603
14 years$4,534$3,924$3,386$2,913$2,500$1,332
15 years$4,188$3,585$3,057$2,598$2,201$1,110
16 years$3,885$3,289$2,771$2,326$1,945$928
17 years$3,619$3,029$2,522$2,090$1,725$777
18 years$3,382$2,799$2,302$1,883$1,534$652
19 years$3,171$2,594$2,107$1,702$1,367$548
20 years$2,981$2,410$1,934$1,541$1,221$461
21 years$2,809$2,245$1,779$1,399$1,093$389
22 years$2,653$2,096$1,640$1,272$979$328
23 years$2,511$1,960$1,514$1,158$879$277
24 years$2,381$1,837$1,400$1,056$790$234
25 years$2,261$1,724$1,297$965$711$198
26 years$2,151$1,620$1,203$882$641$167
27 years$2,049$1,524$1,117$807$577$141
28 years$1,955$1,436$1,038$740$521$119
29 years$1,867$1,355$966$678$471$101
30 years$1,785$1,280$900$623$425$86
31 years$1,709$1,210$839$572$384$72
32 years$1,638$1,145$783$526$348$61
33 years$1,571$1,084$731$483$315$52
34 years$1,508$1,027$683$445$285$44
35 years$1,449$975$638$409$258$37
36 years$1,393$925$597$377$234$32
37 years$1,340$879$559$347$212$27
38 years$1,291$835$524$320$192$23
39 years$1,244$794$490$295$174$19
40 years$1,199$755$460$272$158$16
41 years$1,157$719$431$251$143$14
42 years$1,117$685$404$232$130$12
43 years$1,078$652$379$214$118$10
44 years$1,042$622$356$198$107$8
45 years$1,007$593$334$182$97$7
46 years$974$566$314$169$88$6
47 years$943$540$295$156$80$5
48 years$913$515$277$144$73$4
49 years$884$492$261$133$66$4
50 years$856$470$245$123$60$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $877,000, adding $3,556 every year, while hoping to spend $54,238 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: 32/44/24 Blend
39$877,000$877,000$877,000$877,000
40$970,122$923,641$910,048$993,919
41$1,011,366$911,191$882,825$999,785
42$1,054,998$896,312$852,873$1,000,988
43$1,101,206$878,830$820,043$1,001,187
44$1,150,194$858,557$784,178$1,000,329
45$1,202,182$835,295$745,117$998,361
46$1,257,416$808,836$702,690$995,231
47$1,316,161$778,957$656,718$990,885
48$1,378,708$745,424$607,017$985,273
49$1,445,376$707,990$553,392$978,344
50$1,516,515$666,392$495,642$970,051
51$1,592,507$620,353$433,553$960,348
52$1,673,771$569,579$366,905$949,193
53$1,760,767$513,760$295,468$936,547
54$1,854,000$452,568$219,001$922,378
55$1,954,022$385,657$137,251$906,659
56$2,061,439$312,662$49,956$889,369
57$2,176,919$233,195$0$870,497
58$2,301,191$146,849$0$861,105
59$2,435,060$53,191$0$864,512
60$2,579,406$0$0$868,011
61$2,735,199$0$0$895,075
62$2,903,503$0$0$952,237
63$3,085,486$0$0$1,014,155
64$3,282,436$0$0$1,081,279
65$3,495,765$0$0$1,154,105
66$3,727,026$0$0$1,233,180
67$3,977,930$0$0$1,319,104
68$4,250,354$0$0$1,412,535
69$4,546,365$0$0$1,514,202
70$4,868,237$0$0$1,624,903
71$5,218,472$0$0$1,745,517
72$5,599,822$0$0$1,877,012
73$6,015,315$0$0$2,020,454
74$6,468,284$0$0$2,177,014
75$6,962,398$0$0$2,347,984
76$7,501,692$0$0$2,534,783
77$8,090,613$0$0$2,738,975
78$8,734,051$0$0$2,962,283
79$9,437,393$0$0$3,206,602
80$10,206,569$0$0$3,474,020
81$11,048,108$0$0$3,766,836
82$11,969,198$0$0$4,087,581
83$12,977,757$0$0$4,439,042
84$14,082,500$0$0$4,824,289
85$15,293,030$0$0$5,246,705
86$16,619,918$0$0$5,710,012
87$18,074,809$0$0$6,218,314
88$19,670,529$0$0$6,776,127
89$21,421,202$0$0$7,388,430
90$23,342,389$0$0$8,060,702
91$25,451,228$0$0$8,798,985
92$27,766,599$0$0$9,609,928
93$30,309,296$0$0$10,500,862
94$33,102,229$0$0$11,479,859
95$36,170,635$0$0$12,555,812
96$39,542,316$0$0$13,738,521
97$43,247,900$0$0$15,038,779
98$47,321,130$0$0$16,468,480
99$51,799,181$0$0$18,040,726
100$56,723,009$0$0$19,769,954