Can I retire at age 40 with 880,000?

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 $880,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$72,670$72,022$71,391$70,774$70,172$69,614
2 years$35,975$35,305$34,656$34,026$33,415$32,852
3 years$23,745$23,072$22,425$21,801$21,200$20,650
4 years$17,631$16,961$16,319$15,706$15,120$14,587
5 years$13,964$13,297$12,664$12,064$11,494$10,980
6 years$11,520$10,858$10,235$9,648$9,095$8,600
7 years$9,775$9,119$8,505$7,932$7,397$6,921
8 years$8,467$7,816$7,213$6,654$6,136$5,680
9 years$7,450$6,806$6,213$5,668$5,168$4,731
10 years$6,637$5,999$5,416$4,886$4,403$3,986
11 years$5,972$5,340$4,768$4,252$3,787$3,389
12 years$5,418$4,793$4,232$3,729$3,281$2,902
13 years$4,950$4,332$3,781$3,293$2,862$2,500
14 years$4,549$3,937$3,397$2,923$2,508$2,165
15 years$4,202$3,597$3,067$2,607$2,209$1,882
16 years$3,899$3,300$2,781$2,334$1,952$1,643
17 years$3,631$3,039$2,530$2,097$1,731$1,438
18 years$3,394$2,808$2,310$1,890$1,539$1,261
19 years$3,182$2,603$2,115$1,708$1,372$1,109
20 years$2,991$2,419$1,941$1,547$1,225$977
21 years$2,818$2,253$1,785$1,404$1,096$863
22 years$2,662$2,103$1,645$1,276$983$762
23 years$2,519$1,967$1,519$1,162$882$675
24 years$2,389$1,843$1,405$1,060$793$598
25 years$2,269$1,729$1,301$968$714$530
26 years$2,158$1,625$1,207$885$643$471
27 years$2,056$1,530$1,121$810$579$418
28 years$1,961$1,441$1,042$742$523$372
29 years$1,873$1,360$969$681$472$330
30 years$1,791$1,284$903$625$427$294
31 years$1,715$1,214$842$574$386$262
32 years$1,643$1,149$785$527$349$233
33 years$1,576$1,088$733$485$316$208
34 years$1,513$1,031$685$446$286$185
35 years$1,454$978$641$411$259$165
36 years$1,398$928$599$378$235$147
37 years$1,345$882$561$349$213$131
38 years$1,295$838$525$321$193$117
39 years$1,248$797$492$296$175$105
40 years$1,203$758$461$273$159$93
41 years$1,161$721$433$252$144$83
42 years$1,120$687$406$233$131$74
43 years$1,082$655$381$215$118$66
44 years$1,046$624$357$198$108$59
45 years$1,011$595$336$183$98$53
46 years$978$568$315$169$89$47
47 years$946$542$296$156$80$42
48 years$916$517$278$144$73$38
49 years$887$494$262$133$66$34
50 years$859$472$246$123$60$30

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $880,000, adding $6,710 every year, while hoping to spend $34,743 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: 34/38/28 Blend
39$880,000$880,000$880,000$880,000
40$976,681$930,041$916,401$1,001,430
41$1,039,337$938,647$910,135$1,029,274
42$1,107,218$946,510$902,493$1,055,704
43$1,180,823$953,557$893,395$1,083,534
44$1,260,696$959,711$882,753$1,112,911
45$1,347,438$964,888$870,476$1,144,003
46$1,441,710$969,000$856,470$1,176,994
47$1,544,237$971,955$840,635$1,212,089
48$1,655,820$973,651$822,867$1,249,520
49$1,777,338$973,984$803,057$1,289,540
50$1,909,757$972,840$781,091$1,332,437
51$2,054,145$970,102$756,850$1,378,526
52$2,211,672$965,641$730,209$1,428,160
53$2,383,629$959,324$701,037$1,481,732
54$2,571,436$951,008$669,199$1,539,677
55$2,776,657$940,542$634,551$1,602,480
56$3,001,013$927,765$596,945$1,670,679
57$3,246,399$912,508$556,226$1,744,871
58$3,514,901$894,591$512,229$1,825,719
59$3,808,818$873,823$464,786$1,913,960
60$4,130,680$850,002$413,718$2,010,410
61$4,483,272$822,915$358,841$2,115,973
62$4,869,664$792,336$299,960$2,231,653
63$5,293,234$758,025$236,873$2,358,563
64$5,757,704$719,729$169,369$2,497,935
65$6,267,174$677,180$97,227$2,651,135
66$6,826,159$630,094$20,217$2,819,675
67$7,439,632$578,174$0$3,005,230
68$8,113,071$521,101$0$3,228,166
69$8,852,511$458,541$0$3,479,672
70$9,664,598$390,141$0$3,756,050
71$10,556,656$315,527$0$4,059,895
72$11,536,752$234,305$0$4,394,071
73$12,613,772$146,057$0$4,761,741
74$13,797,506$50,343$0$5,166,397
75$15,098,741$0$0$5,611,894
76$16,529,359$0$0$6,124,777
77$18,102,453$0$0$6,712,028
78$19,832,445$0$0$7,357,997
79$21,735,229$0$0$8,068,638
80$23,828,312$0$0$8,850,509
81$26,130,987$0$0$9,710,834
82$28,664,509$0$0$10,657,576
83$31,452,297$0$0$11,699,508
84$34,520,155$0$0$12,846,294
85$37,896,516$0$0$14,108,586
86$41,612,709$0$0$15,498,119
87$45,703,251$0$0$17,027,824
88$50,206,179$0$0$18,711,948
89$55,163,404$0$0$20,566,193
90$60,621,105$0$0$22,607,858
91$66,630,170$0$0$24,856,006
92$73,246,670$0$0$27,331,643
93$80,532,389$0$0$30,057,915
94$88,555,410$0$0$33,060,328
95$97,390,754$0$0$36,366,987
96$107,121,088$0$0$40,008,862
97$117,837,505$0$0$44,020,080
98$129,640,384$0$0$48,438,248
99$142,640,335$0$0$53,304,804
100$156,959,244$0$0$58,665,413