Can I retire at age 40 with 881,000?

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 $881,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.5%
1 years$72,752$72,104$71,472$70,855$70,252$68,665
2 years$36,016$35,345$34,695$34,065$33,453$31,863
3 years$23,772$23,098$22,450$21,826$21,224$19,680
4 years$17,651$16,980$16,338$15,724$15,137$13,652
5 years$13,980$13,312$12,679$12,078$11,507$10,084
6 years$11,533$10,871$10,246$9,659$9,105$7,746
7 years$9,786$9,129$8,515$7,941$7,405$6,110
8 years$8,476$7,825$7,221$6,661$6,143$4,911
9 years$7,458$6,813$6,220$5,674$5,173$4,004
10 years$6,644$6,006$5,422$4,891$4,408$3,300
11 years$5,979$5,346$4,774$4,257$3,791$2,743
12 years$5,424$4,799$4,237$3,734$3,285$2,296
13 years$4,956$4,337$3,785$3,296$2,865$1,932
14 years$4,554$3,942$3,401$2,926$2,511$1,633
15 years$4,207$3,601$3,071$2,610$2,211$1,385
16 years$3,903$3,304$2,784$2,337$1,954$1,179
17 years$3,635$3,043$2,533$2,099$1,733$1,005
18 years$3,398$2,812$2,313$1,892$1,541$860
19 years$3,185$2,606$2,117$1,710$1,373$736
20 years$2,994$2,421$1,943$1,548$1,227$632
21 years$2,822$2,255$1,787$1,405$1,098$543
22 years$2,665$2,105$1,647$1,278$984$467
23 years$2,522$1,969$1,521$1,164$883$402
24 years$2,391$1,845$1,406$1,061$794$346
25 years$2,271$1,731$1,303$969$714$298
26 years$2,161$1,627$1,208$886$643$257
27 years$2,058$1,531$1,122$811$580$222
28 years$1,964$1,443$1,043$743$523$192
29 years$1,875$1,361$971$682$473$166
30 years$1,793$1,286$904$625$427$143
31 years$1,717$1,215$843$574$386$124
32 years$1,645$1,150$786$528$349$107
33 years$1,578$1,089$734$485$316$92
34 years$1,515$1,032$686$447$286$80
35 years$1,455$979$641$411$259$69
36 years$1,399$929$600$379$235$60
37 years$1,346$883$562$349$213$52
38 years$1,296$839$526$322$193$45
39 years$1,249$798$493$297$175$39
40 years$1,204$759$462$274$159$34
41 years$1,162$722$433$252$144$29
42 years$1,122$688$406$233$131$25
43 years$1,083$655$381$215$119$22
44 years$1,047$625$358$199$108$19
45 years$1,012$596$336$183$98$16
46 years$979$568$316$169$89$14
47 years$947$542$296$156$81$12
48 years$917$518$279$145$73$11
49 years$888$494$262$134$66$9
50 years$860$472$246$123$60$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $881,000, adding $4,201 every year, while hoping to spend $39,621 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: 42/49/9 Blend
39$881,000$881,000$881,000$881,000
40$975,195$928,502$914,847$1,013,411
41$1,032,509$931,843$903,338$1,043,832
42$1,094,340$934,018$890,115$1,072,431
43$1,161,109$934,931$875,080$1,102,501
44$1,233,275$934,476$858,128$1,134,190
45$1,311,345$932,541$839,151$1,167,666
46$1,395,874$929,007$818,035$1,203,114
47$1,487,475$923,750$794,660$1,240,743
48$1,586,819$916,636$768,904$1,280,783
49$1,694,647$907,523$740,634$1,323,491
50$1,811,771$896,262$709,716$1,369,156
51$1,939,087$882,694$676,006$1,418,095
52$2,077,577$866,650$639,356$1,470,665
53$2,228,327$847,952$599,611$1,527,260
54$2,392,525$826,411$556,607$1,588,321
55$2,571,485$801,828$510,176$1,654,334
56$2,766,649$773,989$460,139$1,725,844
57$2,979,605$742,672$406,311$1,803,452
58$3,212,101$707,640$348,499$1,887,828
59$3,466,062$668,641$286,500$1,979,716
60$3,743,606$625,410$220,104$2,079,940
61$4,047,066$577,668$149,090$2,189,415
62$4,379,010$525,116$73,227$2,309,156
63$4,742,265$467,443$0$2,440,289
64$5,139,945$404,317$0$2,584,803
65$5,575,478$335,387$0$2,750,892
66$6,052,640$260,284$0$2,933,073
67$6,575,589$178,618$0$3,133,071
68$7,148,905$89,976$0$3,352,793
69$7,777,631$0$0$3,594,349
70$8,467,323$0$0$3,863,352
71$9,224,099$0$0$4,211,864
72$10,054,699$0$0$4,594,491
73$10,966,547$0$0$5,014,665
74$11,967,821$0$0$5,476,170
75$13,067,530$0$0$5,983,174
76$14,275,597$0$0$6,540,269
77$15,602,956$0$0$7,152,511
78$17,061,649$0$0$7,825,474
79$18,664,945$0$0$8,565,297
80$20,427,462$0$0$9,378,742
81$22,365,305$0$0$10,273,262
82$24,496,217$0$0$11,257,067
83$26,839,745$0$0$12,339,202
84$29,417,428$0$0$13,529,632
85$32,252,996$0$0$14,839,340
86$35,372,594$0$0$16,280,422
87$38,805,029$0$0$17,866,211
88$42,582,042$0$0$19,611,393
89$46,738,606$0$0$21,532,153
90$51,313,255$0$0$23,646,322
91$56,348,449$0$0$25,973,551
92$61,890,971$0$0$28,535,489
93$67,992,373$0$0$31,355,993
94$74,709,456$0$0$34,461,349
95$82,104,810$0$0$37,880,524
96$90,247,403$0$0$41,645,434
97$99,213,229$0$0$45,791,250
98$109,086,027$0$0$50,356,725
99$119,958,073$0$0$55,384,564
100$131,931,042$0$0$60,921,823