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%19%
1 years$72,752$72,104$71,472$70,855$70,252$67,706
2 years$36,016$35,345$34,695$34,065$33,453$30,916
3 years$23,772$23,098$22,450$21,826$21,224$18,775
4 years$17,651$16,980$16,338$15,724$15,137$12,796
5 years$13,980$13,312$12,679$12,078$11,507$9,279
6 years$11,533$10,871$10,246$9,659$9,105$6,992
7 years$9,786$9,129$8,515$7,941$7,405$5,407
8 years$8,476$7,825$7,221$6,661$6,143$4,258
9 years$7,458$6,813$6,220$5,674$5,173$3,398
10 years$6,644$6,006$5,422$4,891$4,408$2,740
11 years$5,979$5,346$4,774$4,257$3,791$2,227
12 years$5,424$4,799$4,237$3,734$3,285$1,821
13 years$4,956$4,337$3,785$3,296$2,865$1,496
14 years$4,554$3,942$3,401$2,926$2,511$1,235
15 years$4,207$3,601$3,071$2,610$2,211$1,022
16 years$3,903$3,304$2,784$2,337$1,954$848
17 years$3,635$3,043$2,533$2,099$1,733$705
18 years$3,398$2,812$2,313$1,892$1,541$587
19 years$3,185$2,606$2,117$1,710$1,373$490
20 years$2,994$2,421$1,943$1,548$1,227$409
21 years$2,822$2,255$1,787$1,405$1,098$342
22 years$2,665$2,105$1,647$1,278$984$286
23 years$2,522$1,969$1,521$1,164$883$240
24 years$2,391$1,845$1,406$1,061$794$201
25 years$2,271$1,731$1,303$969$714$168
26 years$2,161$1,627$1,208$886$643$141
27 years$2,058$1,531$1,122$811$580$118
28 years$1,964$1,443$1,043$743$523$99
29 years$1,875$1,361$971$682$473$83
30 years$1,793$1,286$904$625$427$70
31 years$1,717$1,215$843$574$386$59
32 years$1,645$1,150$786$528$349$49
33 years$1,578$1,089$734$485$316$41
34 years$1,515$1,032$686$447$286$35
35 years$1,455$979$641$411$259$29
36 years$1,399$929$600$379$235$25
37 years$1,346$883$562$349$213$21
38 years$1,296$839$526$322$193$17
39 years$1,249$798$493$297$175$15
40 years$1,204$759$462$274$159$12
41 years$1,162$722$433$252$144$10
42 years$1,122$688$406$233$131$9
43 years$1,083$655$381$215$119$7
44 years$1,047$625$358$199$108$6
45 years$1,012$596$336$183$98$5
46 years$979$568$316$169$89$4
47 years$947$542$296$156$81$4
48 years$917$518$279$145$73$3
49 years$888$494$262$134$66$3
50 years$860$472$246$123$60$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $881,000, adding $6,894 every year, while hoping to spend $50,025 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: 37/44/19 Blend
39$881,000$881,000$881,000$881,000
40$977,973$931,280$917,625$1,008,323
41$1,024,500$923,687$895,139$1,023,336
42$1,074,096$914,044$870,223$1,034,325
43$1,127,022$902,200$842,743$1,045,156
44$1,183,562$887,992$812,559$1,055,841
45$1,244,029$871,247$779,524$1,066,401
46$1,308,766$851,784$743,483$1,076,861
47$1,378,147$829,409$704,278$1,087,253
48$1,452,587$803,919$661,739$1,097,619
49$1,532,536$775,096$615,692$1,108,009
50$1,618,491$742,712$565,954$1,118,483
51$1,710,996$706,524$512,334$1,129,115
52$1,810,652$666,278$454,631$1,139,992
53$1,918,113$621,700$392,636$1,151,215
54$2,034,104$572,506$326,132$1,162,903
55$2,159,416$518,393$254,891$1,175,197
56$2,294,921$459,039$178,675$1,188,256
57$2,441,579$394,108$97,236$1,202,268
58$2,600,441$323,241$10,315$1,217,446
59$2,772,668$246,060$0$1,234,035
60$2,959,530$162,168$0$1,269,029
61$3,162,431$71,143$0$1,309,351
62$3,382,910$0$0$1,353,330
63$3,622,662$0$0$1,414,736
64$3,883,551$0$0$1,519,147
65$4,167,630$0$0$1,632,950
66$4,477,155$0$0$1,757,066
67$4,814,611$0$0$1,892,504
68$5,182,733$0$0$2,040,378
69$5,584,530$0$0$2,201,912
70$6,023,314$0$0$2,378,456
71$6,502,733$0$0$2,571,493
72$7,026,801$0$0$2,782,659
73$7,599,939$0$0$3,013,753
74$8,227,014$0$0$3,266,758
75$8,913,385$0$0$3,543,855
76$9,664,953$0$0$3,847,449
77$10,488,216$0$0$4,180,187
78$11,390,332$0$0$4,544,983
79$12,379,182$0$0$4,945,048
80$13,463,446$0$0$5,383,919
81$14,652,684$0$0$5,865,490
82$15,957,429$0$0$6,394,053
83$17,389,277$0$0$6,974,334
84$18,961,006$0$0$7,611,537
85$20,686,689$0$0$8,311,399
86$22,581,829$0$0$9,080,237
87$24,663,504$0$0$9,925,010
88$26,950,527$0$0$10,853,385
89$29,463,624$0$0$11,873,809
90$32,225,627$0$0$12,995,588
91$35,261,691$0$0$14,228,974
92$38,599,528$0$0$15,585,262
93$42,269,671$0$0$17,076,897
94$46,305,758$0$0$18,717,590
95$50,744,850$0$0$20,522,447
96$55,627,780$0$0$22,508,113
97$60,999,539$0$0$24,692,926
98$66,909,695$0$0$27,097,094
99$73,412,865$0$0$29,742,880
100$80,569,228$0$0$32,654,815