Can I retire at age 40 with 885,000?

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 $885,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$73,082$72,431$71,796$71,176$70,571$68,367
2 years$36,179$35,506$34,853$34,219$33,605$31,404
3 years$23,880$23,203$22,552$21,925$21,321$19,192
4 years$17,732$17,057$16,412$15,796$15,206$13,166
5 years$14,043$13,373$12,736$12,132$11,559$9,613
6 years$11,585$10,920$10,293$9,702$9,147$7,296
7 years$9,830$9,171$8,553$7,977$7,439$5,683
8 years$8,515$7,861$7,254$6,692$6,171$4,510
9 years$7,492$6,844$6,248$5,700$5,197$3,628
10 years$6,674$6,033$5,447$4,913$4,428$2,950
11 years$6,006$5,371$4,795$4,276$3,808$2,418
12 years$5,449$4,820$4,256$3,751$3,300$1,994
13 years$4,978$4,356$3,802$3,311$2,878$1,653
14 years$4,575$3,960$3,416$2,939$2,523$1,376
15 years$4,226$3,617$3,085$2,621$2,221$1,150
16 years$3,921$3,319$2,797$2,347$1,963$963
17 years$3,652$3,057$2,545$2,109$1,741$809
18 years$3,413$2,824$2,323$1,901$1,548$680
19 years$3,200$2,618$2,127$1,717$1,379$573
20 years$3,008$2,432$1,952$1,555$1,232$483
21 years$2,834$2,266$1,795$1,412$1,103$408
22 years$2,677$2,115$1,655$1,283$988$345
23 years$2,534$1,978$1,528$1,169$887$292
24 years$2,402$1,853$1,413$1,066$797$247
25 years$2,282$1,739$1,309$974$718$209
26 years$2,170$1,635$1,214$890$646$177
27 years$2,068$1,538$1,127$815$583$150
28 years$1,972$1,450$1,048$747$526$128
29 years$1,884$1,368$975$685$475$108
30 years$1,801$1,291$908$628$429$92
31 years$1,724$1,221$847$577$388$78
32 years$1,652$1,155$790$530$351$66
33 years$1,585$1,094$738$488$318$56
34 years$1,521$1,037$689$449$287$48
35 years$1,462$983$644$413$260$40
36 years$1,406$933$603$380$236$34
37 years$1,353$887$564$351$214$29
38 years$1,302$843$528$323$194$25
39 years$1,255$801$495$298$176$21
40 years$1,210$762$464$275$159$18
41 years$1,167$726$435$253$145$15
42 years$1,127$691$408$234$131$13
43 years$1,088$658$383$216$119$11
44 years$1,052$628$359$199$108$9
45 years$1,017$598$337$184$98$8
46 years$983$571$317$170$89$7
47 years$951$545$298$157$81$6
48 years$921$520$280$145$73$5
49 years$892$497$263$134$67$4
50 years$864$474$247$124$61$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $885,000, adding $5,037 every year, while hoping to spend $58,424 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: 36/36/28 Blend
39$885,000$885,000$885,000$885,000
40$980,466$933,561$919,843$1,007,373
41$1,018,310$917,142$888,495$1,011,409
42$1,058,057$897,962$854,139$1,010,117
43$1,099,839$875,821$816,612$1,007,600
44$1,143,798$850,512$775,745$1,003,789
45$1,190,092$821,814$731,359$998,610
46$1,238,892$789,493$683,270$991,989
47$1,290,382$753,302$631,283$983,851
48$1,344,766$712,979$575,196$974,118
49$1,402,265$668,247$514,797$962,713
50$1,463,118$618,814$449,865$949,557
51$1,527,590$564,369$380,169$934,570
52$1,595,968$504,587$305,469$917,675
53$1,668,566$439,122$225,511$898,791
54$1,745,729$367,607$140,035$877,842
55$1,827,831$289,658$48,764$854,752
56$1,915,285$204,866$0$829,447
57$2,008,542$112,802$0$816,389
58$2,108,094$13,010$0$817,472
59$2,214,483$0$0$818,145
60$2,328,302$0$0$856,081
61$2,450,200$0$0$902,311
62$2,580,891$0$0$951,962
63$2,721,156$0$0$1,005,343
64$2,871,855$0$0$1,062,791
65$3,033,929$0$0$1,124,678
66$3,208,413$0$0$1,191,412
67$3,396,442$0$0$1,263,442
68$3,599,264$0$0$1,341,260
69$3,818,250$0$0$1,425,407
70$4,054,907$0$0$1,516,478
71$4,310,889$0$0$1,615,128
72$4,588,016$0$0$1,722,075
73$4,888,289$0$0$1,838,109
74$5,213,908$0$0$1,964,102
75$5,567,290$0$0$2,101,008
76$5,951,096$0$0$2,249,881
77$6,368,253$0$0$2,411,877
78$6,821,979$0$0$2,588,272
79$7,315,817$0$0$2,780,466
80$7,853,663$0$0$2,990,001
81$8,439,805$0$0$3,218,576
82$9,078,964$0$0$3,468,059
83$9,776,333$0$0$3,740,506
84$10,537,631$0$0$4,038,182
85$11,369,150$0$0$4,363,580
86$12,277,820$0$0$4,719,443
87$13,271,268$0$0$5,108,795
88$14,357,893$0$0$5,534,961
89$15,546,942$0$0$6,001,605
90$16,848,596$0$0$6,512,763
91$18,274,070$0$0$7,072,878
92$19,835,709$0$0$7,686,842
93$21,547,113$0$0$8,360,045
94$23,423,257$0$0$9,098,423
95$25,480,635$0$0$9,908,513
96$27,737,415$0$0$10,797,517
97$30,213,605$0$0$11,773,368
98$32,931,246$0$0$12,844,802
99$35,914,617$0$0$14,021,444
100$39,190,459$0$0$15,313,899