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%12.9%
1 years$73,082$72,431$71,796$71,176$70,571$69,718
2 years$36,179$35,506$34,853$34,219$33,605$32,747
3 years$23,880$23,203$22,552$21,925$21,321$20,483
4 years$17,732$17,057$16,412$15,796$15,206$14,397
5 years$14,043$13,373$12,736$12,132$11,559$10,780
6 years$11,585$10,920$10,293$9,702$9,147$8,398
7 years$9,830$9,171$8,553$7,977$7,439$6,721
8 years$8,515$7,861$7,254$6,692$6,171$5,485
9 years$7,492$6,844$6,248$5,700$5,197$4,542
10 years$6,674$6,033$5,447$4,913$4,428$3,803
11 years$6,006$5,371$4,795$4,276$3,808$3,214
12 years$5,449$4,820$4,256$3,751$3,300$2,735
13 years$4,978$4,356$3,802$3,311$2,878$2,341
14 years$4,575$3,960$3,416$2,939$2,523$2,014
15 years$4,226$3,617$3,085$2,621$2,221$1,739
16 years$3,921$3,319$2,797$2,347$1,963$1,507
17 years$3,652$3,057$2,545$2,109$1,741$1,310
18 years$3,413$2,824$2,323$1,901$1,548$1,141
19 years$3,200$2,618$2,127$1,717$1,379$996
20 years$3,008$2,432$1,952$1,555$1,232$871
21 years$2,834$2,266$1,795$1,412$1,103$763
22 years$2,677$2,115$1,655$1,283$988$670
23 years$2,534$1,978$1,528$1,169$887$588
24 years$2,402$1,853$1,413$1,066$797$517
25 years$2,282$1,739$1,309$974$718$455
26 years$2,170$1,635$1,214$890$646$401
27 years$2,068$1,538$1,127$815$583$353
28 years$1,972$1,450$1,048$747$526$311
29 years$1,884$1,368$975$685$475$275
30 years$1,801$1,291$908$628$429$242
31 years$1,724$1,221$847$577$388$214
32 years$1,652$1,155$790$530$351$189
33 years$1,585$1,094$738$488$318$167
34 years$1,521$1,037$689$449$287$148
35 years$1,462$983$644$413$260$131
36 years$1,406$933$603$380$236$115
37 years$1,353$887$564$351$214$102
38 years$1,302$843$528$323$194$90
39 years$1,255$801$495$298$176$80
40 years$1,210$762$464$275$159$71
41 years$1,167$726$435$253$145$63
42 years$1,127$691$408$234$131$55
43 years$1,088$658$383$216$119$49
44 years$1,052$628$359$199$108$43
45 years$1,017$598$337$184$98$38
46 years$983$571$317$170$89$34
47 years$951$545$298$157$81$30
48 years$921$520$280$145$73$27
49 years$892$497$263$134$67$24
50 years$864$474$247$124$61$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $885,000, adding $2,862 every year, while hoping to spend $38,164 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: 79/10/11 Blend
39$885,000$885,000$885,000$885,000
40$978,222$931,317$917,600$1,053,370
41$1,037,395$936,345$907,733$1,108,174
42$1,101,324$940,341$896,257$1,163,058
43$1,170,454$943,213$883,077$1,222,162
44$1,245,275$944,865$868,094$1,285,890
45$1,326,323$945,194$851,206$1,354,689
46$1,414,191$944,091$832,304$1,429,050
47$1,509,527$941,440$811,275$1,509,512
48$1,613,047$937,119$788,001$1,596,672
49$1,725,537$930,997$762,358$1,691,188
50$1,847,861$922,935$734,216$1,793,782
51$1,980,971$912,788$703,441$1,905,253
52$2,125,915$900,399$669,891$2,026,480
53$2,283,844$885,604$633,418$2,158,432
54$2,456,025$868,228$593,867$2,302,176
55$2,643,855$848,086$551,077$2,458,890
56$2,848,869$824,983$504,878$2,629,872
57$3,072,758$798,711$455,096$2,816,551
58$3,317,382$769,051$401,545$3,020,504
59$3,584,791$735,771$344,032$3,243,468
60$3,877,240$698,624$282,358$3,487,360
61$4,197,213$657,352$216,312$3,754,290
62$4,547,446$611,678$145,674$4,046,586
63$4,930,948$561,313$70,218$4,366,812
64$5,351,037$505,950$0$4,717,798
65$5,811,365$445,264$0$5,103,870
66$6,315,954$378,911$0$5,536,129
67$6,869,233$306,530$0$6,010,142
68$7,476,082$227,737$0$6,530,117
69$8,141,875$142,129$0$7,100,690
70$8,872,530$49,277$0$7,726,969
71$9,674,568$0$0$8,414,583
72$10,555,171$0$0$9,175,376
73$11,522,249$0$0$10,016,862
74$12,584,519$0$0$10,941,206
75$13,751,581$0$0$11,956,766
76$15,034,011$0$0$13,072,749
77$16,443,462$0$0$14,299,299
78$17,992,771$0$0$15,647,591
79$19,696,079$0$0$17,129,935
80$21,568,969$0$0$18,759,897
81$23,628,605$0$0$20,552,421
82$25,893,902$0$0$22,523,971
83$28,385,698$0$0$24,692,688
84$31,126,951$0$0$27,078,559
85$34,142,958$0$0$29,703,606
86$37,461,591$0$0$32,592,093
87$41,113,560$0$0$35,770,756
88$45,132,703$0$0$39,269,052
89$49,556,304$0$0$43,119,440
90$54,425,444$0$0$47,357,682
91$59,785,390$0$0$52,023,187
92$65,686,019$0$0$57,159,377
93$72,182,293$0$0$62,814,097
94$79,334,769$0$0$69,040,070
95$87,210,180$0$0$75,895,388
96$95,882,055$0$0$83,444,066
97$105,431,419$0$0$91,756,640
98$115,947,555$0$0$100,910,837
99$127,528,843$0$0$110,992,305
100$140,283,694$0$0$122,095,423