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%11.6%
1 years$73,082$72,431$71,796$71,176$70,571$70,097
2 years$36,179$35,506$34,853$34,219$33,605$33,127
3 years$23,880$23,203$22,552$21,925$21,321$20,853
4 years$17,732$17,057$16,412$15,796$15,206$14,753
5 years$14,043$13,373$12,736$12,132$11,559$11,122
6 years$11,585$10,920$10,293$9,702$9,147$8,725
7 years$9,830$9,171$8,553$7,977$7,439$7,034
8 years$8,515$7,861$7,254$6,692$6,171$5,783
9 years$7,492$6,844$6,248$5,700$5,197$4,825
10 years$6,674$6,033$5,447$4,913$4,428$4,072
11 years$6,006$5,371$4,795$4,276$3,808$3,469
12 years$5,449$4,820$4,256$3,751$3,300$2,976
13 years$4,978$4,356$3,802$3,311$2,878$2,569
14 years$4,575$3,960$3,416$2,939$2,523$2,229
15 years$4,226$3,617$3,085$2,621$2,221$1,942
16 years$3,921$3,319$2,797$2,347$1,963$1,698
17 years$3,652$3,057$2,545$2,109$1,741$1,489
18 years$3,413$2,824$2,323$1,901$1,548$1,309
19 years$3,200$2,618$2,127$1,717$1,379$1,154
20 years$3,008$2,432$1,952$1,555$1,232$1,019
21 years$2,834$2,266$1,795$1,412$1,103$901
22 years$2,677$2,115$1,655$1,283$988$798
23 years$2,534$1,978$1,528$1,169$887$708
24 years$2,402$1,853$1,413$1,066$797$629
25 years$2,282$1,739$1,309$974$718$559
26 years$2,170$1,635$1,214$890$646$497
27 years$2,068$1,538$1,127$815$583$443
28 years$1,972$1,450$1,048$747$526$395
29 years$1,884$1,368$975$685$475$352
30 years$1,801$1,291$908$628$429$314
31 years$1,724$1,221$847$577$388$280
32 years$1,652$1,155$790$530$351$250
33 years$1,585$1,094$738$488$318$223
34 years$1,521$1,037$689$449$287$200
35 years$1,462$983$644$413$260$178
36 years$1,406$933$603$380$236$159
37 years$1,353$887$564$351$214$143
38 years$1,302$843$528$323$194$128
39 years$1,255$801$495$298$176$114
40 years$1,210$762$464$275$159$102
41 years$1,167$726$435$253$145$91
42 years$1,127$691$408$234$131$82
43 years$1,088$658$383$216$119$73
44 years$1,052$628$359$199$108$66
45 years$1,017$598$337$184$98$59
46 years$983$571$317$170$89$53
47 years$951$545$298$157$81$47
48 years$921$520$280$145$73$42
49 years$892$497$263$134$67$38
50 years$864$474$247$124$61$34

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $885,000, adding $3,491 every year, while hoping to spend $32,264 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: 42/28/30 Blend
39$885,000$885,000$885,000$885,000
40$978,871$931,966$918,248$1,011,261
41$1,044,387$943,304$914,681$1,046,335
42$1,115,505$954,116$909,913$1,081,020
43$1,192,761$964,342$903,870$1,117,982
44$1,276,746$973,919$896,473$1,157,450
45$1,368,112$982,778$887,642$1,199,681
46$1,467,572$990,847$877,291$1,244,957
47$1,575,915$998,049$865,331$1,293,594
48$1,694,006$1,004,301$851,667$1,345,938
49$1,822,799$1,009,516$836,203$1,402,374
50$1,963,343$1,013,601$818,834$1,463,331
51$2,116,793$1,016,456$799,454$1,529,278
52$2,284,420$1,017,977$777,950$1,600,741
53$2,467,624$1,018,051$754,204$1,678,296
54$2,667,946$1,016,560$728,095$1,762,584
55$2,887,083$1,013,377$699,492$1,854,314
56$3,126,902$1,008,370$668,262$1,954,269
57$3,389,461$1,001,395$634,263$2,063,317
58$3,677,024$992,302$597,350$2,182,415
59$3,992,088$980,931$557,368$2,312,625
60$4,337,397$967,114$514,156$2,455,118
61$4,715,980$950,670$467,548$2,611,190
62$5,131,166$931,410$417,368$2,782,273
63$5,586,628$909,131$363,433$2,969,951
64$6,086,408$883,622$305,551$3,175,973
65$6,634,958$854,656$243,524$3,402,272
66$7,237,184$821,995$177,142$3,650,982
67$7,898,489$785,385$106,189$3,924,465
68$8,624,825$744,559$30,436$4,225,326
69$9,422,749$699,235$0$4,556,442
70$10,299,485$649,112$0$4,937,128
71$11,262,989$593,876$0$5,366,206
72$12,322,030$533,191$0$5,837,880
73$13,486,264$466,704$0$6,356,517
74$14,766,332$394,043$0$6,926,931
75$16,173,958$314,811$0$7,554,433
76$17,722,059$228,593$0$8,244,876
77$19,424,863$134,949$0$9,004,717
78$21,298,051$33,414$0$9,841,077
79$23,358,898$0$0$10,761,805
80$25,626,437$0$0$11,799,130
81$28,121,640$0$0$12,952,063
82$30,867,616$0$0$14,221,002
83$33,889,824$0$0$15,617,729
84$37,216,319$0$0$17,155,227
85$40,878,014$0$0$18,847,801
86$44,908,968$0$0$20,711,215
87$49,346,714$0$0$22,762,836
88$54,232,606$0$0$25,021,803
89$59,612,215$0$0$27,509,206
90$65,535,751$0$0$30,248,282
91$72,058,546$0$0$33,264,637
92$79,241,567$0$0$36,586,488
93$87,151,997$0$0$40,244,926
94$95,863,867$0$0$44,274,214
95$105,458,752$0$0$48,712,105
96$116,026,544$0$0$53,600,202
97$127,666,296$0$0$58,984,347
98$140,487,163$0$0$64,915,058
99$154,609,423$0$0$71,448,002
100$170,165,620$0$0$78,644,522