Can I retire at age 40 with 887,000?

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 $887,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%20%
1 years$73,248$72,595$71,959$71,337$70,731$67,898
2 years$36,261$35,586$34,931$34,297$33,681$30,863
3 years$23,934$23,256$22,603$21,974$21,369$18,653
4 years$17,772$17,095$16,449$15,831$15,240$12,649
5 years$14,075$13,403$12,765$12,160$11,585$9,124
6 years$11,612$10,945$10,316$9,724$9,167$6,838
7 years$9,853$9,191$8,573$7,995$7,455$5,257
8 years$8,534$7,879$7,270$6,707$6,185$4,115
9 years$7,509$6,860$6,262$5,713$5,209$3,264
10 years$6,689$6,047$5,459$4,924$4,438$2,616
11 years$6,019$5,383$4,806$4,286$3,817$2,112
12 years$5,461$4,831$4,265$3,759$3,308$1,715
13 years$4,990$4,366$3,811$3,319$2,884$1,400
14 years$4,585$3,969$3,424$2,946$2,528$1,147
15 years$4,236$3,625$3,092$2,627$2,226$943
16 years$3,930$3,326$2,803$2,352$1,967$776
17 years$3,660$3,063$2,551$2,114$1,745$641
18 years$3,421$2,831$2,328$1,905$1,551$530
19 years$3,207$2,623$2,131$1,721$1,383$439
20 years$3,015$2,438$1,956$1,559$1,235$364
21 years$2,841$2,271$1,799$1,415$1,105$302
22 years$2,683$2,120$1,658$1,286$991$251
23 years$2,539$1,983$1,531$1,172$889$208
24 years$2,408$1,857$1,416$1,068$799$173
25 years$2,287$1,743$1,312$976$719$144
26 years$2,175$1,638$1,216$892$648$120
27 years$2,072$1,542$1,130$817$584$100
28 years$1,977$1,453$1,050$748$527$83
29 years$1,888$1,371$977$686$476$69
30 years$1,806$1,294$910$630$430$57
31 years$1,728$1,224$849$578$389$48
32 years$1,656$1,158$792$532$352$40
33 years$1,588$1,096$739$489$318$33
34 years$1,525$1,039$691$450$288$28
35 years$1,465$986$646$414$261$23
36 years$1,409$936$604$381$236$19
37 years$1,356$889$565$351$214$16
38 years$1,305$844$529$324$194$13
39 years$1,258$803$496$299$176$11
40 years$1,213$764$465$275$160$9
41 years$1,170$727$436$254$145$8
42 years$1,129$693$409$234$132$6
43 years$1,091$660$384$216$119$5
44 years$1,054$629$360$200$108$4
45 years$1,019$600$338$185$98$4
46 years$985$572$318$170$89$3
47 years$954$546$298$158$81$3
48 years$923$521$280$146$74$2
49 years$894$498$264$135$67$2
50 years$866$476$248$124$61$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $887,000, adding $6,269 every year, while hoping to spend $57,688 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: 60/16/24 Blend
39$887,000$887,000$887,000$887,000
40$983,940$936,929$923,181$1,036,323
41$1,022,923$921,459$892,728$1,057,178
42$1,063,948$903,298$859,321$1,073,118
43$1,107,163$882,252$822,801$1,089,255
44$1,152,729$858,118$783,000$1,105,619
45$1,200,821$830,679$739,744$1,122,246
46$1,251,629$799,707$692,850$1,139,180
47$1,305,362$764,959$642,128$1,156,469
48$1,362,247$726,180$587,377$1,174,171
49$1,422,532$683,099$528,390$1,192,355
50$1,486,488$635,428$464,949$1,211,097
51$1,554,412$582,866$396,826$1,230,486
52$1,626,627$525,092$323,785$1,250,624
53$1,703,489$461,767$245,578$1,271,627
54$1,785,385$392,534$161,945$1,293,629
55$1,872,741$317,015$72,617$1,316,780
56$1,966,023$234,811$0$1,341,251
57$2,065,741$145,501$0$1,373,053
58$2,172,455$48,638$0$1,426,812
59$2,286,777$0$0$1,484,238
60$2,409,381$0$0$1,555,596
61$2,541,006$0$0$1,641,445
62$2,682,461$0$0$1,733,757
63$2,834,636$0$0$1,833,119
64$2,998,508$0$0$1,940,175
65$3,175,149$0$0$2,055,633
66$3,365,737$0$0$2,180,271
67$3,571,567$0$0$2,314,944
68$3,794,062$0$0$2,460,590
69$4,034,783$0$0$2,618,242
70$4,295,451$0$0$2,789,034
71$4,577,955$0$0$2,974,215
72$4,884,371$0$0$3,175,157
73$5,216,985$0$0$3,393,368
74$5,578,309$0$0$3,630,508
75$5,971,108$0$0$3,888,404
76$6,398,422$0$0$4,169,064
77$6,863,598$0$0$4,474,698
78$7,370,317$0$0$4,807,740
79$7,922,629$0$0$5,170,866
80$8,524,995$0$0$5,567,021
81$9,182,321$0$0$5,999,450
82$9,900,010$0$0$6,471,720
83$10,684,007$0$0$6,987,763
84$11,540,858$0$0$7,551,903
85$12,477,772$0$0$8,168,905
86$13,502,683$0$0$8,844,012
87$14,624,329$0$0$9,582,999
88$15,852,330$0$0$10,392,226
89$17,197,281$0$0$11,278,693
90$18,670,850$0$0$12,250,114
91$20,285,885$0$0$13,314,982
92$22,056,538$0$0$14,482,649
93$23,998,395$0$0$15,763,419
94$26,128,622$0$0$17,168,639
95$28,466,128$0$0$18,710,808
96$31,031,739$0$0$20,403,694
97$33,848,397$0$0$22,262,462
98$36,941,375$0$0$24,303,818
99$40,338,510$0$0$26,546,167
100$44,070,470$0$0$29,009,781