Can I retire at age 40 with 889,000?

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 $889,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$73,413$72,759$72,121$71,498$70,890$70,121
2 years$36,343$35,666$35,010$34,374$33,757$32,982
3 years$23,988$23,308$22,654$22,024$21,417$20,661
4 years$17,812$17,134$16,486$15,867$15,275$14,543
5 years$14,107$13,433$12,794$12,187$11,612$10,907
6 years$11,638$10,969$10,339$9,746$9,188$8,511
7 years$9,875$9,212$8,592$8,013$7,472$6,823
8 years$8,553$7,896$7,287$6,722$6,199$5,577
9 years$7,526$6,875$6,276$5,726$5,220$4,627
10 years$6,705$6,060$5,472$4,935$4,448$3,881
11 years$6,033$5,395$4,817$4,295$3,825$3,286
12 years$5,474$4,842$4,275$3,768$3,315$2,801
13 years$5,001$4,376$3,820$3,326$2,891$2,403
14 years$4,596$3,978$3,432$2,953$2,534$2,071
15 years$4,245$3,634$3,099$2,633$2,231$1,792
16 years$3,939$3,334$2,809$2,358$1,972$1,556
17 years$3,668$3,070$2,556$2,118$1,748$1,355
18 years$3,429$2,837$2,334$1,909$1,555$1,183
19 years$3,214$2,629$2,136$1,725$1,386$1,035
20 years$3,021$2,443$1,961$1,562$1,238$908
21 years$2,847$2,276$1,803$1,418$1,108$797
22 years$2,689$2,124$1,662$1,289$993$701
23 years$2,545$1,987$1,535$1,174$891$617
24 years$2,413$1,862$1,419$1,071$801$544
25 years$2,292$1,747$1,315$978$721$479
26 years$2,180$1,642$1,219$894$649$423
27 years$2,077$1,545$1,132$819$585$374
28 years$1,981$1,456$1,052$750$528$330
29 years$1,892$1,374$979$688$477$292
30 years$1,810$1,297$912$631$431$259
31 years$1,732$1,226$850$580$390$229
32 years$1,660$1,160$793$533$352$203
33 years$1,592$1,099$741$490$319$180
34 years$1,528$1,042$692$451$289$159
35 years$1,468$988$647$415$262$141
36 years$1,412$938$605$382$237$125
37 years$1,359$891$567$352$215$111
38 years$1,308$846$531$325$195$98
39 years$1,261$805$497$299$177$87
40 years$1,215$766$466$276$160$77
41 years$1,173$729$437$255$145$69
42 years$1,132$694$410$235$132$61
43 years$1,093$661$385$217$120$54
44 years$1,056$630$361$200$109$48
45 years$1,021$601$339$185$99$43
46 years$988$573$318$171$90$38
47 years$956$547$299$158$81$34
48 years$925$522$281$146$74$30
49 years$896$499$264$135$67$26
50 years$868$477$248$125$61$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $889,000, adding $6,893 every year, while hoping to spend $58,031 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: 27/45/28 Blend
39$889,000$889,000$889,000$889,000
40$986,788$939,671$925,892$1,004,696
41$1,025,696$923,970$895,164$1,004,030
42$1,066,627$905,556$861,463$997,878
43$1,109,728$884,232$824,626$990,095
44$1,155,155$859,794$784,486$980,581
45$1,203,081$832,025$740,867$969,236
46$1,253,694$800,692$693,584$955,952
47$1,307,198$765,553$642,446$940,620
48$1,363,816$726,350$587,253$923,127
49$1,423,794$682,809$527,794$903,355
50$1,487,396$634,642$463,850$881,185
51$1,554,914$581,544$395,193$856,493
52$1,626,667$523,191$321,584$829,153
53$1,703,004$459,244$242,774$799,034
54$1,784,305$389,341$158,501$766,007
55$1,870,987$313,102$68,494$729,935
56$1,963,509$230,125$0$690,684
57$2,062,371$139,986$0$656,351
58$2,168,122$42,234$0$640,936
59$2,281,365$0$0$623,911
60$2,402,759$0$0$636,730
61$2,533,030$0$0$673,028
62$2,672,971$0$0$712,125
63$2,823,457$0$0$754,280
64$2,985,443$0$0$799,775
65$3,159,983$0$0$848,919
66$3,348,232$0$0$902,055
67$3,551,460$0$0$959,556
68$3,771,060$0$0$1,021,836
69$4,008,566$0$0$1,089,347
70$4,265,662$0$0$1,162,588
71$4,544,202$0$0$1,242,106
72$4,846,221$0$0$1,328,505
73$5,173,959$0$0$1,422,446
74$5,529,879$0$0$1,524,661
75$5,916,690$0$0$1,635,951
76$6,337,374$0$0$1,757,199
77$6,795,208$0$0$1,889,378
78$7,293,801$0$0$2,033,556
79$7,837,123$0$0$2,190,912
80$8,429,544$0$0$2,362,741
81$9,075,872$0$0$2,550,470
82$9,781,401$0$0$2,755,669
83$10,551,957$0$0$2,980,068
84$11,393,955$0$0$3,225,570
85$12,314,456$0$0$3,494,271
86$13,321,236$0$0$3,788,481
87$14,422,854$0$0$4,110,740
88$15,628,737$0$0$4,463,848
89$16,949,264$0$0$4,850,889
90$18,395,867$0$0$5,275,257
91$19,981,134$0$0$5,740,692
92$21,718,927$0$0$6,251,313
93$23,624,517$0$0$6,811,658
94$25,714,720$0$0$7,426,723
95$28,008,059$0$0$8,102,014
96$30,524,938$0$0$8,843,594
97$33,287,830$0$0$9,658,143
98$36,321,492$0$0$10,553,019
99$39,653,194$0$0$11,536,330
100$43,312,977$0$0$12,617,007