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%17.6%
1 years$73,413$72,759$72,121$71,498$70,890$68,703
2 years$36,343$35,666$35,010$34,374$33,757$31,573
3 years$23,988$23,308$22,654$22,024$21,417$19,304
4 years$17,812$17,134$16,486$15,867$15,275$13,250
5 years$14,107$13,433$12,794$12,187$11,612$9,679
6 years$11,638$10,969$10,339$9,746$9,188$7,350
7 years$9,875$9,212$8,592$8,013$7,472$5,729
8 years$8,553$7,896$7,287$6,722$6,199$4,549
9 years$7,526$6,875$6,276$5,726$5,220$3,662
10 years$6,705$6,060$5,472$4,935$4,448$2,979
11 years$6,033$5,395$4,817$4,295$3,825$2,443
12 years$5,474$4,842$4,275$3,768$3,315$2,016
13 years$5,001$4,376$3,820$3,326$2,891$1,673
14 years$4,596$3,978$3,432$2,953$2,534$1,394
15 years$4,245$3,634$3,099$2,633$2,231$1,165
16 years$3,939$3,334$2,809$2,358$1,972$977
17 years$3,668$3,070$2,556$2,118$1,748$821
18 years$3,429$2,837$2,334$1,909$1,555$691
19 years$3,214$2,629$2,136$1,725$1,386$582
20 years$3,021$2,443$1,961$1,562$1,238$492
21 years$2,847$2,276$1,803$1,418$1,108$416
22 years$2,689$2,124$1,662$1,289$993$352
23 years$2,545$1,987$1,535$1,174$891$298
24 years$2,413$1,862$1,419$1,071$801$252
25 years$2,292$1,747$1,315$978$721$214
26 years$2,180$1,642$1,219$894$649$181
27 years$2,077$1,545$1,132$819$585$154
28 years$1,981$1,456$1,052$750$528$131
29 years$1,892$1,374$979$688$477$111
30 years$1,810$1,297$912$631$431$94
31 years$1,732$1,226$850$580$390$80
32 years$1,660$1,160$793$533$352$68
33 years$1,592$1,099$741$490$319$58
34 years$1,528$1,042$692$451$289$49
35 years$1,468$988$647$415$262$42
36 years$1,412$938$605$382$237$35
37 years$1,359$891$567$352$215$30
38 years$1,308$846$531$325$195$26
39 years$1,261$805$497$299$177$22
40 years$1,215$766$466$276$160$18
41 years$1,173$729$437$255$145$16
42 years$1,132$694$410$235$132$13
43 years$1,093$661$385$217$120$11
44 years$1,056$630$361$200$109$10
45 years$1,021$601$339$185$99$8
46 years$988$573$318$171$90$7
47 years$956$547$299$158$81$6
48 years$925$522$281$146$74$5
49 years$896$499$264$135$67$4
50 years$868$477$248$125$61$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $889,000, adding $5,787 every year, while hoping to spend $35,941 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: 59/27/14 Blend
39$889,000$889,000$889,000$889,000
40$985,647$938,530$924,751$1,040,004
41$1,047,942$946,277$917,489$1,085,103
42$1,115,387$953,199$908,779$1,129,749
43$1,188,468$959,218$898,535$1,177,585
44$1,267,722$964,250$886,667$1,228,922
45$1,353,738$968,206$873,078$1,284,105
46$1,447,164$970,993$857,671$1,343,516
47$1,548,713$972,510$840,341$1,407,572
48$1,659,168$972,650$820,979$1,476,740
49$1,779,394$971,300$799,472$1,551,531
50$1,910,338$968,340$775,701$1,632,511
51$2,053,047$963,642$749,541$1,720,306
52$2,208,669$957,072$720,862$1,815,606
53$2,378,470$948,486$689,528$1,919,174
54$2,563,844$937,731$655,396$2,031,852
55$2,766,322$924,646$618,319$2,154,570
56$2,987,594$909,061$578,139$2,288,354
57$3,229,518$890,794$534,696$2,434,338
58$3,494,139$869,653$487,818$2,593,774
59$3,783,711$845,436$437,330$2,768,042
60$4,100,713$817,927$383,045$2,958,670
61$4,447,879$786,898$324,770$3,167,339
62$4,828,216$752,109$262,302$3,395,910
63$5,245,036$713,305$195,432$3,646,433
64$5,701,989$670,216$123,938$3,921,172
65$6,203,093$622,558$47,591$4,222,627
66$6,752,774$570,028$0$4,553,555
67$7,355,907$512,309$0$4,922,061
68$8,017,861$449,064$0$5,334,358
69$8,744,552$379,937$0$5,787,074
70$9,542,494$304,552$0$6,284,337
71$10,418,865$222,512$0$6,830,703
72$11,381,573$133,398$0$7,431,193
73$12,439,325$36,767$0$8,091,344
74$13,601,719$0$0$8,817,262
75$14,879,324$0$0$9,635,839
76$16,283,788$0$0$10,547,784
77$17,827,940$0$0$11,550,513
78$19,525,917$0$0$12,653,217
79$21,393,292$0$0$13,866,019
80$23,447,226$0$0$15,200,077
81$25,706,623$0$0$16,667,679
82$28,192,313$0$0$18,282,368
83$30,927,248$0$0$20,059,065
84$33,936,714$0$0$22,014,209
85$37,248,575$0$0$24,165,916
86$40,893,531$0$0$26,534,144
87$44,905,409$0$0$29,140,885
88$49,321,481$0$0$32,010,372
89$54,182,818$0$0$35,169,306
90$59,534,674$0$0$38,647,109
91$65,426,913$0$0$42,476,199
92$71,914,481$0$0$46,692,299
93$79,057,923$0$0$51,334,772
94$86,923,953$0$0$56,446,994
95$95,586,084$0$0$62,076,758
96$105,125,324$0$0$68,276,732
97$115,630,934$0$0$75,104,949
98$127,201,276$0$0$82,625,361
99$139,944,736$0$0$90,908,435
100$153,980,750$0$0$100,031,825