Can I retire at age 40 with 892,000?

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 $892,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.1%
1 years$73,661$73,004$72,364$71,739$71,129$68,797
2 years$36,466$35,786$35,128$34,490$33,871$31,544
3 years$24,069$23,387$22,730$22,098$21,489$19,240
4 years$17,872$17,192$16,542$15,920$15,326$13,172
5 years$14,154$13,479$12,837$12,228$11,651$9,597
6 years$11,677$11,006$10,374$9,779$9,219$7,268
7 years$9,908$9,243$8,621$8,040$7,497$5,649
8 years$8,582$7,923$7,311$6,745$6,220$4,472
9 years$7,551$6,898$6,297$5,745$5,238$3,589
10 years$6,727$6,081$5,490$4,952$4,463$2,911
11 years$6,053$5,413$4,833$4,310$3,838$2,379
12 years$5,492$4,859$4,290$3,780$3,326$1,957
13 years$5,018$4,391$3,832$3,337$2,901$1,618
14 years$4,611$3,991$3,443$2,963$2,543$1,344
15 years$4,259$3,646$3,109$2,642$2,239$1,119
16 years$3,952$3,345$2,819$2,366$1,979$935
17 years$3,681$3,081$2,565$2,126$1,754$782
18 years$3,440$2,847$2,341$1,916$1,560$656
19 years$3,225$2,638$2,143$1,731$1,390$551
20 years$3,032$2,452$1,967$1,568$1,242$464
21 years$2,857$2,284$1,809$1,423$1,111$390
22 years$2,698$2,132$1,668$1,294$996$329
23 years$2,554$1,994$1,540$1,178$894$277
24 years$2,421$1,868$1,424$1,075$804$234
25 years$2,300$1,753$1,319$981$723$198
26 years$2,188$1,648$1,223$897$651$167
27 years$2,084$1,551$1,136$821$587$141
28 years$1,988$1,461$1,056$752$530$119
29 years$1,899$1,378$983$690$479$101
30 years$1,816$1,302$915$633$432$85
31 years$1,738$1,231$853$582$391$72
32 years$1,666$1,164$796$535$354$61
33 years$1,597$1,103$743$492$320$52
34 years$1,534$1,045$695$452$290$44
35 years$1,473$991$649$416$262$37
36 years$1,417$941$607$383$238$31
37 years$1,363$894$569$353$216$26
38 years$1,313$849$532$326$195$22
39 years$1,265$807$499$300$177$19
40 years$1,220$768$468$277$161$16
41 years$1,176$731$438$255$146$14
42 years$1,136$696$411$236$132$12
43 years$1,097$664$386$218$120$10
44 years$1,060$633$362$201$109$8
45 years$1,025$603$340$186$99$7
46 years$991$575$319$171$90$6
47 years$959$549$300$158$82$5
48 years$928$524$282$146$74$4
49 years$899$501$265$135$67$4
50 years$871$478$249$125$61$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $892,000, adding $3,934 every year, while hoping to spend $24,549 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: 31/49/20 Blend
39$892,000$892,000$892,000$892,000
40$987,042$939,766$925,940$1,011,381
41$1,061,600$959,695$930,839$1,049,989
42$1,142,941$979,777$935,079$1,089,027
43$1,231,729$999,994$938,613$1,130,534
44$1,328,699$1,020,327$941,390$1,174,741
45$1,434,656$1,040,754$943,356$1,221,900
46$1,550,490$1,061,249$944,458$1,272,292
47$1,677,178$1,081,788$944,635$1,326,224
48$1,815,797$1,102,343$943,827$1,384,039
49$1,967,533$1,122,882$941,970$1,446,113
50$2,133,691$1,143,373$938,996$1,512,860
51$2,315,710$1,163,781$934,835$1,584,738
52$2,515,173$1,184,067$929,412$1,662,255
53$2,733,824$1,204,189$922,650$1,745,968
54$2,973,583$1,224,104$914,469$1,836,494
55$3,236,566$1,243,763$904,781$1,934,514
56$3,525,104$1,263,115$893,499$2,040,779
57$3,841,762$1,282,106$880,529$2,156,118
58$4,189,369$1,300,675$865,774$2,281,446
59$4,571,037$1,318,761$849,129$2,417,774
60$4,990,197$1,336,294$830,490$2,566,217
61$5,450,628$1,353,204$809,742$2,728,005
62$5,956,493$1,369,412$786,770$2,904,497
63$6,512,379$1,384,837$761,450$3,097,192
64$7,123,337$1,399,389$733,654$3,307,743
65$7,794,934$1,412,976$703,248$3,537,977
66$8,533,301$1,425,496$670,091$3,789,908
67$9,345,196$1,436,843$634,037$4,065,759
68$10,238,061$1,446,903$594,932$4,367,983
69$11,220,097$1,455,556$552,616$4,699,285
70$12,300,340$1,462,671$506,922$5,062,653
71$13,488,746$1,468,113$457,675$5,461,380
72$14,796,283$1,471,735$404,692$5,899,100
73$16,235,036$1,473,383$347,781$6,379,825
74$17,818,323$1,472,891$286,745$6,907,977
75$19,560,815$1,470,086$221,374$7,488,436
76$21,478,680$1,464,782$151,452$8,126,585
77$23,589,730$1,456,782$76,751$8,828,361
78$25,913,595$1,445,877$0$9,600,314
79$28,471,903$1,431,845$0$10,450,300
80$31,288,483$1,414,452$0$11,403,174
81$34,389,597$1,393,449$0$12,451,383
82$37,804,180$1,368,572$0$13,604,675
83$41,564,116$1,339,542$0$14,873,799
84$45,704,539$1,306,062$0$16,270,604
85$50,264,163$1,267,820$0$17,808,155
86$55,285,647$1,224,483$0$19,500,854
87$60,816,001$1,175,701$0$21,364,579
88$66,907,025$1,121,102$0$23,416,836
89$73,615,798$1,060,292$0$25,676,920
90$81,005,220$992,858$0$28,166,106
91$89,144,603$918,358$0$30,907,845
92$98,110,323$836,328$0$33,927,991
93$107,986,546$746,278$0$37,255,041
94$118,866,016$647,687$0$40,920,413
95$130,850,934$540,009$0$44,958,738
96$144,053,922$422,662$0$49,408,192
97$158,599,085$295,036$0$54,310,855
98$174,623,182$156,483$0$59,713,115
99$192,276,917$6,321$0$65,666,104
100$211,726,362$0$0$72,226,183