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%19%
1 years$73,661$73,004$72,364$71,739$71,129$68,551
2 years$36,466$35,786$35,128$34,490$33,871$31,302
3 years$24,069$23,387$22,730$22,098$21,489$19,010
4 years$17,872$17,192$16,542$15,920$15,326$12,956
5 years$14,154$13,479$12,837$12,228$11,651$9,395
6 years$11,677$11,006$10,374$9,779$9,219$7,080
7 years$9,908$9,243$8,621$8,040$7,497$5,474
8 years$8,582$7,923$7,311$6,745$6,220$4,311
9 years$7,551$6,898$6,297$5,745$5,238$3,441
10 years$6,727$6,081$5,490$4,952$4,463$2,774
11 years$6,053$5,413$4,833$4,310$3,838$2,255
12 years$5,492$4,859$4,290$3,780$3,326$1,844
13 years$5,018$4,391$3,832$3,337$2,901$1,515
14 years$4,611$3,991$3,443$2,963$2,543$1,250
15 years$4,259$3,646$3,109$2,642$2,239$1,035
16 years$3,952$3,345$2,819$2,366$1,979$858
17 years$3,681$3,081$2,565$2,126$1,754$714
18 years$3,440$2,847$2,341$1,916$1,560$595
19 years$3,225$2,638$2,143$1,731$1,390$496
20 years$3,032$2,452$1,967$1,568$1,242$414
21 years$2,857$2,284$1,809$1,423$1,111$346
22 years$2,698$2,132$1,668$1,294$996$290
23 years$2,554$1,994$1,540$1,178$894$243
24 years$2,421$1,868$1,424$1,075$804$203
25 years$2,300$1,753$1,319$981$723$171
26 years$2,188$1,648$1,223$897$651$143
27 years$2,084$1,551$1,136$821$587$120
28 years$1,988$1,461$1,056$752$530$101
29 years$1,899$1,378$983$690$479$84
30 years$1,816$1,302$915$633$432$71
31 years$1,738$1,231$853$582$391$60
32 years$1,666$1,164$796$535$354$50
33 years$1,597$1,103$743$492$320$42
34 years$1,534$1,045$695$452$290$35
35 years$1,473$991$649$416$262$30
36 years$1,417$941$607$383$238$25
37 years$1,363$894$569$353$216$21
38 years$1,313$849$532$326$195$18
39 years$1,265$807$499$300$177$15
40 years$1,220$768$468$277$161$12
41 years$1,176$731$438$255$146$10
42 years$1,136$696$411$236$132$9
43 years$1,097$664$386$218$120$7
44 years$1,060$633$362$201$109$6
45 years$1,025$603$340$186$99$5
46 years$991$575$319$171$90$4
47 years$959$549$300$158$82$4
48 years$928$524$282$146$74$3
49 years$899$501$265$135$67$3
50 years$871$478$249$125$61$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $892,000, adding $6,120 every year, while hoping to spend $25,297 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: 74/14/12 Blend
39$892,000$892,000$892,000$892,000
40$989,297$942,021$928,195$1,059,666
41$1,063,289$961,264$932,373$1,126,220
42$1,143,981$980,602$935,844$1,195,366
43$1,232,029$1,000,014$938,557$1,270,430
44$1,328,156$1,019,474$940,458$1,351,991
45$1,433,157$1,038,957$941,493$1,440,687
46$1,547,908$1,058,436$941,602$1,537,222
47$1,673,374$1,077,878$940,725$1,642,369
48$1,810,616$1,097,252$938,797$1,756,981
49$1,960,803$1,116,522$935,752$1,881,999
50$2,125,223$1,135,650$931,517$2,018,458
51$2,305,293$1,154,594$926,020$2,167,499
52$2,502,574$1,173,310$919,183$2,330,378
53$2,718,785$1,191,750$910,924$2,508,481
54$2,955,819$1,209,864$901,158$2,703,333
55$3,215,763$1,227,597$889,797$2,916,616
56$3,500,911$1,244,890$876,745$3,150,183
57$3,813,794$1,261,680$861,907$3,406,075
58$4,157,199$1,277,901$845,179$3,686,543
59$4,534,195$1,293,479$826,454$3,994,065
60$4,948,163$1,308,339$805,620$4,331,374
61$5,402,827$1,322,399$782,559$4,701,480
62$5,902,290$1,335,572$757,150$5,107,702
63$6,451,072$1,347,764$729,263$5,553,695
64$7,054,153$1,358,875$698,765$6,043,489
65$7,717,017$1,368,801$665,514$6,581,526
66$8,445,709$1,377,429$629,365$7,172,697
67$9,246,887$1,384,638$590,164$7,822,398
68$10,127,886$1,390,301$547,751$8,536,570
69$11,096,787$1,394,284$501,958$9,321,765
70$12,162,497$1,396,440$452,611$10,185,201
71$13,334,824$1,396,619$399,526$11,134,833
72$14,624,579$1,394,656$342,513$12,179,429
73$16,043,672$1,390,380$281,373$13,328,652
74$17,605,225$1,383,607$215,897$14,593,149
75$19,323,697$1,374,142$145,868$15,984,658
76$21,215,019$1,361,780$71,060$17,516,110
77$23,296,745$1,346,302$0$19,201,760
78$25,588,219$1,327,476$0$21,058,440
79$28,110,751$1,305,057$0$23,112,122
80$30,887,827$1,278,784$0$25,372,810
81$33,945,322$1,248,381$0$27,861,564
82$37,311,751$1,213,558$0$30,601,594
83$41,018,531$1,174,004$0$33,618,477
84$45,100,284$1,129,392$0$36,940,396
85$49,595,158$1,079,378$0$40,598,409
86$54,545,191$1,023,594$0$44,626,745
87$59,996,704$961,654$0$49,063,119
88$66,000,740$893,147$0$53,949,097
89$72,613,546$817,642$0$59,330,482
90$79,897,101$734,679$0$65,257,750
91$87,919,703$643,776$0$71,786,525
92$96,756,613$544,422$0$78,978,107
93$106,490,764$436,076$0$86,900,046
94$117,213,546$318,167$0$95,626,784
95$129,025,665$190,094$0$105,240,356
96$142,038,094$51,220$0$115,831,166
97$156,373,123$0$0$127,498,840
98$172,165,509$0$0$140,368,436
99$189,563,753$0$0$154,555,439
100$208,731,494$0$0$170,185,404