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%17.6%
1 years$73,661$73,004$72,364$71,739$71,129$68,935
2 years$36,466$35,786$35,128$34,490$33,871$31,680
3 years$24,069$23,387$22,730$22,098$21,489$19,369
4 years$17,872$17,192$16,542$15,920$15,326$13,294
5 years$14,154$13,479$12,837$12,228$11,651$9,712
6 years$11,677$11,006$10,374$9,779$9,219$7,375
7 years$9,908$9,243$8,621$8,040$7,497$5,748
8 years$8,582$7,923$7,311$6,745$6,220$4,564
9 years$7,551$6,898$6,297$5,745$5,238$3,674
10 years$6,727$6,081$5,490$4,952$4,463$2,989
11 years$6,053$5,413$4,833$4,310$3,838$2,451
12 years$5,492$4,859$4,290$3,780$3,326$2,023
13 years$5,018$4,391$3,832$3,337$2,901$1,679
14 years$4,611$3,991$3,443$2,963$2,543$1,398
15 years$4,259$3,646$3,109$2,642$2,239$1,169
16 years$3,952$3,345$2,819$2,366$1,979$980
17 years$3,681$3,081$2,565$2,126$1,754$823
18 years$3,440$2,847$2,341$1,916$1,560$693
19 years$3,225$2,638$2,143$1,731$1,390$584
20 years$3,032$2,452$1,967$1,568$1,242$493
21 years$2,857$2,284$1,809$1,423$1,111$417
22 years$2,698$2,132$1,668$1,294$996$353
23 years$2,554$1,994$1,540$1,178$894$299
24 years$2,421$1,868$1,424$1,075$804$253
25 years$2,300$1,753$1,319$981$723$214
26 years$2,188$1,648$1,223$897$651$182
27 years$2,084$1,551$1,136$821$587$154
28 years$1,988$1,461$1,056$752$530$131
29 years$1,899$1,378$983$690$479$111
30 years$1,816$1,302$915$633$432$94
31 years$1,738$1,231$853$582$391$80
32 years$1,666$1,164$796$535$354$68
33 years$1,597$1,103$743$492$320$58
34 years$1,534$1,045$695$452$290$49
35 years$1,473$991$649$416$262$42
36 years$1,417$941$607$383$238$36
37 years$1,363$894$569$353$216$30
38 years$1,313$849$532$326$195$26
39 years$1,265$807$499$300$177$22
40 years$1,220$768$468$277$161$19
41 years$1,176$731$438$255$146$16
42 years$1,136$696$411$236$132$13
43 years$1,097$664$386$218$120$11
44 years$1,060$633$362$201$109$10
45 years$1,025$603$340$186$99$8
46 years$991$575$319$171$90$7
47 years$959$549$300$158$82$6
48 years$928$524$282$146$74$5
49 years$899$501$265$135$67$4
50 years$871$478$249$125$61$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $892,000, adding $6,260 every year, while hoping to spend $34,952 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: 70/12/18 Blend
39$892,000$892,000$892,000$892,000
40$989,441$942,165$928,339$1,054,016
41$1,053,176$951,143$922,250$1,106,814
42$1,122,239$959,389$914,785$1,159,837
43$1,197,139$966,830$905,862$1,216,992
44$1,278,433$973,390$895,394$1,278,684
45$1,366,732$978,986$883,289$1,345,358
46$1,462,712$983,529$869,452$1,417,505
47$1,567,114$986,927$853,784$1,495,668
48$1,680,754$989,081$836,180$1,580,443
49$1,804,530$989,885$816,531$1,672,491
50$1,939,430$989,227$794,723$1,772,538
51$2,086,541$986,988$770,635$1,881,385
52$2,247,059$983,042$744,143$1,999,917
53$2,422,303$977,255$715,115$2,129,109
54$2,613,722$969,485$683,416$2,270,036
55$2,822,913$959,580$648,901$2,423,885
56$3,051,633$947,382$611,422$2,591,962
57$3,301,816$932,721$570,822$2,775,711
58$3,575,595$915,418$526,938$2,976,722
59$3,875,314$895,282$479,599$3,196,749
60$4,203,557$872,112$428,626$3,437,728
61$4,563,170$845,695$373,835$3,701,791
62$4,957,284$815,805$315,030$3,991,290
63$5,389,352$782,204$252,007$4,308,820
64$5,863,172$744,639$184,557$4,657,242
65$6,382,932$702,843$112,455$5,039,710
66$6,953,241$656,532$35,473$5,459,701
67$7,579,179$605,409$0$5,921,051
68$8,266,338$549,157$0$6,436,955
69$9,020,881$487,442$0$7,010,963
70$9,849,595$419,911$0$7,641,446
71$10,759,959$346,192$0$8,334,125
72$11,760,210$265,891$0$9,095,305
73$12,859,423$178,590$0$9,931,934
74$14,067,595$83,852$0$10,851,667
75$15,395,740$0$0$11,862,944
76$16,855,994$0$0$12,977,542
77$18,461,725$0$0$14,215,410
78$20,227,663$0$0$15,576,837
79$22,170,036$0$0$17,074,340
80$24,306,724$0$0$18,721,711
81$26,657,428$0$0$20,534,146
82$29,243,854$0$0$22,528,389
83$32,089,917$0$0$24,722,887
84$35,221,969$0$0$27,137,967
85$38,669,045$0$0$29,796,025
86$42,463,137$0$0$32,721,739
87$46,639,497$0$0$35,942,302
88$51,236,967$0$0$39,487,676
89$56,298,347$0$0$43,390,873
90$61,870,796$0$0$47,688,274
91$68,006,281$0$0$52,419,963
92$74,762,062$0$0$57,630,110
93$82,201,236$0$0$63,367,386
94$90,393,328$0$0$69,685,423
95$99,414,953$0$0$76,643,319
96$109,350,531$0$0$84,306,194
97$120,293,088$0$0$92,745,809
98$132,345,134$0$0$102,041,236
99$145,619,626$0$0$112,279,610
100$160,241,037$0$0$123,556,949