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%13.1%
1 years$73,661$73,004$72,364$71,739$71,129$70,211
2 years$36,466$35,786$35,128$34,490$33,871$32,948
3 years$24,069$23,387$22,730$22,098$21,489$20,589
4 years$17,872$17,192$16,542$15,920$15,326$14,456
5 years$14,154$13,479$12,837$12,228$11,651$10,813
6 years$11,677$11,006$10,374$9,779$9,219$8,415
7 years$9,908$9,243$8,621$8,040$7,497$6,727
8 years$8,582$7,923$7,311$6,745$6,220$5,484
9 years$7,551$6,898$6,297$5,745$5,238$4,535
10 years$6,727$6,081$5,490$4,952$4,463$3,793
11 years$6,053$5,413$4,833$4,310$3,838$3,201
12 years$5,492$4,859$4,290$3,780$3,326$2,721
13 years$5,018$4,391$3,832$3,337$2,901$2,326
14 years$4,611$3,991$3,443$2,963$2,543$1,998
15 years$4,259$3,646$3,109$2,642$2,239$1,723
16 years$3,952$3,345$2,819$2,366$1,979$1,491
17 years$3,681$3,081$2,565$2,126$1,754$1,294
18 years$3,440$2,847$2,341$1,916$1,560$1,126
19 years$3,225$2,638$2,143$1,731$1,390$982
20 years$3,032$2,452$1,967$1,568$1,242$857
21 years$2,857$2,284$1,809$1,423$1,111$750
22 years$2,698$2,132$1,668$1,294$996$657
23 years$2,554$1,994$1,540$1,178$894$576
24 years$2,421$1,868$1,424$1,075$804$506
25 years$2,300$1,753$1,319$981$723$444
26 years$2,188$1,648$1,223$897$651$391
27 years$2,084$1,551$1,136$821$587$344
28 years$1,988$1,461$1,056$752$530$303
29 years$1,899$1,378$983$690$479$266
30 years$1,816$1,302$915$633$432$235
31 years$1,738$1,231$853$582$391$207
32 years$1,666$1,164$796$535$354$183
33 years$1,597$1,103$743$492$320$161
34 years$1,534$1,045$695$452$290$142
35 years$1,473$991$649$416$262$125
36 years$1,417$941$607$383$238$111
37 years$1,363$894$569$353$216$98
38 years$1,313$849$532$326$195$86
39 years$1,265$807$499$300$177$76
40 years$1,220$768$468$277$161$67
41 years$1,176$731$438$255$146$59
42 years$1,136$696$411$236$132$53
43 years$1,097$664$386$218$120$46
44 years$1,060$633$362$201$109$41
45 years$1,025$603$340$186$99$36
46 years$991$575$319$171$90$32
47 years$959$549$300$158$82$28
48 years$928$524$282$146$74$25
49 years$899$501$265$135$67$22
50 years$871$478$249$125$61$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $892,000, adding $3,716 every year, while hoping to spend $24,848 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: 55/38/7 Blend
39$892,000$892,000$892,000$892,000
40$986,817$939,541$925,715$1,039,305
41$1,061,034$959,140$930,288$1,094,765
42$1,141,989$978,867$934,182$1,152,041
43$1,230,342$998,702$937,347$1,213,793
44$1,326,821$1,018,622$939,733$1,280,450
45$1,432,226$1,038,605$941,284$1,352,485
46$1,547,441$1,058,624$941,944$1,430,417
47$1,673,434$1,078,651$941,654$1,514,819
48$1,811,276$1,098,657$940,351$1,606,322
49$1,962,143$1,118,608$937,969$1,705,623
50$2,127,332$1,138,469$934,441$1,813,488
51$2,308,268$1,158,202$929,693$1,930,761
52$2,506,524$1,177,767$923,651$2,058,373
53$2,723,831$1,197,120$916,235$2,197,351
54$2,962,095$1,216,212$907,362$2,348,825
55$3,223,416$1,234,993$896,945$2,514,040
56$3,510,106$1,253,409$884,894$2,694,371
57$3,824,712$1,271,401$871,113$2,891,331
58$4,170,040$1,288,907$855,503$3,106,589
59$4,549,180$1,305,860$837,959$3,341,983
60$4,965,537$1,322,188$818,371$3,599,541
61$5,422,862$1,337,815$796,627$3,881,497
62$5,925,285$1,352,659$772,605$4,190,314
63$6,477,358$1,366,633$746,181$4,528,707
64$7,084,095$1,379,645$717,224$4,899,669
65$7,751,019$1,391,594$685,598$5,306,498
66$8,484,216$1,402,375$651,159$5,752,831
67$9,290,392$1,411,877$613,758$6,242,675
68$10,176,932$1,419,979$573,239$6,780,448
69$11,151,975$1,426,554$529,438$7,371,022
70$12,224,487$1,431,466$482,186$8,019,765
71$13,404,349$1,434,572$431,303$8,732,594
72$14,702,446$1,435,719$376,604$9,516,033
73$16,130,769$1,434,744$317,895$10,377,272
74$17,702,536$1,431,474$254,972$11,324,237
75$19,432,304$1,425,726$187,624$12,365,665
76$21,336,119$1,417,306$115,629$13,511,186
77$23,431,657$1,406,008$38,756$14,771,417
78$25,738,396$1,391,613$0$16,158,057
79$28,277,799$1,373,888$0$17,687,239
80$31,073,515$1,352,589$0$19,373,245
81$34,151,602$1,327,455$0$21,228,868
82$37,540,775$1,298,210$0$23,271,401
83$41,272,674$1,264,561$0$25,519,906
84$45,382,162$1,226,200$0$27,995,390
85$49,907,658$1,182,799$0$30,721,007
86$54,891,494$1,134,012$0$33,722,278
87$60,380,320$1,079,472$0$37,027,330
88$66,425,537$1,018,791$0$40,667,164
89$73,083,789$951,558$0$44,675,948
90$80,417,492$877,341$0$49,091,338
91$88,495,427$795,681$0$53,954,841
92$97,393,384$706,094$0$59,312,200
93$107,194,883$608,066$0$65,213,832
94$117,991,957$501,057$0$71,715,302
95$129,886,023$384,495$0$78,877,852
96$142,988,838$257,777$0$86,768,977
97$157,423,556$120,264$0$95,463,066
98$173,325,886$0$0$105,042,104
99$190,845,375$0$0$115,608,455
100$210,146,819$0$0$127,305,079