Can I retire at age 40 with 877,000?

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 $877,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$72,422$71,777$71,147$70,533$69,933$67,586
2 years$35,852$35,185$34,538$33,910$33,302$30,960
3 years$23,664$22,994$22,348$21,727$21,128$18,866
4 years$17,571$16,903$16,264$15,653$15,069$12,903
5 years$13,916$13,252$12,621$12,023$11,455$9,391
6 years$11,481$10,821$10,200$9,615$9,064$7,104
7 years$9,742$9,088$8,476$7,905$7,371$5,515
8 years$8,438$7,790$7,188$6,631$6,115$4,361
9 years$7,424$6,782$6,191$5,648$5,150$3,496
10 years$6,614$5,978$5,398$4,869$4,388$2,831
11 years$5,951$5,322$4,752$4,237$3,774$2,311
12 years$5,400$4,777$4,217$3,717$3,270$1,899
13 years$4,933$4,317$3,768$3,281$2,852$1,568
14 years$4,534$3,924$3,386$2,913$2,500$1,300
15 years$4,188$3,585$3,057$2,598$2,201$1,081
16 years$3,885$3,289$2,771$2,326$1,945$902
17 years$3,619$3,029$2,522$2,090$1,725$754
18 years$3,382$2,799$2,302$1,883$1,534$631
19 years$3,171$2,594$2,107$1,702$1,367$529
20 years$2,981$2,410$1,934$1,541$1,221$445
21 years$2,809$2,245$1,779$1,399$1,093$374
22 years$2,653$2,096$1,640$1,272$979$314
23 years$2,511$1,960$1,514$1,158$879$265
24 years$2,381$1,837$1,400$1,056$790$223
25 years$2,261$1,724$1,297$965$711$188
26 years$2,151$1,620$1,203$882$641$159
27 years$2,049$1,524$1,117$807$577$134
28 years$1,955$1,436$1,038$740$521$113
29 years$1,867$1,355$966$678$471$95
30 years$1,785$1,280$900$623$425$80
31 years$1,709$1,210$839$572$384$68
32 years$1,638$1,145$783$526$348$57
33 years$1,571$1,084$731$483$315$48
34 years$1,508$1,027$683$445$285$41
35 years$1,449$975$638$409$258$35
36 years$1,393$925$597$377$234$29
37 years$1,340$879$559$347$212$25
38 years$1,291$835$524$320$192$21
39 years$1,244$794$490$295$174$18
40 years$1,199$755$460$272$158$15
41 years$1,157$719$431$251$143$13
42 years$1,117$685$404$232$130$11
43 years$1,078$652$379$214$118$9
44 years$1,042$622$356$198$107$8
45 years$1,007$593$334$182$97$6
46 years$974$566$314$169$88$5
47 years$943$540$295$156$80$5
48 years$913$515$277$144$73$4
49 years$884$492$261$133$66$3
50 years$856$470$245$123$60$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $877,000, adding $4,180 every year, while hoping to spend $58,998 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: 55/33/12 Blend
39$877,000$877,000$877,000$877,000
40$970,766$924,285$910,691$1,020,956
41$1,007,010$906,801$878,426$1,037,988
42$1,044,975$886,484$843,102$1,049,735
43$1,084,772$863,131$804,556$1,061,147
44$1,126,524$836,530$762,614$1,072,203
45$1,170,365$806,456$717,097$1,082,885
46$1,216,439$772,669$667,817$1,093,173
47$1,264,904$734,918$614,577$1,103,053
48$1,315,930$692,935$557,171$1,112,509
49$1,369,704$646,438$495,386$1,121,531
50$1,426,429$595,128$428,996$1,130,110
51$1,486,326$538,691$357,769$1,138,242
52$1,549,636$476,791$281,459$1,145,928
53$1,616,623$409,078$199,811$1,153,174
54$1,687,573$335,177$112,559$1,159,993
55$1,762,801$254,696$19,426$1,166,403
56$1,842,649$167,219$0$1,172,435
57$1,927,493$72,307$0$1,188,363
58$2,017,744$0$0$1,207,319
59$2,113,850$0$0$1,237,992
60$2,216,303$0$0$1,298,728
61$2,325,642$0$0$1,363,594
62$2,442,456$0$0$1,432,947
63$2,567,393$0$0$1,507,177
64$2,701,162$0$0$1,586,713
65$2,844,540$0$0$1,672,025
66$2,998,379$0$0$1,763,628
67$3,163,617$0$0$1,862,087
68$3,341,280$0$0$1,968,024
69$3,532,497$0$0$2,082,121
70$3,738,505$0$0$2,205,127
71$3,960,666$0$0$2,337,864
72$4,200,473$0$0$2,481,236
73$4,459,569$0$0$2,636,237
74$4,739,758$0$0$2,803,958
75$5,043,024$0$0$2,985,600
76$5,371,547$0$0$3,182,482
77$5,727,724$0$0$3,396,055
78$6,114,193$0$0$3,627,915
79$6,533,851$0$0$3,879,816
80$6,989,890$0$0$4,153,690
81$7,485,816$0$0$4,451,660
82$8,025,490$0$0$4,776,063
83$8,613,158$0$0$5,129,471
84$9,253,494$0$0$5,514,713
85$9,951,641$0$0$5,934,904
86$10,713,259$0$0$6,393,472
87$11,544,578$0$0$6,894,190
88$12,452,457$0$0$7,441,212
89$13,444,445$0$0$8,039,110
90$14,528,853$0$0$8,692,918
91$15,714,833$0$0$9,408,181
92$17,012,461$0$0$10,191,000
93$18,432,829$0$0$11,048,098
94$19,988,156$0$0$11,986,874
95$21,691,895$0$0$13,015,480
96$23,558,860$0$0$14,142,890
97$25,605,369$0$0$15,378,991
98$27,849,393$0$0$16,734,671
99$30,310,724$0$0$18,221,920
100$33,011,162$0$0$19,853,950