Can I retire at age 40 with 878,000?

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 $878,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$72,504$71,859$71,228$70,613$70,013$68,853
2 years$35,893$35,225$34,577$33,949$33,340$32,174
3 years$23,691$23,020$22,374$21,751$21,152$20,018
4 years$17,591$16,922$16,282$15,671$15,086$13,991
5 years$13,932$13,267$12,636$12,037$11,468$10,416
6 years$11,494$10,834$10,212$9,626$9,074$8,067
7 years$9,753$9,098$8,486$7,914$7,380$6,417
8 years$8,447$7,799$7,197$6,639$6,122$5,203
9 years$7,433$6,790$6,198$5,655$5,156$4,280
10 years$6,622$5,985$5,404$4,874$4,393$3,561
11 years$5,958$5,328$4,758$4,242$3,778$2,988
12 years$5,406$4,782$4,222$3,721$3,274$2,525
13 years$4,939$4,322$3,772$3,285$2,855$2,146
14 years$4,539$3,928$3,389$2,916$2,503$1,832
15 years$4,193$3,589$3,060$2,601$2,204$1,570
16 years$3,890$3,293$2,775$2,329$1,948$1,351
17 years$3,623$3,032$2,525$2,092$1,727$1,165
18 years$3,386$2,802$2,305$1,886$1,535$1,007
19 years$3,174$2,597$2,110$1,704$1,369$872
20 years$2,984$2,413$1,936$1,543$1,222$756
21 years$2,812$2,248$1,781$1,400$1,094$657
22 years$2,656$2,098$1,642$1,273$981$572
23 years$2,514$1,962$1,516$1,160$880$498
24 years$2,383$1,839$1,402$1,058$791$434
25 years$2,264$1,725$1,298$966$712$379
26 years$2,153$1,622$1,204$883$641$330
27 years$2,051$1,526$1,118$808$578$289
28 years$1,957$1,438$1,039$741$522$252
29 years$1,869$1,357$967$679$471$221
30 years$1,787$1,281$901$623$426$193
31 years$1,711$1,211$840$572$385$169
32 years$1,639$1,146$784$526$348$148
33 years$1,572$1,085$732$484$315$129
34 years$1,509$1,029$684$445$285$113
35 years$1,450$976$639$410$258$99
36 years$1,394$926$598$377$234$87
37 years$1,342$880$560$348$212$76
38 years$1,292$836$524$321$192$67
39 years$1,245$795$491$296$174$59
40 years$1,200$756$460$273$158$51
41 years$1,158$720$432$251$144$45
42 years$1,118$686$405$232$130$39
43 years$1,080$653$380$214$118$35
44 years$1,043$623$357$198$107$30
45 years$1,009$594$335$183$97$27
46 years$975$566$314$169$88$23
47 years$944$541$295$156$80$20
48 years$914$516$278$144$73$18
49 years$885$493$261$133$66$16
50 years$857$471$245$123$60$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $878,000, adding $3,809 every year, while hoping to spend $53,918 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: 51/41/8 Blend
39$878,000$878,000$878,000$878,000
40$971,485$924,951$911,342$1,018,862
41$1,013,208$912,905$884,504$1,039,496
42$1,057,380$898,462$854,959$1,055,802
43$1,104,193$881,447$822,561$1,072,255
44$1,153,859$861,676$787,154$1,088,881
45$1,206,607$838,953$748,578$1,105,712
46$1,262,689$813,070$706,665$1,122,787
47$1,322,382$783,809$661,236$1,140,153
48$1,385,987$750,937$612,109$1,157,863
49$1,453,834$714,210$559,092$1,175,983
50$1,526,286$673,367$501,982$1,194,587
51$1,603,738$628,133$440,570$1,213,764
52$1,686,627$578,219$374,636$1,233,614
53$1,775,429$523,317$303,952$1,254,256
54$1,870,666$463,104$228,278$1,275,823
55$1,972,913$397,235$147,365$1,298,471
56$2,082,800$325,349$60,951$1,322,376
57$2,201,017$247,063$0$1,347,740
58$2,328,325$161,973$0$1,377,461
59$2,465,556$69,652$0$1,414,857
60$2,613,627$0$0$1,455,041
61$2,773,544$0$0$1,512,066
62$2,946,411$0$0$1,607,749
63$3,133,445$0$0$1,711,348
64$3,335,982$0$0$1,823,612
65$3,555,489$0$0$1,945,364
66$3,793,581$0$0$2,077,511
67$4,052,036$0$0$2,221,049
68$4,332,805$0$0$2,377,074
69$4,638,038$0$0$2,546,792
70$4,970,098$0$0$2,731,531
71$5,331,586$0$0$2,932,749
72$5,725,364$0$0$3,152,053
73$6,154,581$0$0$3,391,211
74$6,622,703$0$0$3,652,170
75$7,133,544$0$0$3,937,070
76$7,691,304$0$0$4,248,271
77$8,300,605$0$0$4,588,366
78$8,966,535$0$0$4,960,215
79$9,694,697$0$0$5,366,963
80$10,491,259$0$0$5,812,075
81$11,363,013$0$0$6,299,365
82$12,317,438$0$0$6,833,035
83$13,362,769$0$0$7,417,709
84$14,508,076$0$0$8,058,483
85$15,763,347$0$0$8,760,967
86$17,139,582$0$0$9,531,340
87$18,648,897$0$0$10,376,410
88$20,304,636$0$0$11,303,672
89$22,121,498$0$0$12,321,385
90$24,115,671$0$0$13,438,643
91$26,304,991$0$0$14,665,466
92$28,709,100$0$0$16,012,892
93$31,349,641$0$0$17,493,080
94$34,250,451$0$0$19,119,423
95$37,437,793$0$0$20,906,677
96$40,940,599$0$0$22,871,100
97$44,790,741$0$0$25,030,599
98$49,023,335$0$0$27,404,907
99$53,677,068$0$0$30,015,761
100$58,794,563$0$0$32,887,113