Can I retire at age 40 with 880,000?

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 $880,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$72,670$72,022$71,391$70,774$70,172$68,615
2 years$35,975$35,305$34,656$34,026$33,415$31,855
3 years$23,745$23,072$22,425$21,801$21,200$19,685
4 years$17,631$16,961$16,319$15,706$15,120$13,662
5 years$13,964$13,297$12,664$12,064$11,494$10,096
6 years$11,520$10,858$10,235$9,648$9,095$7,760
7 years$9,775$9,119$8,505$7,932$7,397$6,124
8 years$8,467$7,816$7,213$6,654$6,136$4,926
9 years$7,450$6,806$6,213$5,668$5,168$4,018
10 years$6,637$5,999$5,416$4,886$4,403$3,314
11 years$5,972$5,340$4,768$4,252$3,787$2,756
12 years$5,418$4,793$4,232$3,729$3,281$2,308
13 years$4,950$4,332$3,781$3,293$2,862$1,944
14 years$4,549$3,937$3,397$2,923$2,508$1,644
15 years$4,202$3,597$3,067$2,607$2,209$1,395
16 years$3,899$3,300$2,781$2,334$1,952$1,188
17 years$3,631$3,039$2,530$2,097$1,731$1,015
18 years$3,394$2,808$2,310$1,890$1,539$868
19 years$3,182$2,603$2,115$1,708$1,372$744
20 years$2,991$2,419$1,941$1,547$1,225$639
21 years$2,818$2,253$1,785$1,404$1,096$549
22 years$2,662$2,103$1,645$1,276$983$473
23 years$2,519$1,967$1,519$1,162$882$407
24 years$2,389$1,843$1,405$1,060$793$351
25 years$2,269$1,729$1,301$968$714$303
26 years$2,158$1,625$1,207$885$643$261
27 years$2,056$1,530$1,121$810$579$226
28 years$1,961$1,441$1,042$742$523$195
29 years$1,873$1,360$969$681$472$169
30 years$1,791$1,284$903$625$427$146
31 years$1,715$1,214$842$574$386$126
32 years$1,643$1,149$785$527$349$109
33 years$1,576$1,088$733$485$316$94
34 years$1,513$1,031$685$446$286$82
35 years$1,454$978$641$411$259$71
36 years$1,398$928$599$378$235$61
37 years$1,345$882$561$349$213$53
38 years$1,295$838$525$321$193$46
39 years$1,248$797$492$296$175$40
40 years$1,203$758$461$273$159$34
41 years$1,161$721$433$252$144$30
42 years$1,120$687$406$233$131$26
43 years$1,082$655$381$215$118$22
44 years$1,046$624$357$198$108$19
45 years$1,011$595$336$183$98$17
46 years$978$568$315$169$89$15
47 years$946$542$296$156$80$13
48 years$916$517$278$144$73$11
49 years$887$494$262$133$66$9
50 years$859$472$246$123$60$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $880,000, adding $6,803 every year, while hoping to spend $34,311 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: 43/45/12 Blend
39$880,000$880,000$880,000$880,000
40$976,777$930,137$916,497$1,015,100
41$1,039,902$939,207$910,693$1,051,618
42$1,108,315$947,572$903,545$1,087,179
43$1,182,521$955,160$894,971$1,124,943
44$1,263,072$961,897$884,886$1,165,128
45$1,350,576$967,701$873,201$1,207,972
46$1,445,705$972,488$859,823$1,253,741
47$1,549,194$976,167$844,654$1,302,730
48$1,661,853$978,641$827,592$1,355,263
49$1,784,575$979,807$808,529$1,411,703
50$1,918,341$979,557$787,354$1,472,448
51$2,064,231$977,774$763,949$1,537,941
52$2,223,433$974,336$738,193$1,608,673
53$2,397,257$969,112$709,955$1,685,186
54$2,587,142$961,963$679,104$1,768,081
55$2,794,674$952,743$645,498$1,858,022
56$3,021,599$941,297$608,990$1,955,746
57$3,269,840$927,458$569,429$2,062,067
58$3,541,512$911,052$526,654$2,177,884
59$3,838,947$891,894$480,497$2,304,195
60$4,164,710$869,787$430,784$2,442,101
61$4,521,629$844,524$377,333$2,592,821
62$4,912,814$815,885$319,953$2,757,702
63$5,341,695$783,638$258,446$2,938,235
64$5,812,046$747,535$192,602$3,136,066
65$6,328,027$707,316$122,206$3,353,017
66$6,894,217$662,705$47,031$3,591,100
67$7,515,661$613,412$0$3,852,538
68$8,197,917$559,128$0$4,144,039
69$8,947,106$499,527$0$4,470,772
70$9,769,973$434,265$0$4,829,740
71$10,673,944$362,978$0$5,224,292
72$11,667,206$285,283$0$5,658,125
73$12,758,772$200,773$0$6,135,319
74$13,958,575$109,020$0$6,660,378
75$15,277,558$9,570$0$7,238,273
76$16,727,777$0$0$7,874,492
77$18,322,513$0$0$8,623,643
78$20,076,400$0$0$9,452,892
79$22,005,560$0$0$10,365,138
80$24,127,758$0$0$11,368,796
81$26,462,566$0$0$12,473,140
82$29,031,548$0$0$13,688,386
83$31,858,464$0$0$15,025,791
84$34,969,496$0$0$16,497,758
85$38,393,490$0$0$18,117,956
86$42,162,229$0$0$19,901,443
87$46,310,737$0$0$21,864,812
88$50,877,603$0$0$24,026,347
89$55,905,350$0$0$26,406,196
90$61,440,831$0$0$29,026,558
91$67,535,675$0$0$31,911,895
92$74,246,771$0$0$35,089,163
93$81,636,806$0$0$38,588,062
94$89,774,857$0$0$42,441,324
95$98,737,037$0$0$46,685,012
96$108,607,223$0$0$51,358,869
97$119,477,836$0$0$56,506,686
98$131,450,721$0$0$62,176,721
99$144,638,104$0$0$68,422,150
100$159,163,651$0$0$75,301,570