Can I retire at age 40 with 881,000?

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 $881,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$72,752$72,104$71,472$70,855$70,252$69,956
2 years$36,016$35,345$34,695$34,065$33,453$33,155
3 years$23,772$23,098$22,450$21,826$21,224$20,932
4 years$17,651$16,980$16,338$15,724$15,137$14,854
5 years$13,980$13,312$12,679$12,078$11,507$11,233
6 years$11,533$10,871$10,246$9,659$9,105$8,841
7 years$9,786$9,129$8,515$7,941$7,405$7,151
8 years$8,476$7,825$7,221$6,661$6,143$5,899
9 years$7,458$6,813$6,220$5,674$5,173$4,939
10 years$6,644$6,006$5,422$4,891$4,408$4,183
11 years$5,979$5,346$4,774$4,257$3,791$3,576
12 years$5,424$4,799$4,237$3,734$3,285$3,080
13 years$4,956$4,337$3,785$3,296$2,865$2,669
14 years$4,554$3,942$3,401$2,926$2,511$2,325
15 years$4,207$3,601$3,071$2,610$2,211$2,033
16 years$3,903$3,304$2,784$2,337$1,954$1,785
17 years$3,635$3,043$2,533$2,099$1,733$1,572
18 years$3,398$2,812$2,313$1,892$1,541$1,388
19 years$3,185$2,606$2,117$1,710$1,373$1,229
20 years$2,994$2,421$1,943$1,548$1,227$1,090
21 years$2,822$2,255$1,787$1,405$1,098$968
22 years$2,665$2,105$1,647$1,278$984$861
23 years$2,522$1,969$1,521$1,164$883$768
24 years$2,391$1,845$1,406$1,061$794$685
25 years$2,271$1,731$1,303$969$714$611
26 years$2,161$1,627$1,208$886$643$547
27 years$2,058$1,531$1,122$811$580$489
28 years$1,964$1,443$1,043$743$523$438
29 years$1,875$1,361$971$682$473$392
30 years$1,793$1,286$904$625$427$352
31 years$1,717$1,215$843$574$386$315
32 years$1,645$1,150$786$528$349$283
33 years$1,578$1,089$734$485$316$254
34 years$1,515$1,032$686$447$286$228
35 years$1,455$979$641$411$259$205
36 years$1,399$929$600$379$235$184
37 years$1,346$883$562$349$213$165
38 years$1,296$839$526$322$193$149
39 years$1,249$798$493$297$175$134
40 years$1,204$759$462$274$159$120
41 years$1,162$722$433$252$144$108
42 years$1,122$688$406$233$131$97
43 years$1,083$655$381$215$119$88
44 years$1,047$625$358$199$108$79
45 years$1,012$596$336$183$98$71
46 years$979$568$316$169$89$64
47 years$947$542$296$156$81$57
48 years$917$518$279$145$73$52
49 years$888$494$262$134$66$47
50 years$860$472$246$123$60$42

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $881,000, adding $4,042 every year, while hoping to spend $25,886 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: 43/48/9 Blend
39$881,000$881,000$881,000$881,000
40$975,031$928,338$914,683$1,014,251
41$1,046,942$946,284$917,782$1,059,883
42$1,125,320$964,242$920,118$1,106,344
43$1,210,798$982,185$921,637$1,156,087
44$1,304,071$1,000,084$922,283$1,209,423
45$1,405,906$1,017,908$922,000$1,266,694
46$1,517,146$1,035,623$920,724$1,328,277
47$1,638,719$1,053,193$918,393$1,394,587
48$1,771,648$1,070,579$914,938$1,466,083
49$1,917,057$1,087,738$910,290$1,543,270
50$2,076,187$1,104,627$904,374$1,626,707
51$2,250,400$1,121,196$897,114$1,717,008
52$2,441,200$1,137,395$888,426$1,814,852
53$2,650,242$1,153,166$878,228$1,920,987
54$2,879,347$1,168,452$866,429$2,036,239
55$3,130,523$1,183,188$852,936$2,161,517
56$3,405,979$1,197,307$837,652$2,297,826
57$3,708,150$1,210,736$820,475$2,446,275
58$4,039,717$1,223,398$801,297$2,608,083
59$4,403,635$1,235,211$780,007$2,784,600
60$4,803,155$1,246,086$756,487$2,977,312
61$5,241,863$1,255,931$730,615$3,187,859
62$5,723,706$1,264,644$702,264$3,418,049
63$6,253,033$1,272,120$671,298$3,669,877
64$6,834,635$1,278,247$637,579$3,945,544
65$7,473,789$1,282,902$600,960$4,247,476
66$8,176,311$1,285,960$561,288$4,578,351
67$8,948,606$1,287,284$518,402$4,941,121
68$9,797,733$1,286,729$472,137$5,339,043
69$10,731,465$1,284,143$422,318$5,775,706
70$11,758,371$1,279,362$368,762$6,255,073
71$12,887,889$1,272,215$311,279$6,781,510
72$14,130,418$1,262,517$249,671$7,359,837
73$15,497,415$1,250,076$183,730$7,995,364
74$17,001,506$1,234,684$113,239$8,693,950
75$18,656,599$1,216,123$37,973$9,462,056
76$20,478,022$1,194,162$0$10,306,806
77$22,482,661$1,168,557$0$11,240,123
78$24,689,123$1,139,047$0$12,270,758
79$27,117,911$1,105,358$0$13,404,639
80$29,791,617$1,067,199$0$14,652,323
81$32,735,132$1,024,262$0$16,025,452
82$35,975,886$976,222$0$17,536,858
83$39,544,102$922,733$0$19,200,691
84$43,473,085$863,431$0$21,032,547
85$47,799,532$797,932$0$23,049,622
86$52,563,881$725,827$0$25,270,873
87$57,810,690$646,686$0$27,717,198
88$63,589,061$560,054$0$30,411,634
89$69,953,098$465,449$0$33,379,577
90$76,962,423$362,365$0$36,649,024
91$84,682,733$250,264$0$40,250,835
92$93,186,424$128,580$0$44,219,032
93$102,553,273$0$0$48,591,114
94$112,871,188$0$0$53,410,156
95$124,237,041$0$0$58,793,617
96$136,757,580$0$0$64,724,163
97$150,550,437$0$0$71,257,534
98$165,745,239$0$0$78,455,150
99$182,484,828$0$0$86,384,698
100$200,926,613$0$0$95,120,764