Can I retire at age 40 with 889,000?

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 $889,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.5%
1 years$73,413$72,759$72,121$71,498$70,890$70,443
2 years$36,343$35,666$35,010$34,374$33,757$33,307
3 years$23,988$23,308$22,654$22,024$21,417$20,976
4 years$17,812$17,134$16,486$15,867$15,275$14,848
5 years$14,107$13,433$12,794$12,187$11,612$11,199
6 years$11,638$10,969$10,339$9,746$9,188$8,791
7 years$9,875$9,212$8,592$8,013$7,472$7,090
8 years$8,553$7,896$7,287$6,722$6,199$5,833
9 years$7,526$6,875$6,276$5,726$5,220$4,869
10 years$6,705$6,060$5,472$4,935$4,448$4,112
11 years$6,033$5,395$4,817$4,295$3,825$3,505
12 years$5,474$4,842$4,275$3,768$3,315$3,009
13 years$5,001$4,376$3,820$3,326$2,891$2,599
14 years$4,596$3,978$3,432$2,953$2,534$2,256
15 years$4,245$3,634$3,099$2,633$2,231$1,967
16 years$3,939$3,334$2,809$2,358$1,972$1,721
17 years$3,668$3,070$2,556$2,118$1,748$1,510
18 years$3,429$2,837$2,334$1,909$1,555$1,329
19 years$3,214$2,629$2,136$1,725$1,386$1,172
20 years$3,021$2,443$1,961$1,562$1,238$1,036
21 years$2,847$2,276$1,803$1,418$1,108$917
22 years$2,689$2,124$1,662$1,289$993$813
23 years$2,545$1,987$1,535$1,174$891$722
24 years$2,413$1,862$1,419$1,071$801$641
25 years$2,292$1,747$1,315$978$721$570
26 years$2,180$1,642$1,219$894$649$508
27 years$2,077$1,545$1,132$819$585$453
28 years$1,981$1,456$1,052$750$528$404
29 years$1,892$1,374$979$688$477$360
30 years$1,810$1,297$912$631$431$322
31 years$1,732$1,226$850$580$390$287
32 years$1,660$1,160$793$533$352$257
33 years$1,592$1,099$741$490$319$229
34 years$1,528$1,042$692$451$289$205
35 years$1,468$988$647$415$262$184
36 years$1,412$938$605$382$237$164
37 years$1,359$891$567$352$215$147
38 years$1,308$846$531$325$195$132
39 years$1,261$805$497$299$177$118
40 years$1,215$766$466$276$160$105
41 years$1,173$729$437$255$145$94
42 years$1,132$694$410$235$132$85
43 years$1,093$661$385$217$120$76
44 years$1,056$630$361$200$109$68
45 years$1,021$601$339$185$99$61
46 years$988$573$318$171$90$55
47 years$956$547$299$158$81$49
48 years$925$522$281$146$74$44
49 years$896$499$264$135$67$39
50 years$868$477$248$125$61$35

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $889,000, adding $3,202 every year, while hoping to spend $34,480 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: 67/12/21 Blend
39$889,000$889,000$889,000$889,000
40$982,981$935,864$922,084$1,043,437
41$1,046,558$945,035$916,288$1,093,524
42$1,115,465$953,499$909,141$1,144,010
43$1,190,209$961,187$900,563$1,198,398
44$1,271,346$968,021$890,469$1,257,075
45$1,359,492$973,922$878,767$1,320,462
46$1,455,320$978,804$865,366$1,389,028
47$1,559,572$982,576$850,166$1,463,288
48$1,673,067$985,140$833,065$1,543,810
49$1,796,703$986,395$813,955$1,631,222
50$1,931,468$986,230$792,724$1,726,216
51$2,078,451$984,529$769,254$1,829,556
52$2,238,851$981,168$743,422$1,942,084
53$2,413,986$976,018$715,099$2,064,730
54$2,605,309$968,939$684,150$2,198,519
55$2,814,416$959,783$650,436$2,344,583
56$3,043,069$948,395$613,808$2,504,168
57$3,293,204$934,608$574,112$2,678,652
58$3,566,955$918,248$531,189$2,869,552
59$3,866,671$899,128$484,870$3,078,543
60$4,194,938$877,052$434,980$3,307,473
61$4,554,605$851,811$381,335$3,558,379
62$4,948,809$823,185$323,744$3,833,508
63$5,381,006$790,939$262,008$4,135,338
64$5,855,000$754,826$195,917$4,466,602
65$6,374,983$714,586$125,253$4,830,317
66$6,945,572$669,941$49,790$5,229,805
67$7,571,852$620,600$0$5,668,734
68$8,259,424$566,253$0$6,158,035
69$9,014,459$506,572$0$6,707,632
70$9,843,753$441,214$0$7,311,332
71$10,754,794$369,812$0$7,974,616
72$11,755,832$291,981$0$8,703,527
73$12,855,952$207,314$0$9,504,722
74$14,065,168$115,381$0$10,385,538
75$15,394,507$15,727$0$11,354,062
76$16,856,122$0$0$12,419,203
77$18,463,400$0$0$13,602,949
78$20,231,091$0$0$14,907,182
79$22,175,446$0$0$16,341,825
80$24,314,370$0$0$17,920,095
81$26,667,590$0$0$19,656,558
82$29,256,843$0$0$21,567,262
83$32,106,078$0$0$23,669,888
84$35,241,684$0$0$25,983,919
85$38,692,737$0$0$28,530,821
86$42,491,274$0$0$31,334,249
87$46,672,595$0$0$34,420,265
88$51,275,599$0$0$37,817,588
89$56,343,144$0$0$41,557,860
90$61,922,458$0$0$45,675,951
91$68,065,580$0$0$50,210,282
92$74,829,853$0$0$55,203,189
93$82,278,460$0$0$60,701,323
94$90,481,029$0$0$66,756,091
95$99,514,279$0$0$73,424,136
96$109,462,753$0$0$80,767,879
97$120,419,610$0$0$88,856,099
98$132,487,502$0$0$97,764,589
99$145,779,550$0$0$107,576,869
100$160,420,404$0$0$118,384,970