Can I retire at age 40 with 890,000?

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 $890,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.6%
1 years$73,495$72,841$72,202$71,579$70,970$68,235
2 years$36,384$35,706$35,050$34,413$33,795$31,072
3 years$24,015$23,334$22,679$22,049$21,441$18,816
4 years$17,832$17,153$16,505$15,885$15,292$12,785
5 years$14,123$13,448$12,808$12,201$11,625$9,242
6 years$11,651$10,982$10,351$9,757$9,198$6,941
7 years$9,886$9,222$8,602$8,022$7,481$5,349
8 years$8,563$7,905$7,295$6,729$6,206$4,197
9 years$7,534$6,883$6,283$5,732$5,226$3,338
10 years$6,712$6,067$5,478$4,941$4,453$2,681
11 years$6,040$5,401$4,823$4,300$3,830$2,170
12 years$5,480$4,848$4,280$3,772$3,319$1,768
13 years$5,006$4,381$3,824$3,330$2,894$1,447
14 years$4,601$3,982$3,436$2,956$2,537$1,189
15 years$4,250$3,638$3,102$2,636$2,234$979
16 years$3,943$3,338$2,812$2,360$1,974$809
17 years$3,673$3,074$2,559$2,121$1,750$670
18 years$3,432$2,840$2,336$1,911$1,556$556
19 years$3,218$2,632$2,139$1,727$1,387$461
20 years$3,025$2,446$1,963$1,564$1,239$384
21 years$2,851$2,278$1,805$1,420$1,109$319
22 years$2,692$2,127$1,664$1,291$994$266
23 years$2,548$1,989$1,536$1,175$892$222
24 years$2,416$1,864$1,421$1,072$802$185
25 years$2,295$1,749$1,316$979$722$154
26 years$2,183$1,644$1,221$895$650$129
27 years$2,079$1,547$1,133$819$586$107
28 years$1,984$1,458$1,054$751$529$90
29 years$1,895$1,375$980$688$477$75
30 years$1,812$1,299$913$632$431$63
31 years$1,734$1,228$851$580$390$52
32 years$1,662$1,162$794$533$353$44
33 years$1,594$1,100$742$490$319$37
34 years$1,530$1,043$693$451$289$31
35 years$1,470$989$648$415$262$25
36 years$1,414$939$606$383$237$21
37 years$1,360$892$567$352$215$18
38 years$1,310$847$531$325$195$15
39 years$1,262$806$498$300$177$12
40 years$1,217$767$467$276$160$10
41 years$1,174$730$437$255$145$9
42 years$1,133$695$410$235$132$7
43 years$1,094$662$385$217$120$6
44 years$1,057$631$361$201$109$5
45 years$1,022$602$339$185$99$4
46 years$989$574$319$171$90$4
47 years$957$548$299$158$81$3
48 years$926$523$281$146$74$2
49 years$897$499$265$135$67$2
50 years$869$477$249$125$61$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $890,000, adding $3,883 every year, while hoping to spend $33,212 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: 53/34/13 Blend
39$890,000$890,000$890,000$890,000
40$984,785$937,615$923,820$1,033,403
41$1,049,896$948,221$919,431$1,077,578
42$1,120,535$958,234$913,781$1,121,731
43$1,197,231$967,588$906,795$1,169,010
44$1,280,566$976,217$898,389$1,219,719
45$1,371,179$984,047$888,481$1,274,196
46$1,469,774$991,001$876,980$1,332,811
47$1,577,126$996,995$863,794$1,395,975
48$1,694,088$1,001,942$848,826$1,464,142
49$1,821,596$1,005,749$831,973$1,537,812
50$1,960,684$1,008,316$813,129$1,617,538
51$2,112,487$1,009,537$792,182$1,703,932
52$2,278,257$1,009,300$769,016$1,797,668
53$2,459,369$1,007,485$743,508$1,899,492
54$2,657,339$1,003,967$715,530$2,010,226
55$2,873,837$998,610$684,950$2,130,779
56$3,110,699$991,273$651,626$2,262,156
57$3,369,948$981,803$615,414$2,405,463
58$3,653,813$970,042$576,160$2,561,926
59$3,964,746$955,818$533,705$2,732,894
60$4,305,449$938,951$487,883$2,919,858
61$4,678,896$919,252$438,519$3,124,467
62$5,088,366$896,517$385,432$3,348,536
63$5,537,466$870,534$328,431$3,594,072
64$6,030,173$841,075$267,318$3,863,290
65$6,570,864$807,901$201,887$4,158,634
66$7,164,362$770,758$131,920$4,482,801
67$7,815,980$729,379$57,192$4,838,768
68$8,531,570$683,478$0$5,229,820
69$9,317,579$632,757$0$5,662,712
70$10,181,108$576,898$0$6,146,985
71$11,129,980$515,566$0$6,679,146
72$12,172,815$448,405$0$7,264,104
73$13,319,108$375,043$0$7,907,270
74$14,579,320$295,083$0$8,614,612
75$15,964,976$208,107$0$9,392,714
76$17,488,773$113,674$0$10,248,833
77$19,164,702$11,318$0$11,190,975
78$21,008,176$0$0$12,227,965
79$23,036,178$0$0$13,406,747
80$25,267,418$0$0$14,708,420
81$27,722,514$0$0$16,140,792
82$30,424,181$0$0$17,717,127
83$33,397,448$0$0$19,452,042
84$36,669,894$0$0$21,361,643
85$40,271,904$0$0$23,463,676
86$44,236,963$0$0$25,777,696
87$48,601,964$0$0$28,325,249
88$53,407,559$0$0$31,130,077
89$58,698,542$0$0$34,218,340
90$64,524,274$0$0$37,618,865
91$70,939,142$0$0$41,363,417
92$78,003,079$0$0$45,486,996
93$85,782,123$0$0$50,028,174
94$94,349,047$0$0$55,029,448
95$103,784,036$0$0$60,537,652
96$114,175,453$0$0$66,604,392
97$125,620,667$0$0$73,286,535
98$138,226,970$0$0$80,646,743
99$152,112,596$0$0$88,754,069
100$167,407,830$0$0$97,684,606