Can I retire at age 40 with 1,020,000?

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 $1,020,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.3%
1 years$84,231$83,480$82,748$82,034$81,336$79,890
2 years$41,698$40,922$40,169$39,439$38,732$37,280
3 years$27,523$26,743$25,992$25,269$24,573$23,160
4 years$20,436$19,659$18,916$18,205$17,526$16,163
5 years$16,186$15,413$14,679$13,983$13,323$12,014
6 years$13,353$12,586$11,863$11,182$10,542$9,289
7 years$11,330$10,569$9,858$9,194$8,573$7,377
8 years$9,814$9,060$8,361$7,712$7,112$5,971
9 years$8,635$7,888$7,201$6,569$5,990$4,904
10 years$7,692$6,953$6,278$5,663$5,103$4,071
11 years$6,922$6,190$5,527$4,928$4,389$3,410
12 years$6,280$5,556$4,905$4,323$3,804$2,876
13 years$5,738$5,021$4,382$3,816$3,317$2,439
14 years$5,273$4,564$3,938$3,388$2,907$2,079
15 years$4,871$4,169$3,555$3,021$2,560$1,778
16 years$4,519$3,825$3,223$2,705$2,262$1,526
17 years$4,209$3,523$2,933$2,431$2,006$1,313
18 years$3,934$3,255$2,677$2,190$1,784$1,133
19 years$3,688$3,017$2,451$1,979$1,590$979
20 years$3,467$2,803$2,249$1,793$1,420$847
21 years$3,267$2,611$2,069$1,627$1,271$734
22 years$3,085$2,438$1,907$1,479$1,139$637
23 years$2,920$2,280$1,761$1,347$1,023$554
24 years$2,769$2,136$1,628$1,229$919$482
25 years$2,630$2,005$1,508$1,122$827$419
26 years$2,502$1,884$1,399$1,026$745$365
27 years$2,383$1,773$1,299$939$672$318
28 years$2,273$1,671$1,208$860$606$277
29 years$2,171$1,576$1,124$789$547$242
30 years$2,076$1,488$1,047$724$494$211
31 years$1,988$1,407$976$665$447$184
32 years$1,905$1,331$910$611$404$161
33 years$1,827$1,261$850$562$366$140
34 years$1,754$1,195$794$517$331$123
35 years$1,685$1,133$743$476$300$107
36 years$1,620$1,076$695$438$272$94
37 years$1,559$1,022$650$404$246$82
38 years$1,501$971$609$372$223$72
39 years$1,446$923$570$343$203$63
40 years$1,395$879$535$317$184$55
41 years$1,345$836$501$292$167$48
42 years$1,299$796$470$270$151$42
43 years$1,254$759$441$249$137$37
44 years$1,212$723$414$230$125$32
45 years$1,172$690$389$212$113$28
46 years$1,133$658$365$196$103$24
47 years$1,097$628$343$181$93$21
48 years$1,061$599$323$167$85$19
49 years$1,028$572$303$155$77$16
50 years$996$547$285$143$70$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,020,000, adding $6,074 every year, while hoping to spend $45,747 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: 75/11/14 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,130,305$1,076,245$1,060,435$1,211,277
41$1,196,922$1,080,307$1,047,285$1,269,659
42$1,268,800$1,083,034$1,032,162$1,327,325
43$1,346,429$1,084,314$1,014,950$1,389,279
44$1,430,344$1,084,024$995,530$1,455,933
45$1,521,136$1,082,038$973,777$1,527,742
46$1,619,452$1,078,219$949,560$1,605,206
47$1,726,007$1,072,422$922,740$1,688,879
48$1,841,583$1,064,495$893,176$1,779,370
49$1,967,043$1,054,273$860,716$1,877,352
50$2,103,335$1,041,586$825,203$1,983,565
51$2,251,502$1,026,251$786,474$2,098,827
52$2,412,692$1,008,073$744,357$2,224,040
53$2,588,165$986,848$698,672$2,360,196
54$2,779,313$962,358$649,233$2,508,393
55$2,987,663$934,374$595,842$2,669,839
56$3,214,898$902,652$538,296$2,845,867
57$3,462,869$866,933$476,381$3,037,946
58$3,733,615$826,946$409,873$3,247,699
59$4,029,380$782,403$338,539$3,476,912
60$4,352,633$732,996$262,137$3,727,557
61$4,706,094$678,406$180,411$4,001,807
62$5,092,757$618,289$93,096$4,302,061
63$5,515,918$552,285$0$4,630,960
64$5,979,209$480,014$0$4,991,433
65$6,486,626$401,073$0$5,401,522
66$7,042,573$315,036$0$5,850,897
67$7,651,896$221,454$0$6,343,511
68$8,319,937$119,853$0$6,883,723
69$9,052,575$9,730$0$7,476,336
70$9,856,289$0$0$8,126,642
71$10,738,213$0$0$8,853,720
72$11,706,205$0$0$9,653,091
73$12,768,922$0$0$10,530,731
74$13,935,900$0$0$11,494,520
75$15,217,643$0$0$12,553,141
76$16,625,723$0$0$13,716,155
77$18,172,887$0$0$14,994,098
78$19,873,178$0$0$16,398,577
79$21,742,070$0$0$17,942,378
80$23,796,606$0$0$19,639,587
81$26,055,565$0$0$21,505,725
82$28,539,636$0$0$23,557,891
83$31,271,615$0$0$25,814,922
84$34,276,615$0$0$28,297,576
85$37,582,307$0$0$31,028,721
86$41,219,178$0$0$34,033,553
87$45,220,819$0$0$37,339,836
88$49,624,242$0$0$40,978,157
89$54,470,228$0$0$44,982,221
90$59,803,709$0$0$49,389,165
91$65,674,198$0$0$54,239,909
92$72,136,248$0$0$59,579,539
93$79,249,971$0$0$65,457,736
94$87,081,601$0$0$71,929,244
95$95,704,124$0$0$79,054,383
96$105,197,961$0$0$86,899,619
97$115,651,727$0$0$95,538,193
98$127,163,071$0$0$105,050,807
99$139,839,589$0$0$115,526,392
100$153,799,848$0$0$127,062,938