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

Use the below retirement simulation to view the chances of a successful retirement.
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%13.8%
1 years$84,231$83,480$82,748$82,034$81,336$80,055
2 years$41,698$40,922$40,169$39,439$38,732$37,444
3 years$27,523$26,743$25,992$25,269$24,573$23,319
4 years$20,436$19,659$18,916$18,205$17,526$16,315
5 years$16,186$15,413$14,679$13,983$13,323$12,159
6 years$13,353$12,586$11,863$11,182$10,542$9,426
7 years$11,330$10,569$9,858$9,194$8,573$7,507
8 years$9,814$9,060$8,361$7,712$7,112$6,094
9 years$8,635$7,888$7,201$6,569$5,990$5,019
10 years$7,692$6,953$6,278$5,663$5,103$4,180
11 years$6,922$6,190$5,527$4,928$4,389$3,512
12 years$6,280$5,556$4,905$4,323$3,804$2,972
13 years$5,738$5,021$4,382$3,816$3,317$2,529
14 years$5,273$4,564$3,938$3,388$2,907$2,162
15 years$4,871$4,169$3,555$3,021$2,560$1,856
16 years$4,519$3,825$3,223$2,705$2,262$1,598
17 years$4,209$3,523$2,933$2,431$2,006$1,380
18 years$3,934$3,255$2,677$2,190$1,784$1,195
19 years$3,688$3,017$2,451$1,979$1,590$1,036
20 years$3,467$2,803$2,249$1,793$1,420$900
21 years$3,267$2,611$2,069$1,627$1,271$783
22 years$3,085$2,438$1,907$1,479$1,139$683
23 years$2,920$2,280$1,761$1,347$1,023$595
24 years$2,769$2,136$1,628$1,229$919$520
25 years$2,630$2,005$1,508$1,122$827$454
26 years$2,502$1,884$1,399$1,026$745$397
27 years$2,383$1,773$1,299$939$672$347
28 years$2,273$1,671$1,208$860$606$304
29 years$2,171$1,576$1,124$789$547$266
30 years$2,076$1,488$1,047$724$494$233
31 years$1,988$1,407$976$665$447$205
32 years$1,905$1,331$910$611$404$179
33 years$1,827$1,261$850$562$366$157
34 years$1,754$1,195$794$517$331$138
35 years$1,685$1,133$743$476$300$121
36 years$1,620$1,076$695$438$272$106
37 years$1,559$1,022$650$404$246$93
38 years$1,501$971$609$372$223$82
39 years$1,446$923$570$343$203$72
40 years$1,395$879$535$317$184$63
41 years$1,345$836$501$292$167$55
42 years$1,299$796$470$270$151$49
43 years$1,254$759$441$249$137$43
44 years$1,212$723$414$230$125$38
45 years$1,172$690$389$212$113$33
46 years$1,133$658$365$196$103$29
47 years$1,097$628$343$181$93$25
48 years$1,061$599$323$167$85$22
49 years$1,028$572$303$155$77$20
50 years$996$547$285$143$70$17

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 $3,550 every year, while hoping to spend $26,264 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: 68/13/19 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,127,702$1,073,642$1,057,832$1,198,888
41$1,214,783$1,098,306$1,065,324$1,271,572
42$1,309,866$1,123,298$1,072,188$1,347,652
43$1,413,739$1,148,606$1,078,373$1,430,231
44$1,527,271$1,174,218$1,083,829$1,519,948
45$1,651,417$1,200,120$1,088,502$1,617,507
46$1,787,229$1,226,293$1,092,335$1,723,683
47$1,935,867$1,252,722$1,095,268$1,839,330
48$2,098,605$1,279,385$1,097,239$1,965,390
49$2,276,848$1,306,260$1,098,182$2,102,898
50$2,472,145$1,333,325$1,098,029$2,252,999
51$2,686,197$1,360,552$1,096,707$2,416,951
52$2,920,883$1,387,913$1,094,141$2,596,141
53$3,178,269$1,415,376$1,090,250$2,792,098
54$3,460,631$1,442,908$1,084,952$3,006,508
55$3,770,477$1,470,472$1,078,159$3,241,227
56$4,110,568$1,498,027$1,069,780$3,498,301
57$4,483,946$1,525,531$1,059,718$3,779,986
58$4,893,963$1,552,937$1,047,873$4,088,767
59$5,344,311$1,580,194$1,034,141$4,427,382
60$5,839,056$1,607,249$1,018,409$4,798,851
61$6,382,678$1,634,042$1,000,564$5,206,499
62$6,980,112$1,660,512$980,485$5,653,994
63$7,636,797$1,686,590$958,044$6,145,375
64$8,358,722$1,712,204$933,110$6,685,097
65$9,152,486$1,737,278$905,544$7,278,066
66$10,025,362$1,761,726$875,202$7,929,692
67$10,985,360$1,785,462$841,932$8,645,937
68$12,041,306$1,808,389$805,576$9,433,370
69$13,202,924$1,830,405$765,969$10,299,232
70$14,480,931$1,851,403$722,936$11,251,505
71$15,887,130$1,871,266$676,299$12,298,982
72$17,434,529$1,889,870$625,867$13,451,359
73$19,137,461$1,907,083$571,443$14,719,317
74$21,011,717$1,922,765$512,822$16,114,632
75$23,074,697$1,936,766$449,787$17,650,280
76$25,345,575$1,948,927$382,113$19,340,562
77$27,845,476$1,959,076$309,566$21,201,240
78$30,597,678$1,967,035$231,901$23,249,685
79$33,627,832$1,972,610$148,860$25,505,043
80$36,964,202$1,975,599$60,177$27,988,413
81$40,637,930$1,975,783$0$30,723,048
82$44,683,335$1,972,932$0$33,741,564
83$49,138,232$1,966,802$0$37,078,691
84$54,044,290$1,957,134$0$40,753,406
85$59,447,425$1,943,652$0$44,800,079
86$65,398,235$1,926,063$0$49,256,586
87$71,952,474$1,904,059$0$54,164,663
88$79,171,578$1,877,310$0$59,570,305
89$87,123,250$1,845,469$0$65,524,196
90$95,882,092$1,808,168$0$72,082,189
91$105,530,312$1,765,015$0$79,305,835
92$116,158,501$1,715,597$0$87,262,961
93$127,866,484$1,659,477$0$96,028,312
94$140,764,265$1,596,191$0$105,684,259
95$154,973,065$1,525,250$0$116,321,570
96$170,626,464$1,446,134$0$128,040,276
97$187,871,664$1,358,294$0$140,950,606
98$206,870,874$1,261,152$0$155,174,036
99$227,802,848$1,154,093$0$170,844,431
100$250,864,565$1,036,469$0$188,109,311