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%18.3%
1 years$84,231$83,480$82,748$82,034$81,336$78,607
2 years$41,698$40,922$40,169$39,439$38,732$36,009
3 years$27,523$26,743$25,992$25,269$24,573$21,942
4 years$20,436$19,659$18,916$18,205$17,526$15,007
5 years$16,186$15,413$14,679$13,983$13,323$10,923
6 years$13,353$12,586$11,863$11,182$10,542$8,263
7 years$11,330$10,569$9,858$9,194$8,573$6,414
8 years$9,814$9,060$8,361$7,712$7,112$5,072
9 years$8,635$7,888$7,201$6,569$5,990$4,066
10 years$7,692$6,953$6,278$5,663$5,103$3,293
11 years$6,922$6,190$5,527$4,928$4,389$2,688
12 years$6,280$5,556$4,905$4,323$3,804$2,209
13 years$5,738$5,021$4,382$3,816$3,317$1,824
14 years$5,273$4,564$3,938$3,388$2,907$1,512
15 years$4,871$4,169$3,555$3,021$2,560$1,258
16 years$4,519$3,825$3,223$2,705$2,262$1,049
17 years$4,209$3,523$2,933$2,431$2,006$877
18 years$3,934$3,255$2,677$2,190$1,784$734
19 years$3,688$3,017$2,451$1,979$1,590$616
20 years$3,467$2,803$2,249$1,793$1,420$517
21 years$3,267$2,611$2,069$1,627$1,271$435
22 years$3,085$2,438$1,907$1,479$1,139$366
23 years$2,920$2,280$1,761$1,347$1,023$308
24 years$2,769$2,136$1,628$1,229$919$259
25 years$2,630$2,005$1,508$1,122$827$219
26 years$2,502$1,884$1,399$1,026$745$184
27 years$2,383$1,773$1,299$939$672$156
28 years$2,273$1,671$1,208$860$606$131
29 years$2,171$1,576$1,124$789$547$111
30 years$2,076$1,488$1,047$724$494$94
31 years$1,988$1,407$976$665$447$79
32 years$1,905$1,331$910$611$404$67
33 years$1,827$1,261$850$562$366$56
34 years$1,754$1,195$794$517$331$48
35 years$1,685$1,133$743$476$300$40
36 years$1,620$1,076$695$438$272$34
37 years$1,559$1,022$650$404$246$29
38 years$1,501$971$609$372$223$24
39 years$1,446$923$570$343$203$21
40 years$1,395$879$535$317$184$17
41 years$1,345$836$501$292$167$15
42 years$1,299$796$470$270$151$12
43 years$1,254$759$441$249$137$10
44 years$1,212$723$414$230$125$9
45 years$1,172$690$389$212$113$7
46 years$1,133$658$365$196$103$6
47 years$1,097$628$343$181$93$5
48 years$1,061$599$323$167$85$5
49 years$1,028$572$303$155$77$4
50 years$996$547$285$143$70$3

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 $5,247 every year, while hoping to spend $53,344 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: 46/47/7 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,129,452$1,075,392$1,059,582$1,179,007
41$1,187,899$1,071,329$1,038,321$1,209,588
42$1,250,519$1,065,279$1,014,559$1,236,758
43$1,317,682$1,057,088$988,157$1,264,989
44$1,389,794$1,046,593$958,968$1,294,396
45$1,467,299$1,033,622$926,840$1,325,107
46$1,550,685$1,017,991$891,611$1,357,269
47$1,640,489$999,507$853,114$1,391,045
48$1,737,300$977,963$811,174$1,426,620
49$1,841,764$953,143$765,607$1,464,201
50$1,954,591$924,815$716,223$1,504,022
51$2,076,564$892,735$662,821$1,546,344
52$2,208,540$856,645$605,192$1,591,459
53$2,351,463$816,273$543,117$1,639,696
54$2,506,370$771,328$476,369$1,691,420
55$2,674,401$721,505$404,710$1,747,044
56$2,856,812$666,481$327,890$1,807,025
57$3,054,982$605,913$245,649$1,871,876
58$3,270,429$539,442$157,717$1,942,169
59$3,504,822$466,684$63,810$2,018,541
60$3,759,999$387,236$0$2,101,704
61$4,037,981$300,673$0$2,195,169
62$4,340,993$206,543$0$2,302,363
63$4,671,482$104,372$0$2,419,521
64$5,032,145$0$0$2,547,762
65$5,425,946$0$0$2,691,609
66$5,856,152$0$0$2,907,833
67$6,326,356$0$0$3,144,275
68$6,840,517$0$0$3,402,939
69$7,402,992$0$0$3,686,032
70$8,018,579$0$0$3,995,984
71$8,692,560$0$0$4,335,472
72$9,430,755$0$0$4,707,442
73$10,239,569$0$0$5,115,141
74$11,126,059$0$0$5,562,142
75$12,097,996$0$0$6,052,383
76$13,163,938$0$0$6,590,200
77$14,333,313$0$0$7,180,369
78$15,616,503$0$0$7,828,152
79$17,024,947$0$0$8,539,342
80$18,571,242$0$0$9,320,325
81$20,269,266$0$0$10,178,133
82$22,134,307$0$0$11,120,511
83$24,183,205$0$0$12,155,995
84$26,434,514$0$0$13,293,985
85$28,908,672$0$0$14,544,840
86$31,628,197$0$0$15,919,971
87$34,617,894$0$0$17,431,949
88$37,905,094$0$0$19,094,625
89$41,519,908$0$0$20,923,260
90$45,495,511$0$0$22,934,666
91$49,868,454$0$0$25,147,369
92$54,679,007$0$0$27,581,778
93$59,971,542$0$0$30,260,382
94$65,794,946$0$0$33,207,960
95$72,203,086$0$0$36,451,813
96$79,255,314$0$0$40,022,023
97$87,017,026$0$0$43,951,736
98$95,560,279$0$0$48,277,476
99$104,964,471$0$0$53,039,484
100$115,317,087$0$0$58,282,106