Can I retire at age 40 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$85,882$85,117$84,371$83,642$82,931$82,582
2 years$42,516$41,724$40,957$40,213$39,491$39,138
3 years$28,062$27,267$26,502$25,765$25,055$24,709
4 years$20,837$20,044$19,286$18,562$17,869$17,534
5 years$16,503$15,715$14,967$14,257$13,584$13,260
6 years$13,615$12,832$12,096$11,402$10,748$10,436
7 years$11,552$10,777$10,052$9,374$8,741$8,441
8 years$10,006$9,238$8,524$7,864$7,252$6,963
9 years$8,804$8,043$7,342$6,698$6,107$5,830
10 years$7,843$7,089$6,401$5,774$5,204$4,938
11 years$7,058$6,311$5,635$5,025$4,475$4,222
12 years$6,403$5,665$5,001$4,408$3,878$3,636
13 years$5,850$5,119$4,468$3,891$3,382$3,151
14 years$5,376$4,653$4,015$3,454$2,964$2,744
15 years$4,966$4,251$3,625$3,081$2,610$2,400
16 years$4,608$3,900$3,286$2,758$2,307$2,107
17 years$4,292$3,592$2,991$2,478$2,045$1,856
18 years$4,011$3,319$2,730$2,233$1,819$1,639
19 years$3,760$3,076$2,499$2,018$1,621$1,450
20 years$3,535$2,858$2,294$1,828$1,448$1,286
21 years$3,331$2,662$2,110$1,659$1,296$1,143
22 years$3,146$2,485$1,944$1,508$1,161$1,017
23 years$2,977$2,324$1,795$1,374$1,043$906
24 years$2,823$2,178$1,660$1,253$937$808
25 years$2,681$2,044$1,538$1,144$843$722
26 years$2,551$1,921$1,426$1,046$760$645
27 years$2,430$1,808$1,324$958$685$577
28 years$2,318$1,703$1,231$877$618$517
29 years$2,214$1,607$1,146$805$558$463
30 years$2,117$1,518$1,067$738$504$415
31 years$2,027$1,435$995$678$456$372
32 years$1,942$1,357$928$623$412$334
33 years$1,862$1,286$867$573$373$300
34 years$1,788$1,218$810$527$338$269
35 years$1,718$1,156$757$485$306$242
36 years$1,652$1,097$708$447$277$217
37 years$1,589$1,042$663$412$251$195
38 years$1,530$990$621$380$228$176
39 years$1,475$941$582$350$207$158
40 years$1,422$896$545$323$187$142
41 years$1,372$853$511$298$170$128
42 years$1,324$812$480$275$154$115
43 years$1,279$774$450$254$140$103
44 years$1,236$738$422$234$127$93
45 years$1,195$703$397$216$115$84
46 years$1,155$671$372$200$105$75
47 years$1,118$640$350$185$95$68
48 years$1,082$611$329$171$86$61
49 years$1,048$584$309$158$78$55
50 years$1,015$558$291$146$71$49

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,040,000, adding $2,467 every year, while hoping to spend $38,793 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: 35/44/21 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,148,625$1,093,505$1,077,385$1,181,409
41$1,224,509$1,105,811$1,072,202$1,218,050
42$1,306,833$1,117,420$1,065,545$1,253,800
43$1,396,214$1,128,257$1,057,324$1,291,578
44$1,493,327$1,138,241$1,047,444$1,331,588
45$1,598,919$1,147,288$1,035,806$1,374,056
46$1,713,810$1,155,306$1,022,307$1,419,235
47$1,838,902$1,162,199$1,006,837$1,467,404
48$1,975,186$1,167,863$989,282$1,518,875
49$2,123,756$1,172,190$969,525$1,573,991
50$2,285,814$1,175,062$947,439$1,633,136
51$2,462,684$1,176,356$922,894$1,696,735
52$2,655,821$1,175,941$895,754$1,765,260
53$2,866,829$1,173,676$865,876$1,839,234
54$3,097,473$1,169,414$833,111$1,919,236
55$3,349,697$1,162,998$797,302$2,005,911
56$3,625,642$1,154,260$758,287$2,099,971
57$3,927,662$1,143,023$715,894$2,202,206
58$4,258,352$1,129,101$669,946$2,313,492
59$4,620,571$1,112,293$620,255$2,434,799
60$5,017,463$1,092,389$566,628$2,567,201
61$5,452,495$1,069,167$508,861$2,711,887
62$5,929,482$1,042,389$446,740$2,870,174
63$6,452,628$1,011,805$380,045$3,043,521
64$7,026,563$977,150$308,543$3,233,539
65$7,656,385$938,143$231,992$3,442,014
66$8,347,713$894,489$150,141$3,670,921
67$9,106,733$845,872$62,723$3,922,444
68$9,940,261$791,961$0$4,199,000
69$10,855,805$732,404$0$4,510,108
70$11,861,636$666,831$0$4,867,318
71$12,966,865$594,848$0$5,259,893
72$14,181,532$516,042$0$5,691,512
73$15,516,694$429,974$0$6,166,239
74$16,984,534$336,180$0$6,688,558
75$18,598,477$234,173$0$7,263,421
76$20,373,309$123,435$0$7,896,291
77$22,325,324$3,422$0$8,593,202
78$24,472,475$0$0$9,360,811
79$26,834,538$0$0$10,267,686
80$29,433,307$0$0$11,267,436
81$32,292,792$0$0$12,367,662
82$35,439,449$0$0$13,578,566
83$38,902,428$0$0$14,911,388
84$42,713,848$0$0$16,378,515
85$46,909,099$0$0$17,993,592
86$51,527,176$0$0$19,771,658
87$56,611,048$0$0$21,729,283
88$62,208,060$0$0$23,884,724
89$68,370,381$0$0$26,258,100
90$75,155,498$0$0$28,871,581
91$82,626,754$0$0$31,749,593
92$90,853,949$0$0$34,919,057
93$99,913,993$0$0$38,409,632
94$109,891,640$0$0$42,254,003
95$120,880,280$0$0$46,488,189
96$132,982,821$0$0$51,151,876
97$146,312,662$0$0$56,288,798
98$160,994,764$0$0$61,947,149
99$177,166,823$0$0$68,180,034
100$194,980,577$0$0$75,045,972