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

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$85,882$85,117$84,371$83,642$82,931$80,762
2 years$42,516$41,724$40,957$40,213$39,491$37,321
3 years$28,062$27,267$26,502$25,765$25,055$22,951
4 years$20,837$20,044$19,286$18,562$17,869$15,848
5 years$16,503$15,715$14,967$14,257$13,584$11,651
6 years$13,615$12,832$12,096$11,402$10,748$8,906
7 years$11,552$10,777$10,052$9,374$8,741$6,989
8 years$10,006$9,238$8,524$7,864$7,252$5,589
9 years$8,804$8,043$7,342$6,698$6,107$4,532
10 years$7,843$7,089$6,401$5,774$5,204$3,714
11 years$7,058$6,311$5,635$5,025$4,475$3,070
12 years$6,403$5,665$5,001$4,408$3,878$2,554
13 years$5,850$5,119$4,468$3,891$3,382$2,136
14 years$5,376$4,653$4,015$3,454$2,964$1,794
15 years$4,966$4,251$3,625$3,081$2,610$1,513
16 years$4,608$3,900$3,286$2,758$2,307$1,279
17 years$4,292$3,592$2,991$2,478$2,045$1,084
18 years$4,011$3,319$2,730$2,233$1,819$921
19 years$3,760$3,076$2,499$2,018$1,621$783
20 years$3,535$2,858$2,294$1,828$1,448$667
21 years$3,331$2,662$2,110$1,659$1,296$569
22 years$3,146$2,485$1,944$1,508$1,161$486
23 years$2,977$2,324$1,795$1,374$1,043$415
24 years$2,823$2,178$1,660$1,253$937$355
25 years$2,681$2,044$1,538$1,144$843$304
26 years$2,551$1,921$1,426$1,046$760$260
27 years$2,430$1,808$1,324$958$685$223
28 years$2,318$1,703$1,231$877$618$191
29 years$2,214$1,607$1,146$805$558$164
30 years$2,117$1,518$1,067$738$504$141
31 years$2,027$1,435$995$678$456$121
32 years$1,942$1,357$928$623$412$103
33 years$1,862$1,286$867$573$373$89
34 years$1,788$1,218$810$527$338$76
35 years$1,718$1,156$757$485$306$65
36 years$1,652$1,097$708$447$277$56
37 years$1,589$1,042$663$412$251$48
38 years$1,530$990$621$380$228$41
39 years$1,475$941$582$350$207$36
40 years$1,422$896$545$323$187$31
41 years$1,372$853$511$298$170$26
42 years$1,324$812$480$275$154$23
43 years$1,279$774$450$254$140$19
44 years$1,236$738$422$234$127$17
45 years$1,195$703$397$216$115$14
46 years$1,155$671$372$200$105$12
47 years$1,118$640$350$185$95$11
48 years$1,082$611$329$171$86$9
49 years$1,048$584$309$158$78$8
50 years$1,015$558$291$146$71$7

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 $6,727 every year, while hoping to spend $31,736 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: 73/6/21 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,153,019$1,097,899$1,081,779$1,230,857
41$1,236,860$1,117,929$1,084,252$1,303,538
42$1,328,189$1,137,877$1,085,744$1,378,678
43$1,427,737$1,157,705$1,086,188$1,460,198
44$1,536,307$1,177,374$1,085,516$1,548,725
45$1,654,783$1,196,838$1,083,654$1,644,954
46$1,784,140$1,216,052$1,080,526$1,749,649
47$1,925,449$1,234,966$1,076,050$1,863,651
48$2,079,891$1,253,525$1,070,144$1,987,887
49$2,248,764$1,271,672$1,062,718$2,123,381
50$2,433,499$1,289,345$1,053,680$2,271,259
51$2,635,671$1,306,478$1,042,933$2,432,762
52$2,857,014$1,323,000$1,030,376$2,609,261
53$3,099,438$1,338,835$1,015,902$2,802,263
54$3,365,046$1,353,903$999,400$3,013,431
55$3,656,154$1,368,118$980,753$3,244,598
56$3,975,313$1,381,387$959,840$3,497,783
57$4,325,332$1,393,613$936,532$3,775,214
58$4,709,307$1,404,690$910,696$4,079,343
59$5,130,644$1,414,508$882,193$4,412,877
60$5,593,100$1,422,949$850,876$4,778,795
61$6,100,808$1,429,886$816,593$5,180,384
62$6,658,325$1,435,184$779,183$5,621,265
63$7,270,668$1,438,703$738,480$6,105,430
64$7,943,366$1,440,289$694,309$6,637,280
65$8,682,509$1,439,782$646,488$7,221,663
66$9,494,805$1,437,012$594,825$7,863,925
67$10,387,646$1,431,796$539,122$8,569,957
68$11,369,174$1,423,942$479,171$9,346,252
69$12,448,360$1,413,247$414,754$10,199,968
70$13,635,089$1,399,492$345,645$11,138,993
71$14,940,250$1,382,448$271,605$12,172,022
72$16,375,840$1,361,873$192,389$13,308,636
73$17,955,078$1,337,507$107,736$14,559,399
74$19,692,529$1,309,078$17,378$15,935,951
75$21,604,240$1,276,296$0$17,451,122
76$23,707,892$1,238,854$0$19,136,767
77$26,022,968$1,196,429$0$20,996,065
78$28,570,932$1,148,675$0$23,042,364
79$31,375,438$1,095,232$0$25,294,669
80$34,462,548$1,035,712$0$27,773,920
81$37,860,977$969,712$0$30,503,194
82$41,602,368$896,799$0$33,507,917
83$45,721,587$816,520$0$36,816,108
84$50,257,054$728,395$0$40,458,644
85$55,251,103$631,915$0$44,469,549
86$60,750,381$526,544$0$48,886,314
87$66,806,290$411,715$0$53,750,254
88$73,475,473$286,831$0$59,106,897
89$80,820,343$151,257$0$65,006,412
90$88,909,676$4,327$0$71,504,085
91$97,819,260$0$0$78,660,837
92$107,632,606$0$0$86,554,015
93$118,441,741$0$0$95,248,520
94$130,348,071$0$0$104,825,643
95$143,463,344$0$0$115,375,279
96$157,910,697$0$0$126,996,486
97$173,825,823$0$0$139,798,424
98$191,358,252$0$0$153,901,381
99$210,672,759$0$0$169,437,910
100$231,950,917$0$0$186,554,081