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%14.8%
1 years$85,882$85,117$84,371$83,642$82,931$81,290
2 years$42,516$41,724$40,957$40,213$39,491$37,844
3 years$28,062$27,267$26,502$25,765$25,055$23,454
4 years$20,837$20,044$19,286$18,562$17,869$16,327
5 years$16,503$15,715$14,967$14,257$13,584$12,104
6 years$13,615$12,832$12,096$11,402$10,748$9,333
7 years$11,552$10,777$10,052$9,374$8,741$7,391
8 years$10,006$9,238$8,524$7,864$7,252$5,966
9 years$8,804$8,043$7,342$6,698$6,107$4,884
10 years$7,843$7,089$6,401$5,774$5,204$4,043
11 years$7,058$6,311$5,635$5,025$4,475$3,376
12 years$6,403$5,665$5,001$4,408$3,878$2,838
13 years$5,850$5,119$4,468$3,891$3,382$2,399
14 years$5,376$4,653$4,015$3,454$2,964$2,037
15 years$4,966$4,251$3,625$3,081$2,610$1,737
16 years$4,608$3,900$3,286$2,758$2,307$1,485
17 years$4,292$3,592$2,991$2,478$2,045$1,273
18 years$4,011$3,319$2,730$2,233$1,819$1,094
19 years$3,760$3,076$2,499$2,018$1,621$942
20 years$3,535$2,858$2,294$1,828$1,448$813
21 years$3,331$2,662$2,110$1,659$1,296$702
22 years$3,146$2,485$1,944$1,508$1,161$607
23 years$2,977$2,324$1,795$1,374$1,043$525
24 years$2,823$2,178$1,660$1,253$937$455
25 years$2,681$2,044$1,538$1,144$843$394
26 years$2,551$1,921$1,426$1,046$760$342
27 years$2,430$1,808$1,324$958$685$297
28 years$2,318$1,703$1,231$877$618$258
29 years$2,214$1,607$1,146$805$558$224
30 years$2,117$1,518$1,067$738$504$195
31 years$2,027$1,435$995$678$456$169
32 years$1,942$1,357$928$623$412$147
33 years$1,862$1,286$867$573$373$128
34 years$1,788$1,218$810$527$338$111
35 years$1,718$1,156$757$485$306$97
36 years$1,652$1,097$708$447$277$84
37 years$1,589$1,042$663$412$251$73
38 years$1,530$990$621$380$228$64
39 years$1,475$941$582$350$207$56
40 years$1,422$896$545$323$187$48
41 years$1,372$853$511$298$170$42
42 years$1,324$812$480$275$154$37
43 years$1,279$774$450$254$140$32
44 years$1,236$738$422$234$127$28
45 years$1,195$703$397$216$115$24
46 years$1,155$671$372$200$105$21
47 years$1,118$640$350$185$95$18
48 years$1,082$611$329$171$86$16
49 years$1,048$584$309$158$78$14
50 years$1,015$558$291$146$71$12

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 $5,400 every year, while hoping to spend $58,831 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: 44/29/27 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,151,650$1,096,530$1,080,410$1,193,091
41$1,206,523$1,087,664$1,054,008$1,214,278
42$1,265,021$1,076,392$1,024,750$1,231,183
43$1,327,451$1,062,534$992,478$1,248,372
44$1,394,152$1,045,899$957,026$1,265,904
45$1,465,492$1,026,285$918,223$1,283,848
46$1,541,877$1,003,477$875,888$1,302,286
47$1,623,750$977,250$829,833$1,321,311
48$1,711,600$947,362$779,859$1,341,032
49$1,805,960$913,560$725,761$1,361,574
50$1,907,418$875,574$667,324$1,383,079
51$2,016,618$833,121$604,323$1,405,710
52$2,134,267$785,898$536,522$1,429,655
53$2,261,144$733,588$463,677$1,455,123
54$2,398,101$675,855$385,531$1,482,356
55$2,546,077$612,341$301,816$1,511,626
56$2,706,103$542,672$212,252$1,543,240
57$2,879,311$466,448$116,549$1,577,546
58$3,066,948$383,252$14,400$1,614,935
59$3,270,383$292,638$0$1,655,848
60$3,491,123$194,138$0$1,728,036
61$3,730,824$87,257$0$1,810,998
62$3,991,308$0$0$1,901,305
63$4,274,580$0$0$2,008,865
64$4,582,844$0$0$2,156,326
65$4,918,527$0$0$2,317,020
66$5,284,299$0$0$2,492,237
67$5,683,099$0$0$2,683,402
68$6,118,160$0$0$2,892,079
69$6,593,041$0$0$3,119,993
70$7,111,662$0$0$3,369,041
71$7,678,335$0$0$3,641,313
72$8,297,810$0$0$3,939,109
73$8,975,313$0$0$4,264,960
74$9,716,603$0$0$4,621,656
75$10,528,017$0$0$5,012,268
76$11,416,535$0$0$5,440,177
77$12,389,844$0$0$5,909,108
78$13,456,408$0$0$6,423,162
79$14,625,550$0$0$6,986,855
80$15,907,537$0$0$7,605,165
81$17,313,678$0$0$8,283,570
82$18,856,427$0$0$9,028,106
83$20,549,505$0$0$9,845,423
84$22,408,023$0$0$10,742,845
85$24,448,627$0$0$11,728,439
86$26,689,655$0$0$12,811,093
87$29,151,307$0$0$14,000,597
88$31,855,835$0$0$15,307,739
89$34,827,755$0$0$16,744,400
90$38,094,074$0$0$18,323,672
91$41,684,544$0$0$20,059,977
92$45,631,946$0$0$21,969,204
93$49,972,393$0$0$24,068,861
94$54,745,675$0$0$26,378,234
95$59,995,629$0$0$28,918,576
96$65,770,553$0$0$31,713,300
97$72,123,664$0$0$34,788,205
98$79,113,595$0$0$38,171,714
99$86,804,948$0$0$41,895,147
100$95,268,905$0$0$45,993,013