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%19.4%
1 years$85,882$85,117$84,371$83,642$82,931$79,798
2 years$42,516$41,724$40,957$40,213$39,491$36,371
3 years$28,062$27,267$26,502$25,765$25,055$22,046
4 years$20,837$20,044$19,286$18,562$17,869$14,994
5 years$16,503$15,715$14,967$14,257$13,584$10,851
6 years$13,615$12,832$12,096$11,402$10,748$8,158
7 years$11,552$10,777$10,052$9,374$8,741$6,294
8 years$10,006$9,238$8,524$7,864$7,252$4,945
9 years$8,804$8,043$7,342$6,698$6,107$3,937
10 years$7,843$7,089$6,401$5,774$5,204$3,166
11 years$7,058$6,311$5,635$5,025$4,475$2,567
12 years$6,403$5,665$5,001$4,408$3,878$2,093
13 years$5,850$5,119$4,468$3,891$3,382$1,715
14 years$5,376$4,653$4,015$3,454$2,964$1,411
15 years$4,966$4,251$3,625$3,081$2,610$1,165
16 years$4,608$3,900$3,286$2,758$2,307$964
17 years$4,292$3,592$2,991$2,478$2,045$799
18 years$4,011$3,319$2,730$2,233$1,819$664
19 years$3,760$3,076$2,499$2,018$1,621$552
20 years$3,535$2,858$2,294$1,828$1,448$460
21 years$3,331$2,662$2,110$1,659$1,296$383
22 years$3,146$2,485$1,944$1,508$1,161$320
23 years$2,977$2,324$1,795$1,374$1,043$267
24 years$2,823$2,178$1,660$1,253$937$223
25 years$2,681$2,044$1,538$1,144$843$186
26 years$2,551$1,921$1,426$1,046$760$156
27 years$2,430$1,808$1,324$958$685$130
28 years$2,318$1,703$1,231$877$618$109
29 years$2,214$1,607$1,146$805$558$91
30 years$2,117$1,518$1,067$738$504$76
31 years$2,027$1,435$995$678$456$64
32 years$1,942$1,357$928$623$412$53
33 years$1,862$1,286$867$573$373$45
34 years$1,788$1,218$810$527$338$37
35 years$1,718$1,156$757$485$306$31
36 years$1,652$1,097$708$447$277$26
37 years$1,589$1,042$663$412$251$22
38 years$1,530$990$621$380$228$18
39 years$1,475$941$582$350$207$15
40 years$1,422$896$545$323$187$13
41 years$1,372$853$511$298$170$11
42 years$1,324$812$480$275$154$9
43 years$1,279$774$450$254$140$8
44 years$1,236$738$422$234$127$6
45 years$1,195$703$397$216$115$5
46 years$1,155$671$372$200$105$4
47 years$1,118$640$350$185$95$4
48 years$1,082$611$329$171$86$3
49 years$1,048$584$309$158$78$3
50 years$1,015$558$291$146$71$2

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 $6,095 every year, while hoping to spend $31,136 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: 50/43/7 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,152,367$1,097,247$1,081,127$1,207,636
41$1,236,780$1,117,884$1,084,216$1,266,612
42$1,328,760$1,138,488$1,086,366$1,326,820
43$1,429,045$1,159,025$1,087,510$1,391,504
44$1,538,448$1,179,459$1,087,583$1,461,090
45$1,657,866$1,199,748$1,086,513$1,536,049
46$1,788,283$1,219,851$1,084,226$1,616,899
47$1,930,784$1,239,719$1,080,643$1,704,211
48$2,086,563$1,259,304$1,075,684$1,798,614
49$2,256,935$1,278,553$1,069,262$1,900,803
50$2,443,347$1,297,407$1,061,287$2,011,543
51$2,647,394$1,315,805$1,051,666$2,131,679
52$2,870,830$1,333,682$1,040,299$2,262,140
53$3,115,590$1,350,967$1,027,084$2,403,952
54$3,383,800$1,367,585$1,011,912$2,558,247
55$3,677,807$1,383,456$994,669$2,726,272
56$4,000,191$1,398,493$975,239$2,909,403
57$4,353,797$1,412,605$953,496$3,109,156
58$4,741,756$1,425,695$929,310$3,327,204
59$5,167,520$1,437,659$902,546$3,565,391
60$5,634,887$1,448,384$873,062$3,825,751
61$6,148,045$1,457,754$840,708$4,110,527
62$6,711,604$1,465,643$805,331$4,422,192
63$7,330,645$1,471,917$766,767$4,763,472
64$8,010,764$1,476,434$724,846$5,137,376
65$8,758,125$1,479,042$679,392$5,547,218
66$9,579,520$1,479,581$630,218$5,996,656
67$10,482,431$1,477,881$577,130$6,489,721
68$11,475,102$1,473,760$519,927$7,030,860
69$12,566,615$1,467,027$458,397$7,624,974
70$13,766,975$1,457,477$392,319$8,277,469
71$15,087,207$1,444,893$321,462$8,994,306
72$16,539,456$1,429,047$245,585$9,782,055
73$18,137,105$1,409,695$164,437$10,647,963
74$19,894,899$1,386,580$77,755$11,600,020
75$21,829,085$1,359,428$0$12,647,033
76$23,957,561$1,327,950$0$13,799,818
77$26,300,053$1,291,840$0$15,074,249
78$28,878,291$1,250,773$0$16,476,341
79$31,716,223$1,204,406$0$18,019,133
80$34,840,232$1,152,377$0$19,717,000
81$38,279,392$1,094,300$0$21,585,788
82$42,065,738$1,029,769$0$23,642,964
83$46,234,570$958,354$0$25,907,785
84$50,824,784$879,601$0$28,401,478
85$55,879,239$793,029$0$31,147,441
86$61,445,165$698,130$0$34,171,468
87$67,574,601$594,368$0$37,501,992
88$74,324,894$481,176$0$41,170,355
89$81,759,234$357,954$0$45,211,104
90$89,947,252$224,070$0$49,662,320
91$98,965,678$78,856$0$54,565,981
92$108,899,063$0$0$59,968,357
93$119,840,579$0$0$65,957,540
94$131,892,895$0$0$72,596,016
95$145,169,147$0$0$79,908,806
96$159,794,006$0$0$87,964,603
97$175,904,856$0$0$96,839,101
98$193,653,086$0$0$106,615,715
99$213,205,523$0$0$117,386,363
100$234,746,002$0$0$129,252,336