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%17.2%
1 years$85,882$85,117$84,371$83,642$82,931$80,502
2 years$42,516$41,724$40,957$40,213$39,491$37,064
3 years$28,062$27,267$26,502$25,765$25,055$22,705
4 years$20,837$20,044$19,286$18,562$17,869$15,615
5 years$16,503$15,715$14,967$14,257$13,584$11,431
6 years$13,615$12,832$12,096$11,402$10,748$8,700
7 years$11,552$10,777$10,052$9,374$8,741$6,796
8 years$10,006$9,238$8,524$7,864$7,252$5,409
9 years$8,804$8,043$7,342$6,698$6,107$4,365
10 years$7,843$7,089$6,401$5,774$5,204$3,560
11 years$7,058$6,311$5,635$5,025$4,475$2,927
12 years$6,403$5,665$5,001$4,408$3,878$2,422
13 years$5,850$5,119$4,468$3,891$3,382$2,015
14 years$5,376$4,653$4,015$3,454$2,964$1,683
15 years$4,966$4,251$3,625$3,081$2,610$1,411
16 years$4,608$3,900$3,286$2,758$2,307$1,186
17 years$4,292$3,592$2,991$2,478$2,045$1,000
18 years$4,011$3,319$2,730$2,233$1,819$844
19 years$3,760$3,076$2,499$2,018$1,621$714
20 years$3,535$2,858$2,294$1,828$1,448$604
21 years$3,331$2,662$2,110$1,659$1,296$512
22 years$3,146$2,485$1,944$1,508$1,161$435
23 years$2,977$2,324$1,795$1,374$1,043$369
24 years$2,823$2,178$1,660$1,253$937$314
25 years$2,681$2,044$1,538$1,144$843$267
26 years$2,551$1,921$1,426$1,046$760$227
27 years$2,430$1,808$1,324$958$685$193
28 years$2,318$1,703$1,231$877$618$165
29 years$2,214$1,607$1,146$805$558$140
30 years$2,117$1,518$1,067$738$504$119
31 years$2,027$1,435$995$678$456$102
32 years$1,942$1,357$928$623$412$87
33 years$1,862$1,286$867$573$373$74
34 years$1,788$1,218$810$527$338$63
35 years$1,718$1,156$757$485$306$54
36 years$1,652$1,097$708$447$277$46
37 years$1,589$1,042$663$412$251$39
38 years$1,530$990$621$380$228$33
39 years$1,475$941$582$350$207$28
40 years$1,422$896$545$323$187$24
41 years$1,372$853$511$298$170$21
42 years$1,324$812$480$275$154$18
43 years$1,279$774$450$254$140$15
44 years$1,236$738$422$234$127$13
45 years$1,195$703$397$216$115$11
46 years$1,155$671$372$200$105$9
47 years$1,118$640$350$185$95$8
48 years$1,082$611$329$171$86$7
49 years$1,048$584$309$158$78$6
50 years$1,015$558$291$146$71$5

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 $4,675 every year, while hoping to spend $49,387 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: 54/24/22 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,150,902$1,095,782$1,079,662$1,205,878
41$1,215,747$1,096,928$1,063,284$1,245,288
42$1,285,550$1,096,475$1,044,701$1,282,610
43$1,360,767$1,094,292$1,023,788$1,322,192
44$1,441,894$1,090,241$1,000,414$1,364,265
45$1,529,479$1,084,175$974,440$1,409,087
46$1,624,124$1,075,938$945,722$1,456,945
47$1,726,490$1,065,365$914,109$1,508,154
48$1,837,304$1,052,279$879,444$1,563,069
49$1,957,364$1,036,496$841,560$1,622,080
50$2,087,549$1,017,818$800,286$1,685,621
51$2,228,824$996,037$755,441$1,754,173
52$2,382,253$970,931$706,837$1,828,271
53$2,549,003$942,267$654,276$1,908,506
54$2,730,359$909,796$597,553$1,995,534
55$2,927,738$873,258$536,452$2,090,082
56$3,142,693$832,374$470,750$2,192,956
57$3,376,938$786,850$400,210$2,305,047
58$3,632,357$736,378$324,589$2,427,342
59$3,911,025$680,628$243,630$2,560,937
60$4,215,224$619,253$157,066$2,707,041
61$4,547,468$551,887$64,619$2,866,994
62$4,910,523$478,142$0$3,042,279
63$5,307,434$397,609$0$3,242,527
64$5,741,556$309,856$0$3,478,270
65$6,216,580$214,424$0$3,736,404
66$6,736,572$110,832$0$4,019,227
67$7,306,009$0$0$4,329,274
68$7,929,821$0$0$4,669,721
69$8,613,439$0$0$5,074,979
70$9,362,840$0$0$5,519,336
71$10,184,612$0$0$6,006,708
72$11,086,007$0$0$6,541,411
73$12,075,016$0$0$7,128,197
74$13,160,438$0$0$7,772,302
75$14,351,966$0$0$8,479,492
76$15,660,280$0$0$9,256,119
77$17,097,140$0$0$10,109,181
78$18,675,504$0$0$11,046,387
79$20,409,647$0$0$12,076,230
80$22,315,294$0$0$13,208,064
81$24,409,769$0$0$14,452,197
82$26,712,156$0$0$15,819,985
83$29,243,484$0$0$17,323,937
84$32,026,918$0$0$18,977,837
85$35,087,982$0$0$20,796,871
86$38,454,794$0$0$22,797,770
87$42,158,339$0$0$24,998,970
88$46,232,751$0$0$27,420,780
89$50,715,643$0$0$30,085,579
90$55,648,454$0$0$33,018,027
91$61,076,847$0$0$36,245,292
92$67,051,132$0$0$39,797,309
93$73,626,744$0$0$43,707,065
94$80,864,765$0$0$48,010,904
95$88,832,499$0$0$52,748,875
96$97,604,107$0$0$57,965,106
97$107,261,306$0$0$63,708,222
98$117,894,139$0$0$70,031,801
99$129,601,824$0$0$76,994,885
100$142,493,692$0$0$84,662,527