Can I retire at age 40 with 1,050,000?

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 $1,050,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.5%
1 years$86,708$85,936$85,182$84,447$83,728$80,534
2 years$42,925$42,125$41,351$40,599$39,871$36,690
3 years$28,332$27,529$26,757$26,012$25,296$22,228
4 years$21,037$20,237$19,472$18,740$18,041$15,111
5 years$16,662$15,866$15,111$14,394$13,715$10,929
6 years$13,745$12,956$12,212$11,511$10,852$8,213
7 years$11,663$10,880$10,148$9,464$8,825$6,332
8 years$10,102$9,326$8,606$7,939$7,322$4,972
9 years$8,889$8,120$7,413$6,762$6,166$3,956
10 years$7,919$7,158$6,463$5,829$5,254$3,180
11 years$7,125$6,372$5,690$5,073$4,518$2,576
12 years$6,465$5,719$5,049$4,450$3,915$2,099
13 years$5,906$5,168$4,511$3,929$3,414$1,719
14 years$5,428$4,698$4,053$3,487$2,993$1,413
15 years$5,014$4,292$3,660$3,110$2,635$1,166
16 years$4,652$3,938$3,318$2,785$2,329$964
17 years$4,333$3,626$3,019$2,502$2,065$799
18 years$4,049$3,351$2,756$2,255$1,836$663
19 years$3,796$3,106$2,523$2,037$1,637$551
20 years$3,569$2,886$2,316$1,845$1,462$458
21 years$3,363$2,688$2,130$1,675$1,308$382
22 years$3,176$2,509$1,963$1,523$1,173$318
23 years$3,006$2,347$1,813$1,387$1,053$265
24 years$2,850$2,199$1,676$1,265$946$221
25 years$2,707$2,063$1,553$1,155$851$185
26 years$2,575$1,939$1,440$1,056$767$154
27 years$2,453$1,825$1,337$967$691$129
28 years$2,340$1,720$1,243$886$624$108
29 years$2,235$1,622$1,157$812$563$90
30 years$2,137$1,532$1,077$745$509$75
31 years$2,046$1,448$1,004$685$460$63
32 years$1,961$1,371$937$629$416$53
33 years$1,880$1,298$875$579$377$44
34 years$1,805$1,230$818$532$341$37
35 years$1,734$1,167$764$490$309$31
36 years$1,668$1,107$715$451$280$26
37 years$1,605$1,052$669$416$254$22
38 years$1,545$1,000$627$383$230$18
39 years$1,489$951$587$353$209$15
40 years$1,436$904$550$326$189$13
41 years$1,385$861$516$301$172$11
42 years$1,337$820$484$278$156$9
43 years$1,291$781$454$256$141$7
44 years$1,248$745$426$237$128$6
45 years$1,206$710$400$218$116$5
46 years$1,167$677$376$202$106$4
47 years$1,129$646$353$186$96$4
48 years$1,093$617$332$172$87$3
49 years$1,058$589$312$159$79$3
50 years$1,025$563$293$147$72$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,050,000, adding $3,456 every year, while hoping to spend $38,270 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: 59/20/21 Blend
39$1,050,000$1,050,000$1,050,000$1,050,000
40$1,160,665$1,105,015$1,088,740$1,222,493
41$1,238,334$1,118,442$1,084,494$1,278,298
42$1,322,642$1,131,244$1,078,823$1,334,667
43$1,414,227$1,143,350$1,071,638$1,395,297
44$1,513,789$1,154,685$1,062,849$1,460,605
45$1,622,098$1,165,167$1,052,357$1,531,056
46$1,740,003$1,174,711$1,040,062$1,607,161
47$1,868,436$1,183,225$1,025,857$1,689,485
48$2,008,425$1,190,611$1,009,631$1,778,649
49$2,161,098$1,196,765$991,268$1,875,343
50$2,327,701$1,201,577$970,646$1,980,325
51$2,509,601$1,204,929$947,638$2,094,434
52$2,708,306$1,206,697$922,110$2,218,593
53$2,925,475$1,206,747$893,922$2,353,823
54$3,162,935$1,204,938$862,929$2,501,252
55$3,422,695$1,201,121$828,979$2,662,122
56$3,706,971$1,195,137$791,911$2,837,804
57$4,018,201$1,186,818$751,558$3,029,814
58$4,359,070$1,175,984$707,747$3,239,820
59$4,732,533$1,162,446$660,296$3,469,668
60$5,141,849$1,146,003$609,013$3,721,389
61$5,590,603$1,126,442$553,700$3,997,229
62$6,082,744$1,103,538$494,149$4,299,663
63$6,622,624$1,077,051$430,143$4,631,423
64$7,215,034$1,046,729$361,455$4,995,523
65$7,865,252$1,012,303$287,848$5,395,285
66$8,579,092$973,491$209,076$5,834,379
67$9,362,959$929,991$124,879$6,316,848
68$10,223,908$881,488$34,990$6,847,156
69$11,169,710$827,644$0$7,430,223
70$12,208,927$768,105$0$8,085,134
71$13,350,992$702,496$0$8,813,475
72$14,606,294$630,420$0$9,614,071
73$15,986,283$551,458$0$10,494,276
74$17,503,571$465,166$0$11,462,197
75$19,172,052$371,076$0$12,526,771
76$21,007,037$268,694$0$13,697,846
77$23,025,392$157,498$0$14,986,279
78$25,245,702$36,935$0$16,404,038
79$27,688,443$0$0$17,964,312
80$30,376,176$0$0$19,702,235
81$33,333,757$0$0$21,623,692
82$36,588,578$0$0$23,738,359
83$40,170,815$0$0$26,065,858
84$44,113,722$0$0$28,627,807
85$48,453,938$0$0$31,448,026
86$53,231,836$0$0$34,552,763
87$58,491,900$0$0$37,970,940
88$64,283,150$0$0$41,734,426
89$70,659,596$0$0$45,878,337
90$77,680,757$0$0$50,441,366
91$85,412,213$0$0$55,466,154
92$93,926,230$0$0$60,999,682
93$103,302,439$0$0$67,093,723
94$113,628,587$0$0$73,805,327
95$125,001,365$0$0$81,197,358
96$137,527,320$0$0$89,339,089
97$151,323,861$0$0$98,306,853
98$166,520,365$0$0$108,184,768
99$183,259,398$0$0$119,065,524
100$201,698,062$0$0$131,051,264