Can I retire at age 40 with 1,080,000?

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 $1,080,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$89,185$88,391$87,616$86,859$86,121$85,506
2 years$44,151$43,329$42,532$41,759$41,010$40,390
3 years$29,142$28,316$27,521$26,756$26,018$25,413
4 years$21,638$20,815$20,028$19,276$18,557$17,970
5 years$17,138$16,319$15,543$14,806$14,106$13,540
6 years$14,138$13,326$12,561$11,840$11,162$10,617
7 years$11,997$11,191$10,438$9,735$9,078$8,554
8 years$10,391$9,593$8,852$8,166$7,531$7,028
9 years$9,143$8,352$7,625$6,956$6,342$5,861
10 years$8,145$7,362$6,647$5,996$5,404$4,944
11 years$7,329$6,554$5,852$5,218$4,647$4,208
12 years$6,650$5,883$5,194$4,577$4,027$3,608
13 years$6,075$5,316$4,640$4,041$3,512$3,113
14 years$5,583$4,832$4,169$3,587$3,078$2,699
15 years$5,157$4,414$3,764$3,199$2,711$2,350
16 years$4,785$4,050$3,413$2,864$2,396$2,053
17 years$4,457$3,730$3,106$2,574$2,124$1,799
18 years$4,165$3,447$2,835$2,319$1,889$1,581
19 years$3,905$3,194$2,595$2,096$1,683$1,392
20 years$3,671$2,968$2,382$1,898$1,504$1,229
21 years$3,459$2,765$2,191$1,723$1,346$1,086
22 years$3,267$2,581$2,019$1,566$1,206$961
23 years$3,092$2,414$1,864$1,426$1,083$852
24 years$2,932$2,262$1,724$1,301$973$756
25 years$2,784$2,122$1,597$1,188$876$672
26 years$2,649$1,995$1,481$1,086$789$597
27 years$2,523$1,877$1,375$994$711$531
28 years$2,407$1,769$1,279$911$642$473
29 years$2,299$1,669$1,190$835$579$421
30 years$2,198$1,576$1,108$767$524$375
31 years$2,104$1,490$1,033$704$473$335
32 years$2,017$1,410$964$647$428$299
33 years$1,934$1,335$900$595$387$267
34 years$1,857$1,265$841$548$351$238
35 years$1,784$1,200$786$504$318$213
36 years$1,715$1,139$736$464$288$190
37 years$1,651$1,082$688$428$261$170
38 years$1,589$1,028$645$394$237$152
39 years$1,531$978$604$364$215$136
40 years$1,477$930$566$335$195$121
41 years$1,424$885$531$309$177$108
42 years$1,375$843$498$285$160$97
43 years$1,328$803$467$264$145$87
44 years$1,283$766$439$243$132$77
45 years$1,241$730$412$225$120$69
46 years$1,200$697$387$208$109$62
47 years$1,161$665$363$192$99$55
48 years$1,124$635$341$177$90$50
49 years$1,088$606$321$164$81$44
50 years$1,054$579$302$151$74$40

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,080,000, adding $4,903 every year, while hoping to spend $56,050 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: 39/34/27 Blend
39$1,080,000$1,080,000$1,080,000$1,080,000
40$1,195,217$1,137,977$1,121,237$1,232,096
41$1,257,493$1,134,102$1,099,162$1,255,555
42$1,324,242$1,128,157$1,074,469$1,275,355
43$1,395,861$1,119,984$1,047,010$1,295,685
44$1,472,787$1,109,411$1,016,633$1,316,630
45$1,555,498$1,096,259$983,177$1,338,285
46$1,644,519$1,080,335$946,473$1,360,763
47$1,740,426$1,061,438$906,346$1,384,188
48$1,843,853$1,039,352$862,612$1,408,706
49$1,955,495$1,013,849$815,079$1,434,481
50$2,076,117$984,689$763,546$1,461,699
51$2,206,559$951,618$707,803$1,490,573
52$2,347,745$914,363$647,631$1,521,342
53$2,500,689$872,642$582,801$1,554,276
54$2,666,508$826,150$513,074$1,589,682
55$2,846,430$774,569$438,199$1,627,902
56$3,041,803$717,560$357,916$1,669,324
57$3,254,113$654,766$271,952$1,714,383
58$3,484,993$585,810$180,023$1,763,567
59$3,736,240$510,293$81,832$1,817,422
60$4,009,831$427,792$0$1,876,562
61$4,307,942$337,862$0$1,948,287
62$4,632,968$240,033$0$2,052,339
63$4,987,543$133,807$0$2,166,072
64$5,374,568$18,659$0$2,290,545
65$5,797,235$0$0$2,426,932
66$6,259,061$0$0$2,616,180
67$6,763,913$0$0$2,830,829
68$7,316,053$0$0$3,065,729
69$7,920,172$0$0$3,322,892
70$8,581,433$0$0$3,604,536
71$9,305,526$0$0$3,913,104
72$10,098,713$0$0$4,251,284
73$10,967,891$0$0$4,622,037
74$11,920,658$0$0$5,028,628
75$12,965,379$0$0$5,474,647
76$14,111,269$0$0$5,964,053
77$15,368,478$0$0$6,501,205
78$16,748,185$0$0$7,090,903
79$18,262,704$0$0$7,738,439
80$19,925,599$0$0$8,449,637
81$21,751,813$0$0$9,230,916
82$23,757,805$0$0$10,089,348
83$25,961,709$0$0$11,032,721
84$28,383,500$0$0$12,069,618
85$31,045,185$0$0$13,209,492
86$33,971,009$0$0$14,462,760
87$37,187,682$0$0$15,840,896
88$40,724,632$0$0$17,356,546
89$44,614,281$0$0$19,023,637
90$48,892,349$0$0$20,857,519
91$53,598,195$0$0$22,875,101
92$58,775,179$0$0$25,095,015
93$64,471,080$0$0$27,537,790
94$70,738,539$0$0$30,226,045
95$77,635,558$0$0$33,184,703
96$85,226,047$0$0$36,441,225
97$93,580,422$0$0$40,025,871
98$102,776,276$0$0$43,971,982
99$112,899,102$0$0$48,316,295
100$124,043,105$0$0$53,099,292