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%14.3%
1 years$89,185$88,391$87,616$86,859$86,121$84,590
2 years$44,151$43,329$42,532$41,759$41,010$39,473
3 years$29,142$28,316$27,521$26,756$26,018$24,523
4 years$21,638$20,815$20,028$19,276$18,557$17,114
5 years$17,138$16,319$15,543$14,806$14,106$12,721
6 years$14,138$13,326$12,561$11,840$11,162$9,836
7 years$11,997$11,191$10,438$9,735$9,078$7,810
8 years$10,391$9,593$8,852$8,166$7,531$6,323
9 years$9,143$8,352$7,625$6,956$6,342$5,192
10 years$8,145$7,362$6,647$5,996$5,404$4,311
11 years$7,329$6,554$5,852$5,218$4,647$3,611
12 years$6,650$5,883$5,194$4,577$4,027$3,045
13 years$6,075$5,316$4,640$4,041$3,512$2,583
14 years$5,583$4,832$4,169$3,587$3,078$2,201
15 years$5,157$4,414$3,764$3,199$2,711$1,883
16 years$4,785$4,050$3,413$2,864$2,396$1,616
17 years$4,457$3,730$3,106$2,574$2,124$1,390
18 years$4,165$3,447$2,835$2,319$1,889$1,199
19 years$3,905$3,194$2,595$2,096$1,683$1,036
20 years$3,671$2,968$2,382$1,898$1,504$897
21 years$3,459$2,765$2,191$1,723$1,346$778
22 years$3,267$2,581$2,019$1,566$1,206$675
23 years$3,092$2,414$1,864$1,426$1,083$586
24 years$2,932$2,262$1,724$1,301$973$510
25 years$2,784$2,122$1,597$1,188$876$444
26 years$2,649$1,995$1,481$1,086$789$386
27 years$2,523$1,877$1,375$994$711$337
28 years$2,407$1,769$1,279$911$642$294
29 years$2,299$1,669$1,190$835$579$256
30 years$2,198$1,576$1,108$767$524$223
31 years$2,104$1,490$1,033$704$473$195
32 years$2,017$1,410$964$647$428$170
33 years$1,934$1,335$900$595$387$149
34 years$1,857$1,265$841$548$351$130
35 years$1,784$1,200$786$504$318$114
36 years$1,715$1,139$736$464$288$99
37 years$1,651$1,082$688$428$261$87
38 years$1,589$1,028$645$394$237$76
39 years$1,531$978$604$364$215$66
40 years$1,477$930$566$335$195$58
41 years$1,424$885$531$309$177$51
42 years$1,375$843$498$285$160$44
43 years$1,328$803$467$264$145$39
44 years$1,283$766$439$243$132$34
45 years$1,241$730$412$225$120$30
46 years$1,200$697$387$208$109$26
47 years$1,161$665$363$192$99$23
48 years$1,124$635$341$177$90$20
49 years$1,088$606$321$164$81$17
50 years$1,054$579$302$151$74$15

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 $6,427 every year, while hoping to spend $36,003 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: 35/50/15 Blend
39$1,080,000$1,080,000$1,080,000$1,080,000
40$1,196,789$1,139,549$1,122,809$1,232,927
41$1,280,555$1,157,080$1,122,117$1,277,253
42$1,371,658$1,174,264$1,120,194$1,321,185
43$1,470,809$1,191,044$1,116,962$1,367,809
44$1,578,789$1,207,364$1,112,338$1,417,384
45$1,696,459$1,223,158$1,106,235$1,470,193
46$1,824,766$1,238,360$1,098,562$1,526,554
47$1,964,750$1,252,898$1,089,222$1,586,815
48$2,117,560$1,266,695$1,078,116$1,651,364
49$2,284,457$1,279,669$1,065,138$1,720,626
50$2,466,830$1,291,732$1,050,180$1,795,077
51$2,666,211$1,302,791$1,033,125$1,875,239
52$2,884,283$1,312,746$1,013,853$1,961,690
53$3,122,901$1,321,492$992,238$2,055,073
54$3,384,108$1,328,916$968,149$2,156,093
55$3,670,152$1,334,897$941,447$2,265,536
56$3,983,509$1,339,309$911,987$2,384,267
57$4,326,908$1,342,016$879,619$2,513,243
58$4,703,351$1,342,874$844,185$2,653,523
59$5,116,147$1,341,729$805,520$2,806,277
60$5,568,939$1,338,419$763,450$2,972,798
61$6,065,741$1,332,771$717,796$3,154,517
62$6,610,973$1,324,604$668,368$3,353,013
63$7,209,505$1,313,721$614,971$3,570,032
64$7,866,699$1,299,918$557,397$3,807,502
65$8,588,464$1,282,976$495,432$4,067,556
66$9,381,310$1,262,664$428,851$4,352,547
67$10,252,405$1,238,737$357,419$4,665,075
68$11,209,650$1,210,934$280,892$5,008,015
69$12,261,746$1,178,982$199,014$5,384,538
70$13,418,280$1,142,588$111,517$5,798,148
71$14,689,815$1,101,444$18,122$6,252,714
72$16,087,986$1,055,226$0$6,752,508
73$17,625,615$1,003,586$0$7,315,300
74$19,316,826$946,160$0$7,937,188
75$21,177,183$882,563$0$8,621,070
76$23,223,833$812,386$0$9,373,344
77$25,475,669$735,197$0$10,201,070
78$27,953,506$650,541$0$11,112,039
79$30,680,281$557,935$0$12,114,843
80$33,681,266$456,870$0$13,218,962
81$36,984,307$346,809$0$14,434,855
82$40,620,086$227,182$0$15,774,056
83$44,622,411$97,390$0$17,249,290
84$49,028,534$0$0$18,874,593
85$53,879,502$0$0$20,689,215
86$59,220,546$0$0$22,746,354
87$65,101,505$0$0$25,011,647
88$71,577,296$0$0$27,506,272
89$78,708,434$0$0$30,253,568
90$86,561,600$0$0$33,279,249
91$95,210,275$0$0$36,611,655
92$104,735,425$0$0$40,282,011
93$115,226,272$0$0$44,324,725
94$126,781,132$0$0$48,777,717
95$139,508,344$0$0$53,682,767
96$153,527,292$0$0$59,085,918
97$168,969,528$0$0$65,037,907
98$185,980,019$0$0$71,594,644
99$204,718,512$0$0$78,817,739
100$225,361,040$0$0$86,775,083