Can I retire at age 40 with 1,120,000?

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 $1,120,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$92,489$91,665$90,861$90,076$89,310$86,348
2 years$45,786$44,934$44,107$43,306$42,529$39,573
3 years$30,221$29,365$28,540$27,747$26,982$24,125
4 years$22,440$21,586$20,770$19,990$19,244$16,508
5 years$17,772$16,924$16,118$15,354$14,629$12,022
6 years$14,662$13,820$13,026$12,279$11,575$9,099
7 years$12,441$11,606$10,825$10,095$9,414$7,068
8 years$10,776$9,948$9,180$8,469$7,810$5,592
9 years$9,482$8,662$7,907$7,213$6,577$4,486
10 years$8,447$7,635$6,893$6,218$5,604$3,635
11 years$7,601$6,797$6,069$5,411$4,819$2,970
12 years$6,896$6,100$5,386$4,747$4,176$2,441
13 years$6,300$5,513$4,812$4,191$3,642$2,017
14 years$5,790$5,011$4,324$3,720$3,193$1,673
15 years$5,348$4,578$3,904$3,317$2,811$1,393
16 years$4,962$4,200$3,539$2,970$2,484$1,163
17 years$4,622$3,868$3,221$2,669$2,203$973
18 years$4,319$3,574$2,940$2,405$1,959$815
19 years$4,049$3,313$2,691$2,173$1,746$684
20 years$3,807$3,078$2,470$1,968$1,559$575
21 years$3,587$2,867$2,272$1,786$1,395$484
22 years$3,388$2,677$2,094$1,624$1,251$407
23 years$3,206$2,503$1,933$1,479$1,123$343
24 years$3,040$2,345$1,788$1,349$1,009$289
25 years$2,888$2,201$1,656$1,232$908$244
26 years$2,747$2,069$1,536$1,127$818$206
27 years$2,617$1,947$1,426$1,031$737$174
28 years$2,496$1,834$1,326$945$665$147
29 years$2,384$1,731$1,234$866$601$124
30 years$2,280$1,634$1,149$795$543$105
31 years$2,182$1,545$1,071$730$491$89
32 years$2,091$1,462$1,000$671$444$75
33 years$2,006$1,384$933$617$402$63
34 years$1,925$1,312$872$568$364$54
35 years$1,850$1,245$815$523$330$45
36 years$1,779$1,181$763$481$299$38
37 years$1,712$1,122$714$444$271$32
38 years$1,648$1,066$669$409$245$27
39 years$1,588$1,014$626$377$222$23
40 years$1,531$965$587$348$202$20
41 years$1,477$918$551$321$183$17
42 years$1,426$874$516$296$166$14
43 years$1,377$833$485$273$151$12
44 years$1,331$794$455$252$137$10
45 years$1,286$757$427$233$124$8
46 years$1,244$723$401$215$113$7
47 years$1,204$689$377$199$102$6
48 years$1,166$658$354$184$93$5
49 years$1,129$629$333$170$84$4
50 years$1,094$600$313$157$77$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,120,000, adding $6,654 every year, while hoping to spend $21,757 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: 66/13/21 Blend
39$1,120,000$1,120,000$1,120,000$1,120,000
40$1,241,104$1,181,744$1,164,384$1,315,992
41$1,344,547$1,216,500$1,180,241$1,401,832
42$1,457,812$1,252,230$1,195,901$1,492,542
43$1,581,878$1,288,958$1,211,333$1,591,197
44$1,717,823$1,326,711$1,226,506$1,698,577
45$1,866,835$1,365,513$1,241,387$1,815,541
46$2,030,219$1,405,391$1,255,941$1,943,038
47$2,209,418$1,446,371$1,270,131$2,082,109
48$2,406,016$1,488,481$1,283,919$2,233,905
49$2,621,762$1,531,748$1,297,262$2,399,690
50$2,858,579$1,576,201$1,310,117$2,580,860
51$3,118,587$1,621,868$1,322,439$2,778,949
52$3,404,122$1,668,779$1,334,180$2,995,649
53$3,717,756$1,716,962$1,345,288$3,232,826
54$4,062,322$1,766,448$1,355,711$3,492,532
55$4,440,943$1,817,268$1,365,391$3,777,030
56$4,857,057$1,869,453$1,374,270$4,088,812
57$5,314,454$1,923,033$1,382,285$4,430,626
58$5,817,308$1,978,041$1,389,371$4,805,498
59$6,370,217$2,034,509$1,395,459$5,216,761
60$6,978,249$2,092,469$1,400,476$5,668,091
61$7,646,985$2,151,956$1,404,347$6,163,535
62$8,382,577$2,213,001$1,406,992$6,707,553
63$9,191,800$2,275,638$1,408,326$7,305,062
64$10,082,121$2,339,902$1,408,263$7,961,477
65$11,061,767$2,405,827$1,406,710$8,682,766
66$12,139,802$2,473,447$1,403,569$9,475,506
67$13,326,214$2,542,798$1,398,740$10,346,944
68$14,632,005$2,613,913$1,392,116$11,305,065
69$16,069,303$2,686,828$1,383,585$12,358,668
70$17,651,468$2,761,578$1,373,031$13,517,452
71$19,393,221$2,838,199$1,360,331$14,792,100
72$21,310,784$2,916,725$1,345,356$16,194,390
73$23,422,031$2,997,191$1,327,973$17,737,296
74$25,746,658$3,079,633$1,308,040$19,435,119
75$28,306,367$3,164,086$1,285,410$21,303,616
76$31,125,074$3,250,584$1,259,928$23,360,153
77$34,229,130$3,339,160$1,231,434$25,623,864
78$37,647,573$3,429,851$1,199,758$28,115,838
79$41,412,399$3,522,687$1,164,724$30,859,313
80$45,558,868$3,617,703$1,126,147$33,879,899
81$50,125,832$3,714,931$1,083,833$37,205,816
82$55,156,106$3,814,401$1,037,580$40,868,165
83$60,696,867$3,916,145$987,177$44,901,217
84$66,800,103$4,020,191$932,403$49,342,740
85$73,523,102$4,126,569$873,027$54,234,355
86$80,928,993$4,235,305$808,807$59,621,928
87$89,087,340$4,346,425$739,492$65,556,004
88$98,074,802$4,459,953$664,818$72,092,285
89$107,975,852$4,575,911$584,510$79,292,153
90$118,883,578$4,694,320$498,281$87,223,254
91$130,900,559$4,815,198$405,829$95,960,133
92$144,139,834$4,938,561$306,843$105,584,940
93$158,725,969$5,064,422$200,994$116,188,204
94$174,796,232$5,192,793$87,941$127,869,692
95$192,501,888$5,323,680$0$140,739,347
96$212,009,629$5,457,089$0$154,925,654
97$233,503,145$5,593,020$0$170,576,307
98$257,184,858$5,731,470$0$187,818,807
99$283,277,834$5,872,433$0$206,815,391
100$312,027,888$6,015,897$0$227,744,844