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%16.9%
1 years$92,489$91,665$90,861$90,076$89,310$86,799
2 years$45,786$44,934$44,107$43,306$42,529$40,018
3 years$30,221$29,365$28,540$27,747$26,982$24,550
4 years$22,440$21,586$20,770$19,990$19,244$16,910
5 years$17,772$16,924$16,118$15,354$14,629$12,399
6 years$14,662$13,820$13,026$12,279$11,575$9,452
7 years$12,441$11,606$10,825$10,095$9,414$7,396
8 years$10,776$9,948$9,180$8,469$7,810$5,897
9 years$9,482$8,662$7,907$7,213$6,577$4,767
10 years$8,447$7,635$6,893$6,218$5,604$3,895
11 years$7,601$6,797$6,069$5,411$4,819$3,209
12 years$6,896$6,100$5,386$4,747$4,176$2,661
13 years$6,300$5,513$4,812$4,191$3,642$2,218
14 years$5,790$5,011$4,324$3,720$3,193$1,857
15 years$5,348$4,578$3,904$3,317$2,811$1,560
16 years$4,962$4,200$3,539$2,970$2,484$1,314
17 years$4,622$3,868$3,221$2,669$2,203$1,110
18 years$4,319$3,574$2,940$2,405$1,959$939
19 years$4,049$3,313$2,691$2,173$1,746$796
20 years$3,807$3,078$2,470$1,968$1,559$676
21 years$3,587$2,867$2,272$1,786$1,395$574
22 years$3,388$2,677$2,094$1,624$1,251$488
23 years$3,206$2,503$1,933$1,479$1,123$416
24 years$3,040$2,345$1,788$1,349$1,009$354
25 years$2,888$2,201$1,656$1,232$908$302
26 years$2,747$2,069$1,536$1,127$818$258
27 years$2,617$1,947$1,426$1,031$737$220
28 years$2,496$1,834$1,326$945$665$188
29 years$2,384$1,731$1,234$866$601$160
30 years$2,280$1,634$1,149$795$543$137
31 years$2,182$1,545$1,071$730$491$117
32 years$2,091$1,462$1,000$671$444$100
33 years$2,006$1,384$933$617$402$85
34 years$1,925$1,312$872$568$364$73
35 years$1,850$1,245$815$523$330$62
36 years$1,779$1,181$763$481$299$53
37 years$1,712$1,122$714$444$271$46
38 years$1,648$1,066$669$409$245$39
39 years$1,588$1,014$626$377$222$33
40 years$1,531$965$587$348$202$28
41 years$1,477$918$551$321$183$24
42 years$1,426$874$516$296$166$21
43 years$1,377$833$485$273$151$18
44 years$1,331$794$455$252$137$15
45 years$1,286$757$427$233$124$13
46 years$1,244$723$401$215$113$11
47 years$1,204$689$377$199$102$10
48 years$1,166$658$354$184$93$8
49 years$1,129$629$333$170$84$7
50 years$1,094$600$313$157$77$6

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 $2,555 every year, while hoping to spend $22,343 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: 35/48/17 Blend
39$1,120,000$1,120,000$1,120,000$1,120,000
40$1,236,875$1,177,515$1,160,155$1,273,628
41$1,339,264$1,211,441$1,175,248$1,334,567
42$1,451,347$1,246,280$1,190,097$1,397,997
43$1,574,091$1,282,054$1,204,671$1,465,963
44$1,708,557$1,318,783$1,218,937$1,538,879
45$1,855,917$1,356,491$1,232,859$1,617,202
46$2,017,460$1,395,199$1,246,399$1,701,433
47$2,194,606$1,434,929$1,259,519$1,792,125
48$2,388,919$1,475,703$1,272,176$1,889,885
49$2,602,122$1,517,545$1,284,326$1,995,380
50$2,836,111$1,560,478$1,295,924$2,109,348
51$3,092,978$1,604,525$1,306,921$2,232,596
52$3,375,023$1,649,708$1,317,264$2,366,015
53$3,684,784$1,696,053$1,326,901$2,510,587
54$4,025,055$1,743,581$1,335,775$2,667,390
55$4,398,912$1,792,318$1,343,824$2,837,614
56$4,809,746$1,842,287$1,350,988$3,022,567
57$5,261,293$1,893,512$1,357,199$3,223,690
58$5,757,668$1,946,017$1,362,388$3,442,571
59$6,303,404$1,999,827$1,366,483$3,680,957
60$6,903,497$2,054,964$1,369,405$3,940,774
61$7,563,450$2,111,453$1,371,076$4,224,142
62$8,289,325$2,169,317$1,371,410$4,533,397
63$9,087,803$2,228,580$1,370,320$4,871,112
64$9,966,244$2,289,266$1,367,711$5,240,121
65$10,932,758$2,351,398$1,363,486$5,643,547
66$11,996,281$2,414,997$1,357,544$6,084,829
67$13,166,656$2,480,087$1,349,776$6,567,758
68$14,454,733$2,546,688$1,340,072$7,096,508
69$15,872,463$2,614,824$1,328,312$7,675,680
70$17,433,017$2,684,513$1,314,373$8,310,343
71$19,150,907$2,755,777$1,298,127$9,006,081
72$21,042,123$2,828,633$1,279,438$9,769,047
73$23,124,285$2,903,101$1,258,164$10,606,022
74$25,416,806$2,979,198$1,234,157$11,524,478
75$27,941,081$3,056,939$1,207,262$12,532,645
76$30,720,683$3,136,341$1,177,316$13,639,596
77$33,781,587$3,217,415$1,144,151$14,855,326
78$37,152,416$3,300,176$1,107,587$16,190,850
79$40,864,710$3,384,632$1,067,439$17,658,307
80$44,953,225$3,470,793$1,023,512$19,271,071
81$49,456,258$3,558,667$975,604$21,043,883
82$54,416,011$3,648,256$923,502$22,992,984
83$59,878,989$3,739,565$866,984$25,136,274
84$65,896,435$3,832,594$805,817$27,493,477
85$72,524,819$3,927,338$739,760$30,086,329
86$79,826,368$4,023,795$668,559$32,938,784
87$87,869,650$4,121,954$591,949$36,077,240
88$96,730,229$4,221,804$509,653$39,530,785
89$106,491,370$4,323,330$421,384$43,331,478
90$117,244,829$4,426,513$326,840$47,514,646
91$129,091,719$4,531,329$225,706$52,119,222
92$142,143,460$4,637,750$117,653$57,188,108
93$156,522,837$4,745,743$2,338$62,768,587
94$172,365,154$4,855,272$0$68,912,764
95$189,819,512$4,966,293$0$75,699,957
96$209,050,218$5,078,757$0$83,173,425
97$230,238,333$5,192,609$0$91,402,551
98$253,583,383$5,307,787$0$100,464,260
99$279,305,241$5,424,222$0$110,443,323
100$307,646,204$5,541,837$0$121,433,153