Can I retire at age 40 with 1,200,000?

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 $1,200,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$99,095$98,212$97,351$96,510$95,690$95,206
2 years$49,057$48,143$47,258$46,399$45,567$45,079
3 years$32,380$31,462$30,579$29,728$28,909$28,432
4 years$24,043$23,128$22,254$21,418$20,618$20,156
5 years$19,042$18,133$17,270$16,451$15,674$15,227
6 years$15,709$14,807$13,956$13,156$12,402$11,971
7 years$13,329$12,435$11,598$10,816$10,086$9,672
8 years$11,546$10,659$9,836$9,073$8,367$7,970
9 years$10,159$9,280$8,472$7,729$7,047$6,665
10 years$9,050$8,180$7,386$6,662$6,004$5,639
11 years$8,143$7,282$6,502$5,798$5,164$4,815
12 years$7,388$6,536$5,771$5,086$4,475$4,141
13 years$6,750$5,907$5,156$4,490$3,902$3,584
14 years$6,204$5,369$4,632$3,986$3,421$3,117
15 years$5,730$4,905$4,182$3,554$3,012$2,723
16 years$5,316$4,500$3,792$3,183$2,662$2,388
17 years$4,952$4,144$3,451$2,860$2,360$2,100
18 years$4,628$3,830$3,150$2,577$2,098$1,852
19 years$4,339$3,549$2,884$2,329$1,870$1,636
20 years$4,078$3,298$2,646$2,109$1,671$1,449
21 years$3,843$3,072$2,434$1,914$1,495$1,286
22 years$3,630$2,868$2,244$1,740$1,340$1,142
23 years$3,435$2,682$2,071$1,585$1,203$1,016
24 years$3,257$2,513$1,916$1,446$1,081$905
25 years$3,094$2,358$1,774$1,320$973$807
26 years$2,943$2,216$1,646$1,207$876$720
27 years$2,804$2,086$1,528$1,105$790$643
28 years$2,675$1,966$1,421$1,012$713$575
29 years$2,555$1,854$1,322$928$644$514
30 years$2,443$1,751$1,231$852$582$460
31 years$2,338$1,655$1,148$782$526$412
32 years$2,241$1,566$1,071$719$476$369
33 years$2,149$1,483$1,000$661$431$331
34 years$2,063$1,406$934$608$390$297
35 years$1,982$1,333$874$560$353$266
36 years$1,906$1,266$817$516$320$239
37 years$1,834$1,202$765$475$290$214
38 years$1,766$1,142$716$438$263$192
39 years$1,702$1,086$671$404$238$172
40 years$1,641$1,034$629$373$216$155
41 years$1,583$984$590$344$196$139
42 years$1,528$937$553$317$178$125
43 years$1,476$893$519$293$162$112
44 years$1,426$851$487$270$147$101
45 years$1,378$811$458$250$133$91
46 years$1,333$774$430$231$121$81
47 years$1,290$739$404$213$110$73
48 years$1,249$705$379$197$100$66
49 years$1,209$673$357$182$91$59
50 years$1,172$643$335$168$82$53

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,200,000, adding $3,037 every year, while hoping to spend $20,181 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: 48/36/16 Blend
39$1,200,000$1,200,000$1,200,000$1,200,000
40$1,325,533$1,261,933$1,243,333$1,383,082
41$1,439,265$1,302,295$1,263,512$1,463,592
42$1,563,921$1,343,959$1,283,691$1,548,649
43$1,700,594$1,386,966$1,303,848$1,640,568
44$1,850,489$1,431,361$1,323,961$1,740,000
45$2,014,930$1,477,189$1,344,005$1,847,657
46$2,195,379$1,524,498$1,363,955$1,964,327
47$2,393,443$1,573,334$1,383,783$2,090,873
48$2,610,896$1,623,748$1,403,461$2,228,248
49$2,849,688$1,675,793$1,422,958$2,377,498
50$3,111,970$1,729,521$1,442,241$2,539,775
51$3,400,111$1,784,987$1,461,276$2,716,349
52$3,716,720$1,842,249$1,480,026$2,908,613
53$4,064,671$1,901,365$1,498,453$3,118,106
54$4,447,132$1,962,397$1,516,516$3,346,518
55$4,867,592$2,025,407$1,534,172$3,595,712
56$5,329,895$2,090,460$1,551,375$3,867,739
57$5,838,276$2,157,624$1,568,078$4,164,855
58$6,397,400$2,226,968$1,584,229$4,489,547
59$7,012,410$2,298,564$1,599,775$4,844,553
60$7,688,968$2,372,486$1,614,659$5,232,888
61$8,433,315$2,448,811$1,628,824$5,657,871
62$9,252,329$2,527,618$1,642,205$6,123,160
63$10,153,585$2,608,990$1,654,737$6,632,783
64$11,145,430$2,693,010$1,666,350$7,191,176
65$12,237,064$2,779,767$1,676,972$7,803,225
66$13,438,620$2,869,351$1,686,527$8,474,313
67$14,761,266$2,961,857$1,694,932$9,210,370
68$16,217,307$3,057,380$1,702,105$10,017,926
69$17,820,302$3,156,021$1,707,955$10,904,176
70$19,585,191$3,257,883$1,712,389$11,877,048
71$21,528,435$3,363,075$1,715,309$12,945,274
72$23,668,176$3,471,705$1,716,612$14,118,473
73$26,024,400$3,583,890$1,716,189$15,407,245
74$28,619,135$3,699,747$1,713,928$16,823,265
75$31,476,651$3,819,398$1,709,708$18,379,400
76$34,623,692$3,942,971$1,703,406$20,089,822
77$38,089,728$4,070,596$1,694,890$21,970,149
78$41,907,234$4,202,409$1,684,022$24,037,586
79$46,111,995$4,338,550$1,670,660$26,311,093
80$50,743,444$4,479,165$1,654,652$28,811,556
81$55,845,033$4,624,401$1,635,841$31,561,993
82$61,464,646$4,774,416$1,614,061$34,587,761
83$67,655,046$4,929,370$1,589,139$37,916,805
84$74,474,380$5,089,427$1,560,894$41,579,912
85$81,986,719$5,254,761$1,529,136$45,611,009
86$90,262,668$5,425,549$1,493,666$50,047,477
87$99,380,034$5,601,975$1,454,278$54,930,507
88$109,424,554$5,784,228$1,410,752$60,305,488
89$120,490,710$5,972,506$1,362,864$66,222,433
90$132,682,616$6,167,013$1,310,373$72,736,453
91$146,115,005$6,367,959$1,253,033$79,908,276
92$160,914,309$6,575,562$1,190,583$87,804,817
93$177,219,852$6,790,048$1,122,751$96,499,816
94$195,185,167$7,011,651$1,049,254$106,074,526
95$214,979,445$7,240,613$969,795$116,618,485
96$236,789,129$7,477,183$884,063$128,230,357
97$260,819,677$7,721,622$791,736$141,018,866
98$287,297,500$7,974,197$692,475$155,103,820
99$316,472,098$8,235,186$585,926$170,617,242
100$348,618,418$8,504,876$471,721$187,704,614