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%13%
1 years$99,095$98,212$97,351$96,510$95,690$94,494
2 years$49,057$48,143$47,258$46,399$45,567$44,363
3 years$32,380$31,462$30,579$29,728$28,909$27,736
4 years$24,043$23,128$22,254$21,418$20,618$19,484
5 years$19,042$18,133$17,270$16,451$15,674$14,582
6 years$15,709$14,807$13,956$13,156$12,402$11,354
7 years$13,329$12,435$11,598$10,816$10,086$9,082
8 years$11,546$10,659$9,836$9,073$8,367$7,407
9 years$10,159$9,280$8,472$7,729$7,047$6,130
10 years$9,050$8,180$7,386$6,662$6,004$5,130
11 years$8,143$7,282$6,502$5,798$5,164$4,332
12 years$7,388$6,536$5,771$5,086$4,475$3,684
13 years$6,750$5,907$5,156$4,490$3,902$3,151
14 years$6,204$5,369$4,632$3,986$3,421$2,709
15 years$5,730$4,905$4,182$3,554$3,012$2,338
16 years$5,316$4,500$3,792$3,183$2,662$2,025
17 years$4,952$4,144$3,451$2,860$2,360$1,758
18 years$4,628$3,830$3,150$2,577$2,098$1,531
19 years$4,339$3,549$2,884$2,329$1,870$1,336
20 years$4,078$3,298$2,646$2,109$1,671$1,167
21 years$3,843$3,072$2,434$1,914$1,495$1,022
22 years$3,630$2,868$2,244$1,740$1,340$896
23 years$3,435$2,682$2,071$1,585$1,203$786
24 years$3,257$2,513$1,916$1,446$1,081$691
25 years$3,094$2,358$1,774$1,320$973$607
26 years$2,943$2,216$1,646$1,207$876$534
27 years$2,804$2,086$1,528$1,105$790$470
28 years$2,675$1,966$1,421$1,012$713$415
29 years$2,555$1,854$1,322$928$644$365
30 years$2,443$1,751$1,231$852$582$322
31 years$2,338$1,655$1,148$782$526$284
32 years$2,241$1,566$1,071$719$476$251
33 years$2,149$1,483$1,000$661$431$222
34 years$2,063$1,406$934$608$390$196
35 years$1,982$1,333$874$560$353$173
36 years$1,906$1,266$817$516$320$153
37 years$1,834$1,202$765$475$290$135
38 years$1,766$1,142$716$438$263$119
39 years$1,702$1,086$671$404$238$105
40 years$1,641$1,034$629$373$216$93
41 years$1,583$984$590$344$196$82
42 years$1,528$937$553$317$178$73
43 years$1,476$893$519$293$162$64
44 years$1,426$851$487$270$147$57
45 years$1,378$811$458$250$133$50
46 years$1,333$774$430$231$121$45
47 years$1,290$739$404$213$110$39
48 years$1,249$705$379$197$100$35
49 years$1,209$673$357$182$91$31
50 years$1,172$643$335$168$82$27

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 $3,642 every year, while hoping to spend $30,635 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: 49/34/17 Blend
39$1,200,000$1,200,000$1,200,000$1,200,000
40$1,326,157$1,262,557$1,243,957$1,384,687
41$1,428,829$1,291,827$1,253,034$1,454,792
42$1,540,948$1,321,504$1,261,388$1,527,460
43$1,663,443$1,351,576$1,268,964$1,605,738
44$1,797,341$1,382,030$1,275,700$1,690,165
45$1,943,769$1,412,849$1,281,536$1,781,332
46$2,103,970$1,444,015$1,286,404$1,879,892
47$2,279,313$1,475,510$1,290,237$1,986,567
48$2,471,305$1,507,312$1,292,961$2,102,149
49$2,681,603$1,539,395$1,294,501$2,227,512
50$2,912,036$1,571,736$1,294,776$2,363,619
51$3,164,617$1,604,303$1,293,703$2,511,533
52$3,441,560$1,637,066$1,291,195$2,672,422
53$3,745,307$1,669,990$1,287,158$2,847,578
54$4,078,546$1,703,038$1,281,496$3,038,420
55$4,444,240$1,736,169$1,274,108$3,246,517
56$4,845,649$1,769,338$1,264,887$3,473,594
57$5,286,367$1,802,497$1,253,723$3,721,557
58$5,770,352$1,835,595$1,240,498$3,992,502
59$6,301,964$1,868,575$1,225,090$4,288,743
60$6,886,005$1,901,376$1,207,372$4,612,829
61$7,527,768$1,933,934$1,187,209$4,967,572
62$8,233,082$1,966,178$1,164,462$5,356,069
63$9,008,368$1,998,033$1,138,984$5,781,735
64$9,860,702$2,029,417$1,110,620$6,248,336
65$10,797,879$2,060,243$1,079,211$6,760,020
66$11,828,486$2,090,419$1,044,588$7,321,364
67$12,961,986$2,119,844$1,006,577$7,937,408
68$14,208,804$2,148,411$964,992$8,613,713
69$15,580,424$2,176,006$919,641$9,356,407
70$17,089,503$2,202,506$870,325$10,172,243
71$18,749,984$2,227,781$816,833$11,068,668
72$20,577,231$2,251,690$758,945$12,053,891
73$22,588,172$2,274,086$696,433$13,136,957
74$24,801,458$2,294,809$629,056$14,327,841
75$27,237,642$2,313,690$556,565$15,637,537
76$29,919,370$2,330,550$478,699$17,078,162
77$32,871,594$2,345,195$395,183$18,663,074
78$36,121,810$2,357,422$305,734$20,406,997
79$39,700,312$2,367,013$210,054$22,326,161
80$43,640,485$2,373,738$107,832$24,438,455
81$47,979,114$2,377,351$0$26,763,599
82$52,756,733$2,377,591$0$29,323,556
83$58,018,007$2,374,180$0$32,162,945
84$63,812,154$2,366,825$0$35,288,654
85$70,193,408$2,355,214$0$38,729,860
86$77,221,531$2,339,015$0$42,518,713
87$84,962,377$2,317,876$0$46,690,647
88$93,488,513$2,291,425$0$51,284,714
89$102,879,904$2,259,268$0$56,343,952
90$113,224,667$2,220,985$0$61,915,793
91$124,619,903$2,176,133$0$68,052,510
92$137,172,612$2,124,242$0$74,811,714
93$151,000,703$2,064,815$0$82,256,896
94$166,234,110$1,997,326$0$90,458,028
95$183,016,011$1,921,217$0$99,492,224
96$201,504,186$1,835,898$0$109,444,473
97$221,872,501$1,740,746$0$120,408,434
98$244,312,554$1,635,100$0$132,487,331
99$269,035,477$1,518,262$0$145,794,923
100$296,273,934$1,389,496$0$160,456,578