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%13.6%
1 years$99,095$98,212$97,351$96,510$95,690$94,260
2 years$49,057$48,143$47,258$46,399$45,567$44,129
3 years$32,380$31,462$30,579$29,728$28,909$27,509
4 years$24,043$23,128$22,254$21,418$20,618$19,266
5 years$19,042$18,133$17,270$16,451$15,674$14,374
6 years$15,709$14,807$13,956$13,156$12,402$11,155
7 years$13,329$12,435$11,598$10,816$10,086$8,893
8 years$11,546$10,659$9,836$9,073$8,367$7,228
9 years$10,159$9,280$8,472$7,729$7,047$5,961
10 years$9,050$8,180$7,386$6,662$6,004$4,970
11 years$8,143$7,282$6,502$5,798$5,164$4,181
12 years$7,388$6,536$5,771$5,086$4,475$3,542
13 years$6,750$5,907$5,156$4,490$3,902$3,018
14 years$6,204$5,369$4,632$3,986$3,421$2,584
15 years$5,730$4,905$4,182$3,554$3,012$2,221
16 years$5,316$4,500$3,792$3,183$2,662$1,916
17 years$4,952$4,144$3,451$2,860$2,360$1,657
18 years$4,628$3,830$3,150$2,577$2,098$1,436
19 years$4,339$3,549$2,884$2,329$1,870$1,247
20 years$4,078$3,298$2,646$2,109$1,671$1,085
21 years$3,843$3,072$2,434$1,914$1,495$946
22 years$3,630$2,868$2,244$1,740$1,340$825
23 years$3,435$2,682$2,071$1,585$1,203$721
24 years$3,257$2,513$1,916$1,446$1,081$630
25 years$3,094$2,358$1,774$1,320$973$552
26 years$2,943$2,216$1,646$1,207$876$483
27 years$2,804$2,086$1,528$1,105$790$423
28 years$2,675$1,966$1,421$1,012$713$371
29 years$2,555$1,854$1,322$928$644$326
30 years$2,443$1,751$1,231$852$582$286
31 years$2,338$1,655$1,148$782$526$251
32 years$2,241$1,566$1,071$719$476$220
33 years$2,149$1,483$1,000$661$431$194
34 years$2,063$1,406$934$608$390$170
35 years$1,982$1,333$874$560$353$150
36 years$1,906$1,266$817$516$320$131
37 years$1,834$1,202$765$475$290$116
38 years$1,766$1,142$716$438$263$102
39 years$1,702$1,086$671$404$238$89
40 years$1,641$1,034$629$373$216$79
41 years$1,583$984$590$344$196$69
42 years$1,528$937$553$317$178$61
43 years$1,476$893$519$293$162$54
44 years$1,426$851$487$270$147$47
45 years$1,378$811$458$250$133$41
46 years$1,333$774$430$231$121$36
47 years$1,290$739$404$213$110$32
48 years$1,249$705$379$197$100$28
49 years$1,209$673$357$182$91$25
50 years$1,172$643$335$168$82$22

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 $6,936 every year, while hoping to spend $24,734 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: 74/10/16 Blend
39$1,200,000$1,200,000$1,200,000$1,200,000
40$1,329,554$1,265,954$1,247,354$1,422,673
41$1,438,852$1,301,669$1,262,824$1,520,977
42$1,558,469$1,338,306$1,277,983$1,624,944
43$1,689,432$1,375,882$1,292,794$1,738,206
44$1,832,872$1,414,417$1,307,220$1,861,681
45$1,990,032$1,453,931$1,321,219$1,996,380
46$2,162,284$1,494,442$1,334,749$2,143,415
47$2,351,138$1,535,971$1,347,764$2,304,013
48$2,558,256$1,578,535$1,360,216$2,479,524
49$2,785,471$1,622,156$1,372,056$2,671,435
50$3,034,798$1,666,851$1,383,230$2,881,384
51$3,308,462$1,712,641$1,393,682$3,111,177
52$3,608,909$1,759,544$1,403,354$3,362,801
53$3,938,835$1,807,579$1,412,184$3,638,449
54$4,301,211$1,856,766$1,420,107$3,940,532
55$4,699,308$1,907,121$1,427,054$4,271,710
56$5,136,732$1,958,665$1,432,955$4,634,913
57$5,617,453$2,011,414$1,437,734$5,033,368
58$6,145,847$2,065,386$1,441,311$5,470,632
59$6,726,731$2,120,598$1,443,603$5,950,623
60$7,365,417$2,177,067$1,444,523$6,477,659
61$8,067,755$2,234,809$1,443,980$7,056,497
62$8,840,190$2,293,838$1,441,877$7,692,378
63$9,689,823$2,354,170$1,438,114$8,391,080
64$10,624,479$2,415,818$1,432,584$9,158,966
65$11,652,778$2,478,795$1,425,178$10,003,050
66$12,784,218$2,543,113$1,415,778$10,931,059
67$14,029,265$2,608,782$1,404,264$11,951,509
68$15,399,450$2,675,813$1,390,507$13,073,784
69$16,907,479$2,744,213$1,374,374$14,308,223
70$18,567,352$2,813,989$1,355,725$15,666,221
71$20,394,493$2,885,146$1,334,413$17,160,333
72$22,405,902$2,957,688$1,310,286$18,804,396
73$24,620,305$3,031,616$1,283,182$20,613,657
74$27,058,342$3,106,930$1,252,934$22,604,918
75$29,742,751$3,183,628$1,219,365$24,796,692
76$32,698,590$3,261,705$1,182,293$27,209,384
77$35,953,470$3,341,153$1,141,524$29,865,477
78$39,537,817$3,421,962$1,096,857$32,789,747
79$43,485,155$3,504,118$1,048,083$36,009,500
80$47,832,428$3,587,607$994,981$39,554,821
81$52,620,344$3,672,408$937,321$43,458,870
82$57,893,761$3,758,498$874,863$47,758,185
83$63,702,110$3,845,850$807,356$52,493,031
84$70,099,861$3,934,433$734,539$57,707,782
85$77,147,036$4,024,210$656,136$63,451,336
86$84,909,779$4,115,141$571,862$69,777,579
87$93,460,975$4,207,182$481,417$76,745,894
88$102,880,940$4,300,279$384,490$84,421,721
89$113,258,181$4,394,377$280,755$92,877,176
90$124,690,227$4,489,413$169,872$102,191,729
91$137,284,552$4,585,316$51,485$112,452,958
92$151,159,590$4,682,011$0$123,757,374
93$166,445,850$4,779,411$0$136,224,111
94$183,287,150$4,877,426$0$149,967,805
95$201,841,973$4,975,954$0$165,108,886
96$222,284,964$5,074,885$0$181,789,762
97$244,808,575$5,174,099$0$200,167,361
98$269,624,888$5,273,468$0$220,414,616
99$296,967,607$5,372,849$0$242,722,095
100$327,094,275$5,472,090$0$267,299,802