Can I retire at age 40 with 1,220,000?

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 $1,220,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.9%
1 years$100,746$99,849$98,974$98,119$97,285$94,170
2 years$49,874$48,946$48,045$47,173$46,326$43,217
3 years$32,919$31,987$31,089$30,224$29,391$26,385
4 years$24,443$23,513$22,625$21,775$20,962$18,082
5 years$19,359$18,435$17,558$16,725$15,935$13,189
6 years$15,971$15,053$14,189$13,375$12,609$9,999
7 years$13,552$12,642$11,791$10,996$10,254$7,780
8 years$11,738$10,836$10,000$9,225$8,507$6,167
9 years$10,328$9,435$8,613$7,857$7,164$4,955
10 years$9,201$8,317$7,509$6,773$6,104$4,023
11 years$8,279$7,404$6,611$5,895$5,250$3,293
12 years$7,512$6,645$5,867$5,170$4,549$2,713
13 years$6,863$6,005$5,242$4,565$3,967$2,246
14 years$6,307$5,459$4,710$4,052$3,478$1,867
15 years$5,826$4,987$4,252$3,614$3,062$1,558
16 years$5,405$4,575$3,855$3,236$2,706$1,303
17 years$5,034$4,213$3,508$2,907$2,399$1,092
18 years$4,705$3,893$3,202$2,620$2,133$917
19 years$4,411$3,608$2,932$2,367$1,902$772
20 years$4,146$3,353$2,691$2,144$1,699$650
21 years$3,907$3,123$2,475$1,946$1,520$548
22 years$3,690$2,915$2,281$1,769$1,362$463
23 years$3,493$2,727$2,106$1,611$1,223$391
24 years$3,312$2,555$1,948$1,470$1,099$330
25 years$3,145$2,398$1,804$1,342$989$279
26 years$2,992$2,253$1,673$1,227$891$236
27 years$2,850$2,121$1,554$1,123$803$200
28 years$2,719$1,998$1,444$1,029$725$169
29 years$2,597$1,885$1,344$944$655$143
30 years$2,483$1,780$1,252$866$591$121
31 years$2,377$1,683$1,167$795$535$103
32 years$2,278$1,592$1,089$731$484$87
33 years$2,185$1,508$1,017$672$438$74
34 years$2,097$1,429$950$619$396$63
35 years$2,015$1,356$888$569$359$53
36 years$1,938$1,287$831$524$325$45
37 years$1,864$1,222$778$483$295$38
38 years$1,795$1,161$728$445$267$32
39 years$1,730$1,104$682$411$242$27
40 years$1,668$1,051$640$379$220$23
41 years$1,609$1,000$600$349$199$20
42 years$1,553$953$563$323$181$17
43 years$1,500$908$528$298$164$14
44 years$1,450$865$495$275$149$12
45 years$1,401$825$465$254$135$10
46 years$1,355$787$437$234$123$9
47 years$1,312$751$411$217$112$7
48 years$1,270$717$386$200$101$6
49 years$1,230$685$363$185$92$5
50 years$1,191$654$341$171$84$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,220,000, adding $3,447 every year, while hoping to spend $38,607 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: 48/31/21 Blend
39$1,220,000$1,220,000$1,220,000$1,220,000
40$1,347,996$1,283,336$1,264,426$1,404,535
41$1,444,414$1,305,141$1,265,706$1,466,083
42$1,549,372$1,326,722$1,265,736$1,528,718
43$1,663,702$1,348,025$1,264,432$1,595,933
44$1,788,317$1,368,995$1,261,707$1,668,176
45$1,924,222$1,389,573$1,257,472$1,745,937
46$2,072,525$1,409,694$1,251,629$1,829,763
47$2,234,443$1,429,290$1,244,080$1,920,253
48$2,411,319$1,448,288$1,234,719$2,018,071
49$2,604,629$1,466,609$1,223,437$2,123,947
50$2,815,997$1,484,170$1,210,118$2,238,691
51$3,047,215$1,500,880$1,194,643$2,363,193
52$3,300,252$1,516,644$1,176,885$2,498,437
53$3,577,279$1,531,362$1,156,713$2,645,511
54$3,880,686$1,544,922$1,133,987$2,805,612
55$4,213,104$1,557,211$1,108,563$2,980,064
56$4,577,431$1,568,105$1,080,290$3,170,327
57$4,976,858$1,577,472$1,049,009$3,378,012
58$5,414,902$1,585,172$1,014,556$3,604,897
59$5,895,434$1,591,058$976,755$3,852,945
60$6,422,720$1,594,971$935,428$4,124,322
61$7,001,455$1,596,742$890,383$4,421,416
62$7,636,816$1,596,195$841,423$4,746,864
63$8,334,502$1,593,139$788,341$5,103,574
64$9,100,792$1,587,374$730,921$5,494,756
65$9,942,602$1,578,685$668,937$5,923,949
66$10,867,554$1,566,846$602,152$6,395,061
67$11,884,041$1,551,618$530,321$6,912,400
68$13,001,311$1,532,746$453,185$7,480,720
69$14,229,554$1,509,959$370,475$8,105,263
70$15,579,994$1,482,973$281,912$8,791,814
71$17,064,998$1,451,483$187,200$9,546,752
72$18,698,191$1,415,170$86,035$10,377,115
73$20,494,586$1,373,692$0$11,290,662
74$22,470,723$1,326,692$0$12,300,868
75$24,644,824$1,273,788$0$13,433,152
76$27,036,970$1,214,577$0$14,678,705
77$29,669,283$1,148,634$0$16,049,090
78$32,566,141$1,075,507$0$17,557,056
79$35,754,401$994,721$0$19,216,653
80$39,263,659$905,772$0$21,043,371
81$43,126,525$808,127$0$23,054,286
82$47,378,928$701,223$0$25,268,221
83$52,060,462$584,466$0$27,705,924
84$57,214,753$457,229$0$30,390,267
85$62,889,871$318,846$0$33,346,461
86$69,138,786$168,618$0$36,602,295
87$76,019,866$5,804$0$40,188,404
88$83,597,427$0$0$44,138,553
89$91,942,341$0$0$48,548,080
90$101,132,703$0$0$53,406,713
91$111,254,567$0$0$58,757,988
92$122,402,760$0$0$64,652,063
93$134,681,776$0$0$71,144,207
94$148,206,761$0$0$78,295,326
95$163,104,599$0$0$86,172,532
96$179,515,110$0$0$94,849,783
97$197,592,369$0$0$104,408,574
98$217,506,160$0$0$114,938,712
99$239,443,578$0$0$126,539,158
100$263,610,794$0$0$139,318,966