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%16.3%
1 years$100,746$99,849$98,974$98,119$97,285$94,779
2 years$49,874$48,946$48,045$47,173$46,326$43,818
3 years$32,919$31,987$31,089$30,224$29,391$26,960
4 years$24,443$23,513$22,625$21,775$20,962$18,626
5 years$19,359$18,435$17,558$16,725$15,935$13,700
6 years$15,971$15,053$14,189$13,375$12,609$10,478
7 years$13,552$12,642$11,791$10,996$10,254$8,227
8 years$11,738$10,836$10,000$9,225$8,507$6,583
9 years$10,328$9,435$8,613$7,857$7,164$5,341
10 years$9,201$8,317$7,509$6,773$6,104$4,380
11 years$8,279$7,404$6,611$5,895$5,250$3,622
12 years$7,512$6,645$5,867$5,170$4,549$3,016
13 years$6,863$6,005$5,242$4,565$3,967$2,524
14 years$6,307$5,459$4,710$4,052$3,478$2,122
15 years$5,826$4,987$4,252$3,614$3,062$1,790
16 years$5,405$4,575$3,855$3,236$2,706$1,514
17 years$5,034$4,213$3,508$2,907$2,399$1,284
18 years$4,705$3,893$3,202$2,620$2,133$1,092
19 years$4,411$3,608$2,932$2,367$1,902$930
20 years$4,146$3,353$2,691$2,144$1,699$793
21 years$3,907$3,123$2,475$1,946$1,520$677
22 years$3,690$2,915$2,281$1,769$1,362$578
23 years$3,493$2,727$2,106$1,611$1,223$495
24 years$3,312$2,555$1,948$1,470$1,099$423
25 years$3,145$2,398$1,804$1,342$989$363
26 years$2,992$2,253$1,673$1,227$891$311
27 years$2,850$2,121$1,554$1,123$803$266
28 years$2,719$1,998$1,444$1,029$725$229
29 years$2,597$1,885$1,344$944$655$196
30 years$2,483$1,780$1,252$866$591$168
31 years$2,377$1,683$1,167$795$535$145
32 years$2,278$1,592$1,089$731$484$124
33 years$2,185$1,508$1,017$672$438$107
34 years$2,097$1,429$950$619$396$92
35 years$2,015$1,356$888$569$359$79
36 years$1,938$1,287$831$524$325$68
37 years$1,864$1,222$778$483$295$58
38 years$1,795$1,161$728$445$267$50
39 years$1,730$1,104$682$411$242$43
40 years$1,668$1,051$640$379$220$37
41 years$1,609$1,000$600$349$199$32
42 years$1,553$953$563$323$181$27
43 years$1,500$908$528$298$164$23
44 years$1,450$865$495$275$149$20
45 years$1,401$825$465$254$135$17
46 years$1,355$787$437$234$123$15
47 years$1,312$751$411$217$112$13
48 years$1,270$717$386$200$101$11
49 years$1,230$685$363$185$92$9
50 years$1,191$654$341$171$84$8

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 $5,627 every year, while hoping to spend $26,510 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: 36/44/20 Blend
39$1,220,000$1,220,000$1,220,000$1,220,000
40$1,350,244$1,285,584$1,266,674$1,390,488
41$1,459,763$1,320,371$1,280,901$1,455,143
42$1,579,564$1,355,975$1,294,717$1,522,017
43$1,710,668$1,392,406$1,308,078$1,593,665
44$1,854,199$1,429,677$1,320,942$1,670,530
45$2,011,395$1,467,799$1,333,262$1,753,098
46$2,183,620$1,506,784$1,344,988$1,841,906
47$2,372,374$1,546,641$1,356,070$1,937,543
48$2,579,310$1,587,381$1,366,453$2,040,659
49$2,806,251$1,629,013$1,376,079$2,151,968
50$3,055,200$1,671,546$1,384,890$2,272,258
51$3,328,368$1,714,989$1,392,821$2,402,396
52$3,628,187$1,759,349$1,399,806$2,543,338
53$3,957,338$1,804,634$1,405,776$2,696,135
54$4,318,773$1,850,847$1,410,656$2,861,946
55$4,715,745$1,897,996$1,414,370$3,042,049
56$5,151,836$1,946,083$1,416,837$3,237,849
57$5,630,994$1,995,112$1,417,972$3,450,897
58$6,157,567$2,045,084$1,417,685$3,682,900
59$6,736,345$2,095,999$1,415,883$3,935,738
60$7,372,605$2,147,856$1,412,469$4,211,486
61$8,072,162$2,200,653$1,407,338$4,512,426
62$8,841,422$2,254,384$1,400,383$4,841,077
63$9,687,443$2,309,044$1,391,491$5,200,212
64$10,617,999$2,364,625$1,380,543$5,592,887
65$11,641,659$2,421,115$1,367,416$6,022,472
66$12,767,862$2,478,504$1,351,978$6,492,678
67$14,007,009$2,536,775$1,334,094$7,007,597
68$15,370,558$2,595,911$1,313,621$7,571,737
69$16,871,137$2,655,893$1,290,409$8,190,067
70$18,522,657$2,716,696$1,264,302$8,868,064
71$20,340,449$2,778,295$1,235,136$9,611,763
72$22,341,402$2,840,659$1,202,741$10,427,816
73$24,544,129$2,903,755$1,166,936$11,323,554
74$26,969,137$2,967,545$1,127,535$12,307,058
75$29,639,023$3,031,989$1,084,342$13,387,233
76$32,578,687$3,097,040$1,037,151$14,573,893
77$35,815,566$3,162,648$985,749$15,877,855
78$39,379,893$3,228,757$929,910$17,311,043
79$43,304,982$3,295,306$869,403$18,886,596
80$47,627,543$3,362,229$803,980$20,618,996
81$52,388,027$3,429,453$733,388$22,524,205
82$57,631,008$3,496,899$657,360$24,619,815
83$63,405,605$3,564,481$575,615$26,925,216
84$69,765,942$3,632,106$487,863$29,461,776
85$76,771,662$3,699,672$393,800$32,253,047
86$84,488,487$3,767,072$293,108$35,324,988
87$92,988,841$3,834,187$185,456$38,706,207
88$102,352,531$3,900,890$70,497$42,428,236
89$112,667,500$3,967,045$0$46,525,826
90$124,030,659$4,032,504$0$51,048,414
91$136,548,799$4,097,110$0$56,043,854
92$150,339,600$4,160,692$0$61,543,694
93$165,532,742$4,223,068$0$67,599,296
94$182,271,127$4,284,044$0$74,267,260
95$200,712,230$4,343,410$0$81,609,964
96$221,029,583$4,400,943$0$89,696,147
97$243,414,414$4,456,403$0$98,601,562
98$268,077,452$4,509,534$0$108,409,691
99$295,250,915$4,560,065$0$119,212,532
100$325,190,703$4,607,702$0$131,111,472