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%14.1%
1 years$100,746$99,849$98,974$98,119$97,285$95,634
2 years$49,874$48,946$48,045$47,173$46,326$44,668
3 years$32,919$31,987$31,089$30,224$29,391$27,777
4 years$24,443$23,513$22,625$21,775$20,962$19,405
5 years$19,359$18,435$17,558$16,725$15,935$14,439
6 years$15,971$15,053$14,189$13,375$12,609$11,176
7 years$13,552$12,642$11,791$10,996$10,254$8,885
8 years$11,738$10,836$10,000$9,225$8,507$7,201
9 years$10,328$9,435$8,613$7,857$7,164$5,920
10 years$9,201$8,317$7,509$6,773$6,104$4,922
11 years$8,279$7,404$6,611$5,895$5,250$4,127
12 years$7,512$6,645$5,867$5,170$4,549$3,485
13 years$6,863$6,005$5,242$4,565$3,967$2,960
14 years$6,307$5,459$4,710$4,052$3,478$2,526
15 years$5,826$4,987$4,252$3,614$3,062$2,164
16 years$5,405$4,575$3,855$3,236$2,706$1,859
17 years$5,034$4,213$3,508$2,907$2,399$1,602
18 years$4,705$3,893$3,202$2,620$2,133$1,384
19 years$4,411$3,608$2,932$2,367$1,902$1,198
20 years$4,146$3,353$2,691$2,144$1,699$1,038
21 years$3,907$3,123$2,475$1,946$1,520$901
22 years$3,690$2,915$2,281$1,769$1,362$784
23 years$3,493$2,727$2,106$1,611$1,223$682
24 years$3,312$2,555$1,948$1,470$1,099$594
25 years$3,145$2,398$1,804$1,342$989$518
26 years$2,992$2,253$1,673$1,227$891$452
27 years$2,850$2,121$1,554$1,123$803$394
28 years$2,719$1,998$1,444$1,029$725$344
29 years$2,597$1,885$1,344$944$655$301
30 years$2,483$1,780$1,252$866$591$263
31 years$2,377$1,683$1,167$795$535$230
32 years$2,278$1,592$1,089$731$484$201
33 years$2,185$1,508$1,017$672$438$176
34 years$2,097$1,429$950$619$396$154
35 years$2,015$1,356$888$569$359$135
36 years$1,938$1,287$831$524$325$118
37 years$1,864$1,222$778$483$295$103
38 years$1,795$1,161$728$445$267$90
39 years$1,730$1,104$682$411$242$79
40 years$1,668$1,051$640$379$220$69
41 years$1,609$1,000$600$349$199$61
42 years$1,553$953$563$323$181$53
43 years$1,500$908$528$298$164$47
44 years$1,450$865$495$275$149$41
45 years$1,401$825$465$254$135$36
46 years$1,355$787$437$234$123$31
47 years$1,312$751$411$217$112$27
48 years$1,270$717$386$200$101$24
49 years$1,230$685$363$185$92$21
50 years$1,191$654$341$171$84$18

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 $3,939 every year, while hoping to spend $36,615 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: 53/31/16 Blend
39$1,220,000$1,220,000$1,220,000$1,220,000
40$1,348,503$1,283,843$1,264,933$1,413,966
41$1,447,092$1,307,793$1,268,350$1,483,111
42$1,554,510$1,331,690$1,270,655$1,554,093
43$1,671,619$1,355,492$1,271,771$1,630,511
44$1,799,368$1,379,154$1,271,618$1,712,891
45$1,938,800$1,402,629$1,270,114$1,801,813
46$2,091,064$1,425,865$1,267,170$1,897,917
47$2,257,427$1,448,806$1,262,694$2,001,910
48$2,439,280$1,471,394$1,256,590$2,114,570
49$2,638,158$1,493,563$1,248,757$2,236,754
50$2,855,749$1,515,246$1,239,089$2,369,410
51$3,093,911$1,536,369$1,227,474$2,513,580
52$3,354,693$1,556,854$1,213,797$2,670,417
53$3,640,348$1,576,616$1,197,936$2,841,190
54$3,953,360$1,595,567$1,179,763$3,027,297
55$4,296,462$1,613,609$1,159,145$3,230,284
56$4,672,666$1,630,641$1,135,941$3,451,853
57$5,085,289$1,646,554$1,110,006$3,693,882
58$5,537,984$1,661,230$1,081,187$3,958,440
59$6,034,775$1,674,546$1,049,323$4,247,812
60$6,580,093$1,686,371$1,014,247$4,564,516
61$7,178,822$1,696,562$975,783$4,911,328
62$7,836,340$1,704,971$933,750$5,291,312
63$8,558,570$1,711,439$887,954$5,707,844
64$9,352,040$1,715,795$838,196$6,164,648
65$10,223,940$1,717,861$784,267$6,665,830
66$11,182,190$1,717,444$725,948$7,215,920
67$12,235,517$1,714,342$663,011$7,819,909
68$13,393,534$1,708,340$595,217$8,483,303
69$14,666,835$1,699,208$522,317$9,212,174
70$16,067,087$1,686,705$444,050$10,013,216
71$17,607,149$1,670,572$360,144$10,893,808
72$19,301,185$1,650,537$270,316$11,862,090
73$21,164,804$1,626,311$174,269$12,927,034
74$23,215,200$1,597,587$71,694$14,098,533
75$25,471,323$1,564,041$0$15,387,495
76$27,954,047$1,525,328$0$16,812,394
77$30,686,375$1,481,085$0$18,393,520
78$33,693,653$1,430,926$0$20,133,300
79$37,003,807$1,374,443$0$22,047,910
80$40,647,609$1,311,204$0$24,155,182
81$44,658,966$1,240,753$0$26,474,772
82$49,075,237$1,162,607$0$29,028,342
83$53,937,592$1,076,256$0$31,839,771
84$59,291,392$981,158$0$34,935,377
85$65,186,624$876,744$0$38,344,169
86$71,678,365$762,410$0$42,098,119
87$78,827,309$637,519$0$46,232,469
88$86,700,335$501,398$0$50,786,059
89$95,371,137$353,334$0$55,801,701
90$104,920,923$192,578$0$61,326,579
91$115,439,179$18,336$0$67,412,700
92$127,024,510$0$0$74,117,384
93$139,785,577$0$0$81,561,876
94$153,842,117$0$0$89,769,178
95$169,326,074$0$0$98,810,097
96$186,382,845$0$0$108,769,550
97$205,172,649$0$0$119,741,113
98$225,872,045$0$0$131,827,903
99$248,675,590$0$0$145,143,551
100$273,797,681$0$0$159,813,276