Can I retire at age 40 with 1,240,000?

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 $1,240,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$102,398$101,486$100,596$99,727$98,879$97,684
2 years$50,692$49,748$48,833$47,946$47,085$45,883
3 years$33,459$32,511$31,598$30,719$29,873$28,700
4 years$24,844$23,899$22,995$22,132$21,306$20,171
5 years$19,677$18,737$17,845$16,999$16,196$15,104
6 years$16,233$15,300$14,422$13,594$12,815$11,767
7 years$13,774$12,849$11,985$11,177$10,422$9,417
8 years$11,930$11,014$10,164$9,376$8,646$7,685
9 years$10,497$9,590$8,754$7,986$7,282$6,364
10 years$9,352$8,453$7,632$6,884$6,204$5,329
11 years$8,415$7,525$6,719$5,991$5,336$4,503
12 years$7,635$6,754$5,963$5,255$4,624$3,832
13 years$6,975$6,104$5,328$4,640$4,032$3,280
14 years$6,410$5,548$4,787$4,118$3,535$2,821
15 years$5,921$5,068$4,322$3,673$3,112$2,437
16 years$5,494$4,650$3,918$3,289$2,750$2,112
17 years$5,117$4,283$3,566$2,955$2,439$1,835
18 years$4,782$3,957$3,255$2,663$2,168$1,599
19 years$4,483$3,668$2,980$2,406$1,933$1,396
20 years$4,214$3,408$2,735$2,179$1,726$1,221
21 years$3,971$3,174$2,515$1,978$1,545$1,070
22 years$3,751$2,963$2,318$1,798$1,385$938
23 years$3,550$2,771$2,141$1,638$1,243$824
24 years$3,366$2,597$1,980$1,494$1,117$724
25 years$3,197$2,437$1,834$1,364$1,005$638
26 years$3,041$2,290$1,701$1,247$906$561
27 years$2,897$2,155$1,579$1,142$817$495
28 years$2,764$2,031$1,468$1,046$737$436
29 years$2,640$1,916$1,366$959$665$385
30 years$2,524$1,810$1,272$880$601$340
31 years$2,416$1,711$1,186$809$543$300
32 years$2,315$1,619$1,107$743$492$265
33 years$2,221$1,533$1,033$683$445$234
34 years$2,132$1,453$966$629$403$207
35 years$2,048$1,378$903$579$365$183
36 years$1,969$1,308$844$533$331$162
37 years$1,895$1,242$790$491$300$143
38 years$1,825$1,180$740$453$272$127
39 years$1,758$1,123$693$417$246$112
40 years$1,695$1,068$650$385$223$99
41 years$1,635$1,017$609$355$203$88
42 years$1,579$968$572$328$184$78
43 years$1,525$922$536$303$167$69
44 years$1,473$879$504$279$152$61
45 years$1,424$839$473$258$138$54
46 years$1,378$800$444$238$125$48
47 years$1,333$763$417$220$113$42
48 years$1,290$729$392$203$103$37
49 years$1,250$696$369$188$94$33
50 years$1,211$665$346$174$85$29

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,240,000, adding $5,380 every year, while hoping to spend $39,358 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: 61/30/9 Blend
39$1,240,000$1,240,000$1,240,000$1,240,000
40$1,372,029$1,306,309$1,287,089$1,452,676
41$1,470,100$1,328,442$1,288,330$1,529,473
42$1,576,854$1,350,340$1,288,294$1,608,228
43$1,693,137$1,371,950$1,286,895$1,693,176
44$1,819,877$1,393,216$1,284,046$1,784,912
45$1,958,097$1,414,076$1,279,654$1,884,098
46$2,108,922$1,434,465$1,273,622$1,991,460
47$2,273,591$1,454,312$1,265,847$2,107,800
48$2,453,467$1,473,543$1,256,222$2,234,000
49$2,650,051$1,492,077$1,244,636$2,371,034
50$2,864,996$1,509,829$1,230,972$2,519,975
51$3,100,122$1,526,707$1,215,106$2,682,007
52$3,357,432$1,542,614$1,196,909$2,858,433
53$3,639,133$1,557,444$1,176,248$3,050,691
54$3,947,652$1,571,087$1,152,981$3,260,366
55$4,285,667$1,583,424$1,126,960$3,489,206
56$4,656,123$1,594,330$1,098,031$3,739,138
57$5,062,265$1,603,669$1,066,032$4,012,285
58$5,507,666$1,611,300$1,030,795$4,310,990
59$5,996,264$1,617,069$992,142$4,637,834
60$6,532,393$1,620,816$949,889$4,995,664
61$7,120,830$1,622,368$903,843$5,387,619
62$7,766,834$1,621,544$853,801$5,817,158
63$8,476,201$1,618,149$799,553$6,288,097
64$9,255,314$1,611,979$740,878$6,804,641
65$10,111,203$1,602,813$677,545$7,371,427
66$11,051,617$1,590,422$609,314$7,993,568
67$12,085,089$1,574,560$535,933$8,676,699
68$13,221,020$1,554,965$457,139$9,427,036
69$14,469,769$1,531,363$372,658$10,251,428
70$15,842,746$1,503,461$282,203$11,157,428
71$17,352,525$1,470,950$185,475$12,153,362
72$19,012,957$1,433,500$82,163$13,248,410
73$20,839,302$1,390,765$0$14,452,690
74$22,848,376$1,342,378$0$15,780,057
75$25,058,704$1,287,949$0$17,248,707
76$27,490,700$1,227,066$0$18,864,334
77$30,166,853$1,159,294$0$20,641,919
78$33,111,946$1,084,173$0$22,597,976
79$36,353,282$1,001,215$0$24,750,705
80$39,920,947$909,905$0$27,120,170
81$43,848,093$809,700$0$29,728,484
82$48,171,247$700,023$0$32,600,019
83$52,930,658$580,268$0$35,761,642
84$58,170,676$449,792$0$39,242,963
85$63,940,170$307,918$0$43,076,619
86$70,292,990$153,928$0$47,298,583
87$77,288,471$0$0$51,948,504
88$84,991,997$0$0$57,074,354
89$93,475,617$0$0$62,775,355
90$102,818,720$0$0$69,054,060
91$113,108,790$0$0$75,969,274
92$124,442,228$0$0$83,585,800
93$136,925,262$0$0$91,975,042
94$150,674,948$0$0$101,215,686
95$165,820,276$0$0$111,394,441
96$182,503,386$0$0$122,606,854
97$200,880,912$0$0$134,958,214
98$221,125,453$0$0$148,564,544
99$243,427,211$0$0$163,553,699
100$267,995,777$0$0$180,066,567