Can I retire at age 40 with 1,250,000?

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 $1,250,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$103,224$102,304$101,407$100,532$99,677$98,309
2 years$51,101$50,149$49,227$48,333$47,465$46,090
3 years$33,729$32,773$31,853$30,967$30,114$28,773
4 years$25,045$24,092$23,181$22,310$21,477$20,182
5 years$19,835$18,888$17,989$17,136$16,327$15,080
6 years$16,364$15,424$14,538$13,704$12,919$11,723
7 years$13,885$12,953$12,081$11,267$10,506$9,362
8 years$12,027$11,103$10,246$9,451$8,716$7,622
9 years$10,582$9,667$8,825$8,051$7,340$6,296
10 years$9,427$8,521$7,694$6,940$6,254$5,260
11 years$8,483$7,586$6,773$6,040$5,379$4,433
12 years$7,696$6,809$6,011$5,298$4,661$3,763
13 years$7,031$6,153$5,371$4,677$4,065$3,213
14 years$6,462$5,593$4,825$4,152$3,563$2,756
15 years$5,969$5,109$4,357$3,703$3,137$2,374
16 years$5,538$4,688$3,950$3,315$2,773$2,051
17 years$5,158$4,317$3,594$2,979$2,458$1,778
18 years$4,821$3,989$3,281$2,684$2,186$1,545
19 years$4,519$3,697$3,004$2,426$1,948$1,345
20 years$4,248$3,436$2,757$2,197$1,740$1,173
21 years$4,004$3,200$2,536$1,994$1,557$1,024
22 years$3,781$2,987$2,337$1,813$1,396$896
23 years$3,579$2,794$2,158$1,651$1,253$784
24 years$3,393$2,618$1,996$1,506$1,126$687
25 years$3,223$2,457$1,848$1,375$1,014$603
26 years$3,066$2,309$1,714$1,257$913$529
27 years$2,921$2,173$1,592$1,151$823$465
28 years$2,786$2,047$1,480$1,054$743$409
29 years$2,661$1,931$1,377$967$671$359
30 years$2,544$1,824$1,283$887$606$316
31 years$2,436$1,724$1,196$815$548$278
32 years$2,334$1,632$1,116$749$496$245
33 years$2,239$1,545$1,042$689$448$216
34 years$2,149$1,464$973$634$406$190
35 years$2,065$1,389$910$583$368$167
36 years$1,985$1,318$851$537$333$148
37 years$1,910$1,252$797$495$302$130
38 years$1,840$1,190$746$456$274$115
39 years$1,772$1,132$699$421$248$101
40 years$1,709$1,077$655$388$225$89
41 years$1,649$1,025$614$358$204$79
42 years$1,591$976$576$330$185$69
43 years$1,537$930$541$305$168$61
44 years$1,485$886$508$282$153$54
45 years$1,436$845$477$260$139$48
46 years$1,389$806$448$240$126$42
47 years$1,344$770$421$222$114$37
48 years$1,301$735$395$205$104$33
49 years$1,260$702$372$190$94$29
50 years$1,220$670$349$175$86$25

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,250,000, adding $4,112 every year, while hoping to spend $58,184 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: 74/7/19 Blend
39$1,250,000$1,250,000$1,250,000$1,250,000
40$1,381,742$1,315,492$1,296,117$1,477,529
41$1,460,772$1,318,043$1,277,629$1,544,175
42$1,545,913$1,318,770$1,256,572$1,609,691
43$1,637,727$1,317,521$1,232,799$1,679,975
44$1,736,832$1,314,136$1,206,153$1,755,489
45$1,843,905$1,308,444$1,176,476$1,836,741
46$1,959,691$1,300,266$1,143,596$1,924,294
47$2,085,011$1,289,410$1,107,338$2,018,767
48$2,220,764$1,275,674$1,067,516$2,120,843
49$2,367,942$1,258,841$1,023,937$2,231,277
50$2,527,632$1,238,684$976,399$2,350,899
51$2,701,032$1,214,962$924,690$2,480,628
52$2,889,460$1,187,418$868,590$2,621,476
53$3,094,365$1,155,782$807,868$2,774,559
54$3,317,341$1,119,766$742,282$2,941,109
55$3,560,143$1,079,067$671,581$3,122,485
56$3,824,699$1,033,363$595,501$3,320,187
57$4,113,135$982,314$513,767$3,535,868
58$4,427,788$925,561$426,092$3,771,351
59$4,771,233$862,724$332,175$4,028,648
60$5,146,300$793,399$231,705$4,309,979
61$5,556,109$717,162$124,354$4,617,792
62$6,004,092$633,563$9,780$4,954,786
63$6,494,030$542,127$0$5,323,938
64$7,030,083$442,354$0$5,751,339
65$7,616,833$333,711$0$6,221,403
66$8,259,328$215,640$0$6,736,218
67$8,963,122$87,549$0$7,300,272
68$9,734,336$0$0$7,918,509
69$10,579,708$0$0$8,600,318
70$11,506,661$0$0$9,355,372
71$12,523,369$0$0$10,183,593
72$13,638,837$0$0$11,092,323
73$14,862,983$0$0$12,089,648
74$16,206,731$0$0$13,184,476
75$17,682,114$0$0$14,386,620
76$19,302,388$0$0$15,706,889
77$21,082,157$0$0$17,157,189
78$23,037,506$0$0$18,750,638
79$25,186,157$0$0$20,501,686
80$27,547,633$0$0$22,426,254
81$30,143,444$0$0$24,541,879
82$32,997,284$0$0$26,867,885
83$36,135,262$0$0$29,425,560
84$39,586,139$0$0$32,238,357
85$43,381,606$0$0$35,332,119
86$47,556,577$0$0$38,735,316
87$52,149,522$0$0$42,479,318
88$57,202,826$0$0$46,598,688
89$62,763,189$0$0$51,131,507
90$68,882,068$0$0$56,119,736
91$75,616,160$0$0$61,609,608
92$83,027,934$0$0$67,652,066
93$91,186,226$0$0$74,303,240
94$100,166,881$0$0$81,624,979
95$110,053,472$0$0$89,685,434
96$120,938,087$0$0$98,559,699
97$132,922,196$0$0$108,330,519
98$146,117,609$0$0$119,089,072
99$160,647,531$0$0$130,935,825
100$176,647,722$0$0$143,981,486