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%19.3%
1 years$103,224$102,304$101,407$100,532$99,677$95,949
2 years$51,101$50,149$49,227$48,333$47,465$43,753
3 years$33,729$32,773$31,853$30,967$30,114$26,533
4 years$25,045$24,092$23,181$22,310$21,477$18,055
5 years$19,835$18,888$17,989$17,136$16,327$13,072
6 years$16,364$15,424$14,538$13,704$12,919$9,835
7 years$13,885$12,953$12,081$11,267$10,506$7,591
8 years$12,027$11,103$10,246$9,451$8,716$5,967
9 years$10,582$9,667$8,825$8,051$7,340$4,754
10 years$9,427$8,521$7,694$6,940$6,254$3,826
11 years$8,483$7,586$6,773$6,040$5,379$3,103
12 years$7,696$6,809$6,011$5,298$4,661$2,533
13 years$7,031$6,153$5,371$4,677$4,065$2,077
14 years$6,462$5,593$4,825$4,152$3,563$1,710
15 years$5,969$5,109$4,357$3,703$3,137$1,412
16 years$5,538$4,688$3,950$3,315$2,773$1,169
17 years$5,158$4,317$3,594$2,979$2,458$970
18 years$4,821$3,989$3,281$2,684$2,186$806
19 years$4,519$3,697$3,004$2,426$1,948$671
20 years$4,248$3,436$2,757$2,197$1,740$559
21 years$4,004$3,200$2,536$1,994$1,557$467
22 years$3,781$2,987$2,337$1,813$1,396$390
23 years$3,579$2,794$2,158$1,651$1,253$325
24 years$3,393$2,618$1,996$1,506$1,126$272
25 years$3,223$2,457$1,848$1,375$1,014$227
26 years$3,066$2,309$1,714$1,257$913$190
27 years$2,921$2,173$1,592$1,151$823$159
28 years$2,786$2,047$1,480$1,054$743$133
29 years$2,661$1,931$1,377$967$671$112
30 years$2,544$1,824$1,283$887$606$93
31 years$2,436$1,724$1,196$815$548$78
32 years$2,334$1,632$1,116$749$496$66
33 years$2,239$1,545$1,042$689$448$55
34 years$2,149$1,464$973$634$406$46
35 years$2,065$1,389$910$583$368$39
36 years$1,985$1,318$851$537$333$32
37 years$1,910$1,252$797$495$302$27
38 years$1,840$1,190$746$456$274$23
39 years$1,772$1,132$699$421$248$19
40 years$1,709$1,077$655$388$225$16
41 years$1,649$1,025$614$358$204$13
42 years$1,591$976$576$330$185$11
43 years$1,537$930$541$305$168$9
44 years$1,485$886$508$282$153$8
45 years$1,436$845$477$260$139$7
46 years$1,389$806$448$240$126$6
47 years$1,344$770$421$222$114$5
48 years$1,301$735$395$205$104$4
49 years$1,260$702$372$190$94$3
50 years$1,220$670$349$175$86$3

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 $4,584 every year, while hoping to spend $32,754 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: 81/5/14 Blend
39$1,250,000$1,250,000$1,250,000$1,250,000
40$1,382,228$1,315,978$1,296,603$1,490,009
41$1,488,366$1,345,611$1,305,190$1,591,098
42$1,604,231$1,375,599$1,312,966$1,697,319
43$1,730,783$1,405,923$1,319,870$1,812,972
44$1,869,074$1,436,565$1,325,837$1,938,990
45$2,020,267$1,467,503$1,330,800$2,076,396
46$2,185,638$1,498,715$1,334,686$2,226,321
47$2,366,596$1,530,175$1,337,420$2,390,008
48$2,564,689$1,561,853$1,338,924$2,568,827
49$2,781,623$1,593,720$1,339,114$2,764,288
50$3,019,278$1,625,742$1,337,904$2,978,054
51$3,279,722$1,657,881$1,335,201$3,211,957
52$3,565,235$1,690,098$1,330,912$3,468,015
53$3,878,326$1,722,350$1,324,934$3,748,452
54$4,221,759$1,754,589$1,317,163$4,055,717
55$4,598,580$1,786,765$1,307,490$4,392,510
56$5,012,141$1,818,824$1,295,797$4,761,805
57$5,466,138$1,850,705$1,281,965$5,166,879
58$5,964,640$1,882,344$1,265,866$5,611,344
59$6,512,129$1,913,675$1,247,368$6,099,177
60$7,113,543$1,944,622$1,226,332$6,634,763
61$7,774,323$1,975,107$1,202,612$7,222,933
62$8,500,460$2,005,044$1,176,057$7,869,009
63$9,298,559$2,034,342$1,146,506$8,578,857
64$10,175,891$2,062,904$1,113,793$9,358,942
65$11,140,471$2,090,626$1,077,745$10,216,384
66$12,201,127$2,117,395$1,038,177$11,159,034
67$13,367,587$2,143,092$994,901$12,195,539
68$14,650,567$2,167,589$947,716$13,335,431
69$16,061,874$2,190,751$896,414$14,589,212
70$17,614,519$2,212,431$840,778$15,968,456
71$19,322,835$2,232,475$780,579$17,485,916
72$21,202,616$2,250,718$715,580$19,155,648
73$23,271,263$2,266,984$645,532$20,993,139
74$25,547,951$2,281,085$570,176$23,015,459
75$28,053,806$2,292,822$489,241$25,241,414
76$30,812,107$2,301,983$402,444$27,691,733
77$33,848,504$2,308,343$309,488$30,389,258
78$37,191,261$2,311,661$210,065$33,359,159
79$40,871,521$2,311,684$103,854$36,629,176
80$44,923,600$2,308,140$0$40,229,879
81$49,385,311$2,300,743$0$44,196,371
82$54,298,321$2,289,188$0$48,581,008
83$59,708,543$2,273,151$0$53,409,224
84$65,666,570$2,252,291$0$58,726,162
85$72,228,149$2,226,242$0$64,581,564
86$79,454,712$2,194,620$0$71,030,244
87$87,413,953$2,157,016$0$78,132,605
88$96,180,464$2,112,998$0$85,955,209
89$105,836,443$2,062,107$0$94,571,401
90$116,472,468$2,003,858$0$104,062,007
91$128,188,349$1,937,737$0$114,516,093
92$141,094,075$1,863,200$0$126,031,808
93$155,310,846$1,779,672$0$138,717,308
94$170,972,221$1,686,544$0$152,691,777
95$188,225,375$1,583,173$0$168,086,554
96$207,232,492$1,468,877$0$185,046,370
97$228,172,290$1,342,936$0$203,730,715
98$251,241,714$1,204,590$0$224,315,346
99$276,657,788$1,053,034$0$246,993,940
100$304,659,669$887,419$0$271,979,927