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%12.5%
1 years$103,224$102,304$101,407$100,532$99,677$98,636
2 years$51,101$50,149$49,227$48,333$47,465$46,417
3 years$33,729$32,773$31,853$30,967$30,114$29,091
4 years$25,045$24,092$23,181$22,310$21,477$20,487
5 years$19,835$18,888$17,989$17,136$16,327$15,373
6 years$16,364$15,424$14,538$13,704$12,919$12,002
7 years$13,885$12,953$12,081$11,267$10,506$9,627
8 years$12,027$11,103$10,246$9,451$8,716$7,874
9 years$10,582$9,667$8,825$8,051$7,340$6,536
10 years$9,427$8,521$7,694$6,940$6,254$5,486
11 years$8,483$7,586$6,773$6,040$5,379$4,647
12 years$7,696$6,809$6,011$5,298$4,661$3,965
13 years$7,031$6,153$5,371$4,677$4,065$3,403
14 years$6,462$5,593$4,825$4,152$3,563$2,934
15 years$5,969$5,109$4,357$3,703$3,137$2,541
16 years$5,538$4,688$3,950$3,315$2,773$2,208
17 years$5,158$4,317$3,594$2,979$2,458$1,925
18 years$4,821$3,989$3,281$2,684$2,186$1,682
19 years$4,519$3,697$3,004$2,426$1,948$1,472
20 years$4,248$3,436$2,757$2,197$1,740$1,292
21 years$4,004$3,200$2,536$1,994$1,557$1,135
22 years$3,781$2,987$2,337$1,813$1,396$999
23 years$3,579$2,794$2,158$1,651$1,253$880
24 years$3,393$2,618$1,996$1,506$1,126$776
25 years$3,223$2,457$1,848$1,375$1,014$685
26 years$3,066$2,309$1,714$1,257$913$605
27 years$2,921$2,173$1,592$1,151$823$535
28 years$2,786$2,047$1,480$1,054$743$473
29 years$2,661$1,931$1,377$967$671$419
30 years$2,544$1,824$1,283$887$606$371
31 years$2,436$1,724$1,196$815$548$329
32 years$2,334$1,632$1,116$749$496$291
33 years$2,239$1,545$1,042$689$448$258
34 years$2,149$1,464$973$634$406$229
35 years$2,065$1,389$910$583$368$203
36 years$1,985$1,318$851$537$333$180
37 years$1,910$1,252$797$495$302$160
38 years$1,840$1,190$746$456$274$142
39 years$1,772$1,132$699$421$248$126
40 years$1,709$1,077$655$388$225$112
41 years$1,649$1,025$614$358$204$99
42 years$1,591$976$576$330$185$88
43 years$1,537$930$541$305$168$78
44 years$1,485$886$508$282$153$70
45 years$1,436$845$477$260$139$62
46 years$1,389$806$448$240$126$55
47 years$1,344$770$421$222$114$49
48 years$1,301$735$395$205$104$43
49 years$1,260$702$372$190$94$39
50 years$1,220$670$349$175$86$34

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 $3,642 every year, while hoping to spend $56,248 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: 40/36/24 Blend
39$1,250,000$1,250,000$1,250,000$1,250,000
40$1,381,257$1,315,007$1,295,632$1,426,576
41$1,462,297$1,319,595$1,279,188$1,464,181
42$1,549,719$1,322,522$1,260,308$1,499,264
43$1,644,113$1,323,648$1,238,851$1,536,106
44$1,746,130$1,322,824$1,214,670$1,574,899
45$1,856,483$1,319,891$1,187,609$1,615,860
46$1,975,958$1,314,679$1,157,508$1,659,232
47$2,105,418$1,307,011$1,124,197$1,705,286
48$2,245,812$1,296,696$1,087,499$1,754,325
49$2,398,184$1,283,533$1,047,229$1,806,687
50$2,563,683$1,267,309$1,003,195$1,862,750
51$2,743,569$1,247,799$955,193$1,922,935
52$2,939,234$1,224,761$903,012$1,987,712
53$3,152,204$1,197,943$846,432$2,057,604
54$3,384,162$1,167,076$785,221$2,133,194
55$3,636,959$1,131,875$719,138$2,215,130
56$3,912,631$1,092,038$647,931$2,304,133
57$4,213,419$1,047,248$571,336$2,401,007
58$4,541,792$997,167$489,080$2,506,644
59$4,900,464$941,438$400,874$2,622,035
60$5,292,426$879,683$306,418$2,748,281
61$5,720,971$811,505$205,400$2,886,606
62$6,189,721$736,480$97,492$3,038,366
63$6,702,668$654,162$0$3,205,068
64$7,264,206$564,082$0$3,392,907
65$7,879,173$465,740$0$3,626,148
66$8,552,898$358,612$0$3,881,950
67$9,291,251$242,140$0$4,162,688
68$10,100,692$115,739$0$4,470,989
69$10,988,342$0$0$4,809,757
70$11,962,039$0$0$5,190,601
71$13,030,419$0$0$5,658,951
72$14,202,994$0$0$6,173,149
73$15,490,241$0$0$6,737,811
74$16,903,701$0$0$7,358,020
75$18,456,088$0$0$8,039,378
76$20,161,407$0$0$8,788,057
77$22,035,086$0$0$9,610,853
78$24,094,124$0$0$10,515,257
79$26,357,244$0$0$11,509,519
80$28,845,076$0$0$12,602,730
81$31,580,347$0$0$13,804,904
82$34,588,099$0$0$15,127,076
83$37,895,917$0$0$16,581,403
84$41,534,198$0$0$18,181,279
85$45,536,430$0$0$19,941,462
86$49,939,510$0$0$21,878,213
87$54,784,093$0$0$24,009,449
88$60,114,972$0$0$26,354,910
89$65,981,502$0$0$28,936,348
90$72,438,064$0$0$31,777,729
91$79,544,579$0$0$34,905,462
92$87,367,070$0$0$38,348,646
93$95,978,287$0$0$42,139,344
94$105,458,392$0$0$46,312,885
95$115,895,711$0$0$50,908,201
96$127,387,575$0$0$55,968,188
97$140,041,231$0$0$61,540,115
98$153,974,852$0$0$67,676,068
99$169,318,660$0$0$74,433,443
100$186,216,145$0$0$81,875,485