Can I retire at age 40 with 1,260,000?

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 $1,260,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$104,050$103,123$102,219$101,336$100,474$98,165
2 years$51,510$50,550$49,621$48,719$47,845$45,531
3 years$33,999$33,035$32,108$31,215$30,355$28,109
4 years$25,245$24,284$23,366$22,489$21,649$19,488
5 years$19,994$19,039$18,133$17,273$16,457$14,387
6 years$16,495$15,547$14,654$13,814$13,022$11,046
7 years$13,996$13,056$12,178$11,357$10,591$8,707
8 years$12,123$11,192$10,328$9,527$8,786$6,996
9 years$10,667$9,744$8,895$8,115$7,399$5,700
10 years$9,502$8,589$7,755$6,995$6,304$4,695
11 years$8,551$7,646$6,827$6,088$5,422$3,900
12 years$7,758$6,863$6,059$5,340$4,699$3,262
13 years$7,088$6,202$5,414$4,714$4,097$2,743
14 years$6,514$5,638$4,864$4,185$3,592$2,317
15 years$6,017$5,150$4,392$3,732$3,162$1,964
16 years$5,582$4,725$3,982$3,342$2,795$1,670
17 years$5,199$4,352$3,623$3,003$2,478$1,424
18 years$4,859$4,021$3,307$2,706$2,203$1,216
19 years$4,555$3,727$3,028$2,445$1,964$1,041
20 years$4,282$3,463$2,779$2,214$1,754$892
21 years$4,036$3,226$2,556$2,010$1,570$766
22 years$3,811$3,011$2,356$1,827$1,407$658
23 years$3,607$2,816$2,175$1,664$1,263$566
24 years$3,420$2,639$2,012$1,518$1,135$487
25 years$3,248$2,476$1,863$1,386$1,022$420
26 years$3,090$2,327$1,728$1,267$920$362
27 years$2,944$2,190$1,605$1,160$830$312
28 years$2,808$2,064$1,492$1,063$749$269
29 years$2,682$1,947$1,388$975$676$232
30 years$2,565$1,839$1,293$895$611$200
31 years$2,455$1,738$1,205$822$552$173
32 years$2,353$1,645$1,125$755$500$150
33 years$2,256$1,558$1,050$694$452$129
34 years$2,166$1,476$981$639$409$112
35 years$2,081$1,400$917$588$371$96
36 years$2,001$1,329$858$542$336$83
37 years$1,926$1,262$803$499$304$72
38 years$1,854$1,200$752$460$276$62
39 years$1,787$1,141$705$424$250$54
40 years$1,723$1,085$660$391$227$47
41 years$1,662$1,033$619$361$206$40
42 years$1,604$984$581$333$187$35
43 years$1,549$937$545$307$170$30
44 years$1,497$894$512$284$154$26
45 years$1,447$852$480$262$140$23
46 years$1,400$813$451$242$127$19
47 years$1,355$776$424$224$115$17
48 years$1,311$740$398$207$105$15
49 years$1,270$707$374$191$95$13
50 years$1,230$675$352$177$86$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,260,000, adding $4,802 every year, while hoping to spend $59,313 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: 26/45/29 Blend
39$1,260,000$1,260,000$1,260,000$1,260,000
40$1,393,473$1,326,693$1,307,163$1,417,011
41$1,472,499$1,328,593$1,287,845$1,438,727
42$1,557,597$1,328,597$1,265,891$1,456,648
43$1,649,325$1,326,551$1,241,151$1,474,669
44$1,748,294$1,322,290$1,213,468$1,492,840
45$1,855,176$1,315,639$1,182,675$1,511,222
46$1,970,710$1,306,410$1,148,600$1,529,887
47$2,095,707$1,294,409$1,111,062$1,548,920
48$2,231,058$1,279,425$1,069,873$1,568,422
49$2,377,746$1,261,236$1,024,833$1,588,510
50$2,536,848$1,239,609$975,737$1,609,321
51$2,709,551$1,214,294$922,369$1,631,011
52$2,897,158$1,185,027$864,501$1,653,764
53$3,101,106$1,151,531$801,899$1,677,787
54$3,322,972$1,113,509$734,316$1,703,320
55$3,564,493$1,070,649$661,493$1,730,636
56$3,827,580$1,022,620$583,162$1,760,045
57$4,114,337$969,072$499,042$1,791,902
58$4,427,077$909,635$408,838$1,826,606
59$4,768,350$843,917$312,245$1,864,611
60$5,140,958$771,505$208,941$1,906,430
61$5,547,988$691,962$98,594$1,952,640
62$5,992,839$604,824$0$2,003,892
63$6,479,252$509,604$0$2,066,850
64$7,011,346$405,785$0$2,169,348
65$7,593,657$292,822$0$2,281,888
66$8,231,179$170,139$0$2,405,628
67$8,929,412$37,128$0$2,541,856
68$9,694,412$0$0$2,692,003
69$10,532,849$0$0$2,910,570
70$11,452,070$0$0$3,170,565
71$12,460,164$0$0$3,455,917
72$13,566,043$0$0$3,769,178
73$14,779,523$0$0$4,113,154
74$16,111,415$0$0$4,490,942
75$17,573,628$0$0$4,905,948
76$19,179,280$0$0$5,361,928
77$20,942,822$0$0$5,863,019
78$22,880,175$0$0$6,413,777
79$25,008,875$0$0$7,019,224
80$27,348,242$0$0$7,684,890
81$29,919,561$0$0$8,416,870
82$32,746,282$0$0$9,221,878
83$35,854,238$0$0$10,107,311
84$39,271,892$0$0$11,081,320
85$43,030,604$0$0$12,152,884
86$47,164,923$0$0$13,331,897
87$51,712,916$0$0$14,629,262
88$56,716,525$0$0$16,056,989
89$62,221,963$0$0$17,628,314
90$68,280,147$0$0$19,357,819
91$74,947,178$0$0$21,261,574
92$82,284,875$0$0$23,357,284
93$90,361,348$0$0$25,664,457
94$99,251,650$0$0$28,204,592
95$109,038,476$0$0$31,001,374
96$119,812,947$0$0$34,080,905
97$131,675,470$0$0$37,471,946
98$144,736,681$0$0$41,206,189
99$159,118,490$0$0$45,318,557
100$174,955,231$0$0$49,847,529