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%18.9%
1 years$104,050$103,123$102,219$101,336$100,474$96,871
2 years$51,510$50,550$49,621$48,719$47,845$44,253
3 years$33,999$33,035$32,108$31,215$30,355$26,888
4 years$25,245$24,284$23,366$22,489$21,649$18,334
5 years$19,994$19,039$18,133$17,273$16,457$13,302
6 years$16,495$15,547$14,654$13,814$13,022$10,029
7 years$13,996$13,056$12,178$11,357$10,591$7,760
8 years$12,123$11,192$10,328$9,527$8,786$6,114
9 years$10,667$9,744$8,895$8,115$7,399$4,883
10 years$9,502$8,589$7,755$6,995$6,304$3,940
11 years$8,551$7,646$6,827$6,088$5,422$3,204
12 years$7,758$6,863$6,059$5,340$4,699$2,622
13 years$7,088$6,202$5,414$4,714$4,097$2,156
14 years$6,514$5,638$4,864$4,185$3,592$1,780
15 years$6,017$5,150$4,392$3,732$3,162$1,474
16 years$5,582$4,725$3,982$3,342$2,795$1,224
17 years$5,199$4,352$3,623$3,003$2,478$1,019
18 years$4,859$4,021$3,307$2,706$2,203$849
19 years$4,555$3,727$3,028$2,445$1,964$709
20 years$4,282$3,463$2,779$2,214$1,754$593
21 years$4,036$3,226$2,556$2,010$1,570$496
22 years$3,811$3,011$2,356$1,827$1,407$415
23 years$3,607$2,816$2,175$1,664$1,263$348
24 years$3,420$2,639$2,012$1,518$1,135$292
25 years$3,248$2,476$1,863$1,386$1,022$245
26 years$3,090$2,327$1,728$1,267$920$205
27 years$2,944$2,190$1,605$1,160$830$173
28 years$2,808$2,064$1,492$1,063$749$145
29 years$2,682$1,947$1,388$975$676$122
30 years$2,565$1,839$1,293$895$611$102
31 years$2,455$1,738$1,205$822$552$86
32 years$2,353$1,645$1,125$755$500$72
33 years$2,256$1,558$1,050$694$452$61
34 years$2,166$1,476$981$639$409$51
35 years$2,081$1,400$917$588$371$43
36 years$2,001$1,329$858$542$336$36
37 years$1,926$1,262$803$499$304$30
38 years$1,854$1,200$752$460$276$25
39 years$1,787$1,141$705$424$250$21
40 years$1,723$1,085$660$391$227$18
41 years$1,662$1,033$619$361$206$15
42 years$1,604$984$581$333$187$13
43 years$1,549$937$545$307$170$11
44 years$1,497$894$512$284$154$9
45 years$1,447$852$480$262$140$8
46 years$1,400$813$451$242$127$6
47 years$1,355$776$424$224$115$5
48 years$1,311$740$398$207$105$5
49 years$1,270$707$374$191$95$4
50 years$1,230$675$352$177$86$3

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 $4,008 every year, while hoping to spend $21,903 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: 78/16/6 Blend
39$1,260,000$1,260,000$1,260,000$1,260,000
40$1,392,654$1,325,874$1,306,344$1,500,241
41$1,511,400$1,367,537$1,326,802$1,613,025
42$1,641,524$1,410,508$1,347,211$1,733,418
43$1,784,164$1,454,827$1,367,547$1,864,793
44$1,940,572$1,500,537$1,387,783$2,008,231
45$2,112,127$1,547,680$1,407,891$2,164,925
46$2,300,351$1,596,303$1,427,841$2,336,186
47$2,506,915$1,646,451$1,447,603$2,523,460
48$2,733,666$1,698,171$1,467,143$2,728,337
49$2,982,632$1,751,515$1,486,425$2,952,569
50$3,256,053$1,806,531$1,505,412$3,198,086
51$3,556,391$1,863,272$1,524,064$3,467,012
52$3,886,364$1,921,793$1,542,341$3,761,688
53$4,248,961$1,982,149$1,560,197$4,084,691
54$4,647,477$2,044,397$1,577,587$4,438,862
55$5,085,544$2,108,596$1,594,460$4,827,326
56$5,567,161$2,174,808$1,610,765$5,253,530
57$6,096,733$2,243,096$1,626,448$5,721,267
58$6,679,116$2,313,524$1,641,450$6,234,719
59$7,319,658$2,386,159$1,655,711$6,798,490
60$8,024,253$2,461,070$1,669,167$7,417,654
61$8,799,393$2,538,329$1,681,750$8,097,799
62$9,652,232$2,618,008$1,693,390$8,845,083
63$10,590,653$2,700,184$1,704,012$9,666,289
64$11,623,340$2,784,933$1,713,537$10,568,890
65$12,759,864$2,872,338$1,721,883$11,561,122
66$14,010,767$2,962,480$1,728,964$12,652,055
67$15,387,669$3,055,445$1,734,687$13,851,685
68$16,903,370$3,151,321$1,738,959$15,171,025
69$18,571,977$3,250,199$1,741,677$16,622,209
70$20,409,033$3,352,172$1,742,737$18,218,606
71$22,431,664$3,457,338$1,742,028$19,974,947
72$24,658,741$3,565,796$1,739,434$21,907,463
73$27,111,061$3,677,648$1,734,833$24,034,038
74$29,811,537$3,793,000$1,728,097$26,374,379
75$32,785,418$3,911,961$1,719,093$28,950,199
76$36,060,528$4,034,645$1,707,680$31,785,425
77$39,667,526$4,161,166$1,693,711$34,906,419
78$43,640,195$4,291,645$1,677,032$38,342,233
79$48,015,764$4,426,205$1,657,482$42,124,876
80$52,835,256$4,564,973$1,634,891$46,289,621
81$58,143,875$4,708,079$1,609,083$50,875,337
82$63,991,435$4,855,660$1,579,872$55,924,851
83$70,432,828$5,007,854$1,547,065$61,485,358
84$77,528,542$5,164,805$1,510,457$67,608,865
85$85,345,234$5,326,661$1,469,838$74,352,677
86$93,956,355$5,493,574$1,424,985$81,779,942
87$103,442,846$5,665,702$1,375,665$89,960,247
88$113,893,902$5,843,207$1,321,635$98,970,272
89$125,407,812$6,026,257$1,262,642$108,894,515
90$138,092,888$6,215,023$1,198,420$119,826,090
91$152,068,486$6,409,682$1,128,691$131,867,603
92$167,466,135$6,610,420$1,053,164$145,132,124
93$184,430,773$6,817,423$971,538$159,744,249
94$203,122,122$7,030,886$883,494$175,841,282
95$223,716,189$7,251,011$788,703$193,574,527
96$246,406,934$7,478,004$686,818$213,110,714
97$271,408,093$7,712,078$577,477$234,633,578
98$298,955,201$7,953,452$460,305$258,345,589
99$329,307,813$8,202,353$334,908$284,469,865
100$362,751,957$8,459,015$200,874$313,252,276