Can I retire at age 40 with 1,270,000?

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 $1,270,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$104,875$103,941$103,030$102,140$101,272$100,760
2 years$51,919$50,952$50,014$49,106$48,225$47,708
3 years$34,269$33,297$32,363$31,463$30,596$30,091
4 years$25,445$24,477$23,552$22,667$21,821$21,331
5 years$20,153$19,190$18,277$17,410$16,588$16,115
6 years$16,625$15,670$14,771$13,923$13,126$12,670
7 years$14,107$13,160$12,274$11,447$10,675$10,236
8 years$12,219$11,281$10,410$9,603$8,856$8,435
9 years$10,751$9,822$8,966$8,179$7,458$7,054
10 years$9,578$8,657$7,817$7,051$6,354$5,968
11 years$8,618$7,707$6,882$6,136$5,465$5,095
12 years$7,819$6,918$6,107$5,382$4,736$4,383
13 years$7,144$6,251$5,456$4,752$4,130$3,793
14 years$6,565$5,682$4,903$4,218$3,620$3,299
15 years$6,064$5,191$4,426$3,762$3,187$2,882
16 years$5,627$4,763$4,013$3,368$2,817$2,527
17 years$5,241$4,386$3,652$3,026$2,498$2,222
18 years$4,898$4,053$3,334$2,727$2,221$1,960
19 years$4,592$3,756$3,052$2,464$1,980$1,732
20 years$4,316$3,491$2,801$2,232$1,768$1,534
21 years$4,068$3,251$2,576$2,026$1,582$1,361
22 years$3,842$3,035$2,374$1,842$1,418$1,209
23 years$3,636$2,839$2,192$1,677$1,273$1,076
24 years$3,447$2,660$2,028$1,530$1,144$958
25 years$3,274$2,496$1,878$1,397$1,030$854
26 years$3,115$2,346$1,742$1,277$928$762
27 years$2,967$2,208$1,617$1,169$836$681
28 years$2,831$2,080$1,503$1,071$755$609
29 years$2,704$1,962$1,399$982$681$544
30 years$2,585$1,853$1,303$902$616$487
31 years$2,475$1,752$1,215$828$557$436
32 years$2,371$1,658$1,134$761$503$391
33 years$2,274$1,570$1,058$700$456$350
34 years$2,183$1,488$989$644$413$314
35 years$2,098$1,411$925$593$374$282
36 years$2,017$1,339$865$546$339$253
37 years$1,941$1,272$810$503$307$227
38 years$1,869$1,209$758$464$278$203
39 years$1,801$1,150$710$427$252$183
40 years$1,736$1,094$666$394$229$164
41 years$1,675$1,041$624$364$208$147
42 years$1,617$992$586$336$188$132
43 years$1,562$945$549$310$171$119
44 years$1,509$901$516$286$155$107
45 years$1,459$859$484$264$141$96
46 years$1,411$819$455$244$128$86
47 years$1,365$782$427$226$116$77
48 years$1,322$746$402$208$105$70
49 years$1,280$713$377$193$96$62
50 years$1,240$681$355$178$87$56

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,270,000, adding $6,057 every year, while hoping to spend $56,856 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: 32/42/26 Blend
39$1,270,000$1,270,000$1,270,000$1,270,000
40$1,405,788$1,338,478$1,318,793$1,439,429
41$1,488,684$1,343,569$1,302,478$1,470,654
42$1,578,130$1,347,004$1,283,711$1,498,785
43$1,674,733$1,348,641$1,262,350$1,527,955
44$1,779,163$1,348,332$1,238,246$1,558,293
45$1,892,153$1,345,916$1,211,242$1,589,947
46$2,014,511$1,341,224$1,181,177$1,623,083
47$2,147,125$1,334,077$1,147,880$1,657,889
48$2,290,969$1,324,285$1,111,172$1,694,578
49$2,447,118$1,311,645$1,070,866$1,733,390
50$2,616,752$1,295,943$1,026,768$1,774,594
51$2,801,170$1,276,954$978,674$1,818,493
52$3,001,800$1,254,435$926,370$1,865,428
53$3,220,213$1,228,132$869,633$1,915,781
54$3,458,140$1,197,776$808,231$1,969,981
55$3,717,484$1,163,080$741,921$2,028,509
56$4,000,340$1,123,743$670,447$2,091,900
57$4,309,012$1,079,444$593,544$2,160,756
58$4,646,038$1,029,845$510,936$2,235,749
59$5,014,213$974,586$422,331$2,317,627
60$5,416,612$913,290$327,428$2,407,228
61$5,856,620$845,555$225,911$2,505,484
62$6,337,966$770,957$117,449$2,613,434
63$6,864,754$689,050$1,699$2,732,237
64$7,441,504$599,358$0$2,863,181
65$8,073,195$501,384$0$3,041,499
66$8,765,306$394,597$0$3,237,687
67$9,523,874$278,440$0$3,453,157
68$10,355,549$152,323$0$3,689,992
69$11,267,653$15,624$0$3,950,499
70$12,268,249$0$0$4,237,231
71$13,366,222$0$0$4,614,167
72$14,571,357$0$0$5,036,018
73$15,894,432$0$0$5,499,361
74$17,347,319$0$0$6,008,379
75$18,943,098$0$0$6,567,682
76$20,696,177$0$0$7,182,346
77$22,622,427$0$0$7,857,967
78$24,739,335$0$0$8,600,706
79$27,066,165$0$0$9,417,352
80$29,624,138$0$0$10,315,388
81$32,436,638$0$0$11,303,052
82$35,529,423$0$0$12,389,427
83$38,930,877$0$0$13,584,516
84$42,672,269$0$0$14,899,343
85$46,788,052$0$0$16,346,051
86$51,316,186$0$0$17,938,024
87$56,298,495$0$0$19,690,005
88$61,781,064$0$0$21,618,240
89$67,814,669$0$0$23,740,631
90$74,455,258$0$0$26,076,902
91$81,764,476$0$0$28,648,786
92$89,810,251$0$0$31,480,232
93$98,667,427$0$0$34,597,628
94$108,418,476$0$0$38,030,049
95$119,154,272$0$0$41,809,537
96$130,974,947$0$0$45,971,396
97$143,990,840$0$0$50,554,529
98$158,323,533$0$0$55,601,804
99$174,106,997$0$0$61,160,458
100$191,488,860$0$0$67,282,544