Can I retire at age 40 with 1,280,000?

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 $1,280,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$105,701$104,760$103,841$102,944$102,069$98,644
2 years$52,327$51,353$50,408$49,493$48,604$45,187
3 years$34,538$33,560$32,618$31,710$30,837$27,535
4 years$25,646$24,670$23,737$22,846$21,993$18,832
5 years$20,311$19,341$18,421$17,548$16,719$13,707
6 years$16,756$15,794$14,887$14,033$13,229$10,369
7 years$14,218$13,264$12,371$11,537$10,759$8,050
8 years$12,315$11,369$10,492$9,678$8,925$6,365
9 years$10,836$9,899$9,036$8,244$7,516$5,102
10 years$9,653$8,726$7,878$7,106$6,404$4,132
11 years$8,686$7,768$6,936$6,185$5,508$3,374
12 years$7,881$6,972$6,155$5,425$4,773$2,772
13 years$7,200$6,301$5,499$4,789$4,162$2,289
14 years$6,617$5,727$4,941$4,251$3,649$1,897
15 years$6,112$5,232$4,461$3,791$3,212$1,578
16 years$5,671$4,800$4,045$3,395$2,839$1,316
17 years$5,282$4,421$3,681$3,050$2,517$1,100
18 years$4,936$4,085$3,360$2,749$2,238$921
19 years$4,628$3,786$3,076$2,484$1,995$773
20 years$4,350$3,518$2,823$2,250$1,782$649
21 years$4,100$3,277$2,596$2,042$1,595$545
22 years$3,872$3,059$2,393$1,856$1,429$459
23 years$3,664$2,861$2,210$1,691$1,283$386
24 years$3,475$2,680$2,043$1,542$1,153$326
25 years$3,300$2,515$1,893$1,408$1,038$274
26 years$3,139$2,364$1,755$1,288$935$231
27 years$2,991$2,225$1,630$1,179$843$195
28 years$2,853$2,097$1,515$1,080$761$165
29 years$2,725$1,978$1,410$990$687$139
30 years$2,606$1,868$1,313$909$621$117
31 years$2,494$1,766$1,225$835$561$99
32 years$2,390$1,671$1,142$767$507$84
33 years$2,292$1,582$1,067$705$459$71
34 years$2,201$1,500$997$649$416$60
35 years$2,114$1,422$932$597$377$50
36 years$2,033$1,350$872$550$341$43
37 years$1,956$1,282$816$507$309$36
38 years$1,884$1,219$764$467$280$30
39 years$1,815$1,159$716$431$254$26
40 years$1,750$1,102$671$397$231$22
41 years$1,688$1,049$629$367$209$18
42 years$1,630$999$590$338$190$16
43 years$1,574$952$554$312$172$13
44 years$1,521$908$520$288$156$11
45 years$1,470$866$488$266$142$9
46 years$1,422$826$458$246$129$8
47 years$1,376$788$431$227$117$7
48 years$1,332$752$405$210$106$6
49 years$1,290$718$380$194$97$5
50 years$1,250$686$358$179$88$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,280,000, adding $4,420 every year, while hoping to spend $57,887 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: 89/5/6 Blend
39$1,280,000$1,280,000$1,280,000$1,280,000
40$1,415,119$1,347,279$1,327,439$1,540,466
41$1,497,870$1,351,705$1,310,317$1,627,097
42$1,587,121$1,354,407$1,290,681$1,713,741
43$1,683,475$1,355,240$1,268,386$1,807,095
44$1,787,593$1,354,050$1,243,280$1,907,789
45$1,900,201$1,350,672$1,215,204$2,016,517
46$2,022,099$1,344,932$1,183,991$2,134,045
47$2,154,164$1,336,646$1,149,466$2,261,213
48$2,297,364$1,325,616$1,111,448$2,398,946
49$2,452,759$1,311,636$1,069,746$2,548,266
50$2,621,519$1,294,484$1,024,160$2,710,292
51$2,804,927$1,273,926$974,483$2,886,260
52$3,004,397$1,249,716$920,495$3,077,531
53$3,221,484$1,221,591$861,971$3,285,601
54$3,457,899$1,189,272$798,670$3,512,120
55$3,715,524$1,152,467$730,346$3,758,903
56$3,996,433$1,110,863$656,737$4,027,951
57$4,302,905$1,064,131$577,574$4,321,467
58$4,637,450$1,011,922$492,572$4,641,877
59$5,002,832$953,868$401,435$4,991,853
60$5,402,092$889,579$303,854$5,374,339
61$5,838,580$818,643$199,507$5,792,579
62$6,315,981$740,623$88,057$6,250,145
63$6,838,357$655,058$0$6,750,974
64$7,410,176$561,463$0$7,301,378
65$8,036,361$459,322$0$7,910,302
66$8,722,334$348,092$0$8,577,392
67$9,474,062$227,199$0$9,308,471
68$10,298,122$96,038$0$10,109,958
69$11,201,753$0$0$10,988,919
70$12,192,932$0$0$11,955,674
71$13,280,441$0$0$13,022,189
72$14,473,957$0$0$14,192,672
73$15,784,138$0$0$15,477,573
74$17,222,722$0$0$16,888,407
75$18,802,643$0$0$18,437,859
76$20,538,148$0$0$20,139,899
77$22,444,929$0$0$22,009,922
78$24,540,276$0$0$24,064,882
79$26,843,236$0$0$26,323,463
80$29,374,794$0$0$28,806,243
81$32,158,068$0$0$31,535,897
82$35,218,527$0$0$34,537,405
83$38,584,234$0$0$37,838,290
84$42,286,106$0$0$41,468,875
85$46,358,206$0$0$45,462,568
86$50,838,066$0$0$49,856,179
87$55,767,039$0$0$54,690,266
88$61,190,687$0$0$60,009,517
89$67,159,213$0$0$65,863,167
90$73,727,931$0$0$72,305,469
91$80,957,790$0$0$79,396,200
92$88,915,947$0$0$87,201,226
93$97,676,402$0$0$95,793,123
94$107,320,690$0$0$105,251,861
95$117,938,656$0$0$115,665,557
96$129,629,299$0$0$127,131,307
97$142,501,707$0$0$139,756,101
98$156,676,081$0$0$153,657,832
99$172,284,877$0$0$168,966,409
100$189,474,047$0$0$185,824,977