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%14.7%
1 years$105,701$104,760$103,841$102,944$102,069$100,090
2 years$52,327$51,353$50,408$49,493$48,604$46,619
3 years$34,538$33,560$32,618$31,710$30,837$28,906
4 years$25,646$24,670$23,737$22,846$21,993$20,132
5 years$20,311$19,341$18,421$17,548$16,719$14,933
6 years$16,756$15,794$14,887$14,033$13,229$11,521
7 years$14,218$13,264$12,371$11,537$10,759$9,128
8 years$12,315$11,369$10,492$9,678$8,925$7,372
9 years$10,836$9,899$9,036$8,244$7,516$6,040
10 years$9,653$8,726$7,878$7,106$6,404$5,002
11 years$8,686$7,768$6,936$6,185$5,508$4,179
12 years$7,881$6,972$6,155$5,425$4,773$3,516
13 years$7,200$6,301$5,499$4,789$4,162$2,974
14 years$6,617$5,727$4,941$4,251$3,649$2,527
15 years$6,112$5,232$4,461$3,791$3,212$2,156
16 years$5,671$4,800$4,045$3,395$2,839$1,845
17 years$5,282$4,421$3,681$3,050$2,517$1,583
18 years$4,936$4,085$3,360$2,749$2,238$1,361
19 years$4,628$3,786$3,076$2,484$1,995$1,173
20 years$4,350$3,518$2,823$2,250$1,782$1,012
21 years$4,100$3,277$2,596$2,042$1,595$875
22 years$3,872$3,059$2,393$1,856$1,429$757
23 years$3,664$2,861$2,210$1,691$1,283$656
24 years$3,475$2,680$2,043$1,542$1,153$568
25 years$3,300$2,515$1,893$1,408$1,038$493
26 years$3,139$2,364$1,755$1,288$935$428
27 years$2,991$2,225$1,630$1,179$843$372
28 years$2,853$2,097$1,515$1,080$761$323
29 years$2,725$1,978$1,410$990$687$281
30 years$2,606$1,868$1,313$909$621$244
31 years$2,494$1,766$1,225$835$561$213
32 years$2,390$1,671$1,142$767$507$185
33 years$2,292$1,582$1,067$705$459$161
34 years$2,201$1,500$997$649$416$140
35 years$2,114$1,422$932$597$377$122
36 years$2,033$1,350$872$550$341$106
37 years$1,956$1,282$816$507$309$93
38 years$1,884$1,219$764$467$280$81
39 years$1,815$1,159$716$431$254$70
40 years$1,750$1,102$671$397$231$61
41 years$1,688$1,049$629$367$209$53
42 years$1,630$999$590$338$190$46
43 years$1,574$952$554$312$172$41
44 years$1,521$908$520$288$156$35
45 years$1,470$866$488$266$142$31
46 years$1,422$826$458$246$129$27
47 years$1,376$788$431$227$117$23
48 years$1,332$752$405$210$106$20
49 years$1,290$718$380$194$97$18
50 years$1,250$686$358$179$88$15

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 $3,752 every year, while hoping to spend $52,024 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: 80/12/8 Blend
39$1,280,000$1,280,000$1,280,000$1,280,000
40$1,414,430$1,346,590$1,326,750$1,525,817
41$1,503,349$1,357,220$1,315,843$1,609,984
42$1,599,594$1,366,627$1,302,827$1,695,098
43$1,703,857$1,374,696$1,287,577$1,786,934
44$1,816,900$1,381,306$1,269,960$1,886,135
45$1,939,560$1,386,326$1,249,839$1,993,413
46$2,072,757$1,389,618$1,227,071$2,109,549
47$2,217,504$1,391,035$1,201,504$2,235,406
48$2,374,915$1,390,421$1,172,980$2,371,934
49$2,546,215$1,387,611$1,141,334$2,520,177
50$2,732,754$1,382,429$1,106,393$2,681,290
51$2,936,014$1,374,687$1,067,977$2,856,541
52$3,157,629$1,364,189$1,025,896$3,047,331
53$3,399,397$1,350,723$979,953$3,255,201
54$3,663,295$1,334,068$929,941$3,481,850
55$3,951,501$1,313,988$875,644$3,729,151
56$4,266,413$1,290,232$816,836$3,999,167
57$4,610,669$1,262,535$753,282$4,294,172
58$4,987,175$1,230,617$684,735$4,616,673
59$5,399,131$1,194,181$610,938$4,969,431
60$5,850,059$1,152,913$531,621$5,355,492
61$6,343,839$1,106,479$446,504$5,778,209
62$6,884,742$1,054,528$355,293$6,241,280
63$7,477,472$996,687$257,683$6,748,781
64$8,127,212$932,562$153,352$7,305,205
65$8,839,667$861,737$41,969$7,915,501
66$9,621,121$783,771$0$8,585,127
67$10,478,498$698,198$0$9,326,661
68$11,419,423$604,527$0$10,144,417
69$12,452,293$502,238$0$11,042,150
70$13,586,360$390,782$0$12,027,945
71$14,831,817$269,578$0$13,110,714
72$16,199,889$138,014$0$14,300,278
73$17,702,944$0$0$15,607,459
74$19,354,607$0$0$17,044,783
75$21,169,887$0$0$18,644,560
76$23,165,320$0$0$20,403,141
77$25,359,126$0$0$22,336,589
78$27,771,374$0$0$24,462,596
79$30,424,178$0$0$26,800,658
80$33,341,902$0$0$29,372,253
81$36,551,389$0$0$32,201,045
82$40,082,216$0$0$35,313,107
83$43,966,968$0$0$38,737,169
84$48,241,550$0$0$42,504,881
85$52,945,524$0$0$46,651,120
86$58,122,477$0$0$51,214,315
87$63,820,440$0$0$56,236,805
88$70,092,334$0$0$61,765,247
89$76,996,470$0$0$67,851,047
90$84,597,102$0$0$74,550,849
91$92,965,028$0$0$81,927,069
92$102,178,262$0$0$90,048,483
93$112,322,766$0$0$98,990,874
94$123,493,263$0$0$108,837,748
95$135,794,128$0$0$119,681,122
96$149,340,375$0$0$131,622,392
97$164,258,739$0$0$144,773,285
98$180,688,874$0$0$159,256,919
99$198,784,669$0$0$175,208,963
100$218,715,699$0$0$192,778,911