Can I retire at age 40 with 1,320,000?

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 $1,320,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$109,004$108,033$107,086$106,161$105,259$102,589
2 years$53,963$52,958$51,984$51,039$50,123$47,451
3 years$35,618$34,608$33,637$32,701$31,800$29,209
4 years$26,447$25,441$24,479$23,559$22,680$20,190
5 years$20,946$19,946$18,997$18,096$17,241$14,859
6 years$17,280$16,287$15,352$14,471$13,642$11,370
7 years$14,662$13,678$12,758$11,898$11,095$8,933
8 years$12,700$11,725$10,820$9,981$9,204$7,152
9 years$11,175$10,208$9,319$8,501$7,751$5,806
10 years$9,955$8,998$8,124$7,328$6,604$4,765
11 years$8,958$8,011$7,153$6,378$5,680$3,943
12 years$8,127$7,190$6,348$5,594$4,922$3,284
13 years$7,425$6,498$5,671$4,939$4,292$2,751
14 years$6,824$5,906$5,096$4,384$3,763$2,314
15 years$6,303$5,395$4,601$3,910$3,313$1,953
16 years$5,848$4,950$4,171$3,501$2,928$1,654
17 years$5,447$4,559$3,796$3,146$2,596$1,404
18 years$5,091$4,213$3,465$2,835$2,308$1,194
19 years$4,772$3,904$3,172$2,561$2,057$1,017
20 years$4,486$3,628$2,911$2,320$1,838$868
21 years$4,228$3,379$2,678$2,105$1,645$742
22 years$3,993$3,154$2,468$1,914$1,474$634
23 years$3,779$2,950$2,279$1,743$1,323$543
24 years$3,583$2,764$2,107$1,590$1,189$465
25 years$3,403$2,594$1,952$1,452$1,070$399
26 years$3,237$2,438$1,810$1,328$964$342
27 years$3,084$2,294$1,681$1,215$869$294
28 years$2,942$2,162$1,563$1,114$784$252
29 years$2,810$2,040$1,454$1,021$708$216
30 years$2,687$1,926$1,355$937$640$186
31 years$2,572$1,821$1,263$861$579$160
32 years$2,465$1,723$1,178$791$523$137
33 years$2,364$1,632$1,100$727$474$118
34 years$2,269$1,546$1,028$669$429$101
35 years$2,180$1,467$961$616$388$87
36 years$2,096$1,392$899$567$352$75
37 years$2,017$1,322$841$523$319$65
38 years$1,943$1,257$788$482$289$55
39 years$1,872$1,195$738$444$262$48
40 years$1,805$1,137$692$410$238$41
41 years$1,741$1,082$649$378$216$35
42 years$1,681$1,031$609$349$196$30
43 years$1,623$982$571$322$178$26
44 years$1,568$936$536$297$161$22
45 years$1,516$893$503$275$146$19
46 years$1,466$852$473$254$133$17
47 years$1,419$813$444$234$121$14
48 years$1,374$776$417$217$110$12
49 years$1,330$741$392$200$100$11
50 years$1,289$708$369$185$90$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,320,000, adding $4,441 every year, while hoping to spend $36,014 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: 67/26/7 Blend
39$1,320,000$1,320,000$1,320,000$1,320,000
40$1,459,221$1,389,261$1,368,801$1,554,952
41$1,569,743$1,419,016$1,376,337$1,648,794
42$1,690,331$1,449,022$1,382,919$1,746,590
43$1,821,974$1,479,254$1,388,476$1,852,538
44$1,965,760$1,509,682$1,392,935$1,967,430
45$2,122,888$1,540,277$1,396,218$2,092,137
46$2,294,677$1,571,004$1,398,245$2,227,616
47$2,482,578$1,601,828$1,398,931$2,374,925
48$2,688,191$1,632,708$1,398,186$2,535,227
49$2,913,277$1,663,601$1,395,916$2,709,804
50$3,159,776$1,694,461$1,392,022$2,900,068
51$3,429,821$1,725,238$1,386,403$3,107,574
52$3,725,765$1,755,877$1,378,950$3,334,035
53$4,050,197$1,786,319$1,369,549$3,581,341
54$4,405,970$1,816,502$1,358,082$3,851,571
55$4,796,226$1,846,357$1,344,425$4,147,018
56$5,224,424$1,875,812$1,328,446$4,470,207
57$5,694,377$1,904,788$1,310,011$4,823,921
58$6,210,282$1,933,201$1,288,975$5,211,228
59$6,776,764$1,960,962$1,265,189$5,635,506
60$7,398,919$1,987,973$1,238,497$6,100,479
61$8,082,357$2,014,132$1,208,735$6,610,252
62$8,833,261$2,039,329$1,175,732$7,169,346
63$9,658,443$2,063,445$1,139,308$7,782,746
64$10,565,405$2,086,355$1,099,275$8,455,944
65$11,562,414$2,107,924$1,055,439$9,194,993
66$12,658,577$2,128,008$1,007,593$10,006,562
67$13,863,927$2,146,457$955,523$10,898,004
68$15,189,520$2,163,105$899,005$11,877,419
69$16,647,535$2,177,781$837,805$12,953,738
70$18,251,390$2,190,300$771,679$14,136,799
71$20,015,872$2,200,465$700,371$15,437,448
72$21,957,271$2,208,067$623,613$16,867,636
73$24,093,535$2,212,885$541,126$18,440,535
74$26,444,442$2,214,683$452,620$20,170,663
75$29,031,783$2,213,209$357,790$22,074,018
76$31,879,567$2,208,199$256,319$24,168,232
77$35,014,252$2,199,370$147,874$26,472,740
78$38,464,988$2,186,421$32,110$29,008,957
79$42,263,896$2,169,035$0$31,800,488
80$46,446,370$2,146,875$0$34,880,175
81$51,051,411$2,119,583$0$38,272,862
82$56,121,993$2,086,780$0$42,007,775
83$61,705,469$2,048,066$0$46,119,768
84$67,854,020$2,003,013$0$50,647,250
85$74,625,142$1,951,173$0$55,632,552
86$82,082,194$1,892,068$0$61,122,324
87$90,294,992$1,825,194$0$67,167,976
88$99,340,468$1,750,015$0$73,826,164
89$109,303,398$1,665,968$0$81,159,328
90$120,277,197$1,572,453$0$89,236,278
91$132,364,808$1,468,840$0$98,132,845
92$145,679,663$1,354,458$0$107,932,602
93$160,346,764$1,228,602$0$118,727,648
94$176,503,854$1,090,523$0$130,619,481
95$194,302,721$939,433$0$143,719,958
96$213,910,630$774,496$0$158,152,348
97$235,511,900$594,833$0$174,052,502
98$259,309,645$399,511$0$191,570,133
99$285,527,689$187,547$0$210,870,231
100$314,412,680$0$0$232,134,623