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%14.3%
1 years$109,004$108,033$107,086$106,161$105,259$103,387
2 years$53,963$52,958$51,984$51,039$50,123$48,244
3 years$35,618$34,608$33,637$32,701$31,800$29,972
4 years$26,447$25,441$24,479$23,559$22,680$20,917
5 years$20,946$19,946$18,997$18,096$17,241$15,548
6 years$17,280$16,287$15,352$14,471$13,642$12,021
7 years$14,662$13,678$12,758$11,898$11,095$9,546
8 years$12,700$11,725$10,820$9,981$9,204$7,728
9 years$11,175$10,208$9,319$8,501$7,751$6,346
10 years$9,955$8,998$8,124$7,328$6,604$5,269
11 years$8,958$8,011$7,153$6,378$5,680$4,413
12 years$8,127$7,190$6,348$5,594$4,922$3,722
13 years$7,425$6,498$5,671$4,939$4,292$3,157
14 years$6,824$5,906$5,096$4,384$3,763$2,690
15 years$6,303$5,395$4,601$3,910$3,313$2,301
16 years$5,848$4,950$4,171$3,501$2,928$1,975
17 years$5,447$4,559$3,796$3,146$2,596$1,699
18 years$5,091$4,213$3,465$2,835$2,308$1,466
19 years$4,772$3,904$3,172$2,561$2,057$1,267
20 years$4,486$3,628$2,911$2,320$1,838$1,096
21 years$4,228$3,379$2,678$2,105$1,645$950
22 years$3,993$3,154$2,468$1,914$1,474$825
23 years$3,779$2,950$2,279$1,743$1,323$717
24 years$3,583$2,764$2,107$1,590$1,189$623
25 years$3,403$2,594$1,952$1,452$1,070$542
26 years$3,237$2,438$1,810$1,328$964$472
27 years$3,084$2,294$1,681$1,215$869$412
28 years$2,942$2,162$1,563$1,114$784$359
29 years$2,810$2,040$1,454$1,021$708$313
30 years$2,687$1,926$1,355$937$640$273
31 years$2,572$1,821$1,263$861$579$238
32 years$2,465$1,723$1,178$791$523$208
33 years$2,364$1,632$1,100$727$474$182
34 years$2,269$1,546$1,028$669$429$159
35 years$2,180$1,467$961$616$388$139
36 years$2,096$1,392$899$567$352$121
37 years$2,017$1,322$841$523$319$106
38 years$1,943$1,257$788$482$289$93
39 years$1,872$1,195$738$444$262$81
40 years$1,805$1,137$692$410$238$71
41 years$1,741$1,082$649$378$216$62
42 years$1,681$1,031$609$349$196$54
43 years$1,623$982$571$322$178$47
44 years$1,568$936$536$297$161$41
45 years$1,516$893$503$275$146$36
46 years$1,466$852$473$254$133$32
47 years$1,419$813$444$234$121$28
48 years$1,374$776$417$217$110$24
49 years$1,330$741$392$200$100$21
50 years$1,289$708$369$185$90$19

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 $5,819 every year, while hoping to spend $32,516 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: 68/27/5 Blend
39$1,320,000$1,320,000$1,320,000$1,320,000
40$1,460,642$1,390,682$1,370,222$1,558,730
41$1,575,031$1,424,229$1,381,528$1,657,955
42$1,699,998$1,458,330$1,392,123$1,761,898
43$1,836,587$1,492,977$1,401,948$1,874,668
44$1,985,948$1,528,163$1,410,943$1,997,122
45$2,149,349$1,563,876$1,419,043$2,130,202
46$2,328,182$1,600,106$1,426,181$2,274,947
47$2,523,984$1,636,839$1,432,286$2,432,500
48$2,738,445$1,674,059$1,437,282$2,604,119
49$2,973,427$1,711,748$1,441,091$2,791,191
50$3,230,981$1,749,888$1,443,632$2,995,242
51$3,513,364$1,788,456$1,444,817$3,217,955
52$3,823,065$1,827,427$1,444,556$3,461,182
53$4,162,821$1,866,775$1,442,752$3,726,963
54$4,535,652$1,906,470$1,439,308$4,017,545
55$4,944,881$1,946,480$1,434,117$4,335,406
56$5,394,169$1,986,767$1,427,070$4,683,272
57$5,887,549$2,027,293$1,418,051$5,064,150
58$6,429,463$2,068,015$1,406,940$5,481,349
59$7,024,806$2,108,886$1,393,611$5,938,518
60$7,678,970$2,149,855$1,377,930$6,439,676
61$8,397,894$2,190,867$1,359,760$6,989,252
62$9,188,122$2,231,862$1,338,954$7,592,123
63$10,056,863$2,272,775$1,315,362$8,253,668
64$11,012,059$2,313,537$1,288,823$8,979,809
65$12,062,461$2,354,073$1,259,170$9,777,074
66$13,217,710$2,394,301$1,226,231$10,652,657
67$14,488,428$2,434,133$1,189,821$11,614,482
68$15,886,319$2,473,477$1,149,751$12,671,283
69$17,424,277$2,512,230$1,105,821$13,832,686
70$19,116,509$2,550,285$1,057,822$15,109,294
71$20,978,670$2,587,527$1,005,536$16,512,794
72$23,028,008$2,623,829$948,736$18,056,066
73$25,283,529$2,659,061$887,182$19,753,301
74$27,766,172$2,693,078$820,626$21,620,138
75$30,499,013$2,725,730$748,808$23,673,812
76$33,507,475$2,756,853$671,455$25,933,314
77$36,819,573$2,786,275$588,285$28,419,575
78$40,466,177$2,813,809$499,000$31,155,659
79$44,481,301$2,839,260$403,290$34,166,985
80$48,902,426$2,862,417$300,833$37,481,562
81$53,770,853$2,883,055$191,291$41,130,259
82$59,132,092$2,900,936$74,311$45,147,094
83$65,036,290$2,915,807$0$49,569,555
84$71,538,708$2,927,397$0$54,441,651
85$78,700,236$2,935,420$0$59,810,621
86$86,587,975$2,939,570$0$65,722,692
87$95,275,863$2,939,524$0$72,233,177
88$104,845,376$2,934,936$0$79,403,037
89$115,386,299$2,925,442$0$87,299,446
90$126,997,566$2,910,654$0$95,996,434
91$139,788,202$2,890,160$0$105,575,583
92$153,878,344$2,863,523$0$116,126,795
93$169,400,381$2,830,281$0$127,749,146
94$186,500,198$2,789,944$0$140,551,819
95$205,338,558$2,741,990$0$154,655,134
96$226,092,614$2,685,870$0$170,191,688
97$248,957,583$2,621,001$0$187,307,603
98$274,148,590$2,546,763$0$206,163,912
99$301,902,696$2,462,504$0$226,938,072
100$332,481,135$2,367,531$0$249,825,647