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%
1 years$109,004$108,033$107,086$106,161$105,259$103,515
2 years$53,963$52,958$51,984$51,039$50,123$48,371
3 years$35,618$34,608$33,637$32,701$31,800$30,095
4 years$26,447$25,441$24,479$23,559$22,680$21,035
5 years$20,946$19,946$18,997$18,096$17,241$15,660
6 years$17,280$16,287$15,352$14,471$13,642$12,128
7 years$14,662$13,678$12,758$11,898$11,095$9,647
8 years$12,700$11,725$10,820$9,981$9,204$7,823
9 years$11,175$10,208$9,319$8,501$7,751$6,435
10 years$9,955$8,998$8,124$7,328$6,604$5,353
11 years$8,958$8,011$7,153$6,378$5,680$4,492
12 years$8,127$7,190$6,348$5,594$4,922$3,796
13 years$7,425$6,498$5,671$4,939$4,292$3,226
14 years$6,824$5,906$5,096$4,384$3,763$2,754
15 years$6,303$5,395$4,601$3,910$3,313$2,361
16 years$5,848$4,950$4,171$3,501$2,928$2,030
17 years$5,447$4,559$3,796$3,146$2,596$1,751
18 years$5,091$4,213$3,465$2,835$2,308$1,514
19 years$4,772$3,904$3,172$2,561$2,057$1,311
20 years$4,486$3,628$2,911$2,320$1,838$1,137
21 years$4,228$3,379$2,678$2,105$1,645$988
22 years$3,993$3,154$2,468$1,914$1,474$860
23 years$3,779$2,950$2,279$1,743$1,323$748
24 years$3,583$2,764$2,107$1,590$1,189$652
25 years$3,403$2,594$1,952$1,452$1,070$569
26 years$3,237$2,438$1,810$1,328$964$497
27 years$3,084$2,294$1,681$1,215$869$434
28 years$2,942$2,162$1,563$1,114$784$379
29 years$2,810$2,040$1,454$1,021$708$332
30 years$2,687$1,926$1,355$937$640$290
31 years$2,572$1,821$1,263$861$579$254
32 years$2,465$1,723$1,178$791$523$222
33 years$2,364$1,632$1,100$727$474$195
34 years$2,269$1,546$1,028$669$429$170
35 years$2,180$1,467$961$616$388$149
36 years$2,096$1,392$899$567$352$131
37 years$2,017$1,322$841$523$319$115
38 years$1,943$1,257$788$482$289$100
39 years$1,872$1,195$738$444$262$88
40 years$1,805$1,137$692$410$238$77
41 years$1,741$1,082$649$378$216$68
42 years$1,681$1,031$609$349$196$59
43 years$1,623$982$571$322$178$52
44 years$1,568$936$536$297$161$46
45 years$1,516$893$503$275$146$40
46 years$1,466$852$473$254$133$35
47 years$1,419$813$444$234$121$31
48 years$1,374$776$417$217$110$27
49 years$1,330$741$392$200$100$24
50 years$1,289$708$369$185$90$21

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 $4,680 every year, while hoping to spend $47,711 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: 44/30/26 Blend
39$1,320,000$1,320,000$1,320,000$1,320,000
40$1,459,467$1,389,507$1,369,047$1,512,492
41$1,557,569$1,406,829$1,364,146$1,567,990
42$1,664,078$1,423,401$1,357,482$1,623,167
43$1,779,801$1,439,135$1,348,945$1,682,049
44$1,905,627$1,453,938$1,338,421$1,745,006
45$2,042,532$1,467,712$1,325,789$1,812,449
46$2,191,591$1,480,351$1,310,923$1,884,831
47$2,353,986$1,491,741$1,293,693$1,962,656
48$2,531,020$1,501,764$1,273,959$2,046,479
49$2,724,125$1,510,291$1,251,577$2,136,916
50$2,934,876$1,517,186$1,226,396$2,234,649
51$3,165,011$1,522,305$1,198,257$2,340,431
52$3,416,439$1,525,495$1,166,995$2,455,096
53$3,691,263$1,526,592$1,132,437$2,579,565
54$3,991,799$1,525,422$1,094,401$2,714,859
55$4,320,597$1,521,802$1,052,698$2,862,104
56$4,680,464$1,515,536$1,007,129$3,022,548
57$5,074,490$1,506,417$957,487$3,197,569
58$5,506,081$1,494,224$903,556$3,388,689
59$5,978,985$1,478,725$845,109$3,597,593
60$6,497,331$1,459,672$781,909$3,826,141
61$7,065,665$1,436,802$713,710$4,076,389
62$7,688,996$1,409,839$640,252$4,350,608
63$8,372,840$1,378,487$561,267$4,651,309
64$9,123,272$1,342,435$476,472$4,981,264
65$9,946,985$1,301,354$385,573$5,343,535
66$10,851,351$1,254,893$288,263$5,741,504
67$11,844,490$1,202,684$184,220$6,178,907
68$12,935,347$1,144,335$73,111$6,659,868
69$14,133,777$1,079,432$0$7,188,941
70$15,450,637$1,007,539$0$7,783,768
71$16,897,886$928,191$0$8,459,751
72$18,488,699$840,902$0$9,202,822
73$20,237,593$745,153$0$10,019,855
74$22,160,560$640,398$0$10,918,433
75$24,275,220$526,060$0$11,906,915
76$26,600,985$401,530$0$12,994,523
77$29,159,244$266,163$0$14,191,422
78$31,973,561$119,279$0$15,508,825
79$35,069,900$0$0$16,959,094
80$38,476,870$0$0$18,569,012
81$42,225,991$0$0$20,384,125
82$46,351,994$0$0$22,381,893
83$50,893,145$0$0$24,580,869
84$55,891,612$0$0$27,001,495
85$61,393,854$0$0$29,666,296
86$67,451,065$0$0$32,600,093
87$74,119,656$0$0$35,830,233
88$81,461,783$0$0$39,386,853
89$89,545,938$0$0$43,303,160
90$98,447,591$0$0$47,615,743
91$108,249,904$0$0$52,364,924
92$119,044,513$0$0$57,595,130
93$130,932,395$0$0$63,355,320
94$144,024,820$0$0$69,699,443
95$158,444,398$0$0$76,686,946
96$174,326,237$0$0$84,383,335
97$191,819,220$0$0$92,860,798
98$211,087,407$0$0$102,198,878
99$232,311,581$0$0$112,485,231
100$255,690,958$0$0$123,816,446