Can I retire at age 40 with 1,340,000?

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 $1,340,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.2%
1 years$110,656$109,670$108,709$107,770$106,853$105,431
2 years$54,780$53,760$52,771$51,813$50,883$49,452
3 years$36,157$35,133$34,146$33,197$32,282$30,887
4 years$26,848$25,826$24,850$23,916$23,024$21,676
5 years$21,263$20,248$19,285$18,370$17,502$16,205
6 years$17,542$16,534$15,585$14,691$13,849$12,604
7 years$14,885$13,885$12,951$12,078$11,263$10,071
8 years$12,893$11,902$10,983$10,132$9,344$8,204
9 years$11,344$10,363$9,460$8,630$7,869$6,781
10 years$10,106$9,135$8,248$7,439$6,705$5,668
11 years$9,093$8,132$7,261$6,474$5,766$4,780
12 years$8,250$7,299$6,444$5,679$4,997$4,060
13 years$7,538$6,596$5,757$5,014$4,357$3,469
14 years$6,927$5,996$5,173$4,451$3,820$2,978
15 years$6,399$5,477$4,670$3,969$3,363$2,567
16 years$5,937$5,025$4,234$3,554$2,972$2,220
17 years$5,529$4,628$3,853$3,193$2,635$1,925
18 years$5,168$4,276$3,517$2,878$2,343$1,673
19 years$4,845$3,963$3,220$2,600$2,089$1,458
20 years$4,554$3,683$2,955$2,355$1,866$1,272
21 years$4,292$3,430$2,718$2,137$1,670$1,112
22 years$4,053$3,202$2,505$1,943$1,496$973
23 years$3,836$2,995$2,313$1,770$1,343$853
24 years$3,637$2,806$2,139$1,614$1,207$748
25 years$3,455$2,633$1,981$1,474$1,086$657
26 years$3,286$2,475$1,838$1,348$979$577
27 years$3,131$2,329$1,706$1,234$882$507
28 years$2,987$2,195$1,586$1,130$796$446
29 years$2,853$2,071$1,476$1,037$719$393
30 years$2,728$1,955$1,375$951$650$346
31 years$2,611$1,849$1,282$874$587$305
32 years$2,502$1,749$1,196$803$531$268
33 years$2,400$1,656$1,117$738$481$237
34 years$2,304$1,570$1,043$679$435$209
35 years$2,213$1,489$976$625$394$184
36 years$2,128$1,413$913$576$357$162
37 years$2,048$1,342$854$531$324$143
38 years$1,972$1,276$800$489$294$126
39 years$1,900$1,213$749$451$266$111
40 years$1,832$1,154$702$416$241$98
41 years$1,767$1,099$659$384$219$87
42 years$1,706$1,046$618$354$199$77
43 years$1,648$997$580$327$180$68
44 years$1,592$950$544$302$164$60
45 years$1,539$906$511$279$149$53
46 years$1,489$864$480$258$135$47
47 years$1,441$825$451$238$123$41
48 years$1,394$788$424$220$111$36
49 years$1,350$752$398$203$101$32
50 years$1,308$718$374$188$92$28

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,340,000, adding $4,440 every year, while hoping to spend $51,988 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: 73/7/20 Blend
39$1,340,000$1,340,000$1,340,000$1,340,000
40$1,481,260$1,410,240$1,389,470$1,581,984
41$1,577,034$1,424,027$1,380,702$1,663,297
42$1,680,834$1,436,747$1,369,899$1,745,648
43$1,793,424$1,448,293$1,356,936$1,834,543
44$1,915,645$1,458,551$1,341,684$1,930,623
45$2,048,420$1,467,399$1,324,010$2,034,593
46$2,192,766$1,474,708$1,303,771$2,147,233
47$2,349,800$1,480,341$1,280,819$2,269,403
48$2,520,752$1,484,151$1,255,000$2,402,048
49$2,706,977$1,485,982$1,226,151$2,546,213
50$2,909,964$1,485,671$1,194,102$2,703,049
51$3,131,352$1,483,040$1,158,676$2,873,826
52$3,372,946$1,477,905$1,119,688$3,059,944
53$3,636,732$1,470,067$1,076,942$3,262,945
54$3,924,895$1,459,318$1,030,237$3,484,531
55$4,239,844$1,445,434$979,359$3,726,579
56$4,584,227$1,428,179$924,087$3,991,158
57$4,960,963$1,407,305$864,189$4,280,548
58$5,373,264$1,382,546$799,422$4,597,265
59$5,824,668$1,353,621$729,533$4,944,081
60$6,319,070$1,320,235$654,259$5,324,054
61$6,860,760$1,282,071$573,321$5,740,556
62$7,454,463$1,238,797$486,432$6,197,302
63$8,105,381$1,190,061$393,291$6,698,391
64$8,819,245$1,135,490$293,581$7,248,341
65$9,602,368$1,074,689$186,976$7,852,133
66$10,461,701$1,007,240$73,132$8,515,258
67$11,404,903$932,704$0$9,243,771
68$12,440,409$850,612$0$10,054,667
69$13,577,511$760,472$0$10,962,310
70$14,826,445$661,763$0$11,959,272
71$16,198,488$553,935$0$13,054,584
72$17,706,060$436,404$0$14,258,197
73$19,362,848$308,558$0$15,581,072
74$21,183,928$169,746$0$17,035,291
75$23,185,909$19,284$0$18,634,163
76$25,387,090$0$0$20,392,358
77$27,807,632$0$0$22,337,093
78$30,469,749$0$0$24,477,619
79$33,397,912$0$0$26,832,135
80$36,619,085$0$0$29,422,333
81$40,162,978$0$0$32,272,111
82$44,062,323$0$0$35,407,800
83$48,353,187$0$0$38,858,413
84$53,075,309$0$0$42,655,918
85$58,272,475$0$0$46,835,538
86$63,992,933$0$0$51,436,084
87$70,289,841$0$0$56,500,319
88$77,221,778$0$0$62,075,366
89$84,853,288$0$0$68,213,147
90$93,255,490$0$0$74,970,873
91$102,506,753$0$0$82,411,586
92$112,693,429$0$0$90,604,753
93$123,910,672$0$0$99,626,920
94$136,263,334$0$0$109,562,433
95$149,866,950$0$0$120,504,235
96$164,848,836$0$0$132,554,744
97$181,349,280$0$0$145,826,816
98$199,522,875$0$0$160,444,811
99$219,539,969$0$0$176,545,767
100$241,588,279$0$0$194,280,691