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%13.9%
1 years$110,656$109,670$108,709$107,770$106,853$105,127
2 years$54,780$53,760$52,771$51,813$50,883$49,148
3 years$36,157$35,133$34,146$33,197$32,282$30,593
4 years$26,848$25,826$24,850$23,916$23,024$21,393
5 years$21,263$20,248$19,285$18,370$17,502$15,935
6 years$17,542$16,534$15,585$14,691$13,849$12,348
7 years$14,885$13,885$12,951$12,078$11,263$9,827
8 years$12,893$11,902$10,983$10,132$9,344$7,974
9 years$11,344$10,363$9,460$8,630$7,869$6,563
10 years$10,106$9,135$8,248$7,439$6,705$5,463
11 years$9,093$8,132$7,261$6,474$5,766$4,587
12 years$8,250$7,299$6,444$5,679$4,997$3,879
13 years$7,538$6,596$5,757$5,014$4,357$3,298
14 years$6,927$5,996$5,173$4,451$3,820$2,818
15 years$6,399$5,477$4,670$3,969$3,363$2,417
16 years$5,937$5,025$4,234$3,554$2,972$2,080
17 years$5,529$4,628$3,853$3,193$2,635$1,795
18 years$5,168$4,276$3,517$2,878$2,343$1,553
19 years$4,845$3,963$3,220$2,600$2,089$1,346
20 years$4,554$3,683$2,955$2,355$1,866$1,169
21 years$4,292$3,430$2,718$2,137$1,670$1,016
22 years$4,053$3,202$2,505$1,943$1,496$885
23 years$3,836$2,995$2,313$1,770$1,343$771
24 years$3,637$2,806$2,139$1,614$1,207$673
25 years$3,455$2,633$1,981$1,474$1,086$587
26 years$3,286$2,475$1,838$1,348$979$513
27 years$3,131$2,329$1,706$1,234$882$448
28 years$2,987$2,195$1,586$1,130$796$392
29 years$2,853$2,071$1,476$1,037$719$343
30 years$2,728$1,955$1,375$951$650$301
31 years$2,611$1,849$1,282$874$587$263
32 years$2,502$1,749$1,196$803$531$231
33 years$2,400$1,656$1,117$738$481$202
34 years$2,304$1,570$1,043$679$435$177
35 years$2,213$1,489$976$625$394$155
36 years$2,128$1,413$913$576$357$136
37 years$2,048$1,342$854$531$324$119
38 years$1,972$1,276$800$489$294$105
39 years$1,900$1,213$749$451$266$92
40 years$1,832$1,154$702$416$241$81
41 years$1,767$1,099$659$384$219$71
42 years$1,706$1,046$618$354$199$62
43 years$1,648$997$580$327$180$54
44 years$1,592$950$544$302$164$48
45 years$1,539$906$511$279$149$42
46 years$1,489$864$480$258$135$37
47 years$1,441$825$451$238$123$32
48 years$1,394$788$424$220$111$28
49 years$1,350$752$398$203$101$25
50 years$1,308$718$374$188$92$22

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 $4,035 every year, while hoping to spend $57,961 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: 40/30/30 Blend
39$1,340,000$1,340,000$1,340,000$1,340,000
40$1,480,842$1,409,822$1,389,052$1,526,829
41$1,570,218$1,417,233$1,373,915$1,568,180
42$1,666,768$1,423,065$1,356,329$1,607,249
43$1,771,161$1,427,179$1,336,149$1,648,435
44$1,884,136$1,429,427$1,313,227$1,691,971
45$2,006,503$1,429,654$1,287,405$1,738,115
46$2,139,152$1,427,692$1,258,518$1,787,157
47$2,283,062$1,423,366$1,226,395$1,839,420
48$2,439,311$1,416,488$1,190,857$1,895,265
49$2,609,085$1,406,859$1,151,714$1,955,093
50$2,793,685$1,394,269$1,108,770$2,019,351
51$2,994,547$1,378,494$1,061,819$2,088,538
52$3,213,247$1,359,297$1,010,647$2,163,207
53$3,451,522$1,336,427$955,028$2,243,976
54$3,711,284$1,309,618$894,727$2,331,531
55$3,994,633$1,278,587$829,499$2,426,632
56$4,303,885$1,243,038$759,087$2,530,129
57$4,641,588$1,202,653$683,223$2,642,960
58$5,010,546$1,157,099$601,627$2,766,171
59$5,413,846$1,106,021$514,006$2,900,920
60$5,854,887$1,049,045$420,054$3,048,494
61$6,337,413$985,776$319,454$3,210,319
62$6,865,545$915,795$211,871$3,387,977
63$7,443,820$838,658$96,958$3,583,221
64$8,077,236$753,898$0$3,797,995
65$8,771,296$661,021$0$4,042,670
66$9,532,060$559,504$0$4,345,067
67$10,366,205$448,794$0$4,676,887
68$11,281,081$328,308$0$5,041,183
69$12,284,786$197,430$0$5,441,332
70$13,386,241$55,510$0$5,881,059
71$14,595,268$0$0$6,364,478
72$15,922,690$0$0$6,928,526
73$17,380,429$0$0$7,568,256
74$18,981,616$0$0$8,271,129
75$20,740,719$0$0$9,043,518
76$22,673,674$0$0$9,892,446
77$24,798,038$0$0$10,825,650
78$27,133,154$0$0$11,851,651
79$29,700,332$0$0$12,979,841
80$32,523,050$0$0$14,220,565
81$35,627,174$0$0$15,585,221
82$39,041,201$0$0$17,086,369
83$42,796,531$0$0$18,737,844
84$46,927,758$0$0$20,554,892
85$51,472,999$0$0$22,554,312
86$56,474,250$0$0$24,754,612
87$61,977,786$0$0$27,176,184
88$68,034,591$0$0$29,841,500
89$74,700,846$0$0$32,775,319
90$82,038,451$0$0$36,004,921
91$90,115,612$0$0$39,560,368
92$99,007,485$0$0$43,474,784
93$108,796,881$0$0$47,784,667
94$119,575,050$0$0$52,530,235
95$131,442,541$0$0$57,755,803
96$144,510,147$0$0$63,510,206
97$158,899,954$0$0$69,847,252
98$174,746,488$0$0$76,826,235
99$192,197,990$0$0$84,512,494
100$211,417,807$0$0$92,978,025