Can I retire at age 40 with 1,360,000?

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 $1,360,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$112,308$111,307$110,331$109,379$108,448$104,228
2 years$55,598$54,562$53,559$52,586$51,642$47,441
3 years$36,697$35,657$34,656$33,692$32,764$28,714
4 years$27,248$26,212$25,221$24,273$23,367$19,500
5 years$21,581$20,550$19,572$18,644$17,764$14,089
6 years$17,804$16,781$15,817$14,910$14,056$10,576
7 years$15,107$14,093$13,144$12,258$11,431$8,145
8 years$13,085$12,080$11,147$10,283$9,483$6,387
9 years$11,513$10,518$9,601$8,759$7,986$5,076
10 years$10,257$9,271$8,371$7,550$6,805$4,075
11 years$9,229$8,253$7,369$6,571$5,852$3,297
12 years$8,374$7,408$6,540$5,764$5,071$2,683
13 years$7,650$6,694$5,843$5,088$4,422$2,194
14 years$7,031$6,085$5,250$4,517$3,877$1,802
15 years$6,494$5,559$4,740$4,028$3,413$1,484
16 years$6,025$5,100$4,298$3,607$3,017$1,225
17 years$5,612$4,697$3,911$3,241$2,675$1,013
18 years$5,245$4,340$3,570$2,921$2,378$840
19 years$4,917$4,022$3,268$2,639$2,120$697
20 years$4,622$3,738$2,999$2,390$1,893$579
21 years$4,356$3,482$2,759$2,169$1,694$481
22 years$4,114$3,250$2,543$1,972$1,519$401
23 years$3,893$3,040$2,348$1,796$1,363$334
24 years$3,692$2,848$2,171$1,638$1,225$278
25 years$3,506$2,673$2,011$1,496$1,103$232
26 years$3,335$2,512$1,865$1,368$993$193
27 years$3,178$2,364$1,732$1,252$896$161
28 years$3,031$2,228$1,610$1,147$808$134
29 years$2,895$2,101$1,498$1,052$730$112
30 years$2,768$1,985$1,396$966$659$94
31 years$2,650$1,876$1,301$887$596$78
32 years$2,539$1,775$1,214$815$539$65
33 years$2,436$1,681$1,133$749$488$55
34 years$2,338$1,593$1,059$690$442$46
35 years$2,246$1,511$990$635$400$38
36 years$2,160$1,434$926$585$363$32
37 years$2,078$1,362$867$539$329$27
38 years$2,001$1,295$812$496$298$22
39 years$1,928$1,231$761$458$270$18
40 years$1,859$1,171$713$422$245$15
41 years$1,794$1,115$668$390$222$13
42 years$1,731$1,062$627$360$202$11
43 years$1,672$1,012$588$332$183$9
44 years$1,616$964$552$306$166$8
45 years$1,562$920$519$283$151$6
46 years$1,511$877$487$261$137$5
47 years$1,462$837$458$242$124$4
48 years$1,415$799$430$223$113$4
49 years$1,371$763$404$206$103$3
50 years$1,328$729$380$191$93$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,360,000, adding $4,359 every year, while hoping to spend $29,649 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: 56/31/13 Blend
39$1,360,000$1,360,000$1,360,000$1,360,000
40$1,503,216$1,431,136$1,410,056$1,582,159
41$1,624,998$1,469,716$1,425,747$1,674,730
42$1,758,208$1,509,192$1,440,969$1,771,895
43$1,903,980$1,549,577$1,455,677$1,877,042
44$2,063,564$1,590,884$1,469,820$1,990,938
45$2,238,334$1,633,124$1,483,346$2,114,429
46$2,429,806$1,676,310$1,496,200$2,248,447
47$2,639,648$1,720,451$1,508,324$2,394,017
48$2,869,697$1,765,557$1,519,658$2,552,268
49$3,121,977$1,811,640$1,530,137$2,724,442
50$3,398,715$1,858,707$1,539,693$2,911,910
51$3,702,367$1,906,766$1,548,255$3,116,180
52$4,035,636$1,955,826$1,555,750$3,338,911
53$4,401,501$2,005,891$1,562,098$3,581,935
54$4,803,242$2,056,969$1,567,216$3,847,265
55$5,244,474$2,109,061$1,571,019$4,137,124
56$5,729,178$2,162,172$1,573,416$4,453,955
57$6,261,739$2,216,304$1,574,310$4,800,453
58$6,846,989$2,271,455$1,573,602$5,179,588
59$7,490,251$2,327,626$1,571,187$5,594,628
60$8,197,390$2,384,812$1,566,954$6,049,178
61$8,974,864$2,443,009$1,560,789$6,547,207
62$9,829,794$2,502,210$1,552,568$7,093,090
63$10,770,021$2,562,406$1,542,167$7,691,647
64$11,804,184$2,623,585$1,529,451$8,348,187
65$12,941,805$2,685,734$1,514,281$9,068,563
66$14,193,370$2,748,837$1,496,511$9,859,222
67$15,570,438$2,812,874$1,475,989$10,727,271
68$17,085,741$2,877,824$1,452,553$11,680,537
69$18,753,310$2,943,660$1,426,036$12,727,650
70$20,588,602$3,010,353$1,396,263$13,878,115
71$22,608,651$3,077,873$1,363,049$15,142,409
72$24,832,226$3,146,181$1,326,204$16,532,077
73$27,280,006$3,215,237$1,285,525$18,059,842
74$29,974,779$3,284,996$1,240,802$19,739,722
75$32,941,654$3,355,408$1,191,816$21,587,167
76$36,208,297$3,426,417$1,138,337$23,619,203
77$39,805,196$3,497,964$1,080,123$25,854,592
78$43,765,943$3,569,982$1,016,925$28,314,009
79$48,127,556$3,642,398$948,479$31,020,241
80$52,930,825$3,715,133$874,511$33,998,396
81$58,220,696$3,788,102$794,734$37,276,147
82$64,046,698$3,861,210$708,848$40,883,988
83$70,463,408$3,934,356$616,542$44,855,524
84$77,530,967$4,007,431$517,487$49,227,791
85$85,315,646$4,080,315$411,344$54,041,602
86$93,890,473$4,152,882$297,755$59,341,934
87$103,335,920$4,224,992$176,348$65,178,353
88$113,740,664$4,296,497$46,736$71,605,485
89$125,202,423$4,367,236$0$78,683,526
90$137,828,878$4,437,039$0$86,491,519
91$151,738,690$4,505,720$0$95,097,615
92$167,062,617$4,573,081$0$104,575,952
93$183,944,752$4,638,910$0$115,015,383
94$202,543,880$4,702,980$0$126,513,824
95$223,034,977$4,765,048$0$139,179,177
96$245,610,862$4,824,852$0$153,130,349
97$270,484,016$4,882,117$0$168,498,376
98$297,888,589$4,936,543$0$185,427,660
99$328,082,607$4,987,816$0$204,077,330
100$361,350,411$5,035,596$0$224,622,748