Can I retire at age 40 with 1,550,000?

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 $1,550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.1%
1 years$127,998$126,857$125,745$124,659$123,599$123,027
2 years$63,365$62,185$61,041$59,932$58,857$58,279
3 years$41,824$40,639$39,498$38,399$37,341$36,776
4 years$31,055$29,874$28,744$27,664$26,632$26,083
5 years$24,596$23,421$22,307$21,249$20,245$19,715
6 years$20,291$19,125$18,027$16,993$16,019$15,508
7 years$17,217$16,061$14,981$13,971$13,028$12,537
8 years$14,913$13,768$12,705$11,720$10,808$10,336
9 years$13,122$11,987$10,943$9,983$9,102$8,649
10 years$11,690$10,566$9,540$8,605$7,755$7,322
11 years$10,519$9,406$8,399$7,489$6,670$6,255
12 years$9,543$8,443$7,454$6,569$5,780$5,384
13 years$8,719$7,630$6,659$5,799$5,040$4,662
14 years$8,013$6,935$5,984$5,148$4,418$4,058
15 years$7,402$6,335$5,402$4,591$3,890$3,547
16 years$6,867$5,813$4,898$4,111$3,438$3,112
17 years$6,396$5,353$4,457$3,694$3,048$2,739
18 years$5,978$4,947$4,069$3,329$2,711$2,417
19 years$5,604$4,584$3,725$3,008$2,416$2,138
20 years$5,268$4,260$3,418$2,724$2,158$1,894
21 years$4,964$3,968$3,144$2,472$1,931$1,682
22 years$4,689$3,704$2,898$2,248$1,731$1,495
23 years$4,437$3,464$2,676$2,047$1,554$1,331
24 years$4,207$3,246$2,475$1,867$1,397$1,187
25 years$3,996$3,046$2,292$1,705$1,257$1,059
26 years$3,801$2,863$2,126$1,559$1,132$946
27 years$3,621$2,694$1,974$1,427$1,021$846
28 years$3,455$2,539$1,835$1,308$921$756
29 years$3,300$2,395$1,708$1,199$832$677
30 years$3,155$2,262$1,591$1,100$751$606
31 years$3,020$2,138$1,483$1,011$679$543
32 years$2,894$2,023$1,383$929$615$487
33 years$2,776$1,916$1,292$854$556$437
34 years$2,665$1,816$1,207$786$504$392
35 years$2,560$1,722$1,128$723$456$352
36 years$2,462$1,635$1,056$666$413$316
37 years$2,369$1,553$988$614$374$284
38 years$2,281$1,476$925$566$340$255
39 years$2,198$1,403$867$522$308$229
40 years$2,119$1,335$813$481$279$206
41 years$2,044$1,271$762$444$253$185
42 years$1,973$1,210$715$410$230$166
43 years$1,906$1,153$671$378$209$149
44 years$1,842$1,099$629$349$189$134
45 years$1,780$1,048$591$323$172$121
46 years$1,722$1,000$555$298$156$109
47 years$1,666$954$522$275$142$98
48 years$1,613$911$490$254$129$88
49 years$1,562$870$461$235$117$79
50 years$1,513$831$433$217$106$71

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,550,000, adding $3,684 every year, while hoping to spend $47,155 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: 64/13/23 Blend
39$1,550,000$1,550,000$1,550,000$1,550,000
40$1,711,900$1,629,750$1,605,725$1,811,005
41$1,836,341$1,659,435$1,609,344$1,907,963
42$1,971,895$1,688,995$1,611,504$2,008,236
43$2,119,645$1,718,372$1,612,107$2,116,720
44$2,280,784$1,747,508$1,611,047$2,234,223
45$2,456,625$1,776,336$1,608,218$2,361,636
46$2,648,612$1,804,788$1,603,505$2,499,943
47$2,858,337$1,832,789$1,596,788$2,650,225
48$3,087,549$1,860,258$1,587,943$2,813,679
49$3,338,178$1,887,109$1,576,838$2,991,620
50$3,612,345$1,913,250$1,563,335$3,185,501
51$3,912,388$1,938,583$1,547,290$3,396,922
52$4,240,881$1,963,003$1,528,553$3,627,648
53$4,600,656$1,986,396$1,506,966$3,879,625
54$4,994,836$2,008,642$1,482,362$4,155,000
55$5,426,857$2,029,613$1,454,568$4,456,136
56$5,900,504$2,049,172$1,423,404$4,785,643
57$6,419,946$2,067,172$1,388,679$5,146,396
58$6,989,776$2,083,459$1,350,195$5,541,564
59$7,615,051$2,097,866$1,307,745$5,974,644
60$8,301,342$2,110,217$1,261,110$6,449,490
61$9,054,785$2,120,324$1,210,063$6,970,349
62$9,882,141$2,127,988$1,154,368$7,541,906
63$10,790,856$2,132,996$1,093,776$8,169,325
64$11,789,133$2,135,122$1,028,028$8,858,299
65$12,886,009$2,134,128$956,851$9,615,105
66$14,091,439$2,129,758$879,963$10,446,662
67$15,416,392$2,121,742$797,068$11,360,599
68$16,872,950$2,109,793$707,856$12,365,326
69$18,474,426$2,093,608$612,004$13,470,113
70$20,235,486$2,072,863$509,174$14,685,180
71$22,172,289$2,047,217$399,015$16,021,794
72$24,302,639$2,016,307$281,158$17,492,375
73$26,646,151$1,979,749$155,220$19,110,613
74$29,224,437$1,937,135$20,799$20,891,602
75$32,061,310$1,888,036$0$22,851,977
76$35,183,008$1,831,994$0$25,040,177
77$38,618,440$1,768,527$0$27,453,723
78$42,399,459$1,697,122$0$30,109,898
79$46,561,163$1,617,240$0$33,033,382
80$51,142,224$1,528,308$0$36,251,372
81$56,185,257$1,429,721$0$39,793,839
82$61,737,214$1,320,838$0$43,693,810
83$67,849,834$1,200,984$0$47,987,682
84$74,580,128$1,069,442$0$52,715,564
85$81,990,914$925,458$0$57,921,659
86$90,151,414$768,233$0$63,654,676
87$99,137,904$596,922$0$69,968,295
88$109,034,434$410,635$0$76,921,674
89$119,933,621$208,430$0$84,580,003
90$131,937,522$0$0$93,015,124
91$145,158,596$0$0$102,307,738
92$159,720,769$0$0$112,575,951
93$175,760,597$0$0$123,886,256
94$193,428,560$0$0$136,344,780
95$212,890,476$0$0$150,068,470
96$234,329,073$0$0$165,186,197
97$257,945,705$0$0$181,839,971
98$283,962,258$0$0$200,186,281
99$312,623,242$0$0$220,397,571
100$344,198,096$0$0$242,663,869