Can I retire at age 40 with 1,600,000?

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 $1,600,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.2%
1 years$132,127$130,950$129,801$128,681$127,586$122,864
2 years$65,409$64,191$63,010$61,866$60,755$56,051
3 years$43,173$41,950$40,772$39,638$38,546$34,007
4 years$32,057$30,837$29,671$28,557$27,491$23,153
5 years$25,389$24,177$23,026$21,934$20,898$16,772
6 years$20,945$19,742$18,609$17,541$16,536$12,625
7 years$17,773$16,579$15,464$14,422$13,448$9,751
8 years$15,394$14,212$13,115$12,098$11,157$7,670
9 years$13,545$12,374$11,296$10,305$9,396$6,114
10 years$12,067$10,907$9,848$8,883$8,005$4,924
11 years$10,858$9,710$8,670$7,731$6,885$3,996
12 years$9,851$8,715$7,694$6,781$5,966$3,264
13 years$9,000$7,876$6,874$5,986$5,203$2,678
14 years$8,271$7,159$6,177$5,314$4,561$2,206
15 years$7,640$6,540$5,577$4,739$4,016$1,824
16 years$7,089$6,000$5,056$4,243$3,549$1,511
17 years$6,602$5,526$4,601$3,813$3,147$1,255
18 years$6,171$5,106$4,200$3,436$2,798$1,044
19 years$5,785$4,732$3,845$3,105$2,494$869
20 years$5,438$4,398$3,529$2,812$2,228$725
21 years$5,124$4,096$3,246$2,552$1,993$605
22 years$4,840$3,824$2,991$2,320$1,787$506
23 years$4,581$3,576$2,762$2,113$1,604$423
24 years$4,343$3,351$2,554$1,927$1,442$354
25 years$4,125$3,144$2,366$1,760$1,297$296
26 years$3,924$2,955$2,194$1,609$1,169$248
27 years$3,738$2,781$2,038$1,473$1,054$208
28 years$3,566$2,621$1,894$1,350$951$174
29 years$3,406$2,472$1,763$1,238$858$146
30 years$3,257$2,335$1,642$1,136$776$122
31 years$3,118$2,207$1,531$1,043$701$102
32 years$2,987$2,088$1,428$959$634$86
33 years$2,865$1,978$1,333$882$574$72
34 years$2,751$1,875$1,246$811$520$60
35 years$2,643$1,778$1,165$747$471$51
36 years$2,541$1,688$1,090$688$427$42
37 years$2,445$1,603$1,020$634$387$36
38 years$2,355$1,523$955$584$350$30
39 years$2,269$1,448$895$539$318$25
40 years$2,187$1,378$839$497$288$21
41 years$2,110$1,312$786$458$262$18
42 years$2,037$1,249$738$423$237$15
43 years$1,967$1,190$692$390$215$12
44 years$1,901$1,135$650$361$195$10
45 years$1,838$1,082$610$333$177$9
46 years$1,778$1,032$573$308$161$7
47 years$1,720$985$538$284$146$6
48 years$1,665$940$506$263$133$5
49 years$1,612$898$476$243$121$4
50 years$1,562$858$447$224$110$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,600,000, adding $4,303 every year, while hoping to spend $36,020 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: 45/25/30 Blend
39$1,600,000$1,600,000$1,600,000$1,600,000
40$1,767,639$1,682,839$1,658,039$1,831,669
41$1,909,613$1,726,973$1,675,258$1,921,903
42$2,064,861$1,772,062$1,691,847$2,015,941
43$2,234,699$1,818,116$1,707,746$2,117,256
44$2,420,577$1,865,141$1,722,894$2,226,549
45$2,624,088$1,913,146$1,737,224$2,344,593
46$2,846,992$1,962,137$1,750,667$2,472,240
47$3,091,222$2,012,118$1,763,151$2,610,428
48$3,358,909$2,063,094$1,774,599$2,760,191
49$3,652,400$2,115,068$1,784,931$2,922,669
50$3,974,280$2,168,042$1,794,061$3,099,118
51$4,327,396$2,222,016$1,801,901$3,290,923
52$4,714,884$2,276,988$1,808,358$3,499,609
53$5,140,197$2,332,955$1,813,333$3,726,857
54$5,607,140$2,389,913$1,816,724$3,974,523
55$6,119,906$2,447,856$1,818,421$4,244,648
56$6,683,109$2,506,774$1,818,311$4,539,485
57$7,301,837$2,566,657$1,816,275$4,861,516
58$7,981,692$2,627,491$1,812,188$5,213,478
59$8,728,848$2,689,261$1,805,919$5,598,387
60$9,550,103$2,751,947$1,797,330$6,019,568
61$10,452,950$2,815,529$1,786,278$6,480,686
62$11,445,643$2,879,982$1,772,610$6,985,780
63$12,537,274$2,945,277$1,756,168$7,539,304
64$13,737,864$3,011,384$1,736,788$8,146,167
65$15,058,450$3,078,266$1,714,294$8,811,780
66$16,511,195$3,145,883$1,688,506$9,542,106
67$18,109,499$3,214,193$1,659,232$10,343,722
68$19,868,125$3,283,146$1,626,274$11,223,873
69$21,803,342$3,352,689$1,589,423$12,190,549
70$23,933,075$3,422,762$1,548,460$13,252,556
71$26,277,072$3,493,302$1,503,157$14,419,600
72$28,857,096$3,564,236$1,453,276$15,702,380
73$31,697,126$3,635,489$1,398,566$17,112,689
74$34,823,581$3,706,977$1,338,767$18,663,527
75$38,265,575$3,778,608$1,273,605$20,369,223
76$42,055,188$3,850,283$1,202,794$22,245,570
77$46,227,766$3,921,896$1,126,037$24,309,977
78$50,822,260$3,993,331$1,043,021$26,581,633
79$55,881,590$4,064,463$953,421$29,081,688
80$61,453,048$4,135,158$856,896$31,833,453
81$67,588,748$4,205,269$753,092$34,862,625
82$74,346,115$4,274,643$641,635$38,197,524
83$81,788,428$4,343,110$522,140$41,869,367
84$89,985,416$4,410,490$394,199$45,912,559
85$99,013,916$4,476,592$257,392$50,365,022
86$108,958,597$4,541,206$111,277$55,268,554
87$119,912,761$4,604,113$0$60,669,222
88$131,979,222$4,665,074$0$66,632,094
89$145,271,277$4,723,836$0$73,237,780
90$159,913,771$4,780,128$0$80,512,461
91$176,044,281$4,833,661$0$88,524,286
92$193,814,412$4,884,124$0$97,348,351
93$213,391,225$4,931,189$0$107,067,416
94$234,958,817$4,974,504$0$117,772,679
95$258,720,056$5,013,695$0$129,564,645
96$284,898,499$5,048,362$0$142,554,067
97$313,740,495$5,078,082$0$156,863,000
98$345,517,519$5,102,402$0$172,625,946
99$380,528,728$5,120,841$0$189,991,130
100$419,103,786$5,132,890$0$209,121,896