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

Use the below retirement simulation to view the chances of a successful retirement.
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%14.9%
1 years$132,127$130,950$129,801$128,681$127,586$125,010
2 years$65,409$64,191$63,010$61,866$60,755$58,171
3 years$43,173$41,950$40,772$39,638$38,546$36,034
4 years$32,057$30,837$29,671$28,557$27,491$25,072
5 years$25,389$24,177$23,026$21,934$20,898$18,578
6 years$20,945$19,742$18,609$17,541$16,536$14,317
7 years$17,773$16,579$15,464$14,422$13,448$11,331
8 years$15,394$14,212$13,115$12,098$11,157$9,140
9 years$13,545$12,374$11,296$10,305$9,396$7,479
10 years$12,067$10,907$9,848$8,883$8,005$6,187
11 years$10,858$9,710$8,670$7,731$6,885$5,162
12 years$9,851$8,715$7,694$6,781$5,966$4,337
13 years$9,000$7,876$6,874$5,986$5,203$3,664
14 years$8,271$7,159$6,177$5,314$4,561$3,110
15 years$7,640$6,540$5,577$4,739$4,016$2,649
16 years$7,089$6,000$5,056$4,243$3,549$2,264
17 years$6,602$5,526$4,601$3,813$3,147$1,940
18 years$6,171$5,106$4,200$3,436$2,798$1,666
19 years$5,785$4,732$3,845$3,105$2,494$1,433
20 years$5,438$4,398$3,529$2,812$2,228$1,235
21 years$5,124$4,096$3,246$2,552$1,993$1,066
22 years$4,840$3,824$2,991$2,320$1,787$921
23 years$4,581$3,576$2,762$2,113$1,604$796
24 years$4,343$3,351$2,554$1,927$1,442$689
25 years$4,125$3,144$2,366$1,760$1,297$597
26 years$3,924$2,955$2,194$1,609$1,169$517
27 years$3,738$2,781$2,038$1,473$1,054$449
28 years$3,566$2,621$1,894$1,350$951$389
29 years$3,406$2,472$1,763$1,238$858$338
30 years$3,257$2,335$1,642$1,136$776$293
31 years$3,118$2,207$1,531$1,043$701$255
32 years$2,987$2,088$1,428$959$634$221
33 years$2,865$1,978$1,333$882$574$192
34 years$2,751$1,875$1,246$811$520$167
35 years$2,643$1,778$1,165$747$471$145
36 years$2,541$1,688$1,090$688$427$126
37 years$2,445$1,603$1,020$634$387$110
38 years$2,355$1,523$955$584$350$96
39 years$2,269$1,448$895$539$318$83
40 years$2,187$1,378$839$497$288$72
41 years$2,110$1,312$786$458$262$63
42 years$2,037$1,249$738$423$237$55
43 years$1,967$1,190$692$390$215$48
44 years$1,901$1,135$650$361$195$41
45 years$1,838$1,082$610$333$177$36
46 years$1,778$1,032$573$308$161$31
47 years$1,720$985$538$284$146$27
48 years$1,665$940$506$263$133$24
49 years$1,612$898$476$243$121$21
50 years$1,562$858$447$224$110$18

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 $4,736 every year, while hoping to spend $22,885 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: 51/43/6 Blend
39$1,600,000$1,600,000$1,600,000$1,600,000
40$1,768,085$1,683,285$1,658,485$1,855,454
41$1,924,080$1,741,417$1,689,695$1,973,479
42$2,095,220$1,801,630$1,721,183$2,098,834
43$2,283,025$1,864,002$1,752,935$2,234,546
44$2,489,170$1,928,614$1,784,935$2,381,594
45$2,715,500$1,995,551$1,817,165$2,541,051
46$2,964,047$2,064,899$1,849,606$2,714,097
47$3,237,050$2,136,749$1,882,238$2,902,031
48$3,536,976$2,211,197$1,915,040$3,106,279
49$3,866,541$2,288,339$1,947,987$3,328,413
50$4,228,739$2,368,278$1,981,055$3,570,158
51$4,626,867$2,451,121$2,014,217$3,833,414
52$5,064,558$2,536,976$2,047,444$4,120,271
53$5,545,815$2,625,960$2,080,706$4,433,028
54$6,075,047$2,718,191$2,113,968$4,774,216
55$6,657,113$2,813,794$2,147,198$5,146,619
56$7,297,365$2,912,897$2,180,356$5,553,301
57$8,001,702$3,015,634$2,213,404$5,997,636
58$8,776,622$3,122,147$2,246,299$6,483,335
59$9,629,284$3,232,578$2,278,996$7,014,485
60$10,567,577$3,347,081$2,311,448$7,595,586
61$11,600,193$3,465,811$2,343,605$8,231,591
62$12,736,710$3,588,933$2,375,413$8,927,952
63$13,987,680$3,716,617$2,406,816$9,690,675
64$15,364,732$3,849,039$2,437,753$10,526,370
65$16,880,678$3,986,385$2,468,161$11,442,318
66$18,549,636$4,128,847$2,497,973$12,446,535
67$20,387,162$4,276,624$2,527,118$13,547,852
68$22,410,398$4,429,924$2,555,522$14,755,990
69$24,638,232$4,588,963$2,583,105$16,081,659
70$27,091,477$4,753,968$2,609,784$17,536,652
71$29,793,068$4,925,172$2,635,472$19,133,960
72$32,768,276$5,102,821$2,660,076$20,887,890
73$36,044,949$5,287,168$2,683,497$22,814,202
74$39,653,774$5,478,480$2,705,635$24,930,257
75$43,628,564$5,677,030$2,726,379$27,255,176
76$48,006,581$5,883,109$2,745,616$29,810,023
77$52,828,885$6,097,014$2,763,227$32,618,003
78$58,140,722$6,319,058$2,779,085$35,704,678
79$63,991,949$6,549,565$2,793,059$39,098,208
80$70,437,510$6,788,875$2,805,007$42,829,615
81$77,537,946$7,037,341$2,814,785$46,933,077
82$85,359,975$7,295,329$2,822,239$51,446,246
83$93,977,115$7,563,223$2,827,207$56,410,603
84$103,470,382$7,841,422$2,829,520$61,871,852
85$113,929,052$8,130,342$2,828,999$67,880,343
86$125,451,503$8,430,417$2,825,459$74,491,552
87$138,146,148$8,742,099$2,818,703$81,766,600
88$152,132,453$9,065,859$2,808,527$89,772,831
89$167,542,065$9,402,189$2,794,715$98,584,440
90$184,520,059$9,751,599$2,777,042$108,283,180
91$203,226,303$10,114,625$2,755,270$118,959,127
92$223,836,967$10,491,823$2,729,153$130,711,527
93$246,546,188$10,883,774$2,698,431$143,649,736
94$271,567,903$11,291,082$2,662,831$157,894,246
95$299,137,864$11,714,380$2,622,071$173,577,822
96$329,515,867$12,154,325$2,575,851$190,846,755
97$362,988,203$12,611,604$2,523,860$209,862,236
98$399,870,361$13,086,935$2,465,771$230,801,879
99$440,510,007$13,581,064$2,401,243$253,861,395
100$485,290,262$14,094,770$2,329,919$279,256,437