Can I retire at age 40 with 942,000?

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 $942,000?

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$77,789$77,097$76,421$75,761$75,116$73,902
2 years$38,510$37,792$37,097$36,423$35,770$34,550
3 years$25,418$24,698$24,004$23,337$22,694$21,506
4 years$18,874$18,155$17,469$16,813$16,185$15,039
5 years$14,948$14,234$13,557$12,914$12,304$11,202
6 years$12,332$11,623$10,956$10,327$9,736$8,680
7 years$10,464$9,761$9,104$8,491$7,918$6,908
8 years$9,063$8,367$7,721$7,123$6,568$5,605
9 years$7,975$7,285$6,650$6,067$5,532$4,614
10 years$7,104$6,421$5,798$5,230$4,713$3,840
11 years$6,393$5,717$5,104$4,551$4,054$3,225
12 years$5,800$5,131$4,530$3,992$3,513$2,727
13 years$5,299$4,637$4,047$3,525$3,063$2,319
14 years$4,870$4,215$3,636$3,129$2,685$1,981
15 years$4,498$3,850$3,283$2,790$2,364$1,699
16 years$4,173$3,533$2,977$2,498$2,089$1,463
17 years$3,887$3,253$2,709$2,245$1,853$1,262
18 years$3,633$3,006$2,473$2,023$1,647$1,092
19 years$3,406$2,786$2,264$1,828$1,468$946
20 years$3,202$2,589$2,077$1,656$1,312$822
21 years$3,017$2,412$1,911$1,503$1,174$714
22 years$2,850$2,251$1,761$1,366$1,052$622
23 years$2,697$2,105$1,626$1,244$944$542
24 years$2,557$1,973$1,504$1,135$849$473
25 years$2,429$1,851$1,393$1,036$764$413
26 years$2,310$1,740$1,292$948$688$361
27 years$2,201$1,637$1,200$867$620$315
28 years$2,100$1,543$1,115$795$560$276
29 years$2,005$1,456$1,038$729$505$241
30 years$1,918$1,375$967$669$457$211
31 years$1,836$1,299$901$614$413$185
32 years$1,759$1,230$841$564$373$162
33 years$1,687$1,164$785$519$338$142
34 years$1,619$1,104$734$478$306$124
35 years$1,556$1,047$686$440$277$109
36 years$1,496$994$642$405$251$96
37 years$1,440$944$600$373$228$84
38 years$1,386$897$562$344$206$74
39 years$1,336$853$527$317$187$65
40 years$1,288$811$494$292$170$57
41 years$1,242$772$463$270$154$50
42 years$1,199$736$434$249$140$44
43 years$1,158$701$408$230$127$38
44 years$1,119$668$383$212$115$34
45 years$1,082$637$359$196$104$29
46 years$1,047$608$337$181$95$26
47 years$1,013$580$317$167$86$23
48 years$980$554$298$155$78$20
49 years$949$529$280$143$71$17
50 years$920$505$263$132$65$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $942,000, adding $5,654 every year, while hoping to spend $43,713 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: 41/31/28 Blend
39$942,000$942,000$942,000$942,000
40$1,043,916$993,990$979,389$1,077,926
41$1,103,885$996,185$965,688$1,105,246
42$1,168,506$997,023$950,064$1,130,291
43$1,238,207$996,391$932,404$1,156,568
44$1,313,459$994,168$912,594$1,184,216
45$1,394,778$990,229$890,513$1,213,394
46$1,482,734$984,438$866,033$1,244,277
47$1,577,950$976,653$839,022$1,277,063
48$1,681,113$966,722$809,342$1,311,973
49$1,792,979$954,483$776,847$1,349,254
50$1,914,378$939,768$741,386$1,389,181
51$2,046,222$922,394$702,800$1,432,064
52$2,189,517$902,171$660,924$1,478,246
53$2,345,366$878,897$615,585$1,528,110
54$2,514,987$852,357$566,600$1,582,083
55$2,699,717$822,323$513,782$1,640,643
56$2,901,028$788,556$456,933$1,704,317
57$3,120,539$750,802$395,847$1,773,697
58$3,360,034$708,791$330,308$1,849,438
59$3,621,475$662,240$260,091$1,932,270
60$3,907,023$610,847$184,962$2,023,003
61$4,219,056$554,295$104,674$2,122,537
62$4,560,192$492,247$18,973$2,231,873
63$4,933,314$424,350$0$2,352,119
64$5,341,595$350,226$0$2,506,164
65$5,788,532$269,481$0$2,681,175
66$6,277,971$181,695$0$2,873,079
67$6,814,153$86,427$0$3,083,647
68$7,401,744$0$0$3,314,835
69$8,045,884$0$0$3,574,532
70$8,752,235$0$0$3,891,762
71$9,527,032$0$0$4,239,857
72$10,377,144$0$0$4,621,918
73$11,310,136$0$0$5,041,361
74$12,334,340$0$0$5,501,951
75$13,458,936$0$0$6,007,831
76$14,694,035$0$0$6,563,568
77$16,050,777$0$0$7,174,193
78$17,541,431$0$0$7,845,248
79$19,179,517$0$0$8,582,837
80$20,979,927$0$0$9,393,689
81$22,959,068$0$0$10,285,212
82$25,135,015$0$0$11,265,572
83$27,527,684$0$0$12,343,763
84$30,159,015$0$0$13,529,697
85$33,053,183$0$0$14,834,292
86$36,236,821$0$0$16,269,579
87$39,739,275$0$0$17,848,816
88$43,592,877$0$0$19,586,605
89$47,833,253$0$0$21,499,042
90$52,499,656$0$0$23,603,857
91$57,635,335$0$0$25,920,589
92$63,287,946$0$0$28,470,765
93$69,509,997$0$0$31,278,107
94$76,359,349$0$0$34,368,752
95$83,899,754$0$0$37,771,502
96$92,201,460$0$0$41,518,092
97$101,341,874$0$0$45,643,492
98$111,406,289$0$0$50,186,235
99$122,488,693$0$0$55,188,782
100$134,692,649$0$0$60,697,921