Can I retire at age 40 with 948,000?

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 $948,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$78,285$77,588$76,907$76,243$75,595$74,527
2 years$38,755$38,033$37,334$36,655$35,998$34,923
3 years$25,580$24,855$24,157$23,485$22,838$21,792
4 years$18,994$18,271$17,580$16,920$16,288$15,277
5 years$15,043$14,325$13,643$12,996$12,382$11,410
6 years$12,410$11,697$11,026$10,393$9,798$8,865
7 years$10,530$9,823$9,162$8,545$7,968$7,075
8 years$9,121$8,420$7,770$7,168$6,610$5,757
9 years$8,025$7,331$6,693$6,106$5,567$4,753
10 years$7,149$6,462$5,835$5,263$4,743$3,968
11 years$6,433$5,753$5,137$4,580$4,079$3,342
12 years$5,837$5,164$4,559$4,018$3,535$2,835
13 years$5,333$4,666$4,073$3,547$3,083$2,419
14 years$4,901$4,242$3,660$3,149$2,702$2,074
15 years$4,527$3,875$3,304$2,808$2,379$1,785
16 years$4,200$3,555$2,996$2,514$2,103$1,542
17 years$3,912$3,274$2,726$2,259$1,864$1,335
18 years$3,656$3,025$2,488$2,036$1,658$1,159
19 years$3,427$2,804$2,278$1,840$1,478$1,008
20 years$3,222$2,606$2,091$1,666$1,320$879
21 years$3,036$2,427$1,923$1,512$1,181$767
22 years$2,868$2,265$1,772$1,375$1,059$670
23 years$2,714$2,119$1,636$1,252$950$586
24 years$2,573$1,985$1,513$1,142$854$513
25 years$2,444$1,863$1,402$1,043$769$450
26 years$2,325$1,751$1,300$954$692$395
27 years$2,215$1,648$1,207$873$624$346
28 years$2,113$1,553$1,122$800$563$304
29 years$2,018$1,465$1,044$733$509$267
30 years$1,930$1,383$973$673$460$235
31 years$1,847$1,308$907$618$415$207
32 years$1,770$1,237$846$568$376$182
33 years$1,698$1,172$790$522$340$160
34 years$1,630$1,111$738$481$308$141
35 years$1,566$1,053$690$442$279$124
36 years$1,506$1,000$646$407$253$109
37 years$1,449$950$604$375$229$96
38 years$1,395$902$566$346$208$85
39 years$1,344$858$530$319$188$75
40 years$1,296$816$497$294$171$66
41 years$1,250$777$466$272$155$58
42 years$1,207$740$437$251$141$51
43 years$1,166$705$410$231$128$45
44 years$1,126$672$385$214$116$40
45 years$1,089$641$362$197$105$35
46 years$1,053$612$340$182$95$31
47 years$1,019$584$319$168$87$27
48 years$987$557$300$156$79$24
49 years$955$532$282$144$72$21
50 years$926$508$265$133$65$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $948,000, adding $6,643 every year, while hoping to spend $46,894 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: 47/33/20 Blend
39$948,000$948,000$948,000$948,000
40$1,051,548$1,001,304$986,610$1,094,708
41$1,108,911$1,000,473$969,767$1,124,667
42$1,170,554$998,030$950,787$1,151,937
43$1,236,862$993,846$929,551$1,180,557
44$1,308,262$987,784$905,931$1,210,676
45$1,385,220$979,701$879,795$1,242,457
46$1,468,249$969,442$851,004$1,276,084
47$1,557,910$956,845$819,413$1,311,763
48$1,654,825$941,738$784,871$1,349,724
49$1,759,671$923,937$747,218$1,390,221
50$1,873,198$903,250$706,290$1,433,543
51$1,996,227$879,472$661,914$1,480,008
52$2,129,661$852,386$613,907$1,529,971
53$2,274,495$821,761$562,082$1,583,830
54$2,431,822$787,356$506,240$1,642,024
55$2,602,844$748,913$446,175$1,705,047
56$2,788,884$706,159$381,672$1,773,443
57$2,991,398$658,808$312,505$1,847,822
58$3,211,986$606,556$238,440$1,928,859
59$3,452,411$549,080$159,230$2,017,304
60$3,714,614$486,041$74,621$2,113,993
61$4,000,727$417,080$0$2,219,851
62$4,313,102$341,817$0$2,339,250
63$4,654,324$259,852$0$2,487,200
64$5,027,242$170,762$0$2,649,085
65$5,434,990$74,098$0$2,826,376
66$5,881,019$0$0$3,020,696
67$6,369,131$0$0$3,244,956
68$6,903,510$0$0$3,520,036
69$7,488,765$0$0$3,821,412
70$8,129,970$0$0$4,151,712
71$8,832,714$0$0$4,513,830
72$9,603,154$0$0$4,910,950
73$10,448,067$0$0$5,346,583
74$11,374,922$0$0$5,824,594
75$12,391,942$0$0$6,349,241
76$13,508,187$0$0$6,925,214
77$14,733,635$0$0$7,557,679
78$16,079,278$0$0$8,252,328
79$17,557,226$0$0$9,015,429
80$19,180,817$0$0$9,853,890
81$20,964,746$0$0$10,775,318
82$22,925,201$0$0$11,788,097
83$25,080,018$0$0$12,901,461
84$27,448,844$0$0$14,125,583
85$30,053,326$0$0$15,471,674
86$32,917,314$0$0$16,952,082
87$36,067,082$0$0$18,580,414
88$39,531,582$0$0$20,371,661
89$43,342,708$0$0$22,342,341
90$47,535,605$0$0$24,510,653
91$52,148,993$0$0$26,896,648
92$57,225,537$0$0$29,522,421
93$62,812,245$0$0$32,412,316
94$68,960,912$0$0$35,593,156
95$75,728,611$0$0$39,094,497
96$83,178,226$0$0$42,948,907
97$91,379,049$0$0$47,192,270
98$100,407,430$0$0$51,864,127
99$110,347,499$0$0$57,008,048
100$121,291,958$0$0$62,672,043