Can I retire at age 40 with 949,000?

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 $949,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$78,368$77,669$76,988$76,324$75,675$73,135
2 years$38,796$38,073$37,373$36,694$36,036$33,502
3 years$25,607$24,881$24,183$23,510$22,862$20,415
4 years$19,014$18,290$17,599$16,938$16,306$13,962
5 years$15,059$14,340$13,657$13,010$12,395$10,162
6 years$12,423$11,710$11,037$10,404$9,808$7,687
7 years$10,541$9,834$9,172$8,554$7,977$5,968
8 years$9,131$8,429$7,779$7,176$6,617$4,719
9 years$8,034$7,339$6,700$6,112$5,573$3,783
10 years$7,157$6,469$5,841$5,269$4,748$3,064
11 years$6,440$5,759$5,142$4,585$4,084$2,501
12 years$5,843$5,169$4,564$4,022$3,539$2,055
13 years$5,338$4,671$4,077$3,551$3,086$1,697
14 years$4,906$4,246$3,663$3,152$2,705$1,407
15 years$4,532$3,879$3,308$2,811$2,382$1,170
16 years$4,204$3,559$2,999$2,517$2,105$976
17 years$3,916$3,278$2,729$2,261$1,866$816
18 years$3,660$3,029$2,491$2,038$1,660$683
19 years$3,431$2,807$2,280$1,842$1,479$573
20 years$3,225$2,608$2,093$1,668$1,321$481
21 years$3,039$2,430$1,925$1,514$1,182$404
22 years$2,871$2,268$1,774$1,376$1,060$340
23 years$2,717$2,121$1,638$1,253$951$287
24 years$2,576$1,987$1,515$1,143$855$241
25 years$2,447$1,865$1,403$1,044$769$203
26 years$2,327$1,753$1,301$955$693$172
27 years$2,217$1,650$1,209$874$625$145
28 years$2,115$1,554$1,123$801$564$122
29 years$2,020$1,466$1,045$734$509$103
30 years$1,932$1,385$974$674$460$87
31 years$1,849$1,309$908$619$416$74
32 years$1,772$1,239$847$569$376$62
33 years$1,700$1,173$791$523$340$52
34 years$1,632$1,112$739$481$308$44
35 years$1,568$1,055$691$443$279$37
36 years$1,507$1,001$646$408$253$32
37 years$1,450$951$605$376$229$27
38 years$1,397$903$566$346$208$23
39 years$1,346$859$531$319$189$19
40 years$1,297$817$497$295$171$16
41 years$1,252$778$466$272$155$14
42 years$1,208$741$438$251$141$12
43 years$1,167$706$411$232$128$10
44 years$1,128$673$385$214$116$8
45 years$1,090$642$362$197$105$7
46 years$1,054$612$340$182$96$6
47 years$1,020$584$319$169$87$5
48 years$988$558$300$156$79$4
49 years$956$533$282$144$72$4
50 years$927$509$265$133$65$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $949,000, adding $4,280 every year, while hoping to spend $38,036 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: 81/11/8 Blend
39$949,000$949,000$949,000$949,000
40$1,050,213$999,916$985,206$1,133,878
41$1,116,865$1,008,442$977,741$1,197,810
42$1,189,040$1,016,111$968,750$1,262,492
43$1,267,262$1,022,840$958,144$1,332,333
44$1,352,107$1,028,543$945,825$1,407,830
45$1,444,206$1,033,127$931,695$1,489,528
46$1,544,257$1,036,491$915,648$1,578,027
47$1,653,024$1,038,532$897,576$1,673,991
48$1,771,350$1,039,138$877,362$1,778,149
49$1,900,161$1,038,189$854,887$1,891,304
50$2,040,477$1,035,560$830,025$2,014,342
51$2,193,420$1,031,117$802,645$2,148,239
52$2,360,225$1,024,717$772,610$2,294,068
53$2,542,251$1,016,212$739,776$2,453,015
54$2,740,994$1,005,439$703,991$2,626,383
55$2,958,101$992,231$665,101$2,815,610
56$3,195,385$976,408$622,939$3,022,281
57$3,454,842$957,780$577,335$3,248,142
58$3,738,670$936,145$528,110$3,495,115
59$4,049,288$911,290$475,075$3,765,322
60$4,389,361$882,989$418,036$4,061,099
61$4,761,824$851,004$356,789$4,385,021
62$5,169,908$815,081$291,119$4,739,925
63$5,617,171$774,952$220,804$5,128,938
64$6,107,533$730,335$145,611$5,555,508
65$6,645,310$680,930$65,298$6,023,434
66$7,235,257$626,421$0$6,536,901
67$7,882,610$566,473$0$7,102,267
68$8,593,138$500,732$0$7,728,935
69$9,373,195$428,825$0$8,416,956
70$10,229,780$350,356$0$9,172,530
71$11,170,602$264,908$0$10,002,493
72$12,204,157$172,042$0$10,914,374
73$13,339,799$71,290$0$11,916,472
74$14,587,838$0$0$13,017,932
75$15,959,629$0$0$14,233,410
76$17,467,684$0$0$15,579,137
77$19,125,786$0$0$17,058,786
78$20,949,120$0$0$18,685,913
79$22,954,419$0$0$20,475,452
80$25,160,115$0$0$22,443,856
81$27,586,520$0$0$24,609,254
82$30,256,010$0$0$26,991,621
83$33,193,241$0$0$29,612,964
84$36,425,380$0$0$32,497,533
85$39,982,360$0$0$35,672,045
86$43,897,162$0$0$39,165,939
87$48,206,127$0$0$43,011,655
88$52,949,297$0$0$47,244,933
89$58,170,794$0$0$51,905,158
90$63,919,235$0$0$57,035,724
91$70,248,189$0$0$62,684,450
92$77,216,687$0$0$68,904,025
93$84,889,771$0$0$75,752,508
94$93,339,116$0$0$83,293,875
95$102,643,696$0$0$91,598,621
96$112,890,540$0$0$100,744,428
97$124,175,543$0$0$110,816,894
98$136,604,377$0$0$121,910,342
99$150,293,484$0$0$134,128,711
100$165,371,177$0$0$147,586,535