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%16.1%
1 years$78,368$77,669$76,988$76,324$75,675$73,785
2 years$38,796$38,073$37,373$36,694$36,036$34,144
3 years$25,607$24,881$24,183$23,510$22,862$21,028
4 years$19,014$18,290$17,599$16,938$16,306$14,542
5 years$15,059$14,340$13,657$13,010$12,395$10,708
6 years$12,423$11,710$11,037$10,404$9,808$8,198
7 years$10,541$9,834$9,172$8,554$7,977$6,445
8 years$9,131$8,429$7,779$7,176$6,617$5,163
9 years$8,034$7,339$6,700$6,112$5,573$4,194
10 years$7,157$6,469$5,841$5,269$4,748$3,444
11 years$6,440$5,759$5,142$4,585$4,084$2,852
12 years$5,843$5,169$4,564$4,022$3,539$2,377
13 years$5,338$4,671$4,077$3,551$3,086$1,992
14 years$4,906$4,246$3,663$3,152$2,705$1,677
15 years$4,532$3,879$3,308$2,811$2,382$1,417
16 years$4,204$3,559$2,999$2,517$2,105$1,200
17 years$3,916$3,278$2,729$2,261$1,866$1,020
18 years$3,660$3,029$2,491$2,038$1,660$868
19 years$3,431$2,807$2,280$1,842$1,479$740
20 years$3,225$2,608$2,093$1,668$1,321$632
21 years$3,039$2,430$1,925$1,514$1,182$540
22 years$2,871$2,268$1,774$1,376$1,060$462
23 years$2,717$2,121$1,638$1,253$951$396
24 years$2,576$1,987$1,515$1,143$855$340
25 years$2,447$1,865$1,403$1,044$769$291
26 years$2,327$1,753$1,301$955$693$250
27 years$2,217$1,650$1,209$874$625$215
28 years$2,115$1,554$1,123$801$564$185
29 years$2,020$1,466$1,045$734$509$159
30 years$1,932$1,385$974$674$460$136
31 years$1,849$1,309$908$619$416$117
32 years$1,772$1,239$847$569$376$101
33 years$1,700$1,173$791$523$340$87
34 years$1,632$1,112$739$481$308$75
35 years$1,568$1,055$691$443$279$64
36 years$1,507$1,001$646$408$253$55
37 years$1,450$951$605$376$229$48
38 years$1,397$903$566$346$208$41
39 years$1,346$859$531$319$189$35
40 years$1,297$817$497$295$171$30
41 years$1,252$778$466$272$155$26
42 years$1,208$741$438$251$141$23
43 years$1,167$706$411$232$128$19
44 years$1,128$673$385$214$116$17
45 years$1,090$642$362$197$105$14
46 years$1,054$612$340$182$96$12
47 years$1,020$584$319$169$87$11
48 years$988$558$300$156$79$9
49 years$956$533$282$144$72$8
50 years$927$509$265$133$65$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $949,000, adding $4,339 every year, while hoping to spend $38,973 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: 46/35/19 Blend
39$949,000$949,000$949,000$949,000
40$1,050,274$999,977$985,267$1,092,703
41$1,115,935$1,007,509$976,807$1,130,328
42$1,186,987$1,014,103$966,757$1,166,885
43$1,263,939$1,019,674$955,022$1,205,730
44$1,347,350$1,024,128$941,505$1,247,091
45$1,437,836$1,027,366$926,102$1,291,226
46$1,536,073$1,029,284$908,704$1,338,416
47$1,642,804$1,029,771$889,197$1,388,976
48$1,758,849$1,028,709$867,464$1,443,255
49$1,885,107$1,025,971$843,380$1,501,637
50$2,022,570$1,021,425$816,815$1,564,552
51$2,172,327$1,014,930$787,633$1,632,474
52$2,335,578$1,006,336$755,692$1,705,927
53$2,513,644$995,482$720,845$1,785,494
54$2,707,977$982,202$682,934$1,871,819
55$2,920,177$966,317$641,799$1,965,615
56$3,152,005$947,636$597,269$2,067,673
57$3,405,400$925,961$549,168$2,178,866
58$3,682,495$901,078$497,310$2,300,164
59$3,985,641$872,762$441,501$2,432,636
60$4,317,426$840,776$381,541$2,577,467
61$4,680,697$804,868$317,216$2,735,968
62$5,078,594$764,772$248,308$2,909,588
63$5,514,570$720,206$174,587$3,099,931
64$5,992,432$670,872$95,811$3,308,769
65$6,516,370$616,455$11,731$3,538,062
66$7,091,001$556,622$0$3,789,976
67$7,721,407$491,021$0$4,082,718
68$8,413,189$419,279$0$4,406,688
69$9,172,515$341,005$0$4,762,487
70$10,006,180$255,782$0$5,153,407
71$10,921,668$163,173$0$5,583,080
72$11,927,223$62,714$0$6,055,515
73$13,031,929$0$0$6,575,137
74$14,245,790$0$0$7,164,577
75$15,579,831$0$0$7,839,037
76$17,046,195$0$0$8,580,517
77$18,658,259$0$0$9,395,798
78$20,430,766$0$0$10,292,350
79$22,379,952$0$0$11,278,402
80$24,523,711$0$0$12,363,024
81$26,881,756$0$0$13,556,205
82$29,475,804$0$0$14,868,953
83$32,329,787$0$0$16,313,397
84$35,470,071$0$0$17,902,900
85$38,925,706$0$0$19,652,187
86$42,728,705$0$0$21,577,481
87$46,914,335$0$0$23,696,661
88$51,521,459$0$0$26,029,422
89$56,592,898$0$0$28,597,469
90$62,175,837$0$0$31,424,718
91$68,322,264$0$0$34,537,521
92$75,089,469$0$0$37,964,916
93$82,540,576$0$0$41,738,899
94$90,745,144$0$0$45,894,727
95$99,779,818$0$0$50,471,252
96$109,729,057$0$0$55,511,283
97$120,685,928$0$0$61,061,993
98$132,752,980$0$0$67,175,366
99$146,043,221$0$0$73,908,682
100$160,681,173$0$0$81,325,061