Can I retire at age 40 with 955,000?

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 $955,000?

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$78,863$78,161$77,475$76,806$76,153$74,615
2 years$39,041$38,314$37,609$36,926$36,263$34,721
3 years$25,769$25,039$24,336$23,659$23,007$21,508
4 years$19,134$18,406$17,710$17,045$16,409$14,965
5 years$15,154$14,431$13,744$13,092$12,474$11,089
6 years$12,502$11,784$11,107$10,470$9,870$8,545
7 years$10,608$9,896$9,230$8,608$8,027$6,763
8 years$9,188$8,483$7,828$7,221$6,659$5,456
9 years$8,085$7,386$6,742$6,151$5,608$4,464
10 years$7,202$6,510$5,878$5,302$4,778$3,693
11 years$6,481$5,796$5,175$4,614$4,109$3,081
12 years$5,880$5,202$4,592$4,047$3,561$2,589
13 years$5,372$4,701$4,103$3,573$3,105$2,187
14 years$4,937$4,273$3,687$3,172$2,722$1,856
15 years$4,560$3,903$3,329$2,829$2,397$1,581
16 years$4,231$3,581$3,018$2,533$2,118$1,351
17 years$3,941$3,298$2,746$2,276$1,878$1,158
18 years$3,683$3,048$2,507$2,051$1,670$994
19 years$3,453$2,825$2,295$1,853$1,489$855
20 years$3,246$2,625$2,106$1,678$1,330$737
21 years$3,059$2,445$1,937$1,523$1,190$636
22 years$2,889$2,282$1,785$1,385$1,067$549
23 years$2,734$2,134$1,649$1,261$957$475
24 years$2,592$2,000$1,525$1,150$861$411
25 years$2,462$1,877$1,412$1,051$774$356
26 years$2,342$1,764$1,310$961$697$309
27 years$2,231$1,660$1,216$879$629$268
28 years$2,128$1,564$1,131$806$567$232
29 years$2,033$1,476$1,052$739$512$202
30 years$1,944$1,394$980$678$463$175
31 years$1,861$1,317$914$623$419$152
32 years$1,783$1,247$852$572$379$132
33 years$1,710$1,181$796$526$343$115
34 years$1,642$1,119$744$484$310$100
35 years$1,577$1,061$695$446$281$87
36 years$1,517$1,007$650$411$255$75
37 years$1,460$957$609$378$231$66
38 years$1,405$909$570$349$209$57
39 years$1,354$865$534$321$190$50
40 years$1,306$823$501$296$172$43
41 years$1,260$783$469$274$156$38
42 years$1,216$746$440$252$142$33
43 years$1,174$710$413$233$129$28
44 years$1,135$677$388$215$117$25
45 years$1,097$646$364$199$106$22
46 years$1,061$616$342$184$96$19
47 years$1,027$588$321$170$87$16
48 years$994$561$302$157$79$14
49 years$962$536$284$145$72$12
50 years$932$512$267$134$65$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $955,000, adding $5,067 every year, while hoping to spend $57,595 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: 70/19/11 Blend
39$955,000$955,000$955,000$955,000
40$1,057,637$1,007,022$992,219$1,128,930
41$1,104,235$995,085$964,178$1,164,922
42$1,153,656$980,633$933,267$1,196,813
43$1,206,127$963,482$899,329$1,230,181
44$1,261,896$943,437$862,201$1,265,158
45$1,321,234$920,291$821,710$1,301,894
46$1,384,440$893,825$777,677$1,340,555
47$1,451,839$863,808$729,915$1,381,325
48$1,523,788$829,996$678,229$1,424,407
49$1,600,677$792,128$622,412$1,470,028
50$1,682,934$749,931$562,251$1,518,441
51$1,771,030$703,114$497,523$1,569,924
52$1,865,480$651,371$427,995$1,624,787
53$1,966,848$594,378$353,422$1,683,375
54$2,075,755$531,791$273,550$1,746,067
55$2,192,882$463,249$188,114$1,813,289
56$2,318,976$388,368$96,835$1,885,508
57$2,454,857$306,744$0$1,963,243
58$2,601,428$217,949$0$2,047,140
59$2,759,679$121,534$0$2,149,902
60$2,930,698$17,021$0$2,260,897
61$3,115,680$0$0$2,380,946
62$3,315,942$0$0$2,531,049
63$3,532,928$0$0$2,697,585
64$3,768,228$0$0$2,878,222
65$4,023,588$0$0$3,074,307
66$4,300,932$0$0$3,287,321
67$4,602,374$0$0$3,518,895
68$4,930,239$0$0$3,770,822
69$5,287,087$0$0$4,045,075
70$5,675,733$0$0$4,343,825
71$6,099,276$0$0$4,669,461
72$6,561,126$0$0$5,024,613
73$7,065,036$0$0$5,412,175
74$7,615,136$0$0$5,835,332
75$8,215,976$0$0$6,297,592
76$8,872,560$0$0$6,802,814
77$9,590,400$0$0$7,355,249
78$10,375,564$0$0$7,959,577
79$11,234,733$0$0$8,620,950
80$12,175,265$0$0$9,345,043
81$13,205,261$0$0$10,138,102
82$14,333,642$0$0$11,007,010
83$15,570,234$0$0$11,959,343
84$16,925,856$0$0$13,003,446
85$18,412,427$0$0$14,148,513
86$20,043,072$0$0$15,404,665
87$21,832,250$0$0$16,783,055
88$23,795,884$0$0$18,295,965
89$25,951,516$0$0$19,956,924
90$28,318,469$0$0$21,780,836
91$30,918,028$0$0$23,784,119
92$33,773,641$0$0$25,984,858
93$36,911,138$0$0$28,402,977
94$40,358,977$0$0$31,060,427
95$44,148,507$0$0$33,981,387
96$48,314,266$0$0$37,192,497
97$52,894,304$0$0$40,723,109
98$57,930,544$0$0$44,605,559
99$63,469,172$0$0$48,875,472
100$69,561,076$0$0$53,572,100