Can I retire at age 40 with 956,000?

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 $956,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$78,946$78,242$77,556$76,887$76,233$75,311
2 years$39,082$38,354$37,649$36,965$36,301$35,374
3 years$25,796$25,065$24,361$23,684$23,031$22,127
4 years$19,154$18,425$17,729$17,063$16,426$15,551
5 years$15,170$14,446$13,758$13,106$12,487$11,645
6 years$12,515$11,796$11,119$10,481$9,880$9,072
7 years$10,619$9,906$9,240$8,617$8,035$7,261
8 years$9,198$8,491$7,836$7,228$6,666$5,925
9 years$8,093$7,393$6,749$6,157$5,614$4,906
10 years$7,210$6,517$5,884$5,307$4,783$4,109
11 years$6,488$5,802$5,180$4,619$4,114$3,471
12 years$5,886$5,207$4,597$4,052$3,565$2,954
13 years$5,378$4,706$4,107$3,577$3,109$2,529
14 years$4,942$4,277$3,691$3,175$2,725$2,175
15 years$4,565$3,908$3,332$2,832$2,399$1,879
16 years$4,235$3,585$3,021$2,535$2,121$1,628
17 years$3,945$3,302$2,749$2,278$1,880$1,415
18 years$3,687$3,051$2,509$2,053$1,672$1,233
19 years$3,456$2,828$2,297$1,855$1,490$1,076
20 years$3,249$2,628$2,108$1,680$1,331$941
21 years$3,062$2,447$1,939$1,525$1,191$825
22 years$2,892$2,285$1,787$1,386$1,068$723
23 years$2,737$2,137$1,650$1,263$958$635
24 years$2,595$2,002$1,526$1,152$861$559
25 years$2,465$1,879$1,414$1,052$775$492
26 years$2,345$1,766$1,311$962$698$433
27 years$2,234$1,662$1,217$880$630$381
28 years$2,131$1,566$1,132$806$568$336
29 years$2,035$1,477$1,053$740$513$297
30 years$1,946$1,395$981$679$463$262
31 years$1,863$1,319$915$623$419$231
32 years$1,785$1,248$853$573$379$204
33 years$1,712$1,182$797$527$343$181
34 years$1,644$1,120$744$485$311$160
35 years$1,579$1,062$696$446$281$141
36 years$1,518$1,008$651$411$255$125
37 years$1,461$958$609$379$231$110
38 years$1,407$910$571$349$209$98
39 years$1,356$865$535$322$190$86
40 years$1,307$823$501$297$172$76
41 years$1,261$784$470$274$156$68
42 years$1,217$746$441$253$142$60
43 years$1,175$711$414$233$129$53
44 years$1,136$678$388$215$117$47
45 years$1,098$646$365$199$106$42
46 years$1,062$617$342$184$96$37
47 years$1,028$589$322$170$87$33
48 years$995$562$302$157$79$29
49 years$963$537$284$145$72$26
50 years$933$513$267$134$65$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $956,000, adding $4,798 every year, while hoping to spend $37,475 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: 44/45/11 Blend
39$956,000$956,000$956,000$956,000
40$1,058,461$1,007,793$992,975$1,101,492
41$1,126,551$1,017,302$986,367$1,141,410
42$1,200,330$1,026,021$978,281$1,180,469
43$1,280,339$1,033,871$968,629$1,221,964
44$1,367,173$1,040,770$957,317$1,266,133
45$1,461,485$1,046,628$944,247$1,313,240
46$1,563,995$1,051,351$929,318$1,363,578
47$1,675,494$1,054,839$912,422$1,417,471
48$1,796,854$1,056,985$893,447$1,475,278
49$1,929,031$1,057,676$872,276$1,537,398
50$2,073,081$1,056,791$848,786$1,604,270
51$2,230,164$1,054,202$822,849$1,676,383
52$2,401,556$1,049,774$794,330$1,754,276
53$2,588,664$1,043,361$763,089$1,838,547
54$2,793,034$1,034,813$728,979$1,929,858
55$3,016,371$1,023,966$691,847$2,028,940
56$3,260,548$1,010,648$651,532$2,136,604
57$3,527,632$994,678$607,866$2,253,746
58$3,819,896$975,862$560,675$2,381,358
59$4,139,842$953,996$509,775$2,520,535
60$4,490,228$928,864$454,974$2,672,492
61$4,874,090$900,237$396,074$2,838,568
62$5,294,769$867,871$332,865$3,020,248
63$5,755,949$831,510$265,129$3,219,171
64$6,261,684$790,882$192,639$3,437,148
65$6,816,442$745,701$115,158$3,676,183
66$7,425,140$695,661$32,437$3,938,490
67$8,093,198$640,443$0$4,226,516
68$8,826,586$579,706$0$4,549,517
69$9,631,876$513,090$0$4,908,416
70$10,516,314$440,218$0$5,302,734
71$11,487,877$360,687$0$5,736,149
72$12,555,354$274,075$0$6,212,725
73$13,728,429$179,933$0$6,736,945
74$15,017,769$77,790$0$7,313,758
75$16,435,127$0$0$7,948,627
76$17,993,449$0$0$8,663,849
77$19,707,002$0$0$9,492,800
78$21,591,502$0$0$10,404,580
79$23,664,263$0$0$11,407,583
80$25,944,364$0$0$12,511,056
81$28,452,826$0$0$13,725,190
82$31,212,808$0$0$15,061,213
83$34,249,828$0$0$16,531,496
84$37,592,004$0$0$18,149,670
85$41,270,316$0$0$19,930,755
86$45,318,900$0$0$21,891,300
87$49,775,368$0$0$24,049,540
88$54,681,165$0$0$26,425,568
89$60,081,957$0$0$29,041,525
90$66,028,064$0$0$31,921,806
91$72,574,934$0$0$35,093,295
92$79,783,663$0$0$38,585,613
93$87,721,573$0$0$42,431,400
94$96,462,850$0$0$46,666,625
95$106,089,237$0$0$51,330,920
96$116,690,812$0$0$56,467,958
97$128,366,833$0$0$62,125,865
98$141,226,675$0$0$68,357,671
99$155,390,863$0$0$75,221,813
100$170,992,210$0$0$82,782,684