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%19.7%
1 years$78,946$78,242$77,556$76,887$76,233$73,266
2 years$39,082$38,354$37,649$36,965$36,301$33,348
3 years$25,796$25,065$24,361$23,684$23,031$20,185
4 years$19,154$18,425$17,729$17,063$16,426$13,708
5 years$15,170$14,446$13,758$13,106$12,487$9,904
6 years$12,515$11,796$11,119$10,481$9,880$7,434
7 years$10,619$9,906$9,240$8,617$8,035$5,725
8 years$9,198$8,491$7,836$7,228$6,666$4,490
9 years$8,093$7,393$6,749$6,157$5,614$3,568
10 years$7,210$6,517$5,884$5,307$4,783$2,865
11 years$6,488$5,802$5,180$4,619$4,114$2,317
12 years$5,886$5,207$4,597$4,052$3,565$1,886
13 years$5,378$4,706$4,107$3,577$3,109$1,543
14 years$4,942$4,277$3,691$3,175$2,725$1,266
15 years$4,565$3,908$3,332$2,832$2,399$1,043
16 years$4,235$3,585$3,021$2,535$2,121$861
17 years$3,945$3,302$2,749$2,278$1,880$712
18 years$3,687$3,051$2,509$2,053$1,672$590
19 years$3,456$2,828$2,297$1,855$1,490$490
20 years$3,249$2,628$2,108$1,680$1,331$407
21 years$3,062$2,447$1,939$1,525$1,191$338
22 years$2,892$2,285$1,787$1,386$1,068$282
23 years$2,737$2,137$1,650$1,263$958$235
24 years$2,595$2,002$1,526$1,152$861$195
25 years$2,465$1,879$1,414$1,052$775$163
26 years$2,345$1,766$1,311$962$698$136
27 years$2,234$1,662$1,217$880$630$113
28 years$2,131$1,566$1,132$806$568$95
29 years$2,035$1,477$1,053$740$513$79
30 years$1,946$1,395$981$679$463$66
31 years$1,863$1,319$915$623$419$55
32 years$1,785$1,248$853$573$379$46
33 years$1,712$1,182$797$527$343$38
34 years$1,644$1,120$744$485$311$32
35 years$1,579$1,062$696$446$281$27
36 years$1,518$1,008$651$411$255$22
37 years$1,461$958$609$379$231$19
38 years$1,407$910$571$349$209$16
39 years$1,356$865$535$322$190$13
40 years$1,307$823$501$297$172$11
41 years$1,261$784$470$274$156$9
42 years$1,217$746$441$253$142$8
43 years$1,175$711$414$233$129$6
44 years$1,136$678$388$215$117$5
45 years$1,098$646$365$199$106$4
46 years$1,062$617$342$184$96$4
47 years$1,028$589$322$170$87$3
48 years$995$562$302$157$79$3
49 years$963$537$284$145$72$2
50 years$933$513$267$134$65$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $956,000, adding $2,076 every year, while hoping to spend $34,702 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: 84/11/5 Blend
39$956,000$956,000$956,000$956,000
40$1,055,653$1,004,985$990,167$1,144,131
41$1,126,407$1,017,307$986,415$1,214,477
42$1,203,215$1,029,069$981,375$1,286,781
43$1,286,658$1,040,208$974,965$1,365,088
44$1,377,374$1,050,656$967,104$1,449,976
45$1,476,067$1,060,338$957,702$1,542,084
46$1,583,509$1,069,179$946,669$1,642,113
47$1,700,553$1,077,094$933,908$1,750,838
48$1,828,134$1,083,997$919,319$1,869,110
49$1,967,284$1,089,792$902,796$1,997,867
50$2,119,136$1,094,382$884,229$2,138,142
51$2,284,940$1,097,658$863,502$2,291,073
52$2,466,069$1,099,509$840,495$2,457,912
53$2,664,038$1,099,814$815,082$2,640,042
54$2,880,512$1,098,448$787,129$2,838,982
55$3,117,326$1,095,273$756,500$3,056,408
56$3,376,499$1,090,148$723,048$3,294,166
57$3,660,256$1,082,919$686,625$3,554,290
58$3,971,046$1,073,426$647,071$3,839,020
59$4,311,567$1,061,497$604,221$4,150,825
60$4,684,787$1,046,951$557,903$4,492,424
61$5,093,979$1,029,596$507,937$4,866,815
62$5,542,747$1,009,228$454,134$5,277,300
63$6,035,058$985,631$396,298$5,727,518
64$6,575,283$958,576$334,224$6,221,478
65$7,168,238$927,823$267,697$6,763,598
66$7,819,226$893,114$196,492$7,358,747
67$8,534,090$854,179$120,377$8,012,290
68$9,319,264$810,731$39,107$8,730,139
69$10,181,840$762,467$0$9,518,809
70$11,129,626$709,067$0$10,388,019
71$12,171,228$650,191$0$11,345,533
72$13,316,124$585,481$0$12,397,994
73$14,574,757$514,558$0$13,555,027
74$15,958,633$437,022$0$14,827,235
75$17,480,428$352,451$0$16,226,305
76$19,154,108$260,397$0$17,765,112
77$20,995,059$160,388$0$19,457,845
78$23,020,235$51,927$0$21,320,140
79$25,248,315$0$0$23,369,228
80$27,699,879$0$0$25,632,026
81$30,397,604$0$0$28,128,967
82$33,366,477$0$0$30,876,893
83$36,634,026$0$0$33,901,290
84$40,230,586$0$0$37,230,236
85$44,189,582$0$0$40,894,671
86$48,547,843$0$0$44,928,688
87$53,345,951$0$0$49,369,852
88$58,628,622$0$0$54,259,555
89$64,445,129$0$0$59,643,407
90$70,849,766$0$0$65,571,669
91$77,902,360$0$0$72,099,719
92$85,668,835$0$0$79,288,582
93$94,221,834$0$0$87,205,501
94$103,641,404$0$0$95,924,576
95$114,015,752$0$0$105,527,455
96$125,442,076$0$0$116,104,113
97$138,027,482$0$0$127,753,695
98$151,889,994$0$0$140,585,454
99$167,159,668$0$0$154,719,781
100$183,979,822$0$0$170,289,338