Can I retire at age 40 with 960,000?

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 $960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.9%
1 years$79,276$78,570$77,881$77,208$76,552$73,514
2 years$39,245$38,515$37,806$37,119$36,453$33,431
3 years$25,904$25,170$24,463$23,783$23,127$20,215
4 years$19,234$18,502$17,803$17,134$16,495$13,715
5 years$15,234$14,506$13,816$13,161$12,539$9,898
6 years$12,567$11,845$11,165$10,525$9,922$7,422
7 years$10,664$9,948$9,278$8,653$8,069$5,709
8 years$9,236$8,527$7,869$7,259$6,694$4,472
9 years$8,127$7,424$6,777$6,183$5,637$3,550
10 years$7,240$6,544$5,909$5,330$4,803$2,846
11 years$6,515$5,826$5,202$4,638$4,131$2,299
12 years$5,911$5,229$4,617$4,068$3,580$1,869
13 years$5,400$4,725$4,125$3,592$3,122$1,526
14 years$4,963$4,295$3,706$3,188$2,736$1,251
15 years$4,584$3,924$3,346$2,844$2,409$1,029
16 years$4,253$3,600$3,034$2,546$2,129$848
17 years$3,961$3,316$2,760$2,288$1,888$701
18 years$3,702$3,064$2,520$2,062$1,679$580
19 years$3,471$2,839$2,307$1,863$1,496$481
20 years$3,263$2,639$2,117$1,687$1,337$399
21 years$3,075$2,458$1,947$1,531$1,196$331
22 years$2,904$2,294$1,795$1,392$1,072$275
23 years$2,748$2,146$1,657$1,268$962$229
24 years$2,606$2,010$1,533$1,156$865$190
25 years$2,475$1,887$1,420$1,056$778$158
26 years$2,354$1,773$1,317$966$701$132
27 years$2,243$1,669$1,223$884$632$110
28 years$2,140$1,572$1,136$810$570$91
29 years$2,044$1,483$1,058$743$515$76
30 years$1,954$1,401$985$682$465$63
31 years$1,871$1,324$918$626$421$53
32 years$1,792$1,253$857$575$381$44
33 years$1,719$1,187$800$529$344$37
34 years$1,650$1,125$748$487$312$31
35 years$1,586$1,067$699$448$282$26
36 years$1,525$1,013$654$413$256$21
37 years$1,467$962$612$380$232$18
38 years$1,413$914$573$350$210$15
39 years$1,361$869$537$323$191$12
40 years$1,312$827$503$298$173$10
41 years$1,266$787$472$275$157$9
42 years$1,222$750$443$254$142$7
43 years$1,180$714$415$234$129$6
44 years$1,141$681$390$216$117$5
45 years$1,103$649$366$200$106$4
46 years$1,067$619$344$185$97$3
47 years$1,032$591$323$170$88$3
48 years$999$564$304$158$80$2
49 years$967$539$285$146$72$2
50 years$937$515$268$135$66$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $960,000, adding $4,301 every year, while hoping to spend $41,318 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: 63/10/27 Blend
39$960,000$960,000$960,000$960,000
40$1,062,356$1,011,476$996,596$1,121,404
41$1,126,755$1,017,077$986,020$1,167,534
42$1,196,337$1,021,567$973,705$1,212,985
43$1,271,588$1,024,848$959,549$1,261,735
44$1,353,041$1,026,817$943,445$1,314,113
45$1,441,283$1,027,363$925,282$1,370,483
46$1,536,958$1,026,367$904,943$1,431,249
47$1,640,774$1,023,706$882,305$1,496,855
48$1,753,512$1,019,246$857,241$1,567,792
49$1,876,028$1,012,847$829,617$1,644,606
50$2,009,266$1,004,360$799,292$1,727,894
51$2,154,264$993,626$766,121$1,818,321
52$2,312,163$980,478$729,951$1,916,620
53$2,484,220$964,738$690,620$2,023,598
54$2,671,818$946,218$647,963$2,140,151
55$2,876,478$924,717$601,805$2,267,265
56$3,099,876$900,025$551,963$2,406,030
57$3,343,856$871,919$498,245$2,557,649
58$3,610,446$840,160$440,454$2,723,453
59$3,901,883$804,499$378,380$2,904,907
60$4,220,626$764,671$311,807$3,103,632
61$4,569,385$720,394$240,508$3,321,416
62$4,951,142$671,373$164,244$3,560,233
63$5,369,182$617,294$82,770$3,822,261
64$5,827,122$557,826$0$4,109,906
65$6,328,947$492,617$0$4,427,024
66$6,879,042$421,298$0$4,800,866
67$7,482,241$343,478$0$5,210,876
68$8,143,863$258,743$0$5,660,702
69$8,869,772$166,656$0$6,154,369
70$9,666,424$66,757$0$6,696,311
71$10,540,930$0$0$7,291,412
72$11,501,125$0$0$7,949,617
73$12,555,637$0$0$8,680,615
74$13,713,974$0$0$9,483,660
75$14,986,607$0$0$10,366,020
76$16,385,074$0$0$11,335,704
77$17,922,084$0$0$12,401,535
78$19,611,640$0$0$13,573,233
79$21,469,168$0$0$14,861,507
80$23,511,664$0$0$16,278,154
81$25,757,852$0$0$17,836,174
82$28,228,364$0$0$19,549,887
83$30,945,929$0$0$21,435,074
84$33,935,591$0$0$23,509,119
85$37,224,944$0$0$25,791,179
86$40,844,391$0$0$28,302,358
87$44,827,429$0$0$31,065,913
88$49,210,971$0$0$34,107,468
89$54,035,684$0$0$37,455,255
90$59,346,383$0$0$41,140,384
91$65,192,442$0$0$45,197,134
92$71,628,271$0$0$49,663,276
93$78,713,819$0$0$54,580,430
94$86,515,147$0$0$59,994,456
95$95,105,044$0$0$65,955,887
96$104,563,720$0$0$72,520,407
97$114,979,556$0$0$79,749,374
98$126,449,943$0$0$87,710,401
99$139,082,197$0$0$96,477,989
100$152,994,573$0$0$106,134,237