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%14.4%
1 years$79,276$78,570$77,881$77,208$76,552$75,160
2 years$39,245$38,515$37,806$37,119$36,453$35,056
3 years$25,904$25,170$24,463$23,783$23,127$21,768
4 years$19,234$18,502$17,803$17,134$16,495$15,184
5 years$15,234$14,506$13,816$13,161$12,539$11,281
6 years$12,567$11,845$11,165$10,525$9,922$8,717
7 years$10,664$9,948$9,278$8,653$8,069$6,918
8 years$9,236$8,527$7,869$7,259$6,694$5,597
9 years$8,127$7,424$6,777$6,183$5,637$4,594
10 years$7,240$6,544$5,909$5,330$4,803$3,812
11 years$6,515$5,826$5,202$4,638$4,131$3,191
12 years$5,911$5,229$4,617$4,068$3,580$2,689
13 years$5,400$4,725$4,125$3,592$3,122$2,279
14 years$4,963$4,295$3,706$3,188$2,736$1,941
15 years$4,584$3,924$3,346$2,844$2,409$1,659
16 years$4,253$3,600$3,034$2,546$2,129$1,423
17 years$3,961$3,316$2,760$2,288$1,888$1,224
18 years$3,702$3,064$2,520$2,062$1,679$1,055
19 years$3,471$2,839$2,307$1,863$1,496$911
20 years$3,263$2,639$2,117$1,687$1,337$788
21 years$3,075$2,458$1,947$1,531$1,196$682
22 years$2,904$2,294$1,795$1,392$1,072$592
23 years$2,748$2,146$1,657$1,268$962$514
24 years$2,606$2,010$1,533$1,156$865$446
25 years$2,475$1,887$1,420$1,056$778$388
26 years$2,354$1,773$1,317$966$701$338
27 years$2,243$1,669$1,223$884$632$294
28 years$2,140$1,572$1,136$810$570$256
29 years$2,044$1,483$1,058$743$515$223
30 years$1,954$1,401$985$682$465$195
31 years$1,871$1,324$918$626$421$170
32 years$1,792$1,253$857$575$381$148
33 years$1,719$1,187$800$529$344$129
34 years$1,650$1,125$748$487$312$113
35 years$1,586$1,067$699$448$282$98
36 years$1,525$1,013$654$413$256$86
37 years$1,467$962$612$380$232$75
38 years$1,413$914$573$350$210$66
39 years$1,361$869$537$323$191$57
40 years$1,312$827$503$298$173$50
41 years$1,266$787$472$275$157$44
42 years$1,222$750$443$254$142$38
43 years$1,180$714$415$234$129$33
44 years$1,141$681$390$216$117$29
45 years$1,103$649$366$200$106$25
46 years$1,067$619$344$185$97$22
47 years$1,032$591$323$170$88$19
48 years$999$564$304$158$80$17
49 years$967$539$285$146$72$15
50 years$937$515$268$135$66$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $960,000, adding $2,323 every year, while hoping to spend $41,747 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: 60/33/7 Blend
39$960,000$960,000$960,000$960,000
40$1,060,316$1,009,436$994,556$1,122,278
41$1,124,050$1,014,480$983,455$1,169,093
42$1,192,885$1,018,372$970,583$1,215,135
43$1,267,299$1,021,011$955,837$1,264,299
44$1,347,814$1,022,291$939,108$1,316,887
45$1,435,005$1,022,098$920,283$1,373,232
46$1,529,507$1,020,312$899,243$1,433,702
47$1,632,013$1,016,804$875,865$1,498,704
48$1,743,290$1,011,439$850,018$1,568,687
49$1,864,179$1,004,072$821,566$1,644,149
50$1,995,605$994,552$790,369$1,725,638
51$2,138,587$982,715$756,276$1,813,761
52$2,294,245$968,390$719,134$1,909,189
53$2,463,812$951,396$678,779$2,012,661
54$2,648,645$931,538$635,042$2,124,996
55$2,850,237$908,614$587,746$2,247,098
56$3,070,231$882,406$536,706$2,379,966
57$3,310,437$852,686$481,728$2,524,702
58$3,572,846$819,212$422,610$2,682,525
59$3,859,650$781,727$359,141$2,854,781
60$4,173,262$739,960$291,100$3,042,955
61$4,516,341$693,624$218,258$3,248,690
62$4,891,812$642,416$140,374$3,473,798
63$5,302,898$586,015$57,197$3,720,280
64$5,753,146$524,082$0$3,990,346
65$6,246,464$456,259$0$4,288,794
66$6,787,155$382,167$0$4,620,672
67$7,379,958$301,407$0$4,984,700
68$8,030,093$213,556$0$5,384,181
69$8,743,310$118,167$0$5,822,763
70$9,525,941$14,770$0$6,304,470
71$10,384,960$0$0$6,833,741
72$11,328,052$0$0$7,450,748
73$12,363,679$0$0$8,134,265
74$13,501,166$0$0$8,885,092
75$14,750,783$0$0$9,710,020
76$16,123,844$0$0$10,616,527
77$17,632,815$0$0$11,612,855
78$19,291,427$0$0$12,708,082
79$21,114,810$0$0$13,912,209
80$23,119,632$0$0$15,236,257
81$25,324,255$0$0$16,692,364
82$27,748,911$0$0$18,293,908
83$30,415,893$0$0$20,055,626
84$33,349,759$0$0$21,993,755
85$36,577,571$0$0$24,126,185
86$40,129,142$0$0$26,472,628
87$44,037,325$0$0$29,054,804
88$48,338,315$0$0$31,896,645
89$53,071,995$0$0$35,024,518
90$58,282,310$0$0$38,467,477
91$64,017,682$0$0$42,257,539
92$70,331,465$0$0$46,429,977
93$77,282,450$0$0$51,023,663
94$84,935,416$0$0$56,081,426
95$93,361,744$0$0$61,650,461
96$102,640,090$0$0$67,782,773
97$112,857,124$0$0$74,535,666
98$124,108,349$0$0$81,972,284
99$136,499,002$0$0$90,162,207
100$150,145,048$0$0$99,182,108