Can I retire at age 40 with 962,000?

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 $962,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$79,441$78,733$78,043$77,369$76,711$75,440
2 years$39,327$38,595$37,885$37,197$36,529$35,253
3 years$25,958$25,222$24,514$23,832$23,176$21,933
4 years$19,274$18,541$17,840$17,170$16,529$15,330
5 years$15,265$14,536$13,845$13,188$12,565$11,413
6 years$12,593$11,870$11,188$10,547$9,942$8,838
7 years$10,686$9,968$9,298$8,671$8,086$7,030
8 years$9,256$8,545$7,885$7,274$6,708$5,701
9 years$8,144$7,440$6,791$6,196$5,649$4,690
10 years$7,255$6,558$5,921$5,341$4,813$3,901
11 years$6,528$5,838$5,213$4,648$4,140$3,274
12 years$5,923$5,240$4,626$4,077$3,587$2,766
13 years$5,411$4,735$4,133$3,599$3,128$2,351
14 years$4,973$4,304$3,714$3,195$2,742$2,007
15 years$4,594$3,932$3,353$2,849$2,414$1,721
16 years$4,262$3,608$3,040$2,551$2,134$1,480
17 years$3,970$3,322$2,766$2,292$1,892$1,276
18 years$3,710$3,070$2,525$2,066$1,682$1,103
19 years$3,478$2,845$2,312$1,867$1,499$955
20 years$3,270$2,644$2,122$1,691$1,339$829
21 years$3,081$2,463$1,951$1,534$1,199$720
22 years$2,910$2,299$1,799$1,395$1,074$626
23 years$2,754$2,150$1,661$1,271$964$545
24 years$2,611$2,015$1,536$1,159$867$475
25 years$2,480$1,891$1,422$1,058$780$415
26 years$2,359$1,777$1,319$968$703$362
27 years$2,248$1,672$1,225$886$633$316
28 years$2,144$1,576$1,139$812$572$276
29 years$2,048$1,486$1,060$744$516$242
30 years$1,958$1,404$987$683$466$211
31 years$1,875$1,327$920$627$422$185
32 years$1,796$1,256$859$576$381$162
33 years$1,723$1,189$802$530$345$142
34 years$1,654$1,127$749$488$312$124
35 years$1,589$1,069$700$449$283$109
36 years$1,528$1,015$655$414$256$95
37 years$1,470$964$613$381$232$83
38 years$1,416$916$574$351$211$73
39 years$1,364$871$538$324$191$64
40 years$1,315$829$504$299$173$56
41 years$1,269$789$473$276$157$49
42 years$1,225$751$444$254$143$43
43 years$1,183$716$416$235$129$38
44 years$1,143$682$391$217$118$33
45 years$1,105$651$367$200$107$29
46 years$1,069$621$345$185$97$26
47 years$1,034$592$324$171$88$22
48 years$1,001$565$304$158$80$20
49 years$969$540$286$146$73$17
50 years$939$516$269$135$66$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $962,000, adding $3,679 every year, while hoping to spend $35,389 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: 66/18/16 Blend
39$962,000$962,000$962,000$962,000
40$1,063,919$1,012,933$998,022$1,129,795
41$1,134,785$1,024,913$993,802$1,186,280
42$1,211,693$1,036,294$988,255$1,243,545
43$1,295,223$1,047,009$981,298$1,305,270
44$1,386,010$1,056,988$972,846$1,371,891
45$1,484,757$1,066,153$962,810$1,443,889
46$1,592,232$1,074,425$951,094$1,521,792
47$1,709,285$1,081,717$937,601$1,606,185
48$1,836,849$1,087,938$922,228$1,697,714
49$1,975,951$1,092,990$904,865$1,797,088
50$2,127,720$1,096,769$885,401$1,905,092
51$2,293,403$1,099,166$863,717$2,022,591
52$2,474,367$1,100,062$839,689$2,150,538
53$2,672,122$1,099,335$813,188$2,289,985
54$2,888,327$1,096,850$784,078$2,442,093
55$3,124,809$1,092,469$752,218$2,608,140
56$3,383,582$1,086,042$717,459$2,789,539
57$3,666,861$1,077,412$679,648$2,987,845
58$3,977,086$1,066,411$638,621$3,204,776
59$4,316,945$1,052,861$594,211$3,442,223
60$4,689,397$1,036,574$546,240$3,702,276
61$5,097,700$1,017,351$494,524$3,987,236
62$5,545,445$994,981$438,870$4,299,643
63$6,036,585$969,239$379,077$4,642,296
64$6,575,474$939,890$314,934$5,018,284
65$7,166,910$906,682$246,222$5,431,012
66$7,816,176$869,350$172,711$5,884,234
67$8,529,091$827,613$94,162$6,382,092
68$9,312,067$781,175$10,325$6,929,151
69$10,172,166$729,721$0$7,530,445
70$11,117,169$672,919$0$8,205,038
71$12,155,646$610,419$0$8,948,297
72$13,297,041$541,848$0$9,765,257
73$14,551,756$466,816$0$10,663,408
74$15,931,252$384,906$0$11,651,009
75$17,448,155$295,683$0$12,737,159
76$19,116,379$198,683$0$13,931,891
77$20,951,249$93,418$0$15,246,258
78$22,969,654$0$0$16,692,446
79$25,190,199$0$0$18,287,971
80$27,633,385$0$0$20,063,898
81$30,321,801$0$0$22,018,152
82$33,280,334$0$0$24,168,835
83$36,536,408$0$0$26,535,888
84$40,120,238$0$0$29,141,290
85$44,065,117$0$0$32,009,252
86$48,407,731$0$0$35,166,456
87$53,188,503$0$0$38,642,302
88$58,451,975$0$0$42,469,183
89$64,247,225$0$0$46,682,794
90$70,628,334$0$0$51,322,470
91$77,654,896$0$0$56,431,550
92$85,392,574$0$0$62,057,794
93$93,913,728$0$0$68,253,826
94$103,298,089$0$0$75,077,637
95$113,633,518$0$0$82,593,128
96$125,016,829$0$0$90,870,712
97$137,554,708$0$0$99,987,981
98$151,364,715$0$0$110,030,439
99$166,576,395$0$0$121,092,303
100$183,332,499$0$0$133,277,398