Can I retire at age 40 with 965,000?

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 $965,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$79,689$78,979$78,286$77,610$76,950$75,863
2 years$39,450$38,715$38,003$37,313$36,643$35,550
3 years$26,039$25,301$24,591$23,907$23,248$22,182
4 years$19,334$18,599$17,896$17,223$16,581$15,551
5 years$15,313$14,582$13,888$13,229$12,604$11,614
6 years$12,633$11,907$11,223$10,580$9,973$9,024
7 years$10,719$9,999$9,327$8,698$8,111$7,202
8 years$9,285$8,571$7,910$7,297$6,729$5,860
9 years$8,169$7,463$6,813$6,215$5,667$4,838
10 years$7,278$6,578$5,939$5,357$4,828$4,039
11 years$6,549$5,856$5,229$4,663$4,152$3,402
12 years$5,942$5,256$4,641$4,090$3,598$2,886
13 years$5,428$4,750$4,146$3,611$3,138$2,462
14 years$4,989$4,318$3,725$3,205$2,751$2,111
15 years$4,608$3,944$3,363$2,858$2,422$1,817
16 years$4,275$3,619$3,049$2,559$2,141$1,569
17 years$3,982$3,333$2,775$2,300$1,898$1,359
18 years$3,722$3,080$2,533$2,072$1,688$1,180
19 years$3,489$2,854$2,319$1,873$1,504$1,026
20 years$3,280$2,652$2,128$1,696$1,344$894
21 years$3,091$2,470$1,958$1,539$1,202$781
22 years$2,919$2,306$1,804$1,399$1,078$682
23 years$2,763$2,157$1,666$1,275$967$597
24 years$2,619$2,021$1,541$1,162$870$523
25 years$2,488$1,896$1,427$1,062$782$458
26 years$2,367$1,782$1,323$971$705$402
27 years$2,255$1,677$1,229$888$635$353
28 years$2,151$1,581$1,142$814$573$310
29 years$2,054$1,491$1,063$746$518$272
30 years$1,964$1,408$990$685$468$239
31 years$1,880$1,331$923$629$423$210
32 years$1,802$1,260$861$578$383$185
33 years$1,728$1,193$804$532$346$163
34 years$1,659$1,131$751$489$313$143
35 years$1,594$1,072$703$450$284$126
36 years$1,533$1,018$657$415$257$111
37 years$1,475$967$615$382$233$98
38 years$1,420$919$576$352$211$86
39 years$1,368$874$540$325$192$76
40 years$1,319$831$506$300$174$67
41 years$1,273$791$474$276$158$59
42 years$1,229$753$445$255$143$52
43 years$1,187$718$418$235$130$46
44 years$1,147$684$392$217$118$40
45 years$1,108$653$368$201$107$36
46 years$1,072$623$346$185$97$31
47 years$1,037$594$325$171$88$28
48 years$1,004$567$305$158$80$24
49 years$973$542$287$146$73$21
50 years$942$517$270$135$66$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $965,000, adding $2,803 every year, while hoping to spend $53,363 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: 81/6/13 Blend
39$965,000$965,000$965,000$965,000
40$1,066,321$1,015,176$1,000,219$1,149,839
41$1,118,308$1,008,142$976,948$1,198,040
42$1,173,809$998,975$951,110$1,243,694
43$1,233,127$987,513$922,561$1,292,250
44$1,296,592$973,587$891,152$1,343,975
45$1,364,567$957,016$856,729$1,399,160
46$1,437,451$937,608$819,128$1,458,126
47$1,515,681$915,161$778,178$1,521,229
48$1,599,736$889,459$733,703$1,588,858
49$1,690,142$860,276$685,515$1,661,446
50$1,787,478$827,371$633,421$1,739,465
51$1,892,377$790,489$577,217$1,823,441
52$2,005,538$749,361$516,692$1,913,949
53$2,127,725$703,702$451,624$2,011,626
54$2,259,780$653,210$381,781$2,117,173
55$2,402,629$597,569$306,921$2,231,363
56$2,557,287$536,439$226,793$2,355,049
57$2,724,872$469,467$141,132$2,489,170
58$2,906,613$396,275$49,664$2,634,765
59$3,103,862$316,466$0$2,792,974
60$3,318,104$229,622$0$2,971,710
61$3,550,975$135,298$0$3,173,495
62$3,804,274$33,026$0$3,393,010
63$4,079,978$0$0$3,631,988
64$4,380,266$0$0$3,897,471
65$4,707,533$0$0$4,189,204
66$5,064,416$0$0$4,507,361
67$5,453,819$0$0$4,854,532
68$5,878,934$0$0$5,233,569
69$6,343,279$0$0$5,647,609
70$6,850,725$0$0$6,100,108
71$7,405,535$0$0$6,594,870
72$8,012,400$0$0$7,136,083
73$8,676,488$0$0$7,728,358
74$9,403,487$0$0$8,376,774
75$10,199,663$0$0$9,086,923
76$11,071,916$0$0$9,864,961
77$12,027,842$0$0$10,717,672
78$13,075,811$0$0$11,652,523
79$14,225,038$0$0$12,677,741
80$15,485,675$0$0$13,802,387
81$16,868,901$0$0$15,036,438
82$18,387,032$0$0$16,390,889
83$20,053,635$0$0$17,877,846
84$21,883,651$0$0$19,510,649
85$23,893,542$0$0$21,303,989
86$26,101,441$0$0$23,274,052
87$28,527,325$0$0$25,438,670
88$31,193,201$0$0$27,817,484
89$34,123,312$0$0$30,432,135
90$37,344,370$0$0$33,306,464
91$40,885,801$0$0$36,466,738
92$44,780,025$0$0$39,941,895
93$49,062,762$0$0$43,763,818
94$53,773,366$0$0$47,967,634
95$58,955,197$0$0$52,592,047
96$64,656,029$0$0$57,679,698
97$70,928,499$0$0$63,277,573
98$77,830,604$0$0$69,437,439
99$85,426,247$0$0$76,216,337
100$93,785,838$0$0$83,677,114