Can I retire at age 40 with 968,000?

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 $968,000?

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$79,937$79,225$78,530$77,852$77,190$76,099
2 years$39,573$38,836$38,121$37,429$36,757$35,660
3 years$26,120$25,379$24,667$23,981$23,320$22,251
4 years$19,395$18,657$17,951$17,277$16,632$15,600
5 years$15,360$14,627$13,931$13,270$12,643$11,650
6 years$12,672$11,944$11,258$10,612$10,004$9,052
7 years$10,752$10,031$9,356$8,725$8,136$7,224
8 years$9,313$8,598$7,934$7,319$6,750$5,879
9 years$8,195$7,486$6,834$6,234$5,684$4,853
10 years$7,300$6,599$5,958$5,374$4,843$4,052
11 years$6,569$5,874$5,245$4,677$4,165$3,413
12 years$5,960$5,273$4,655$4,102$3,610$2,895
13 years$5,445$4,765$4,159$3,622$3,148$2,470
14 years$5,004$4,331$3,737$3,215$2,759$2,118
15 years$4,622$3,957$3,374$2,867$2,429$1,823
16 years$4,289$3,630$3,059$2,567$2,147$1,574
17 years$3,994$3,343$2,783$2,307$1,904$1,363
18 years$3,733$3,089$2,541$2,079$1,693$1,183
19 years$3,500$2,863$2,326$1,878$1,509$1,029
20 years$3,290$2,660$2,135$1,701$1,348$897
21 years$3,100$2,478$1,964$1,544$1,206$783
22 years$2,928$2,313$1,810$1,404$1,081$684
23 years$2,771$2,164$1,671$1,278$970$599
24 years$2,628$2,027$1,545$1,166$872$524
25 years$2,496$1,902$1,431$1,065$785$460
26 years$2,374$1,788$1,327$974$707$403
27 years$2,262$1,683$1,233$891$637$354
28 years$2,157$1,586$1,146$817$575$311
29 years$2,061$1,496$1,066$749$519$273
30 years$1,970$1,413$993$687$469$240
31 years$1,886$1,335$926$631$424$211
32 years$1,807$1,264$864$580$384$186
33 years$1,734$1,197$807$533$347$163
34 years$1,664$1,134$754$491$314$144
35 years$1,599$1,076$705$452$285$127
36 years$1,537$1,021$659$416$258$111
37 years$1,479$970$617$383$234$98
38 years$1,425$922$578$353$212$86
39 years$1,373$876$541$326$192$76
40 years$1,323$834$507$301$174$67
41 years$1,277$794$476$277$158$59
42 years$1,232$756$446$256$144$52
43 years$1,190$720$419$236$130$46
44 years$1,150$686$393$218$118$40
45 years$1,112$655$369$201$107$36
46 years$1,075$624$347$186$97$31
47 years$1,041$596$326$172$89$28
48 years$1,007$569$306$159$80$24
49 years$976$543$288$147$73$22
50 years$945$519$270$136$66$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $968,000, adding $6,843 every year, while hoping to spend $42,162 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: 71/13/16 Blend
39$968,000$968,000$968,000$968,000
40$1,073,795$1,022,491$1,007,487$1,145,599
41$1,138,462$1,027,733$996,377$1,199,443
42$1,208,312$1,031,818$983,483$1,252,639
43$1,283,829$1,034,647$968,699$1,309,788
44$1,365,545$1,036,110$951,916$1,371,276
45$1,454,045$1,036,094$933,020$1,437,524
46$1,549,973$1,034,478$911,891$1,509,000
47$1,654,035$1,031,133$888,405$1,586,219
48$1,767,010$1,025,921$862,429$1,669,750
49$1,889,752$1,018,698$833,828$1,760,219
50$2,023,203$1,009,311$802,457$1,858,319
51$2,168,398$997,595$768,167$1,964,811
52$2,326,475$983,378$730,802$2,080,539
53$2,498,689$966,477$690,198$2,206,431
54$2,686,419$946,698$646,183$2,343,512
55$2,891,182$923,835$598,578$2,492,911
56$3,114,650$897,670$547,198$2,655,875
57$3,358,661$867,973$491,846$2,833,781
58$3,625,241$834,499$432,319$3,028,146
59$3,916,617$796,992$368,403$3,240,642
60$4,235,244$755,177$299,877$3,473,116
61$4,583,824$708,765$226,508$3,727,605
62$4,965,332$657,452$148,053$4,006,354
63$5,383,043$600,914$64,260$4,311,842
64$5,840,564$538,810$0$4,646,799
65$6,341,869$470,780$0$5,018,537
66$6,891,333$396,441$0$5,438,069
67$7,493,774$315,391$0$5,898,129
68$8,154,498$227,205$0$6,402,810
69$8,879,352$131,433$0$6,956,624
70$9,674,773$27,601$0$7,564,545
71$10,547,854$0$0$8,232,051
72$11,506,406$0$0$8,977,314
73$12,559,034$0$0$9,800,107
74$13,715,219$0$0$10,703,899
75$14,985,401$0$0$11,696,860
76$16,381,086$0$0$12,787,989
77$17,914,947$0$0$13,987,202
78$19,600,946$0$0$15,305,423
79$21,454,465$0$0$16,754,684
80$23,492,451$0$0$18,348,246
81$25,733,575$0$0$20,100,716
82$28,198,408$0$0$22,028,187
83$30,909,613$0$0$24,148,392
84$33,892,164$0$0$26,480,868
85$37,173,572$0$0$29,047,141
86$40,784,153$0$0$31,870,928
87$44,757,307$0$0$34,978,362
88$49,129,838$0$0$38,398,237
89$53,942,297$0$0$42,162,281
90$59,239,365$0$0$46,305,450
91$65,070,275$0$0$50,866,265
92$71,489,275$0$0$55,887,170
93$78,556,142$0$0$61,414,932
94$86,336,739$0$0$67,501,085
95$94,903,646$0$0$74,202,413
96$104,336,834$0$0$81,581,487
97$114,724,428$0$0$89,707,256
98$126,163,532$0$0$98,655,693
99$138,761,146$0$0$108,510,517
100$152,635,178$0$0$119,363,980