Can I retire at age 40 with 968,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%19%
1 years$79,937$79,225$78,530$77,852$77,190$74,392
2 years$39,573$38,836$38,121$37,429$36,757$33,969
3 years$26,120$25,379$24,667$23,981$23,320$20,629
4 years$19,395$18,657$17,951$17,277$16,632$14,059
5 years$15,360$14,627$13,931$13,270$12,643$10,195
6 years$12,672$11,944$11,258$10,612$10,004$7,683
7 years$10,752$10,031$9,356$8,725$8,136$5,941
8 years$9,313$8,598$7,934$7,319$6,750$4,678
9 years$8,195$7,486$6,834$6,234$5,684$3,734
10 years$7,300$6,599$5,958$5,374$4,843$3,011
11 years$6,569$5,874$5,245$4,677$4,165$2,447
12 years$5,960$5,273$4,655$4,102$3,610$2,001
13 years$5,445$4,765$4,159$3,622$3,148$1,644
14 years$5,004$4,331$3,737$3,215$2,759$1,357
15 years$4,622$3,957$3,374$2,867$2,429$1,123
16 years$4,289$3,630$3,059$2,567$2,147$932
17 years$3,994$3,343$2,783$2,307$1,904$775
18 years$3,733$3,089$2,541$2,079$1,693$645
19 years$3,500$2,863$2,326$1,878$1,509$538
20 years$3,290$2,660$2,135$1,701$1,348$450
21 years$3,100$2,478$1,964$1,544$1,206$376
22 years$2,928$2,313$1,810$1,404$1,081$315
23 years$2,771$2,164$1,671$1,278$970$263
24 years$2,628$2,027$1,545$1,166$872$221
25 years$2,496$1,902$1,431$1,065$785$185
26 years$2,374$1,788$1,327$974$707$155
27 years$2,262$1,683$1,233$891$637$130
28 years$2,157$1,586$1,146$817$575$109
29 years$2,061$1,496$1,066$749$519$92
30 years$1,970$1,413$993$687$469$77
31 years$1,886$1,335$926$631$424$65
32 years$1,807$1,264$864$580$384$54
33 years$1,734$1,197$807$533$347$46
34 years$1,664$1,134$754$491$314$38
35 years$1,599$1,076$705$452$285$32
36 years$1,537$1,021$659$416$258$27
37 years$1,479$970$617$383$234$23
38 years$1,425$922$578$353$212$19
39 years$1,373$876$541$326$192$16
40 years$1,323$834$507$301$174$13
41 years$1,277$794$476$277$158$11
42 years$1,232$756$446$256$144$9
43 years$1,190$720$419$236$130$8
44 years$1,150$686$393$218$118$7
45 years$1,112$655$369$201$107$6
46 years$1,075$624$347$186$97$5
47 years$1,041$596$326$172$89$4
48 years$1,007$569$306$159$80$3
49 years$976$543$288$147$73$3
50 years$945$519$270$136$66$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $968,000, adding $5,269 every year, while hoping to spend $53,642 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: 52/32/16 Blend
39$968,000$968,000$968,000$968,000
40$1,072,171$1,020,867$1,005,863$1,123,008
41$1,124,458$1,013,815$982,485$1,151,368
42$1,180,280$1,004,619$956,525$1,176,110
43$1,239,941$993,119$927,842$1,201,833
44$1,303,776$979,141$896,285$1,228,644
45$1,372,148$962,506$861,697$1,256,666
46$1,445,458$943,021$823,916$1,286,039
47$1,524,147$920,481$782,769$1,316,916
48$1,608,697$894,671$738,079$1,349,473
49$1,699,637$865,363$689,657$1,383,905
50$1,797,549$832,314$637,309$1,420,433
51$1,903,071$795,270$580,831$1,459,303
52$2,016,904$753,958$520,009$1,500,791
53$2,139,820$708,094$454,621$1,545,206
54$2,272,665$657,374$384,434$1,592,893
55$2,416,369$601,478$309,206$1,644,237
56$2,571,956$540,067$228,681$1,699,671
57$2,740,550$472,785$142,596$1,759,673
58$2,923,387$399,253$50,675$1,824,782
59$3,121,828$319,071$0$1,895,594
60$3,337,368$231,819$0$1,980,871
61$3,571,652$137,051$0$2,083,017
62$3,826,490$34,296$0$2,194,252
63$4,103,873$0$0$2,315,548
64$4,405,992$0$0$2,475,079
65$4,735,259$0$0$2,662,196
66$5,094,326$0$0$2,866,339
67$5,486,114$0$0$3,089,183
68$5,913,837$0$0$3,332,567
69$6,381,035$0$0$3,598,516
70$6,891,603$0$0$3,889,263
71$7,449,829$0$0$4,207,262
72$8,060,436$0$0$4,555,217
73$8,728,622$0$0$4,936,107
74$9,460,114$0$0$5,353,210
75$10,261,214$0$0$5,810,136
76$11,138,865$0$0$6,310,862
77$12,100,714$0$0$6,859,768
78$13,155,181$0$0$7,461,675
79$14,311,539$0$0$8,121,896
80$15,580,003$0$0$8,846,282
81$16,971,825$0$0$9,641,279
82$18,499,396$0$0$10,513,984
83$20,176,367$0$0$11,472,218
84$22,017,775$0$0$12,524,595
85$24,040,185$0$0$13,680,603
86$26,261,843$0$0$14,950,698
87$28,702,852$0$0$16,346,394
88$31,385,356$0$0$17,880,379
89$34,333,752$0$0$19,566,631
90$37,574,918$0$0$21,420,547
91$41,138,465$0$0$23,459,093
92$45,057,017$0$0$25,700,961
93$49,366,518$0$0$28,166,745
94$54,106,570$0$0$30,879,133
95$59,320,803$0$0$33,863,125
96$65,057,292$0$0$37,146,266
97$71,369,005$0$0$40,758,904
98$78,314,303$0$0$44,734,478
99$85,957,489$0$0$49,109,833
100$94,369,417$0$0$53,925,565