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%13.3%
1 years$79,937$79,225$78,530$77,852$77,190$76,130
2 years$39,573$38,836$38,121$37,429$36,757$35,692
3 years$26,120$25,379$24,667$23,981$23,320$22,282
4 years$19,395$18,657$17,951$17,277$16,632$15,629
5 years$15,360$14,627$13,931$13,270$12,643$11,678
6 years$12,672$11,944$11,258$10,612$10,004$9,078
7 years$10,752$10,031$9,356$8,725$8,136$7,250
8 years$9,313$8,598$7,934$7,319$6,750$5,903
9 years$8,195$7,486$6,834$6,234$5,684$4,876
10 years$7,300$6,599$5,958$5,374$4,843$4,073
11 years$6,569$5,874$5,245$4,677$4,165$3,433
12 years$5,960$5,273$4,655$4,102$3,610$2,914
13 years$5,445$4,765$4,159$3,622$3,148$2,488
14 years$5,004$4,331$3,737$3,215$2,759$2,134
15 years$4,622$3,957$3,374$2,867$2,429$1,838
16 years$4,289$3,630$3,059$2,567$2,147$1,589
17 years$3,994$3,343$2,783$2,307$1,904$1,377
18 years$3,733$3,089$2,541$2,079$1,693$1,196
19 years$3,500$2,863$2,326$1,878$1,509$1,041
20 years$3,290$2,660$2,135$1,701$1,348$908
21 years$3,100$2,478$1,964$1,544$1,206$793
22 years$2,928$2,313$1,810$1,404$1,081$694
23 years$2,771$2,164$1,671$1,278$970$607
24 years$2,628$2,027$1,545$1,166$872$532
25 years$2,496$1,902$1,431$1,065$785$467
26 years$2,374$1,788$1,327$974$707$410
27 years$2,262$1,683$1,233$891$637$360
28 years$2,157$1,586$1,146$817$575$316
29 years$2,061$1,496$1,066$749$519$278
30 years$1,970$1,413$993$687$469$245
31 years$1,886$1,335$926$631$424$215
32 years$1,807$1,264$864$580$384$190
33 years$1,734$1,197$807$533$347$167
34 years$1,664$1,134$754$491$314$147
35 years$1,599$1,076$705$452$285$130
36 years$1,537$1,021$659$416$258$114
37 years$1,479$970$617$383$234$101
38 years$1,425$922$578$353$212$89
39 years$1,373$876$541$326$192$78
40 years$1,323$834$507$301$174$69
41 years$1,277$794$476$277$158$61
42 years$1,232$756$446$256$144$54
43 years$1,190$720$419$236$130$47
44 years$1,150$686$393$218$118$42
45 years$1,112$655$369$201$107$37
46 years$1,075$624$347$186$97$33
47 years$1,041$596$326$172$89$29
48 years$1,007$569$306$159$80$25
49 years$976$543$288$147$73$22
50 years$945$519$270$136$66$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $968,000, adding $3,166 every year, while hoping to spend $32,346 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: 63/30/7 Blend
39$968,000$968,000$968,000$968,000
40$1,070,002$1,018,698$1,003,694$1,135,790
41$1,144,726$1,034,198$1,002,902$1,195,553
42$1,225,988$1,049,374$1,000,999$1,256,696
43$1,314,421$1,064,175$997,914$1,322,617
44$1,410,720$1,078,548$993,572$1,393,776
45$1,515,652$1,092,435$987,896$1,470,683
46$1,630,059$1,105,775$980,801$1,553,896
47$1,754,871$1,118,504$972,203$1,644,034
48$1,891,107$1,130,550$962,012$1,741,777
49$2,039,892$1,141,839$950,131$1,847,876
50$2,202,464$1,152,292$936,464$1,963,157
51$2,380,186$1,161,825$920,905$2,088,532
52$2,574,556$1,170,346$903,347$2,225,008
53$2,787,228$1,177,759$883,676$2,373,691
54$3,020,019$1,183,963$861,773$2,535,804
55$3,274,932$1,188,849$837,514$2,712,695
56$3,554,173$1,192,300$810,768$2,905,848
57$3,860,170$1,194,195$781,401$3,116,901
58$4,195,598$1,194,401$749,269$3,347,661
59$4,563,404$1,192,781$714,223$3,600,117
60$4,966,830$1,189,187$676,110$3,876,466
61$5,409,452$1,183,463$634,765$4,179,127
62$5,895,206$1,175,442$590,019$4,510,769
63$6,428,427$1,164,949$541,694$4,874,334
64$7,013,892$1,151,796$489,607$5,273,066
65$7,656,862$1,135,787$433,561$5,710,542
66$8,363,133$1,116,712$373,357$6,190,704
67$9,139,089$1,094,348$308,781$6,717,901
68$9,991,765$1,068,459$239,614$7,296,927
69$10,928,910$1,038,798$165,625$7,933,065
70$11,959,059$1,005,100$86,574$8,632,143
71$13,091,619$967,086$2,210$9,400,584
72$14,336,951$924,460$0$10,245,471
73$15,706,472$876,910$0$11,181,171
74$17,212,759$824,105$0$12,210,334
75$18,869,670$765,697$0$13,342,307
76$20,692,475$701,314$0$14,587,574
77$22,697,995$630,566$0$15,957,691
78$24,904,768$553,041$0$17,465,398
79$27,333,216$468,302$0$19,124,735
80$30,005,843$375,888$0$20,951,182
81$32,947,444$275,312$0$22,961,799
82$36,185,340$166,059$0$25,175,393
83$39,749,635$47,586$0$27,612,692
84$43,673,500$0$0$30,296,544
85$47,993,486$0$0$33,278,771
86$52,749,866$0$0$36,579,638
87$57,987,020$0$0$40,214,246
88$63,753,849$0$0$44,216,545
89$70,104,238$0$0$48,623,941
90$77,097,562$0$0$53,477,658
91$84,799,249$0$0$58,823,116
92$93,281,398$0$0$64,710,370
93$102,623,454$0$0$71,194,574
94$112,912,961$0$0$78,336,504
95$124,246,387$0$0$86,203,134
96$136,730,037$0$0$94,868,264
97$150,481,051$0$0$104,413,218
98$165,628,511$0$0$114,927,611
99$182,314,662$0$0$126,510,196
100$200,696,249$0$0$139,269,794