Can I retire at age 40 with 970,000?

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 $970,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.9%
1 years$80,102$79,388$78,692$78,013$77,349$74,280
2 years$39,654$38,916$38,200$37,506$36,833$33,779
3 years$26,174$25,432$24,718$24,030$23,368$20,426
4 years$19,435$18,695$17,988$17,313$16,666$13,858
5 years$15,392$14,657$13,960$13,298$12,670$10,001
6 years$12,698$11,969$11,282$10,634$10,025$7,499
7 years$10,775$10,051$9,375$8,743$8,153$5,769
8 years$9,333$8,616$7,951$7,334$6,764$4,519
9 years$8,212$7,502$6,848$6,247$5,696$3,587
10 years$7,315$6,612$5,970$5,385$4,853$2,876
11 years$6,583$5,887$5,256$4,687$4,174$2,323
12 years$5,972$5,283$4,665$4,111$3,617$1,888
13 years$5,456$4,775$4,168$3,629$3,154$1,542
14 years$5,015$4,340$3,745$3,222$2,765$1,264
15 years$4,632$3,965$3,381$2,873$2,434$1,040
16 years$4,297$3,638$3,065$2,573$2,152$857
17 years$4,003$3,350$2,789$2,311$1,908$708
18 years$3,741$3,096$2,546$2,083$1,696$586
19 years$3,507$2,869$2,331$1,882$1,512$486
20 years$3,297$2,666$2,139$1,705$1,350$403
21 years$3,107$2,483$1,968$1,547$1,209$334
22 years$2,934$2,318$1,814$1,407$1,083$278
23 years$2,777$2,168$1,674$1,281$972$231
24 years$2,633$2,031$1,549$1,168$874$192
25 years$2,501$1,906$1,434$1,067$786$160
26 years$2,379$1,792$1,330$976$708$133
27 years$2,266$1,686$1,235$893$639$111
28 years$2,162$1,589$1,148$818$576$92
29 years$2,065$1,499$1,069$750$520$77
30 years$1,975$1,415$995$689$470$64
31 years$1,890$1,338$928$632$425$53
32 years$1,811$1,266$866$581$385$45
33 years$1,737$1,199$808$535$348$37
34 years$1,668$1,136$755$492$315$31
35 years$1,602$1,078$706$453$285$26
36 years$1,541$1,023$661$417$259$22
37 years$1,482$972$618$384$234$18
38 years$1,427$923$579$354$212$15
39 years$1,375$878$542$326$193$12
40 years$1,326$835$508$301$175$10
41 years$1,279$795$477$278$159$9
42 years$1,235$757$447$256$144$7
43 years$1,193$722$420$237$131$6
44 years$1,152$688$394$219$119$5
45 years$1,114$656$370$202$108$4
46 years$1,078$626$347$186$98$4
47 years$1,043$597$326$172$89$3
48 years$1,009$570$307$159$81$2
49 years$978$544$288$147$73$2
50 years$947$520$271$136$66$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $970,000, adding $2,525 every year, while hoping to spend $35,517 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: 65/24/11 Blend
39$970,000$970,000$970,000$970,000
40$1,071,545$1,020,135$1,005,100$1,138,428
41$1,143,052$1,032,331$1,000,981$1,195,554
42$1,220,663$1,043,935$995,533$1,253,546
43$1,304,963$1,054,880$988,676$1,316,006
44$1,396,595$1,065,095$980,322$1,383,367
45$1,496,266$1,074,503$970,381$1,456,107
46$1,604,757$1,083,025$958,760$1,534,754
47$1,722,923$1,090,575$945,360$1,619,887
48$1,851,709$1,097,060$930,077$1,712,149
49$1,992,151$1,102,385$912,803$1,812,245
50$2,145,394$1,106,444$893,425$1,920,957
51$2,312,693$1,109,129$871,824$2,039,142
52$2,495,434$1,110,323$847,876$2,167,750
53$2,695,140$1,109,900$821,451$2,307,825
54$2,913,488$1,107,730$792,414$2,460,522
55$3,152,327$1,103,671$760,623$2,627,112
56$3,413,690$1,097,577$725,929$2,808,998
57$3,699,816$1,089,288$688,178$3,007,727
58$4,013,172$1,078,638$647,207$3,225,004
59$4,356,473$1,065,449$602,846$3,462,712
60$4,732,711$1,049,533$554,919$3,722,926
61$5,145,180$1,030,692$503,240$4,007,934
62$5,597,506$1,008,714$447,617$4,320,260
63$6,093,687$983,376$387,847$4,662,687
64$6,638,123$954,442$323,720$5,038,284
65$7,235,662$921,660$255,016$5,450,436
66$7,891,645$884,766$181,504$5,902,876
67$8,611,953$843,480$102,944$6,399,718
68$9,403,066$797,505$19,087$6,945,502
69$10,272,122$746,526$0$7,545,233
70$11,226,986$690,213$0$8,212,691
71$12,276,319$628,215$0$8,948,626
72$13,429,667$560,160$0$9,757,539
73$14,697,542$485,657$0$10,646,862
74$16,091,529$404,292$0$11,624,788
75$17,624,390$315,628$0$12,700,349
76$19,310,186$219,202$0$13,883,499
77$21,164,409$114,526$0$15,185,213
78$23,204,127$1,086$0$16,617,587
79$25,448,146$0$0$18,193,955
80$27,917,187$0$0$19,961,144
81$30,634,079$0$0$21,906,123
82$33,623,979$0$0$24,046,620
83$36,914,603$0$0$26,402,490
84$40,536,492$0$0$28,995,606
85$44,523,296$0$0$31,850,073
86$48,912,095$0$0$34,992,447
87$53,743,745$0$0$38,451,995
88$59,063,266$0$0$42,260,961
89$64,920,264$0$0$46,454,878
90$71,369,401$0$0$51,072,899
91$78,470,909$0$0$56,158,165
92$86,291,159$0$0$61,758,218
93$94,903,285$0$0$67,925,441
94$104,387,876$0$0$74,717,560
95$114,833,736$0$0$82,198,182
96$126,338,720$0$0$90,437,399
97$139,010,659$0$0$99,512,450
98$152,968,375$0$0$109,508,444
99$168,342,805$0$0$120,519,170
100$185,278,233$0$0$132,647,977