Can I retire at age 40 with 972,000?

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 $972,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$80,267$79,552$78,854$78,173$77,509$75,727
2 years$39,736$38,996$38,279$37,583$36,909$35,124
3 years$26,228$25,484$24,769$24,080$23,417$21,684
4 years$19,475$18,734$18,025$17,348$16,701$15,034
5 years$15,424$14,687$13,988$13,325$12,696$11,099
6 years$12,724$11,993$11,305$10,656$10,046$8,521
7 years$10,797$10,072$9,394$8,761$8,170$6,717
8 years$9,352$8,634$7,967$7,349$6,778$5,397
9 years$8,229$7,517$6,862$6,260$5,708$4,397
10 years$7,330$6,626$5,983$5,396$4,863$3,622
11 years$6,596$5,899$5,267$4,696$4,183$3,009
12 years$5,985$5,294$4,674$4,119$3,625$2,516
13 years$5,468$4,785$4,176$3,637$3,161$2,116
14 years$5,025$4,349$3,752$3,228$2,771$1,787
15 years$4,641$3,973$3,388$2,879$2,439$1,515
16 years$4,306$3,645$3,072$2,578$2,156$1,288
17 years$4,011$3,357$2,795$2,316$1,912$1,098
18 years$3,749$3,102$2,551$2,087$1,700$938
19 years$3,514$2,875$2,336$1,886$1,515$803
20 years$3,304$2,671$2,144$1,708$1,353$688
21 years$3,113$2,488$1,972$1,550$1,211$591
22 years$2,940$2,323$1,817$1,410$1,086$508
23 years$2,783$2,172$1,678$1,284$974$437
24 years$2,638$2,035$1,552$1,171$876$376
25 years$2,506$1,910$1,437$1,069$788$324
26 years$2,384$1,795$1,333$978$710$279
27 years$2,271$1,690$1,238$895$640$241
28 years$2,166$1,592$1,151$820$578$208
29 years$2,069$1,502$1,071$752$521$179
30 years$1,979$1,418$997$690$471$155
31 years$1,894$1,341$930$634$426$134
32 years$1,815$1,269$868$582$385$115
33 years$1,741$1,202$810$536$349$100
34 years$1,671$1,139$757$493$316$86
35 years$1,606$1,080$708$454$286$74
36 years$1,544$1,025$662$418$259$64
37 years$1,485$974$620$385$235$56
38 years$1,430$925$580$355$213$48
39 years$1,378$880$544$327$193$42
40 years$1,329$837$510$302$175$36
41 years$1,282$797$478$278$159$31
42 years$1,237$759$448$257$144$27
43 years$1,195$723$421$237$131$23
44 years$1,155$689$395$219$119$20
45 years$1,116$657$371$202$108$17
46 years$1,080$627$348$187$98$15
47 years$1,045$598$327$173$89$13
48 years$1,012$571$307$159$81$11
49 years$980$545$289$147$73$10
50 years$949$521$272$136$67$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $972,000, adding $2,357 every year, while hoping to spend $48,581 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: 79/15/6 Blend
39$972,000$972,000$972,000$972,000
40$1,073,575$1,022,059$1,006,993$1,157,679
41$1,131,390$1,020,450$989,038$1,211,513
42$1,193,474$1,017,134$968,852$1,263,935
43$1,260,211$1,011,976$946,311$1,319,976
44$1,332,022$1,004,833$921,283$1,379,973
45$1,409,371$995,553$893,629$1,444,298
46$1,492,767$983,975$863,205$1,513,358
47$1,582,768$969,928$829,861$1,587,604
48$1,679,987$953,232$793,438$1,667,532
49$1,785,100$933,694$753,773$1,753,689
50$1,898,848$911,113$710,692$1,846,678
51$2,022,045$885,272$664,015$1,947,164
52$2,155,588$855,945$613,554$2,055,881
53$2,300,463$822,891$559,112$2,173,634
54$2,457,752$785,855$500,485$2,301,316
55$2,628,648$744,567$437,456$2,439,909
56$2,814,462$698,742$369,803$2,590,495
57$3,016,636$648,080$297,290$2,754,269
58$3,236,757$592,260$219,674$2,932,547
59$3,476,572$530,947$136,699$3,126,780
60$3,738,003$463,784$48,099$3,338,571
61$4,023,165$390,395$0$3,569,683
62$4,334,386$310,382$0$3,825,037
63$4,674,228$223,325$0$4,107,286
64$5,045,512$128,781$0$4,415,732
65$5,451,345$26,282$0$4,753,007
66$5,895,146$0$0$5,122,008
67$6,380,678$0$0$5,539,907
68$6,912,088$0$0$6,002,070
69$7,493,940$0$0$6,508,132
70$8,131,261$0$0$7,062,469
71$8,829,586$0$0$7,669,899
72$9,595,012$0$0$8,335,729
73$10,434,252$0$0$9,065,804
74$11,354,703$0$0$9,866,561
75$12,364,508$0$0$10,745,091
76$13,472,640$0$0$11,709,203
77$14,688,980$0$0$12,767,501
78$16,024,414$0$0$13,929,459
79$17,490,932$0$0$15,205,517
80$19,101,745$0$0$16,607,173
81$20,871,402$0$0$18,147,095
82$22,815,935$0$0$19,839,238
83$24,953,003$0$0$21,698,976
84$27,302,063$0$0$23,743,244
85$29,884,547$0$0$25,990,704
86$32,724,072$0$0$28,461,913
87$35,846,655$0$0$31,179,520
88$39,280,959$0$0$34,168,479
89$43,058,568$0$0$37,456,285
90$47,214,278$0$0$41,073,229
91$51,786,428$0$0$45,052,688
92$56,817,261$0$0$49,431,437
93$62,353,320$0$0$54,249,995
94$68,445,890$0$0$59,553,007
95$75,151,476$0$0$65,389,665
96$82,532,341$0$0$71,814,174
97$90,657,090$0$0$78,886,258
98$99,601,316$0$0$86,671,726
99$109,448,315$0$0$95,243,092
100$120,289,870$0$0$104,680,260