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%17.6%
1 years$80,267$79,552$78,854$78,173$77,509$75,118
2 years$39,736$38,996$38,279$37,583$36,909$34,521
3 years$26,228$25,484$24,769$24,080$23,417$21,107
4 years$19,475$18,734$18,025$17,348$16,701$14,487
5 years$15,424$14,687$13,988$13,325$12,696$10,583
6 years$12,724$11,993$11,305$10,656$10,046$8,036
7 years$10,797$10,072$9,394$8,761$8,170$6,264
8 years$9,352$8,634$7,967$7,349$6,778$4,974
9 years$8,229$7,517$6,862$6,260$5,708$4,004
10 years$7,330$6,626$5,983$5,396$4,863$3,257
11 years$6,596$5,899$5,267$4,696$4,183$2,671
12 years$5,985$5,294$4,674$4,119$3,625$2,205
13 years$5,468$4,785$4,176$3,637$3,161$1,829
14 years$5,025$4,349$3,752$3,228$2,771$1,524
15 years$4,641$3,973$3,388$2,879$2,439$1,274
16 years$4,306$3,645$3,072$2,578$2,156$1,068
17 years$4,011$3,357$2,795$2,316$1,912$897
18 years$3,749$3,102$2,551$2,087$1,700$755
19 years$3,514$2,875$2,336$1,886$1,515$637
20 years$3,304$2,671$2,144$1,708$1,353$538
21 years$3,113$2,488$1,972$1,550$1,211$454
22 years$2,940$2,323$1,817$1,410$1,086$384
23 years$2,783$2,172$1,678$1,284$974$325
24 years$2,638$2,035$1,552$1,171$876$276
25 years$2,506$1,910$1,437$1,069$788$234
26 years$2,384$1,795$1,333$978$710$198
27 years$2,271$1,690$1,238$895$640$168
28 years$2,166$1,592$1,151$820$578$143
29 years$2,069$1,502$1,071$752$521$121
30 years$1,979$1,418$997$690$471$103
31 years$1,894$1,341$930$634$426$87
32 years$1,815$1,269$868$582$385$74
33 years$1,741$1,202$810$536$349$63
34 years$1,671$1,139$757$493$316$54
35 years$1,606$1,080$708$454$286$46
36 years$1,544$1,025$662$418$259$39
37 years$1,485$974$620$385$235$33
38 years$1,430$925$580$355$213$28
39 years$1,378$880$544$327$193$24
40 years$1,329$837$510$302$175$20
41 years$1,282$797$478$278$159$17
42 years$1,237$759$448$257$144$15
43 years$1,195$723$421$237$131$12
44 years$1,155$689$395$219$119$11
45 years$1,116$657$371$202$108$9
46 years$1,080$627$348$187$98$8
47 years$1,045$598$327$173$89$6
48 years$1,012$571$307$159$81$6
49 years$980$545$289$147$73$5
50 years$949$521$272$136$67$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $972,000, adding $2,496 every year, while hoping to spend $49,912 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: 35/43/22 Blend
39$972,000$972,000$972,000$972,000
40$1,073,719$1,022,203$1,007,137$1,104,046
41$1,130,132$1,019,185$987,770$1,123,611
42$1,190,627$1,014,346$966,081$1,139,937
43$1,255,566$1,007,544$941,941$1,156,538
44$1,325,350$998,630$915,211$1,173,469
45$1,400,415$987,442$885,751$1,190,795
46$1,481,243$973,813$853,409$1,208,591
47$1,568,363$957,563$818,031$1,226,944
48$1,662,354$938,501$779,453$1,245,956
49$1,763,853$916,426$737,504$1,265,742
50$1,873,561$891,127$692,005$1,286,437
51$1,992,248$862,376$642,771$1,308,193
52$2,120,760$829,935$589,607$1,331,186
53$2,260,027$793,551$532,308$1,355,613
54$2,411,073$752,958$470,663$1,381,700
55$2,575,021$707,872$404,450$1,409,703
56$2,753,110$657,994$333,435$1,439,913
57$2,946,700$603,009$257,378$1,472,656
58$3,157,289$542,582$176,026$1,508,303
59$3,386,523$476,359$89,114$1,547,268
60$3,636,216$403,969$0$1,590,021
61$3,908,363$325,015$0$1,637,941
62$4,205,157$239,082$0$1,713,146
63$4,529,016$145,730$0$1,795,426
64$4,882,599$44,494$0$1,885,598
65$5,268,833$0$0$1,984,570
66$5,690,943$0$0$2,124,160
67$6,152,474$0$0$2,299,942
68$6,657,336$0$0$2,492,365
69$7,209,828$0$0$2,703,088
70$7,814,689$0$0$2,933,933
71$8,477,132$0$0$3,186,912
72$9,202,904$0$0$3,464,236
73$9,998,329$0$0$3,768,344
74$10,870,374$0$0$4,101,920
75$11,826,713$0$0$4,467,920
76$12,875,797$0$0$4,869,601
77$14,026,933$0$0$5,310,552
78$15,290,377$0$0$5,794,724
79$16,677,422$0$0$6,326,470
80$18,200,509$0$0$6,910,585
81$19,873,344$0$0$7,552,353
82$21,711,025$0$0$8,257,593
83$23,730,182$0$0$9,032,717
84$25,949,140$0$0$9,884,789
85$28,388,083$0$0$10,821,590
86$31,069,251$0$0$11,851,694
87$34,017,143$0$0$12,984,547
88$37,258,754$0$0$14,230,556
89$40,823,823$0$0$15,601,189
90$44,745,116$0$0$17,109,078
91$49,058,735$0$0$18,768,144
92$53,804,455$0$0$20,593,723
93$59,026,104$0$0$22,602,715
94$64,771,969$0$0$24,813,740
95$71,095,256$0$0$27,247,315
96$78,054,590$0$0$29,926,045
97$85,714,566$0$0$32,874,840
98$94,146,359$0$0$36,121,146
99$103,428,396$0$0$39,695,208
100$113,647,092$0$0$43,630,350