Can I retire at age 40 with 974,000?

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 $974,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$80,432$79,716$79,017$78,334$77,668$76,985
2 years$39,818$39,076$38,358$37,661$36,985$36,297
3 years$26,282$25,537$24,820$24,130$23,465$22,793
4 years$19,515$18,772$18,063$17,384$16,735$16,084
5 years$15,456$14,718$14,017$13,353$12,722$12,094
6 years$12,751$12,018$11,328$10,678$10,066$9,463
7 years$10,819$10,093$9,414$8,779$8,187$7,607
8 years$9,371$8,651$7,984$7,365$6,792$6,236
9 years$8,246$7,533$6,876$6,273$5,720$5,188
10 years$7,346$6,640$5,995$5,407$4,873$4,366
11 years$6,610$5,911$5,278$4,706$4,191$3,707
12 years$5,997$5,305$4,684$4,128$3,632$3,171
13 years$5,479$4,794$4,185$3,644$3,167$2,728
14 years$5,035$4,358$3,760$3,235$2,776$2,359
15 years$4,651$3,981$3,395$2,885$2,445$2,049
16 years$4,315$3,653$3,078$2,583$2,160$1,785
17 years$4,019$3,364$2,801$2,321$1,916$1,560
18 years$3,756$3,108$2,557$2,092$1,703$1,367
19 years$3,521$2,881$2,341$1,890$1,518$1,200
20 years$3,310$2,677$2,148$1,712$1,356$1,056
21 years$3,120$2,494$1,976$1,554$1,214$931
22 years$2,946$2,328$1,821$1,413$1,088$821
23 years$2,788$2,177$1,681$1,286$976$726
24 years$2,644$2,040$1,555$1,173$878$642
25 years$2,511$1,914$1,440$1,072$790$569
26 years$2,389$1,799$1,336$980$711$504
27 years$2,276$1,693$1,240$897$641$447
28 years$2,171$1,595$1,153$822$579$397
29 years$2,073$1,505$1,073$753$523$352
30 years$1,983$1,421$999$691$472$313
31 years$1,898$1,344$932$635$427$278
32 years$1,819$1,271$869$584$386$247
33 years$1,744$1,204$812$537$349$220
34 years$1,674$1,141$758$494$316$196
35 years$1,609$1,082$709$455$287$174
36 years$1,547$1,027$663$419$260$155
37 years$1,489$976$621$386$235$138
38 years$1,433$927$581$356$213$123
39 years$1,381$882$545$328$193$110
40 years$1,332$839$511$302$175$98
41 years$1,285$799$479$279$159$87
42 years$1,240$761$449$257$144$78
43 years$1,198$725$421$238$131$69
44 years$1,157$691$396$219$119$62
45 years$1,119$659$371$203$108$55
46 years$1,082$628$349$187$98$49
47 years$1,047$600$328$173$89$44
48 years$1,014$572$308$160$81$39
49 years$982$547$289$148$73$35
50 years$951$522$272$137$67$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $974,000, adding $5,960 every year, while hoping to spend $56,769 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: 77/13/10 Blend
39$974,000$974,000$974,000$974,000
40$1,079,496$1,027,874$1,012,777$1,160,294
41$1,129,203$1,017,838$986,303$1,204,242
42$1,182,077$1,005,407$957,040$1,244,556
43$1,238,382$990,405$924,834$1,287,132
44$1,298,405$972,644$889,524$1,332,171
45$1,362,463$951,924$850,943$1,379,898
46$1,430,900$928,034$808,916$1,430,559
47$1,504,097$900,753$763,260$1,484,426
48$1,582,468$869,842$713,782$1,541,800
49$1,666,468$835,054$660,282$1,603,014
50$1,756,598$796,122$602,552$1,668,432
51$1,853,406$752,767$540,373$1,738,461
52$1,957,494$704,693$473,516$1,813,548
53$2,069,523$651,587$401,743$1,894,185
54$2,190,219$593,119$324,805$1,980,919
55$2,320,377$528,938$242,443$2,074,350
56$2,460,875$458,675$154,384$2,175,145
57$2,612,674$381,940$60,345$2,284,036
58$2,776,831$298,319$0$2,401,835
59$2,954,509$207,378$0$2,533,706
60$3,146,984$108,655$0$2,683,516
61$3,355,662$1,665$0$2,845,946
62$3,582,088$0$0$3,022,236
63$3,827,960$0$0$3,230,077
64$4,095,146$0$0$3,456,225
65$4,385,702$0$0$3,702,186
66$4,701,890$0$0$3,969,877
67$5,046,198$0$0$4,261,410
68$5,421,364$0$0$4,579,108
69$5,830,400$0$0$4,925,526
70$6,276,625$0$0$5,303,479
71$6,763,687$0$0$5,716,062
72$7,295,605$0$0$6,166,686
73$7,876,803$0$0$6,659,102
74$8,512,150$0$0$7,197,441
75$9,207,007$0$0$7,786,254
76$9,967,279$0$0$8,430,547
77$10,799,464$0$0$9,135,837
78$11,710,722$0$0$9,908,195
79$12,708,933$0$0$10,754,309
80$13,802,780$0$0$11,681,545
81$15,001,821$0$0$12,698,014
82$16,316,585$0$0$13,812,648
83$17,758,670$0$0$15,035,286
84$19,340,848$0$0$16,376,768
85$21,077,188$0$0$17,849,028
86$22,983,188$0$0$19,465,217
87$25,075,917$0$0$21,239,818
88$27,374,181$0$0$23,188,786
89$29,898,693$0$0$25,329,699
90$32,672,276$0$0$27,681,917
91$35,720,067$0$0$30,266,772
92$39,069,762$0$0$33,107,764
93$42,751,872$0$0$36,230,781
94$46,800,014$0$0$39,664,345
95$51,251,220$0$0$43,439,880
96$56,146,294$0$0$47,592,008
97$61,530,190$0$0$52,158,873
98$67,452,439$0$0$57,182,501
99$73,967,611$0$0$62,709,197
100$81,135,833$0$0$68,789,979