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%17%
1 years$80,432$79,716$79,017$78,334$77,668$75,454
2 years$39,818$39,076$38,358$37,661$36,985$34,771
3 years$26,282$25,537$24,820$24,130$23,465$21,321
4 years$19,515$18,772$18,063$17,384$16,735$14,678
5 years$15,456$14,718$14,017$13,353$12,722$10,757
6 years$12,751$12,018$11,328$10,678$10,066$8,195
7 years$10,819$10,093$9,414$8,779$8,187$6,410
8 years$9,371$8,651$7,984$7,365$6,792$5,107
9 years$8,246$7,533$6,876$6,273$5,720$4,127
10 years$7,346$6,640$5,995$5,407$4,873$3,370
11 years$6,610$5,911$5,278$4,706$4,191$2,774
12 years$5,997$5,305$4,684$4,128$3,632$2,299
13 years$5,479$4,794$4,185$3,644$3,167$1,915
14 years$5,035$4,358$3,760$3,235$2,776$1,602
15 years$4,651$3,981$3,395$2,885$2,445$1,345
16 years$4,315$3,653$3,078$2,583$2,160$1,132
17 years$4,019$3,364$2,801$2,321$1,916$955
18 years$3,756$3,108$2,557$2,092$1,703$808
19 years$3,521$2,881$2,341$1,890$1,518$684
20 years$3,310$2,677$2,148$1,712$1,356$580
21 years$3,120$2,494$1,976$1,554$1,214$493
22 years$2,946$2,328$1,821$1,413$1,088$419
23 years$2,788$2,177$1,681$1,286$976$356
24 years$2,644$2,040$1,555$1,173$878$303
25 years$2,511$1,914$1,440$1,072$790$258
26 years$2,389$1,799$1,336$980$711$220
27 years$2,276$1,693$1,240$897$641$188
28 years$2,171$1,595$1,153$822$579$160
29 years$2,073$1,505$1,073$753$523$137
30 years$1,983$1,421$999$691$472$117
31 years$1,898$1,344$932$635$427$99
32 years$1,819$1,271$869$584$386$85
33 years$1,744$1,204$812$537$349$73
34 years$1,674$1,141$758$494$316$62
35 years$1,609$1,082$709$455$287$53
36 years$1,547$1,027$663$419$260$45
37 years$1,489$976$621$386$235$39
38 years$1,433$927$581$356$213$33
39 years$1,381$882$545$328$193$28
40 years$1,332$839$511$302$175$24
41 years$1,285$799$479$279$159$21
42 years$1,240$761$449$257$144$18
43 years$1,198$725$421$238$131$15
44 years$1,157$691$396$219$119$13
45 years$1,119$659$371$203$108$11
46 years$1,082$628$349$187$98$9
47 years$1,047$600$328$173$89$8
48 years$1,014$572$308$160$81$7
49 years$982$547$289$148$73$6
50 years$951$522$272$137$67$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $974,000, adding $4,510 every year, while hoping to spend $56,585 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: 81/8/11 Blend
39$974,000$974,000$974,000$974,000
40$1,078,000$1,026,378$1,011,281$1,162,926
41$1,127,750$1,016,465$984,953$1,209,360
42$1,180,678$1,004,169$955,846$1,252,435
43$1,237,049$989,314$923,809$1,298,040
44$1,297,151$971,714$888,680$1,346,400
45$1,361,302$951,170$850,292$1,397,763
46$1,429,850$927,473$808,472$1,452,401
47$1,503,175$900,399$763,036$1,510,615
48$1,581,695$869,715$713,794$1,572,736
49$1,665,868$835,171$660,546$1,639,131
50$1,756,196$796,503$603,084$1,710,201
51$1,853,230$753,434$541,189$1,786,390
52$1,957,575$705,668$474,635$1,868,190
53$2,069,896$652,894$403,184$1,956,139
54$2,190,923$594,783$326,587$2,050,833
55$2,321,455$530,986$244,586$2,152,929
56$2,462,375$461,135$156,911$2,263,152
57$2,614,648$384,842$63,279$2,382,299
58$2,779,338$301,696$0$2,511,253
59$2,957,614$211,262$0$2,655,286
60$3,150,759$113,082$0$2,819,374
61$3,360,187$6,673$0$2,997,303
62$3,587,449$0$0$3,190,416
63$3,834,255$0$0$3,409,742
64$4,102,483$0$0$3,648,765
65$4,394,200$0$0$3,908,741
66$4,711,679$0$0$4,191,702
67$5,057,424$0$0$4,499,878
68$5,434,187$0$0$4,835,728
69$5,844,999$0$0$5,201,956
70$6,293,193$0$0$5,601,538
71$6,782,442$0$0$6,037,751
72$7,316,785$0$0$6,514,200
73$7,900,672$0$0$7,034,856
74$8,538,998$0$0$7,604,089
75$9,237,156$0$0$8,226,712
76$10,001,082$0$0$8,908,024
77$10,837,313$0$0$9,653,858
78$11,753,048$0$0$10,470,639
79$12,756,213$0$0$11,365,442
80$13,855,538$0$0$12,346,060
81$15,060,637$0$0$13,421,073
82$16,382,099$0$0$14,599,933
83$17,831,587$0$0$15,893,048
84$19,421,945$0$0$17,311,884
85$21,167,323$0$0$18,869,071
86$23,083,307$0$0$20,578,519
87$25,187,064$0$0$22,455,552
88$27,497,506$0$0$24,517,051
89$30,035,465$0$0$26,781,610
90$32,823,893$0$0$29,269,714
91$35,888,072$0$0$32,003,930
92$39,255,856$0$0$35,009,121
93$42,957,930$0$0$38,312,676
94$47,028,102$0$0$41,944,772
95$51,503,619$0$0$45,938,653
96$56,425,515$0$0$50,330,950
97$61,839,004$0$0$55,162,017
98$67,793,898$0$0$60,476,318
99$74,345,082$0$0$66,322,843
100$81,553,027$0$0$72,755,568