Can I retire at age 40 with 975,000?

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 $975,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.1%
1 years$80,515$79,797$79,098$78,415$77,748$76,428
2 years$39,859$39,116$38,397$37,699$37,023$35,698
3 years$26,309$25,563$24,845$24,154$23,489$22,199
4 years$19,535$18,791$18,081$17,402$16,752$15,508
5 years$15,472$14,733$14,032$13,366$12,735$11,539
6 years$12,764$12,030$11,340$10,689$10,077$8,932
7 years$10,830$10,103$9,423$8,788$8,195$7,101
8 years$9,381$8,660$7,992$7,372$6,799$5,755
9 years$8,254$7,540$6,883$6,279$5,725$4,731
10 years$7,353$6,646$6,001$5,413$4,878$3,933
11 years$6,617$5,917$5,283$4,711$4,196$3,298
12 years$6,003$5,311$4,689$4,132$3,636$2,785
13 years$5,485$4,799$4,189$3,648$3,170$2,366
14 years$5,040$4,362$3,764$3,238$2,779$2,019
15 years$4,656$3,985$3,398$2,888$2,447$1,729
16 years$4,320$3,656$3,081$2,586$2,163$1,486
17 years$4,023$3,367$2,804$2,323$1,918$1,281
18 years$3,760$3,112$2,559$2,094$1,705$1,106
19 years$3,525$2,884$2,343$1,892$1,520$957
20 years$3,314$2,680$2,150$1,714$1,357$830
21 years$3,123$2,496$1,978$1,555$1,215$720
22 years$2,949$2,330$1,823$1,414$1,089$626
23 years$2,791$2,179$1,683$1,288$977$545
24 years$2,647$2,042$1,557$1,174$879$475
25 years$2,514$1,916$1,442$1,073$791$414
26 years$2,391$1,801$1,337$981$712$361
27 years$2,278$1,695$1,242$898$642$315
28 years$2,173$1,597$1,154$822$579$275
29 years$2,076$1,507$1,074$754$523$240
30 years$1,985$1,423$1,000$692$473$210
31 years$1,900$1,345$933$636$427$184
32 years$1,820$1,273$870$584$387$161
33 years$1,746$1,205$813$537$350$140
34 years$1,676$1,142$759$494$317$123
35 years$1,610$1,083$710$455$287$108
36 years$1,549$1,028$664$419$260$94
37 years$1,490$977$622$386$236$82
38 years$1,435$928$582$356$214$72
39 years$1,383$883$545$328$194$63
40 years$1,333$840$511$303$176$55
41 years$1,286$799$479$279$159$48
42 years$1,241$761$450$258$145$42
43 years$1,199$725$422$238$131$37
44 years$1,158$691$396$220$119$33
45 years$1,120$659$372$203$108$29
46 years$1,083$629$349$187$98$25
47 years$1,048$600$328$173$89$22
48 years$1,015$573$308$160$81$19
49 years$983$547$290$148$74$17
50 years$952$523$272$137$67$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $975,000, adding $5,784 every year, while hoping to spend $58,746 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: 46/37/17 Blend
39$975,000$975,000$975,000$975,000
40$1,080,416$1,028,741$1,013,629$1,124,637
41$1,128,113$1,016,644$985,080$1,143,949
42$1,178,707$1,001,986$953,606$1,158,516
43$1,232,430$984,578$919,047$1,173,064
44$1,289,537$964,222$881,235$1,187,617
45$1,350,309$940,708$839,995$1,202,205
46$1,415,051$913,813$795,145$1,216,862
47$1,484,097$883,300$746,493$1,231,635
48$1,557,814$848,921$693,840$1,246,577
49$1,636,604$810,412$636,977$1,261,753
50$1,720,907$767,491$575,685$1,277,239
51$1,811,207$719,865$509,737$1,293,126
52$1,908,032$667,220$438,895$1,309,519
53$2,011,963$609,227$362,911$1,326,541
54$2,123,639$545,535$281,524$1,344,334
55$2,243,760$475,775$194,464$1,363,062
56$2,373,093$399,558$101,448$1,382,914
57$2,512,483$316,470$2,181$1,404,106
58$2,662,857$226,078$0$1,426,885
59$2,825,233$127,921$0$1,470,353
60$3,000,731$21,513$0$1,517,655
61$3,190,580$0$0$1,568,819
62$3,396,132$0$0$1,662,454
63$3,618,875$0$0$1,773,504
64$3,860,441$0$0$1,894,038
65$4,122,630$0$0$2,024,966
66$4,407,417$0$0$2,167,286
67$4,716,977$0$0$2,322,101
68$5,053,703$0$0$2,490,619
69$5,420,225$0$0$2,674,174
70$5,819,441$0$0$2,874,231
71$6,254,537$0$0$3,092,403
72$6,729,020$0$0$3,330,467
73$7,246,752$0$0$3,590,376
74$7,811,979$0$0$3,874,282
75$8,429,381$0$0$4,184,554
76$9,104,107$0$0$4,523,799
77$9,841,824$0$0$4,894,888
78$10,648,775$0$0$5,300,982
79$11,531,833$0$0$5,745,563
80$12,498,564$0$0$6,232,464
81$13,557,302$0$0$6,765,905
82$14,717,224$0$0$7,350,536
83$15,988,435$0$0$7,991,476
84$17,382,067$0$0$8,694,364
85$18,910,378$0$0$9,465,412
86$20,586,869$0$0$10,311,459
87$22,426,414$0$0$11,240,041
88$24,445,392$0$0$12,259,458
89$26,661,847$0$0$13,378,853
90$29,095,656$0$0$14,608,297
91$31,768,714$0$0$15,958,887
92$34,705,141$0$0$17,442,843
93$37,931,508$0$0$19,073,631
94$41,477,088$0$0$20,866,086
95$45,374,128$0$0$22,836,551
96$49,658,158$0$0$25,003,029
97$54,368,318$0$0$27,385,358
98$59,547,733$0$0$30,005,394
99$65,243,915$0$0$32,887,215
100$71,509,210$0$0$36,057,353