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%15.8%
1 years$80,515$79,797$79,098$78,415$77,748$75,899
2 years$39,859$39,116$38,397$37,699$37,023$35,171
3 years$26,309$25,563$24,845$24,154$23,489$21,692
4 years$19,535$18,791$18,081$17,402$16,752$15,024
5 years$15,472$14,733$14,032$13,366$12,735$11,080
6 years$12,764$12,030$11,340$10,689$10,077$8,497
7 years$10,830$10,103$9,423$8,788$8,195$6,691
8 years$9,381$8,660$7,992$7,372$6,799$5,369
9 years$8,254$7,540$6,883$6,279$5,725$4,370
10 years$7,353$6,646$6,001$5,413$4,878$3,595
11 years$6,617$5,917$5,283$4,711$4,196$2,982
12 years$6,003$5,311$4,689$4,132$3,636$2,491
13 years$5,485$4,799$4,189$3,648$3,170$2,092
14 years$5,040$4,362$3,764$3,238$2,779$1,764
15 years$4,656$3,985$3,398$2,888$2,447$1,494
16 years$4,320$3,656$3,081$2,586$2,163$1,268
17 years$4,023$3,367$2,804$2,323$1,918$1,080
18 years$3,760$3,112$2,559$2,094$1,705$921
19 years$3,525$2,884$2,343$1,892$1,520$787
20 years$3,314$2,680$2,150$1,714$1,357$674
21 years$3,123$2,496$1,978$1,555$1,215$577
22 years$2,949$2,330$1,823$1,414$1,089$495
23 years$2,791$2,179$1,683$1,288$977$425
24 years$2,647$2,042$1,557$1,174$879$366
25 years$2,514$1,916$1,442$1,073$791$314
26 years$2,391$1,801$1,337$981$712$270
27 years$2,278$1,695$1,242$898$642$233
28 years$2,173$1,597$1,154$822$579$201
29 years$2,076$1,507$1,074$754$523$173
30 years$1,985$1,423$1,000$692$473$149
31 years$1,900$1,345$933$636$427$128
32 years$1,820$1,273$870$584$387$111
33 years$1,746$1,205$813$537$350$95
34 years$1,676$1,142$759$494$317$82
35 years$1,610$1,083$710$455$287$71
36 years$1,549$1,028$664$419$260$61
37 years$1,490$977$622$386$236$53
38 years$1,435$928$582$356$214$46
39 years$1,383$883$545$328$194$39
40 years$1,333$840$511$303$176$34
41 years$1,286$799$479$279$159$29
42 years$1,241$761$450$258$145$25
43 years$1,199$725$422$238$131$22
44 years$1,158$691$396$220$119$19
45 years$1,120$659$372$203$108$16
46 years$1,083$629$349$187$98$14
47 years$1,048$600$328$173$89$12
48 years$1,015$573$308$160$81$11
49 years$983$547$290$148$74$9
50 years$952$523$272$137$67$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $975,000, adding $3,101 every year, while hoping to spend $56,390 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: 59/21/20 Blend
39$975,000$975,000$975,000$975,000
40$1,077,649$1,025,974$1,010,861$1,135,376
41$1,127,570$1,016,248$984,727$1,165,166
42$1,180,694$1,004,156$955,826$1,191,214
43$1,237,287$989,521$924,009$1,218,360
44$1,297,641$972,159$889,114$1,246,719
45$1,362,078$951,872$850,976$1,276,422
46$1,430,947$928,451$809,421$1,307,615
47$1,504,634$901,675$764,267$1,340,464
48$1,583,560$871,311$715,324$1,375,150
49$1,668,189$837,111$662,393$1,411,881
50$1,759,028$798,813$605,267$1,450,885
51$1,856,634$756,140$543,728$1,492,418
52$1,961,618$708,798$477,551$1,536,768
53$2,074,653$656,479$406,498$1,584,254
54$2,196,475$598,854$330,323$1,635,232
55$2,327,894$535,576$248,768$1,690,100
56$2,469,800$466,281$161,563$1,749,300
57$2,623,172$390,581$68,428$1,813,324
58$2,789,083$308,067$0$1,882,721
59$2,968,715$218,308$0$1,964,708
60$3,163,367$120,847$0$2,069,370
61$3,374,466$15,205$0$2,182,909
62$3,603,583$0$0$2,306,234
63$3,852,445$0$0$2,463,258
64$4,122,951$0$0$2,637,828
65$4,417,193$0$0$2,827,788
66$4,737,468$0$0$3,034,633
67$5,086,308$0$0$3,260,007
68$5,466,497$0$0$3,505,717
69$5,881,098$0$0$3,773,755
70$6,333,485$0$0$4,066,312
71$6,827,370$0$0$4,385,801
72$7,366,839$0$0$4,734,876
73$7,956,390$0$0$5,116,462
74$8,600,977$0$0$5,533,775
75$9,306,052$0$0$5,990,361
76$10,077,620$0$0$6,490,122
77$10,922,292$0$0$7,037,353
78$11,847,348$0$0$7,636,787
79$12,860,806$0$0$8,293,634
80$13,971,495$0$0$9,013,633
81$15,189,139$0$0$9,803,105
82$16,524,449$0$0$10,669,011
83$17,989,219$0$0$11,619,017
84$19,596,443$0$0$12,661,570
85$21,360,432$0$0$13,805,971
86$23,296,951$0$0$15,062,469
87$25,423,363$0$0$16,442,351
88$27,758,799$0$0$17,958,051
89$30,324,330$0$0$19,623,267
90$33,143,170$0$0$21,453,091
91$36,240,894$0$0$23,464,147
92$39,645,674$0$0$25,674,750
93$43,388,551$0$0$28,105,078
94$47,503,720$0$0$30,777,363
95$52,028,857$0$0$33,716,095
96$57,005,470$0$0$36,948,260
97$62,479,292$0$0$40,503,590
98$68,500,711$0$0$44,414,842
99$75,125,244$0$0$48,718,107
100$82,414,059$0$0$53,453,154