Can I retire at age 40 with 977,000?

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 $977,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.2%
1 years$80,680$79,961$79,260$78,576$77,907$76,554
2 years$39,940$39,197$38,476$37,777$37,099$35,739
3 years$26,362$25,615$24,896$24,204$23,537$22,214
4 years$19,575$18,830$18,118$17,438$16,787$15,511
5 years$15,503$14,763$14,060$13,394$12,761$11,535
6 years$12,790$12,055$11,363$10,711$10,097$8,924
7 years$10,852$10,124$9,443$8,806$8,212$7,090
8 years$9,400$8,678$8,008$7,387$6,813$5,743
9 years$8,271$7,556$6,897$6,292$5,737$4,719
10 years$7,368$6,660$6,013$5,424$4,888$3,920
11 years$6,630$5,929$5,294$4,721$4,204$3,286
12 years$6,015$5,322$4,698$4,141$3,643$2,773
13 years$5,496$4,809$4,198$3,655$3,177$2,353
14 years$5,051$4,371$3,772$3,245$2,785$2,007
15 years$4,665$3,993$3,405$2,894$2,452$1,718
16 years$4,328$3,664$3,087$2,591$2,167$1,475
17 years$4,032$3,374$2,809$2,328$1,922$1,270
18 years$3,768$3,118$2,565$2,098$1,709$1,096
19 years$3,532$2,890$2,348$1,896$1,523$948
20 years$3,321$2,685$2,155$1,717$1,360$821
21 years$3,129$2,501$1,982$1,558$1,217$713
22 years$2,955$2,335$1,827$1,417$1,091$619
23 years$2,797$2,184$1,687$1,290$979$538
24 years$2,652$2,046$1,560$1,177$880$468
25 years$2,519$1,920$1,445$1,075$792$408
26 years$2,396$1,805$1,340$983$714$356
27 years$2,283$1,698$1,244$900$643$310
28 years$2,178$1,600$1,157$824$580$271
29 years$2,080$1,510$1,076$756$524$236
30 years$1,989$1,426$1,003$694$474$206
31 years$1,904$1,348$935$637$428$180
32 years$1,824$1,275$872$585$387$157
33 years$1,750$1,208$814$538$351$138
34 years$1,680$1,145$761$495$317$120
35 years$1,614$1,086$711$456$287$105
36 years$1,552$1,030$665$420$260$92
37 years$1,493$979$623$387$236$81
38 years$1,438$930$583$357$214$70
39 years$1,385$884$546$329$194$62
40 years$1,336$841$512$303$176$54
41 years$1,289$801$480$280$160$47
42 years$1,244$763$450$258$145$41
43 years$1,201$727$423$238$132$36
44 years$1,161$693$397$220$119$32
45 years$1,122$661$373$203$108$28
46 years$1,085$630$350$188$98$24
47 years$1,050$601$329$173$89$21
48 years$1,017$574$309$160$81$19
49 years$985$548$290$148$74$16
50 years$954$524$273$137$67$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $977,000, adding $5,084 every year, while hoping to spend $40,252 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: 36/43/21 Blend
39$977,000$977,000$977,000$977,000
40$1,081,898$1,030,117$1,014,974$1,113,810
41$1,149,424$1,037,765$1,006,147$1,145,250
42$1,222,488$1,044,439$995,676$1,175,061
43$1,301,614$1,050,048$983,463$1,206,421
44$1,387,374$1,054,496$969,405$1,239,493
45$1,480,402$1,057,682$953,396$1,274,457
46$1,581,391$1,059,497$935,323$1,311,517
47$1,691,106$1,059,825$915,069$1,350,897
48$1,810,387$1,058,544$892,512$1,392,850
49$1,940,158$1,055,525$867,523$1,437,656
50$2,081,437$1,050,628$839,967$1,485,627
51$2,235,343$1,043,708$809,706$1,537,111
52$2,403,107$1,034,609$776,590$1,592,494
53$2,586,086$1,023,167$740,468$1,652,208
54$2,785,772$1,009,207$701,179$1,716,730
55$3,003,806$992,544$658,554$1,786,592
56$3,241,998$972,982$612,419$1,862,385
57$3,502,336$950,313$562,590$1,944,766
58$3,787,014$924,317$508,875$2,034,463
59$4,098,442$894,762$451,076$2,132,286
60$4,439,279$861,401$388,983$2,239,131
61$4,812,449$823,974$322,378$2,355,994
62$5,221,175$782,204$251,032$2,483,981
63$5,669,002$735,799$174,710$2,624,314
64$6,159,839$684,452$93,161$2,778,352
65$6,697,988$627,836$6,127$2,947,598
66$7,288,188$565,605$0$3,133,717
67$7,935,660$497,396$0$3,357,995
68$8,646,152$422,823$0$3,605,764
69$9,425,997$341,480$0$3,877,978
70$10,282,172$252,935$0$4,177,211
71$11,222,360$156,736$0$4,506,305
72$12,255,027$52,402$0$4,868,402
73$13,389,497$0$0$5,266,972
74$14,636,044$0$0$5,734,511
75$16,005,984$0$0$6,275,729
76$17,511,786$0$0$6,870,775
77$19,167,185$0$0$7,525,095
78$20,987,314$0$0$8,244,691
79$22,988,847$0$0$9,036,175
80$25,190,152$0$0$9,906,832
81$27,611,468$0$0$10,864,688
82$30,275,093$0$0$11,918,588
83$33,205,597$0$0$13,078,274
84$36,430,050$0$0$14,354,485
85$39,978,277$0$0$15,759,049
86$43,883,143$0$0$17,305,002
87$48,180,858$0$0$19,006,706
88$52,911,321$0$0$20,879,986
89$58,118,497$0$0$22,942,280
90$63,850,826$0$0$25,212,803
91$70,161,686$0$0$27,712,728
92$77,109,894$0$0$30,465,383
93$84,760,258$0$0$33,496,477
94$93,184,191$0$0$36,834,337
95$102,460,384$0$0$40,510,178
96$112,675,549$0$0$44,558,394
97$123,925,233$0$0$49,016,887
98$136,314,723$0$0$53,927,424
99$149,960,039$0$0$59,336,026
100$164,989,025$0$0$65,293,407