Can I retire at age 40 with 978,000?

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 $978,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$80,762$80,043$79,341$78,656$77,987$76,885
2 years$39,981$39,237$38,515$37,815$37,137$36,029
3 years$26,389$25,642$24,922$24,229$23,561$22,481
4 years$19,595$18,849$18,137$17,455$16,804$15,761
5 years$15,519$14,778$14,075$13,407$12,774$11,771
6 years$12,803$12,067$11,375$10,722$10,108$9,145
7 years$10,863$10,134$9,452$8,815$8,220$7,299
8 years$9,410$8,687$8,016$7,395$6,820$5,939
9 years$8,279$7,563$6,904$6,299$5,743$4,903
10 years$7,376$6,667$6,019$5,430$4,893$4,094
11 years$6,637$5,935$5,299$4,725$4,208$3,448
12 years$6,022$5,327$4,703$4,145$3,647$2,925
13 years$5,501$4,814$4,202$3,659$3,180$2,496
14 years$5,056$4,376$3,775$3,248$2,788$2,139
15 years$4,670$3,997$3,409$2,897$2,455$1,841
16 years$4,333$3,668$3,091$2,594$2,169$1,590
17 years$4,036$3,378$2,812$2,331$1,923$1,377
18 years$3,772$3,121$2,567$2,100$1,710$1,196
19 years$3,536$2,893$2,350$1,898$1,524$1,040
20 years$3,324$2,688$2,157$1,719$1,362$906
21 years$3,132$2,504$1,984$1,560$1,219$791
22 years$2,958$2,337$1,828$1,418$1,092$691
23 years$2,800$2,186$1,688$1,292$980$605
24 years$2,655$2,048$1,561$1,178$881$530
25 years$2,521$1,922$1,446$1,076$793$464
26 years$2,399$1,806$1,341$984$714$407
27 years$2,285$1,700$1,245$900$644$357
28 years$2,180$1,602$1,158$825$581$314
29 years$2,082$1,511$1,077$757$525$276
30 years$1,991$1,427$1,004$694$474$242
31 years$1,906$1,349$936$638$429$213
32 years$1,826$1,277$873$586$388$188
33 years$1,751$1,209$815$539$351$165
34 years$1,681$1,146$762$496$318$145
35 years$1,615$1,087$712$456$288$128
36 years$1,553$1,032$666$420$261$113
37 years$1,495$980$623$387$236$99
38 years$1,439$931$584$357$214$87
39 years$1,387$885$547$329$194$77
40 years$1,337$842$513$304$176$68
41 years$1,290$802$481$280$160$60
42 years$1,245$764$451$259$145$53
43 years$1,203$728$423$239$132$46
44 years$1,162$694$397$220$119$41
45 years$1,123$661$373$204$108$36
46 years$1,087$631$350$188$98$32
47 years$1,051$602$329$174$89$28
48 years$1,018$575$309$160$81$25
49 years$986$549$291$148$74$22
50 years$955$524$273$137$67$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $978,000, adding $4,512 every year, while hoping to spend $24,985 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: 68/16/16 Blend
39$978,000$978,000$978,000$978,000
40$1,082,410$1,030,576$1,015,417$1,151,612
41$1,166,232$1,054,491$1,022,850$1,222,247
42$1,257,767$1,078,739$1,029,694$1,296,110
43$1,357,774$1,103,313$1,035,904$1,376,274
44$1,467,091$1,128,199$1,041,431$1,463,356
45$1,586,639$1,153,386$1,046,223$1,558,036
46$1,717,433$1,178,858$1,050,229$1,661,064
47$1,860,590$1,204,602$1,053,391$1,773,265
48$2,017,341$1,230,598$1,055,650$1,895,547
49$2,189,040$1,256,827$1,056,944$2,028,914
50$2,377,179$1,283,268$1,057,208$2,174,468
51$2,583,401$1,309,898$1,056,375$2,333,425
52$2,809,516$1,336,691$1,054,371$2,507,127
53$3,057,516$1,363,619$1,051,123$2,697,048
54$3,329,598$1,390,652$1,046,551$2,904,817
55$3,628,179$1,417,755$1,040,572$3,132,225
56$3,955,922$1,444,895$1,033,100$3,381,249
57$4,315,762$1,472,030$1,024,045$3,654,066
58$4,710,931$1,499,120$1,013,311$3,953,075
59$5,144,987$1,526,119$1,000,798$4,280,919
60$5,621,854$1,552,977$986,403$4,640,512
61$6,145,852$1,579,641$970,016$5,035,065
62$6,721,740$1,606,055$951,524$5,468,117
63$7,354,763$1,632,157$930,805$5,943,567
64$8,050,698$1,657,882$907,736$6,465,712
65$8,815,908$1,683,158$882,185$7,039,288
66$9,657,408$1,707,909$854,015$7,669,516
67$10,582,923$1,732,056$823,083$8,362,148
68$11,600,964$1,755,510$789,240$9,123,522
69$12,720,911$1,778,178$752,328$9,960,626
70$13,953,097$1,799,962$712,184$10,881,160
71$15,308,907$1,820,755$668,636$11,893,609
72$16,800,887$1,840,443$621,507$13,007,325
73$18,442,859$1,858,906$570,609$14,232,616
74$20,250,052$1,876,014$515,746$15,580,841
75$22,239,249$1,891,631$456,715$17,064,518
76$24,428,941$1,905,609$393,303$18,697,443
77$26,839,501$1,917,792$325,288$20,494,824
78$29,493,381$1,928,015$252,436$22,473,415
79$32,415,319$1,936,101$174,505$24,651,687
80$35,632,573$1,941,861$91,243$27,049,992
81$39,175,181$1,945,097$2,384$29,690,761
82$43,076,239$1,945,597$0$32,598,716
83$47,372,218$1,943,134$0$35,816,883
84$52,103,307$1,937,470$0$39,360,966
85$57,313,789$1,928,351$0$43,263,699
86$63,052,462$1,915,507$0$47,561,605
87$69,373,099$1,898,653$0$52,294,929
88$76,334,954$1,877,485$0$57,508,022
89$84,003,321$1,851,683$0$63,249,761
90$92,450,150$1,820,906$0$69,574,004
91$101,754,728$1,784,793$0$76,540,105
92$112,004,425$1,742,963$0$84,213,470
93$123,295,519$1,695,011$0$92,666,179
94$135,734,103$1,640,508$0$101,977,661
95$149,437,090$1,579,001$0$112,235,449
96$164,533,313$1,510,011$0$123,536,005
97$181,164,739$1,433,030$0$135,985,628
98$199,487,815$1,347,522$0$149,701,463
99$219,674,940$1,252,918$0$164,812,602
100$241,916,092$1,148,618$0$181,461,307