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%17.8%
1 years$80,762$80,043$79,341$78,656$77,987$75,521
2 years$39,981$39,237$38,515$37,815$37,137$34,674
3 years$26,389$25,642$24,922$24,229$23,561$21,180
4 years$19,595$18,849$18,137$17,455$16,804$14,522
5 years$15,519$14,778$14,075$13,407$12,774$10,598
6 years$12,803$12,067$11,375$10,722$10,108$8,039
7 years$10,863$10,134$9,452$8,815$8,220$6,259
8 years$9,410$8,687$8,016$7,395$6,820$4,964
9 years$8,279$7,563$6,904$6,299$5,743$3,991
10 years$7,376$6,667$6,019$5,430$4,893$3,242
11 years$6,637$5,935$5,299$4,725$4,208$2,656
12 years$6,022$5,327$4,703$4,145$3,647$2,189
13 years$5,501$4,814$4,202$3,659$3,180$1,814
14 years$5,056$4,376$3,775$3,248$2,788$1,509
15 years$4,670$3,997$3,409$2,897$2,455$1,260
16 years$4,333$3,668$3,091$2,594$2,169$1,054
17 years$4,036$3,378$2,812$2,331$1,923$884
18 years$3,772$3,121$2,567$2,100$1,710$743
19 years$3,536$2,893$2,350$1,898$1,524$626
20 years$3,324$2,688$2,157$1,719$1,362$528
21 years$3,132$2,504$1,984$1,560$1,219$445
22 years$2,958$2,337$1,828$1,418$1,092$376
23 years$2,800$2,186$1,688$1,292$980$318
24 years$2,655$2,048$1,561$1,178$881$269
25 years$2,521$1,922$1,446$1,076$793$228
26 years$2,399$1,806$1,341$984$714$193
27 years$2,285$1,700$1,245$900$644$163
28 years$2,180$1,602$1,158$825$581$138
29 years$2,082$1,511$1,077$757$525$117
30 years$1,991$1,427$1,004$694$474$99
31 years$1,906$1,349$936$638$429$84
32 years$1,826$1,277$873$586$388$71
33 years$1,751$1,209$815$539$351$61
34 years$1,681$1,146$762$496$318$51
35 years$1,615$1,087$712$456$288$44
36 years$1,553$1,032$666$420$261$37
37 years$1,495$980$623$387$236$31
38 years$1,439$931$584$357$214$27
39 years$1,387$885$547$329$194$23
40 years$1,337$842$513$304$176$19
41 years$1,290$802$481$280$160$16
42 years$1,245$764$451$259$145$14
43 years$1,203$728$423$239$132$12
44 years$1,162$694$397$220$119$10
45 years$1,123$661$373$204$108$8
46 years$1,087$631$350$188$98$7
47 years$1,051$602$329$174$89$6
48 years$1,018$575$309$160$81$5
49 years$986$549$291$148$74$4
50 years$955$524$273$137$67$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $978,000, adding $5,330 every year, while hoping to spend $47,027 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: 46/29/25 Blend
39$978,000$978,000$978,000$978,000
40$1,083,254$1,031,420$1,016,261$1,125,086
41$1,143,709$1,031,923$1,000,269$1,155,613
42$1,208,755$1,030,875$982,166$1,183,699
43$1,278,810$1,028,149$961,830$1,213,241
44$1,354,333$1,023,613$939,136$1,244,398
45$1,435,830$1,017,125$913,952$1,277,350
46$1,523,855$1,008,535$886,140$1,312,297
47$1,619,019$997,683$855,556$1,349,461
48$1,721,990$984,401$822,048$1,389,094
49$1,833,506$968,510$785,460$1,431,472
50$1,954,377$949,820$745,626$1,476,906
51$2,085,493$928,131$702,374$1,525,743
52$2,227,834$903,230$655,524$1,578,368
53$2,382,476$874,891$604,887$1,635,209
54$2,550,605$842,878$550,268$1,696,745
55$2,733,525$806,936$491,459$1,763,506
56$2,932,669$766,801$428,248$1,836,083
57$3,149,616$722,189$360,409$1,915,133
58$3,386,103$672,802$287,709$2,001,385
59$3,644,041$618,325$209,903$2,095,649
60$3,925,534$558,424$126,735$2,198,825
61$4,232,898$492,747$37,941$2,311,909
62$4,568,683$420,920$0$2,436,010
63$4,935,695$342,552$0$2,587,513
64$5,337,023$257,224$0$2,764,408
65$5,776,071$164,499$0$2,958,155
66$6,256,584$63,913$0$3,170,510
67$6,782,686$0$0$3,403,416
68$7,358,921$0$0$3,673,384
69$7,990,290$0$0$3,991,643
70$8,682,303$0$0$4,340,586
71$9,441,027$0$0$4,723,288
72$10,273,144$0$0$5,143,134
73$11,186,015$0$0$5,603,854
74$12,187,746$0$0$6,109,555
75$13,287,268$0$0$6,664,762
76$14,494,417$0$0$7,274,459
77$15,820,028$0$0$7,944,137
78$17,276,038$0$0$8,679,844
79$18,875,596$0$0$9,488,243
80$20,633,186$0$0$10,376,675
81$22,564,767$0$0$11,353,227
82$24,687,920$0$0$12,426,809
83$27,022,014$0$0$13,607,236
84$29,588,386$0$0$14,905,322
85$32,410,548$0$0$16,332,983
86$35,514,401$0$0$17,903,346
87$38,928,483$0$0$19,630,875
88$42,684,237$0$0$21,531,505
89$46,816,307$0$0$23,622,796
90$51,362,864$0$0$25,924,093
91$56,365,966$0$0$28,456,713
92$61,871,952$0$0$31,244,143
93$67,931,885$0$0$34,312,264
94$74,602,023$0$0$37,689,592
95$81,944,360$0$0$41,407,548
96$90,027,203$0$0$45,500,755
97$98,925,817$0$0$50,007,362
98$108,723,140$0$0$54,969,407
99$119,510,556$0$0$60,433,211
100$131,388,765$0$0$66,449,817