Can I retire at age 40 with 980,000?

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 $980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.2%
1 years$80,927$80,207$79,503$78,817$78,147$76,475
2 years$40,063$39,317$38,594$37,893$37,213$35,537
3 years$26,443$25,694$24,973$24,278$23,609$21,981
4 years$19,635$18,888$18,174$17,491$16,838$15,271
5 years$15,551$14,808$14,104$13,435$12,800$11,298
6 years$12,829$12,092$11,398$10,744$10,128$8,692
7 years$10,886$10,155$9,472$8,833$8,237$6,868
8 years$9,429$8,705$8,033$7,410$6,833$5,530
9 years$8,296$7,579$6,919$6,312$5,755$4,517
10 years$7,391$6,680$6,032$5,441$4,903$3,730
11 years$6,650$5,947$5,310$4,735$4,217$3,106
12 years$6,034$5,338$4,713$4,153$3,654$2,605
13 years$5,513$4,824$4,211$3,667$3,187$2,196
14 years$5,066$4,385$3,783$3,255$2,793$1,860
15 years$4,680$4,006$3,416$2,903$2,460$1,581
16 years$4,342$3,675$3,097$2,599$2,174$1,348
17 years$4,044$3,385$2,818$2,335$1,927$1,153
18 years$3,779$3,128$2,572$2,105$1,714$988
19 years$3,543$2,899$2,355$1,902$1,528$848
20 years$3,331$2,693$2,161$1,722$1,364$729
21 years$3,139$2,509$1,988$1,563$1,221$628
22 years$2,964$2,342$1,832$1,421$1,094$541
23 years$2,806$2,190$1,692$1,294$982$467
24 years$2,660$2,052$1,565$1,181$883$403
25 years$2,527$1,926$1,449$1,078$795$348
26 years$2,403$1,810$1,344$986$716$301
27 years$2,290$1,703$1,248$902$645$260
28 years$2,184$1,605$1,160$827$582$225
29 years$2,086$1,514$1,080$758$526$195
30 years$1,995$1,430$1,006$696$475$169
31 years$1,910$1,352$938$639$430$146
32 years$1,830$1,279$875$587$389$127
33 years$1,755$1,211$817$540$352$110
34 years$1,685$1,148$763$497$318$95
35 years$1,619$1,089$713$457$288$83
36 years$1,556$1,034$667$421$261$72
37 years$1,498$982$625$388$237$62
38 years$1,442$933$585$358$215$54
39 years$1,390$887$548$330$195$47
40 years$1,340$844$514$304$177$41
41 years$1,293$803$482$281$160$35
42 years$1,248$765$452$259$145$31
43 years$1,205$729$424$239$132$27
44 years$1,164$695$398$221$120$23
45 years$1,126$663$374$204$109$20
46 years$1,089$632$351$188$99$17
47 years$1,054$603$330$174$90$15
48 years$1,020$576$310$161$81$13
49 years$988$550$291$149$74$11
50 years$957$525$274$137$67$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $980,000, adding $3,310 every year, while hoping to spend $21,620 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: 34/40/26 Blend
39$980,000$980,000$980,000$980,000
40$1,083,374$1,031,434$1,016,244$1,111,568
41$1,170,875$1,058,971$1,027,285$1,160,538
42$1,266,576$1,087,132$1,037,971$1,211,129
43$1,371,291$1,115,926$1,048,267$1,265,260
44$1,485,916$1,145,360$1,058,138$1,323,259
45$1,611,438$1,175,441$1,067,544$1,385,489
46$1,748,943$1,206,176$1,076,444$1,452,348
47$1,899,627$1,237,570$1,084,797$1,524,277
48$2,064,807$1,269,630$1,092,556$1,601,760
49$2,245,936$1,302,360$1,099,676$1,685,329
50$2,444,612$1,335,766$1,106,105$1,775,571
51$2,662,594$1,369,850$1,111,791$1,873,135
52$2,901,823$1,404,617$1,116,680$1,978,733
53$3,164,433$1,440,068$1,120,714$2,093,152
54$3,452,779$1,476,205$1,123,831$2,217,256
55$3,769,451$1,513,028$1,125,968$2,352,000
56$4,117,306$1,550,536$1,127,059$2,498,436
57$4,499,487$1,588,729$1,127,032$2,657,723
58$4,919,461$1,627,603$1,125,813$2,831,138
59$5,381,045$1,667,155$1,123,327$3,020,089
60$5,888,444$1,707,377$1,119,491$3,226,128
61$6,446,292$1,748,265$1,114,220$3,450,965
62$7,059,692$1,789,809$1,107,425$3,696,484
63$7,734,270$1,831,998$1,099,012$3,964,765
64$8,476,220$1,874,821$1,088,885$4,258,097
65$9,292,371$1,918,264$1,076,939$4,579,004
66$10,190,245$1,962,310$1,063,067$4,930,269
67$11,178,127$2,006,941$1,047,158$5,314,961
68$12,265,151$2,052,136$1,029,093$5,736,458
69$13,461,377$2,097,872$1,008,748$6,198,490
70$14,777,892$2,144,122$985,995$6,705,163
71$16,226,910$2,190,856$960,699$7,261,005
72$17,821,890$2,238,044$932,718$7,871,009
73$19,577,663$2,285,648$901,904$8,540,677
74$21,510,570$2,333,631$868,103$9,276,072
75$23,638,617$2,381,947$831,154$10,083,881
76$25,981,645$2,430,552$790,886$10,971,472
77$28,561,516$2,479,392$747,125$11,946,967
78$31,402,321$2,528,413$699,684$13,019,321
79$34,530,606$2,577,553$648,371$14,198,401
80$37,975,621$2,626,746$592,984$15,495,086
81$41,769,598$2,675,921$533,313$16,921,366
82$45,948,056$2,724,999$469,138$18,490,457
83$50,550,132$2,773,899$400,228$20,216,927
84$55,618,954$2,822,528$326,345$22,116,833
85$61,202,046$2,870,791$247,236$24,207,873
86$67,351,777$2,918,583$162,641$26,509,555
87$74,125,856$2,965,790$72,287$29,043,380
88$81,587,872$3,012,293$0$31,833,048
89$89,807,902$3,057,962$0$34,911,376
90$98,863,163$3,102,658$0$38,322,295
91$108,838,749$3,146,231$0$42,077,550
92$119,828,429$3,188,524$0$46,212,206
93$131,935,532$3,229,365$0$50,764,907
94$145,273,924$3,268,572$0$55,778,239
95$159,969,083$3,305,950$0$61,299,134
96$176,159,280$3,341,293$0$67,379,311
97$193,996,888$3,374,378$0$74,075,768
98$213,649,817$3,404,968$0$81,451,317
99$235,303,100$3,432,814$0$89,575,179
100$259,160,640$3,457,645$0$98,523,641