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%15.4%
1 years$80,927$80,207$79,503$78,817$78,147$76,413
2 years$40,063$39,317$38,594$37,893$37,213$35,475
3 years$26,443$25,694$24,973$24,278$23,609$21,922
4 years$19,635$18,888$18,174$17,491$16,838$15,214
5 years$15,551$14,808$14,104$13,435$12,800$11,244
6 years$12,829$12,092$11,398$10,744$10,128$8,641
7 years$10,886$10,155$9,472$8,833$8,237$6,820
8 years$9,429$8,705$8,033$7,410$6,833$5,486
9 years$8,296$7,579$6,919$6,312$5,755$4,475
10 years$7,391$6,680$6,032$5,441$4,903$3,691
11 years$6,650$5,947$5,310$4,735$4,217$3,070
12 years$6,034$5,338$4,713$4,153$3,654$2,571
13 years$5,513$4,824$4,211$3,667$3,187$2,164
14 years$5,066$4,385$3,783$3,255$2,793$1,831
15 years$4,680$4,006$3,416$2,903$2,460$1,554
16 years$4,342$3,675$3,097$2,599$2,174$1,323
17 years$4,044$3,385$2,818$2,335$1,927$1,130
18 years$3,779$3,128$2,572$2,105$1,714$967
19 years$3,543$2,899$2,355$1,902$1,528$829
20 years$3,331$2,693$2,161$1,722$1,364$711
21 years$3,139$2,509$1,988$1,563$1,221$611
22 years$2,964$2,342$1,832$1,421$1,094$526
23 years$2,806$2,190$1,692$1,294$982$453
24 years$2,660$2,052$1,565$1,181$883$391
25 years$2,527$1,926$1,449$1,078$795$337
26 years$2,403$1,810$1,344$986$716$291
27 years$2,290$1,703$1,248$902$645$251
28 years$2,184$1,605$1,160$827$582$217
29 years$2,086$1,514$1,080$758$526$188
30 years$1,995$1,430$1,006$696$475$162
31 years$1,910$1,352$938$639$430$140
32 years$1,830$1,279$875$587$389$121
33 years$1,755$1,211$817$540$352$105
34 years$1,685$1,148$763$497$318$91
35 years$1,619$1,089$713$457$288$79
36 years$1,556$1,034$667$421$261$68
37 years$1,498$982$625$388$237$59
38 years$1,442$933$585$358$215$51
39 years$1,390$887$548$330$195$44
40 years$1,340$844$514$304$177$38
41 years$1,293$803$482$281$160$33
42 years$1,248$765$452$259$145$29
43 years$1,205$729$424$239$132$25
44 years$1,164$695$398$221$120$22
45 years$1,126$663$374$204$109$19
46 years$1,089$632$351$188$99$16
47 years$1,054$603$330$174$90$14
48 years$1,020$576$310$161$81$12
49 years$988$550$291$149$74$11
50 years$957$525$274$137$67$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $980,000, adding $4,747 every year, while hoping to spend $24,205 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: 30/48/22 Blend
39$980,000$980,000$980,000$980,000
40$1,084,857$1,032,917$1,017,727$1,109,847
41$1,169,758$1,057,776$1,026,066$1,154,213
42$1,262,508$1,083,041$1,033,874$1,199,424
43$1,363,882$1,108,708$1,041,107$1,247,558
44$1,474,733$1,134,770$1,047,719$1,298,884
45$1,596,000$1,161,218$1,053,662$1,353,698
46$1,728,718$1,188,044$1,058,886$1,412,326
47$1,874,026$1,215,237$1,063,338$1,475,128
48$2,033,178$1,242,785$1,066,961$1,542,498
49$2,207,556$1,270,675$1,069,698$1,614,875
50$2,398,681$1,298,892$1,071,487$1,692,740
51$2,608,228$1,327,419$1,072,263$1,776,622
52$2,838,042$1,356,238$1,071,959$1,867,109
53$3,090,157$1,385,328$1,070,504$1,964,844
54$3,366,810$1,414,666$1,067,823$2,070,541
55$3,670,468$1,444,228$1,063,838$2,184,984
56$4,003,846$1,473,986$1,058,467$2,309,038
57$4,369,938$1,503,910$1,051,625$2,443,659
58$4,772,038$1,533,968$1,043,221$2,589,900
59$5,213,777$1,564,125$1,033,161$2,748,920
60$5,699,157$1,594,341$1,021,346$2,922,002
61$6,232,583$1,624,576$1,007,673$3,110,557
62$6,818,910$1,654,783$992,033$3,316,144
63$7,463,486$1,684,915$974,314$3,540,480
64$8,172,204$1,714,918$954,396$3,785,459
65$8,951,555$1,744,736$932,155$4,053,171
66$9,808,693$1,774,307$907,461$4,345,921
67$10,751,497$1,803,566$880,178$4,666,249
68$11,788,650$1,832,441$850,165$5,016,959
69$12,929,719$1,860,857$817,272$5,401,141
70$14,185,244$1,888,732$781,343$5,822,203
71$15,566,837$1,915,979$742,217$6,283,903
72$17,087,297$1,942,504$699,724$6,790,388
73$18,760,721$1,968,207$653,684$7,346,226
74$20,602,646$1,992,980$603,914$7,956,459
75$22,630,190$2,016,710$550,219$8,626,644
76$24,862,215$2,039,274$492,397$9,362,909
77$27,319,504$2,060,542$430,236$10,172,011
78$30,024,959$2,080,374$363,514$11,061,402
79$33,003,814$2,098,622$292,002$12,039,298
80$36,283,877$2,115,128$215,457$13,114,756
81$39,895,787$2,129,724$133,630$14,297,765
82$43,873,306$2,142,230$46,255$15,599,336
83$48,253,640$2,152,455$0$17,031,611
84$53,077,783$2,160,197$0$18,619,006
85$58,390,910$2,165,240$0$20,377,555
86$64,242,800$2,167,355$0$22,312,728
87$70,688,308$2,166,297$0$24,442,537
88$77,787,879$2,161,810$0$26,786,835
89$85,608,122$2,153,617$0$29,367,504
90$94,222,434$2,141,428$0$32,208,662
91$103,711,698$2,124,934$0$35,336,892
92$114,165,042$2,103,807$0$38,781,495
93$125,680,682$2,077,699$0$42,574,766
94$138,366,848$2,046,242$0$46,752,298
95$152,342,804$2,009,046$0$51,353,324
96$167,739,979$1,965,698$0$56,421,085
97$184,703,198$1,915,758$0$62,003,239
98$203,392,059$1,858,765$0$68,152,315
99$223,982,431$1,794,227$0$74,926,207
100$246,668,120$1,721,624$0$82,388,726