Can I retire at age 40 with 981,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $981,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$81,010$80,288$79,584$78,897$78,226$75,874
2 years$40,104$39,357$38,633$37,931$37,251$34,901
3 years$26,470$25,720$24,998$24,303$23,633$21,359
4 years$19,655$18,907$18,192$17,509$16,855$14,675
5 years$15,567$14,823$14,118$13,449$12,813$10,732
6 years$12,842$12,104$11,409$10,755$10,139$8,158
7 years$10,897$10,165$9,481$8,842$8,245$6,366
8 years$9,438$8,714$8,041$7,418$6,840$5,061
9 years$8,305$7,587$6,926$6,318$5,761$4,079
10 years$7,398$6,687$6,038$5,446$4,908$3,322
11 years$6,657$5,953$5,316$4,740$4,221$2,728
12 years$6,040$5,343$4,718$4,157$3,658$2,255
13 years$5,518$4,829$4,215$3,670$3,190$1,873
14 years$5,071$4,389$3,787$3,258$2,796$1,563
15 years$4,684$4,010$3,419$2,906$2,462$1,308
16 years$4,346$3,679$3,100$2,602$2,176$1,098
17 years$4,048$3,388$2,821$2,338$1,929$924
18 years$3,783$3,131$2,575$2,107$1,716$779
19 years$3,547$2,902$2,357$1,904$1,529$658
20 years$3,334$2,696$2,163$1,724$1,366$556
21 years$3,142$2,511$1,990$1,565$1,222$471
22 years$2,968$2,344$1,834$1,423$1,096$399
23 years$2,808$2,193$1,693$1,296$983$338
24 years$2,663$2,054$1,566$1,182$884$287
25 years$2,529$1,928$1,451$1,079$795$244
26 years$2,406$1,812$1,345$987$716$207
27 years$2,292$1,705$1,249$903$646$176
28 years$2,186$1,607$1,161$828$583$150
29 years$2,088$1,516$1,081$759$526$127
30 years$1,997$1,432$1,007$696$476$108
31 years$1,912$1,353$938$640$430$92
32 years$1,832$1,280$876$588$389$78
33 years$1,757$1,213$818$541$352$67
34 years$1,687$1,149$764$497$319$57
35 years$1,620$1,090$714$458$289$48
36 years$1,558$1,035$668$422$262$41
37 years$1,499$983$625$389$237$35
38 years$1,444$934$586$358$215$30
39 years$1,391$888$549$330$195$25
40 years$1,341$845$514$305$177$22
41 years$1,294$804$482$281$160$18
42 years$1,249$766$452$259$146$16
43 years$1,206$730$424$239$132$13
44 years$1,166$696$398$221$120$11
45 years$1,127$663$374$204$109$10
46 years$1,090$633$351$189$99$8
47 years$1,055$604$330$174$90$7
48 years$1,021$577$310$161$81$6
49 years$989$551$292$149$74$5
50 years$958$526$274$138$67$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $981,000, adding $5,438 every year, while hoping to spend $54,451 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: 42/36/22 Blend
39$981,000$981,000$981,000$981,000
40$1,086,671$1,034,678$1,019,473$1,125,108
41$1,139,576$1,027,442$995,690$1,145,766
42$1,196,053$1,018,026$969,285$1,162,470
43$1,256,407$1,006,267$940,113$1,179,458
44$1,320,976$991,989$908,022$1,196,787
45$1,390,128$975,009$872,853$1,214,520
46$1,464,268$955,131$834,441$1,232,734
47$1,543,838$932,148$792,610$1,251,517
48$1,629,327$905,840$747,179$1,270,969
49$1,721,268$875,976$697,959$1,291,208
50$1,820,248$842,310$644,752$1,312,367
51$1,926,912$804,581$587,349$1,334,600
52$2,041,967$762,515$525,535$1,358,080
53$2,166,190$715,822$459,083$1,383,007
54$2,300,436$664,192$387,758$1,409,607
55$2,445,645$607,301$311,311$1,438,134
56$2,602,847$544,805$229,487$1,468,880
57$2,773,178$476,341$142,015$1,502,170
58$2,957,885$401,525$48,616$1,538,373
59$3,158,340$319,951$0$1,577,905
60$3,376,053$231,190$0$1,633,219
61$3,612,682$134,790$0$1,705,811
62$3,870,054$30,273$0$1,784,922
63$4,150,178$0$0$1,871,291
64$4,455,263$0$0$1,998,564
65$4,787,743$0$0$2,150,449
66$5,150,295$0$0$2,316,189
67$5,545,864$0$0$2,497,145
68$5,977,693$0$0$2,694,818
69$6,449,353$0$0$2,910,856
70$6,964,774$0$0$3,147,077
71$7,528,281$0$0$3,405,481
72$8,144,638$0$0$3,688,270
73$8,819,091$0$0$3,997,870
74$9,557,414$0$0$4,336,951
75$10,365,968$0$0$4,708,454
76$11,251,756$0$0$5,115,618
77$12,222,491$0$0$5,562,010
78$13,286,667$0$0$6,051,560
79$14,453,640$0$0$6,588,593
80$15,733,713$0$0$7,177,877
81$17,138,237$0$0$7,824,660
82$18,679,712$0$0$8,534,727
83$20,371,909$0$0$9,314,448
84$22,229,996$0$0$10,170,838
85$24,270,684$0$0$11,111,630
86$26,512,377$0$0$12,145,338
87$28,975,356$0$0$13,281,345
88$31,681,957$0$0$14,529,986
89$34,656,792$0$0$15,902,647
90$37,926,973$0$0$17,411,874
91$41,522,372$0$0$19,071,488
92$45,475,896$0$0$20,896,715
93$49,823,805$0$0$22,904,334
94$54,606,046$0$0$25,112,828
95$59,866,632$0$0$27,542,565
96$65,654,056$0$0$30,215,985
97$72,021,751$0$0$33,157,811
98$79,028,586$0$0$36,395,288
99$86,739,428$0$0$39,958,431
100$95,225,748$0$0$43,880,316