Can I retire at age 40 with 981,000?

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 $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%11.8%
1 years$81,010$80,288$79,584$78,897$78,226$77,636
2 years$40,104$39,357$38,633$37,931$37,251$36,655
3 years$26,470$25,720$24,998$24,303$23,633$23,052
4 years$19,655$18,907$18,192$17,509$16,855$16,292
5 years$15,567$14,823$14,118$13,449$12,813$12,269
6 years$12,842$12,104$11,409$10,755$10,139$9,615
7 years$10,897$10,165$9,481$8,842$8,245$7,743
8 years$9,438$8,714$8,041$7,418$6,840$6,358
9 years$8,305$7,587$6,926$6,318$5,761$5,299
10 years$7,398$6,687$6,038$5,446$4,908$4,467
11 years$6,657$5,953$5,316$4,740$4,221$3,800
12 years$6,040$5,343$4,718$4,157$3,658$3,256
13 years$5,518$4,829$4,215$3,670$3,190$2,807
14 years$5,071$4,389$3,787$3,258$2,796$2,432
15 years$4,684$4,010$3,419$2,906$2,462$2,116
16 years$4,346$3,679$3,100$2,602$2,176$1,848
17 years$4,048$3,388$2,821$2,338$1,929$1,618
18 years$3,783$3,131$2,575$2,107$1,716$1,421
19 years$3,547$2,902$2,357$1,904$1,529$1,251
20 years$3,334$2,696$2,163$1,724$1,366$1,103
21 years$3,142$2,511$1,990$1,565$1,222$974
22 years$2,968$2,344$1,834$1,423$1,096$862
23 years$2,808$2,193$1,693$1,296$983$763
24 years$2,663$2,054$1,566$1,182$884$677
25 years$2,529$1,928$1,451$1,079$795$600
26 years$2,406$1,812$1,345$987$716$533
27 years$2,292$1,705$1,249$903$646$474
28 years$2,186$1,607$1,161$828$583$422
29 years$2,088$1,516$1,081$759$526$375
30 years$1,997$1,432$1,007$696$476$334
31 years$1,912$1,353$938$640$430$298
32 years$1,832$1,280$876$588$389$266
33 years$1,757$1,213$818$541$352$237
34 years$1,687$1,149$764$497$319$211
35 years$1,620$1,090$714$458$289$189
36 years$1,558$1,035$668$422$262$168
37 years$1,499$983$625$389$237$150
38 years$1,444$934$586$358$215$134
39 years$1,391$888$549$330$195$120
40 years$1,341$845$514$305$177$107
41 years$1,294$804$482$281$160$96
42 years$1,249$766$452$259$146$85
43 years$1,206$730$424$239$132$76
44 years$1,166$696$398$221$120$68
45 years$1,127$663$374$204$109$61
46 years$1,090$633$351$189$99$54
47 years$1,055$604$330$174$90$49
48 years$1,021$577$310$161$81$44
49 years$989$551$292$149$74$39
50 years$958$526$274$138$67$35

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $981,000, adding $2,172 every year, while hoping to spend $28,551 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: 44/35/21 Blend
39$981,000$981,000$981,000$981,000
40$1,083,302$1,031,309$1,016,104$1,124,292
41$1,163,421$1,051,466$1,019,765$1,173,588
42$1,250,755$1,071,652$1,022,593$1,224,026
43$1,346,010$1,091,841$1,024,527$1,278,114
44$1,449,963$1,112,001$1,025,509$1,336,203
45$1,563,469$1,132,099$1,025,473$1,398,684
46$1,687,469$1,152,098$1,024,353$1,465,983
47$1,823,000$1,171,960$1,022,078$1,538,575
48$1,971,202$1,191,642$1,018,573$1,616,981
49$2,133,332$1,211,100$1,013,763$1,701,777
50$2,310,773$1,230,285$1,007,565$1,793,597
51$2,505,048$1,249,145$999,895$1,893,144
52$2,717,834$1,267,624$990,662$2,001,191
53$2,950,978$1,285,663$979,774$2,118,591
54$3,206,515$1,303,198$967,134$2,246,286
55$3,486,684$1,320,159$952,637$2,385,314
56$3,793,954$1,336,474$936,178$2,536,823
57$4,131,041$1,352,065$917,644$2,702,077
58$4,500,939$1,366,849$896,917$2,882,471
59$4,906,946$1,380,735$873,875$3,079,545
60$5,352,692$1,393,630$848,388$3,294,997
61$5,842,181$1,405,431$820,323$3,530,700
62$6,379,817$1,416,031$789,538$3,788,723
63$6,970,457$1,425,316$755,886$4,071,345
64$7,619,450$1,433,162$719,214$4,381,080
65$8,332,686$1,439,439$679,360$4,720,705
66$9,116,659$1,444,010$636,157$5,093,278
67$9,978,519$1,446,728$589,429$5,502,176
68$10,926,145$1,447,435$538,993$5,951,122
69$11,968,219$1,445,966$484,656$6,444,223
70$13,114,303$1,442,144$426,218$6,986,008
71$14,374,937$1,435,784$363,470$7,581,473
72$15,761,728$1,426,685$296,194$8,236,126
73$17,287,469$1,414,637$224,162$8,956,043
74$18,966,254$1,399,418$147,135$9,747,926
75$20,813,613$1,380,790$64,864$10,619,162
76$22,846,655$1,358,503$0$11,577,901
77$25,084,235$1,332,290$0$12,638,265
78$27,547,124$1,301,870$0$13,820,870
79$30,258,214$1,266,945$0$15,122,155
80$33,242,726$1,227,199$0$16,554,232
81$36,528,450$1,182,298$0$18,130,454
82$40,146,010$1,131,888$0$19,865,538
83$44,129,148$1,075,595$0$21,775,710
84$48,515,045$1,013,024$0$23,878,850
85$53,344,673$943,756$0$26,194,670
86$58,663,178$867,347$0$28,744,899
87$64,520,306$783,332$0$31,553,486
88$70,970,876$691,214$0$34,646,828
89$78,075,294$590,472$0$38,054,022
90$85,900,122$480,553$0$41,807,140
91$94,518,709$360,874$0$45,941,533
92$104,011,880$230,820$0$50,496,165
93$114,468,700$89,739$0$55,513,981
94$125,987,316$0$0$61,042,319
95$138,675,879$0$0$67,157,637
96$152,653,568$0$0$73,932,508
97$168,051,713$0$0$81,396,047
98$185,015,035$0$0$89,618,423
99$203,703,009$0$0$98,676,960
100$224,291,375$0$0$108,656,869