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%12.3%
1 years$81,010$80,288$79,584$78,897$78,226$77,474
2 years$40,104$39,357$38,633$37,931$37,251$36,493
3 years$26,470$25,720$24,998$24,303$23,633$22,893
4 years$19,655$18,907$18,192$17,509$16,855$16,139
5 years$15,567$14,823$14,118$13,449$12,813$12,123
6 years$12,842$12,104$11,409$10,755$10,139$9,475
7 years$10,897$10,165$9,481$8,842$8,245$7,608
8 years$9,438$8,714$8,041$7,418$6,840$6,230
9 years$8,305$7,587$6,926$6,318$5,761$5,177
10 years$7,398$6,687$6,038$5,446$4,908$4,351
11 years$6,657$5,953$5,316$4,740$4,221$3,690
12 years$6,040$5,343$4,718$4,157$3,658$3,152
13 years$5,518$4,829$4,215$3,670$3,190$2,709
14 years$5,071$4,389$3,787$3,258$2,796$2,339
15 years$4,684$4,010$3,419$2,906$2,462$2,029
16 years$4,346$3,679$3,100$2,602$2,176$1,765
17 years$4,048$3,388$2,821$2,338$1,929$1,541
18 years$3,783$3,131$2,575$2,107$1,716$1,348
19 years$3,547$2,902$2,357$1,904$1,529$1,182
20 years$3,334$2,696$2,163$1,724$1,366$1,038
21 years$3,142$2,511$1,990$1,565$1,222$914
22 years$2,968$2,344$1,834$1,423$1,096$805
23 years$2,808$2,193$1,693$1,296$983$710
24 years$2,663$2,054$1,566$1,182$884$628
25 years$2,529$1,928$1,451$1,079$795$555
26 years$2,406$1,812$1,345$987$716$491
27 years$2,292$1,705$1,249$903$646$435
28 years$2,186$1,607$1,161$828$583$385
29 years$2,088$1,516$1,081$759$526$341
30 years$1,997$1,432$1,007$696$476$303
31 years$1,912$1,353$938$640$430$269
32 years$1,832$1,280$876$588$389$239
33 years$1,757$1,213$818$541$352$212
34 years$1,687$1,149$764$497$319$188
35 years$1,620$1,090$714$458$289$167
36 years$1,558$1,035$668$422$262$149
37 years$1,499$983$625$389$237$132
38 years$1,444$934$586$358$215$117
39 years$1,391$888$549$330$195$104
40 years$1,341$845$514$305$177$93
41 years$1,294$804$482$281$160$83
42 years$1,249$766$452$259$146$74
43 years$1,206$730$424$239$132$65
44 years$1,166$696$398$221$120$58
45 years$1,127$663$374$204$109$52
46 years$1,090$633$351$189$99$46
47 years$1,055$604$330$174$90$41
48 years$1,021$577$310$161$81$37
49 years$989$551$292$149$74$33
50 years$958$526$274$138$67$29

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $981,000, adding $5,265 every year, while hoping to spend $48,013 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: 57/35/8 Blend
39$981,000$981,000$981,000$981,000
40$1,086,493$1,034,500$1,019,294$1,146,138
41$1,146,230$1,034,105$1,002,355$1,186,522
42$1,210,450$1,032,081$983,239$1,224,664
43$1,279,562$1,028,299$961,823$1,265,045
44$1,354,010$1,022,619$937,978$1,307,886
45$1,434,287$1,014,894$911,567$1,353,429
46$1,520,929$1,004,970$882,450$1,401,943
47$1,614,531$992,679$850,479$1,453,729
48$1,715,741$977,849$815,498$1,509,117
49$1,825,275$960,292$777,346$1,568,475
50$1,943,919$939,813$735,853$1,632,212
51$2,072,538$916,202$690,843$1,700,778
52$2,212,082$889,241$642,131$1,774,676
53$2,363,595$858,695$589,524$1,854,460
54$2,528,228$824,318$532,819$1,940,744
55$2,707,246$785,847$471,807$2,034,211
56$2,902,039$743,008$406,267$2,135,615
57$3,114,139$695,507$335,968$2,245,791
58$3,345,230$643,036$260,672$2,365,664
59$3,597,165$585,267$180,126$2,496,258
60$3,871,986$521,855$94,071$2,638,706
61$4,171,938$452,435$2,231$2,794,263
62$4,499,492$376,621$0$2,964,316
63$4,857,371$294,006$0$3,158,577
64$5,248,569$204,159$0$3,371,302
65$5,676,386$106,625$0$3,604,206
66$6,144,453$925$0$3,859,394
67$6,656,768$0$0$4,139,191
68$7,217,736$0$0$4,489,861
69$7,832,204$0$0$4,874,450
70$8,505,513$0$0$5,295,957
71$9,243,545$0$0$5,758,073
72$10,052,775$0$0$6,264,865
73$10,940,338$0$0$6,820,814
74$11,914,091$0$0$7,430,853
75$12,982,688$0$0$8,100,416
76$14,155,664$0$0$8,835,492
77$15,443,518$0$0$9,642,673
78$16,857,819$0$0$10,529,224
79$18,411,309$0$0$11,503,148
80$20,118,025$0$0$12,573,260
81$21,993,433$0$0$13,749,273
82$24,054,568$0$0$15,041,886
83$26,320,200$0$0$16,462,886
84$28,811,007$0$0$18,025,260
85$31,549,770$0$0$19,743,315
86$34,561,587$0$0$21,632,816
87$37,874,113$0$0$23,711,130
88$41,517,815$0$0$25,997,392
89$45,526,261$0$0$28,512,687
90$49,936,438$0$0$31,280,244
91$54,789,098$0$0$34,325,659
92$60,129,142$0$0$37,677,133
93$66,006,045$0$0$41,365,741
94$72,474,319$0$0$45,425,721
95$79,594,031$0$0$49,894,800
96$87,431,364$0$0$54,814,548
97$96,059,245$0$0$60,230,771
98$105,558,031$0$0$66,193,940
99$116,016,268$0$0$72,759,671
100$127,531,520$0$0$79,989,247