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%11.6%
1 years$81,010$80,288$79,584$78,897$78,226$77,701
2 years$40,104$39,357$38,633$37,931$37,251$36,721
3 years$26,470$25,720$24,998$24,303$23,633$23,115
4 years$19,655$18,907$18,192$17,509$16,855$16,353
5 years$15,567$14,823$14,118$13,449$12,813$12,328
6 years$12,842$12,104$11,409$10,755$10,139$9,672
7 years$10,897$10,165$9,481$8,842$8,245$7,797
8 years$9,438$8,714$8,041$7,418$6,840$6,410
9 years$8,305$7,587$6,926$6,318$5,761$5,348
10 years$7,398$6,687$6,038$5,446$4,908$4,514
11 years$6,657$5,953$5,316$4,740$4,221$3,845
12 years$6,040$5,343$4,718$4,157$3,658$3,299
13 years$5,518$4,829$4,215$3,670$3,190$2,848
14 years$5,071$4,389$3,787$3,258$2,796$2,471
15 years$4,684$4,010$3,419$2,906$2,462$2,152
16 years$4,346$3,679$3,100$2,602$2,176$1,882
17 years$4,048$3,388$2,821$2,338$1,929$1,651
18 years$3,783$3,131$2,575$2,107$1,716$1,451
19 years$3,547$2,902$2,357$1,904$1,529$1,279
20 years$3,334$2,696$2,163$1,724$1,366$1,129
21 years$3,142$2,511$1,990$1,565$1,222$999
22 years$2,968$2,344$1,834$1,423$1,096$885
23 years$2,808$2,193$1,693$1,296$983$785
24 years$2,663$2,054$1,566$1,182$884$697
25 years$2,529$1,928$1,451$1,079$795$620
26 years$2,406$1,812$1,345$987$716$551
27 years$2,292$1,705$1,249$903$646$491
28 years$2,186$1,607$1,161$828$583$437
29 years$2,088$1,516$1,081$759$526$390
30 years$1,997$1,432$1,007$696$476$348
31 years$1,912$1,353$938$640$430$310
32 years$1,832$1,280$876$588$389$277
33 years$1,757$1,213$818$541$352$248
34 years$1,687$1,149$764$497$319$221
35 years$1,620$1,090$714$458$289$198
36 years$1,558$1,035$668$422$262$177
37 years$1,499$983$625$389$237$158
38 years$1,444$934$586$358$215$141
39 years$1,391$888$549$330$195$126
40 years$1,341$845$514$305$177$113
41 years$1,294$804$482$281$160$101
42 years$1,249$766$452$259$146$91
43 years$1,206$730$424$239$132$81
44 years$1,166$696$398$221$120$73
45 years$1,127$663$374$204$109$65
46 years$1,090$633$351$189$99$58
47 years$1,055$604$330$174$90$52
48 years$1,021$577$310$161$81$47
49 years$989$551$292$149$74$42
50 years$958$526$274$138$67$37

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $981,000, adding $6,254 every year, while hoping to spend $56,737 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: 67/12/21 Blend
39$981,000$981,000$981,000$981,000
40$1,087,513$1,035,520$1,020,315$1,154,225
41$1,138,072$1,025,893$994,127$1,190,089
42$1,191,886$1,013,892$965,161$1,222,179
43$1,249,227$999,342$933,263$1,255,921
44$1,310,394$982,056$898,274$1,291,478
45$1,375,713$961,835$860,025$1,329,029
46$1,445,542$938,472$818,342$1,368,773
47$1,520,273$911,742$773,042$1,410,934
48$1,600,336$881,413$723,934$1,455,758
49$1,686,203$847,235$670,818$1,503,519
50$1,778,391$808,944$613,486$1,554,520
51$1,877,469$766,264$551,719$1,609,099
52$1,984,059$718,900$485,290$1,667,630
53$2,098,847$666,540$413,961$1,730,527
54$2,222,584$608,855$337,484$1,798,252
55$2,356,097$545,498$255,599$1,871,314
56$2,500,292$476,101$168,035$1,950,277
57$2,656,167$400,275$74,509$2,035,769
58$2,824,818$317,611$0$2,128,483
59$3,007,450$227,674$0$2,234,856
60$3,205,387$130,007$0$2,368,255
61$3,420,086$24,127$0$2,512,982
62$3,653,148$0$0$2,670,154
63$3,906,335$0$0$2,852,952
64$4,181,585$0$0$3,055,196
65$4,481,030$0$0$3,275,272
66$4,807,015$0$0$3,514,913
67$5,162,122$0$0$3,776,022
68$5,549,190$0$0$4,060,696
69$5,971,347$0$0$4,371,241
70$6,432,031$0$0$4,710,197
71$6,935,031$0$0$5,080,359
72$7,484,516$0$0$5,484,804
73$8,085,074$0$0$5,926,919
74$8,741,759$0$0$6,410,434
75$9,460,135$0$0$6,939,454
76$10,246,326$0$0$7,518,502
77$11,107,078$0$0$8,152,557
78$12,049,819$0$0$8,847,101
79$13,082,730$0$0$9,608,172
80$14,214,817$0$0$10,442,421
81$15,456,004$0$0$11,357,171
82$16,817,217$0$0$12,360,488
83$18,310,491$0$0$13,461,258
84$19,949,084$0$0$14,669,266
85$21,747,597$0$0$15,995,293
86$23,722,116$0$0$17,451,211
87$25,890,358$0$0$19,050,102
88$28,271,841$0$0$20,806,374
89$30,888,066$0$0$22,735,900
90$33,762,720$0$0$24,856,167
91$36,921,896$0$0$27,186,439
92$40,394,344$0$0$29,747,940
93$44,211,732$0$0$32,564,051
94$48,408,956$0$0$35,660,533
95$53,024,456$0$0$39,065,766
96$58,100,587$0$0$42,811,022
97$63,684,015$0$0$46,930,750
98$69,826,153$0$0$51,462,910
99$76,583,649$0$0$56,449,326
100$84,018,920$0$0$61,936,077