Can I retire at age 40 with 982,000?

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 $982,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$81,093$80,370$79,666$78,978$78,306$77,360
2 years$40,145$39,397$38,673$37,970$37,289$36,336
3 years$26,497$25,747$25,024$24,328$23,657$22,728
4 years$19,675$18,926$18,211$17,527$16,873$15,974
5 years$15,583$14,839$14,132$13,462$12,826$11,961
6 years$12,855$12,117$11,421$10,766$10,149$9,319
7 years$10,908$10,176$9,491$8,851$8,254$7,458
8 years$9,448$8,722$8,049$7,425$6,847$6,086
9 years$8,313$7,594$6,933$6,325$5,767$5,040
10 years$7,406$6,694$6,044$5,452$4,913$4,220
11 years$6,664$5,959$5,321$4,745$4,226$3,566
12 years$6,046$5,349$4,722$4,162$3,662$3,034
13 years$5,524$4,834$4,219$3,674$3,193$2,597
14 years$5,077$4,394$3,791$3,262$2,799$2,234
15 years$4,689$4,014$3,423$2,909$2,465$1,930
16 years$4,351$3,683$3,103$2,604$2,178$1,672
17 years$4,052$3,392$2,824$2,340$1,931$1,453
18 years$3,787$3,134$2,578$2,109$1,717$1,266
19 years$3,550$2,904$2,360$1,906$1,531$1,105
20 years$3,338$2,699$2,166$1,726$1,367$967
21 years$3,145$2,514$1,992$1,566$1,223$847
22 years$2,971$2,347$1,836$1,424$1,097$743
23 years$2,811$2,195$1,695$1,297$984$653
24 years$2,666$2,056$1,568$1,183$885$574
25 years$2,532$1,930$1,452$1,080$796$505
26 years$2,408$1,814$1,347$988$717$445
27 years$2,294$1,707$1,251$904$647$392
28 years$2,189$1,608$1,163$828$583$346
29 years$2,090$1,517$1,082$760$527$305
30 years$1,999$1,433$1,008$697$476$269
31 years$1,913$1,355$939$640$430$238
32 years$1,834$1,282$877$588$389$210
33 years$1,759$1,214$818$541$352$185
34 years$1,688$1,150$765$498$319$164
35 years$1,622$1,091$715$458$289$145
36 years$1,560$1,036$669$422$262$128
37 years$1,501$984$626$389$237$113
38 years$1,445$935$586$358$215$100
39 years$1,392$889$549$331$195$89
40 years$1,343$846$515$305$177$78
41 years$1,295$805$483$281$161$69
42 years$1,250$767$453$260$146$61
43 years$1,207$731$425$240$132$54
44 years$1,167$696$399$221$120$48
45 years$1,128$664$374$204$109$43
46 years$1,091$633$352$189$99$38
47 years$1,056$605$330$174$90$33
48 years$1,022$577$311$161$82$30
49 years$990$551$292$149$74$26
50 years$959$526$274$138$67$23

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $982,000, adding $2,636 every year, while hoping to spend $39,106 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: 60/12/28 Blend
39$982,000$982,000$982,000$982,000
40$1,084,883$1,032,837$1,017,616$1,141,608
41$1,153,933$1,041,838$1,010,098$1,189,610
42$1,228,715$1,049,968$1,001,017$1,237,552
43$1,309,772$1,057,146$990,280$1,289,047
44$1,397,704$1,063,280$977,789$1,344,451
45$1,493,165$1,068,277$963,440$1,404,157
46$1,596,880$1,072,035$947,128$1,468,600
47$1,709,644$1,074,446$928,738$1,538,258
48$1,832,330$1,075,397$908,154$1,613,662
49$1,965,902$1,074,765$885,251$1,695,397
50$2,111,419$1,072,424$859,902$1,784,111
51$2,270,045$1,068,234$831,970$1,880,517
52$2,443,065$1,062,053$801,316$1,985,405
53$2,631,889$1,053,724$767,791$2,099,647
54$2,838,071$1,043,086$731,242$2,224,204
55$3,063,322$1,029,966$691,507$2,360,140
56$3,309,526$1,014,179$648,417$2,508,628
57$3,578,755$995,531$601,797$2,670,964
58$3,873,293$973,817$551,462$2,848,577
59$4,195,653$948,819$497,220$3,043,048
60$4,548,604$920,304$438,871$3,256,120
61$4,935,192$888,030$376,204$3,489,716
62$5,358,776$851,738$309,001$3,745,960
63$5,823,051$811,153$237,032$4,027,196
64$6,332,089$765,987$160,060$4,336,010
65$6,890,374$715,932$77,834$4,675,258
66$7,502,846$660,666$0$5,048,088
67$8,174,943$599,846$0$5,460,939
68$8,912,659$533,110$0$5,939,691
69$9,722,594$460,076$0$6,465,381
70$10,612,019$380,340$0$7,042,767
71$11,588,944$293,475$0$7,677,089
72$12,662,191$199,031$0$8,374,124
73$13,841,482$96,531$0$9,140,238
74$15,137,524$0$0$9,982,448
75$16,562,115$0$0$10,910,406
76$18,128,253$0$0$11,944,661
77$19,850,255$0$0$13,081,934
78$21,743,899$0$0$14,332,656
79$23,826,566$0$0$15,708,316
80$26,117,405$0$0$17,221,576
81$28,637,517$0$0$18,886,385
82$31,410,148$0$0$20,718,114
83$34,460,913$0$0$22,733,696
84$37,818,035$0$0$24,951,791
85$41,512,609$0$0$27,392,959
86$45,578,900$0$0$30,079,852
87$50,054,661$0$0$33,037,432
88$54,981,490$0$0$36,293,202
89$60,405,226$0$0$39,877,469
90$66,376,375$0$0$43,823,625
91$72,950,591$0$0$48,168,466
92$80,189,196$0$0$52,952,539
93$88,159,766$0$0$58,220,520
94$96,936,758$0$0$64,021,640
95$106,602,222$0$0$70,410,147
96$117,246,567$0$0$77,445,818
97$128,969,420$0$0$85,194,523
98$141,880,560$0$0$93,728,847
99$156,100,959$0$0$103,128,773
100$171,763,918$0$0$113,482,439