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%12.5%
1 years$81,093$80,370$79,666$78,978$78,306$77,488
2 years$40,145$39,397$38,673$37,970$37,289$36,465
3 years$26,497$25,747$25,024$24,328$23,657$22,854
4 years$19,675$18,926$18,211$17,527$16,873$16,095
5 years$15,583$14,839$14,132$13,462$12,826$12,077
6 years$12,855$12,117$11,421$10,766$10,149$9,429
7 years$10,908$10,176$9,491$8,851$8,254$7,563
8 years$9,448$8,722$8,049$7,425$6,847$6,186
9 years$8,313$7,594$6,933$6,325$5,767$5,134
10 years$7,406$6,694$6,044$5,452$4,913$4,310
11 years$6,664$5,959$5,321$4,745$4,226$3,651
12 years$6,046$5,349$4,722$4,162$3,662$3,115
13 years$5,524$4,834$4,219$3,674$3,193$2,673
14 years$5,077$4,394$3,791$3,262$2,799$2,305
15 years$4,689$4,014$3,423$2,909$2,465$1,996
16 years$4,351$3,683$3,103$2,604$2,178$1,735
17 years$4,052$3,392$2,824$2,340$1,931$1,512
18 years$3,787$3,134$2,578$2,109$1,717$1,321
19 years$3,550$2,904$2,360$1,906$1,531$1,157
20 years$3,338$2,699$2,166$1,726$1,367$1,015
21 years$3,145$2,514$1,992$1,566$1,223$892
22 years$2,971$2,347$1,836$1,424$1,097$785
23 years$2,811$2,195$1,695$1,297$984$691
24 years$2,666$2,056$1,568$1,183$885$610
25 years$2,532$1,930$1,452$1,080$796$538
26 years$2,408$1,814$1,347$988$717$475
27 years$2,294$1,707$1,251$904$647$420
28 years$2,189$1,608$1,163$828$583$372
29 years$2,090$1,517$1,082$760$527$329
30 years$1,999$1,433$1,008$697$476$291
31 years$1,913$1,355$939$640$430$258
32 years$1,834$1,282$877$588$389$229
33 years$1,759$1,214$818$541$352$203
34 years$1,688$1,150$765$498$319$180
35 years$1,622$1,091$715$458$289$160
36 years$1,560$1,036$669$422$262$142
37 years$1,501$984$626$389$237$126
38 years$1,445$935$586$358$215$112
39 years$1,392$889$549$331$195$99
40 years$1,343$846$515$305$177$88
41 years$1,295$805$483$281$161$78
42 years$1,250$767$453$260$146$69
43 years$1,207$731$425$240$132$62
44 years$1,167$696$399$221$120$55
45 years$1,128$664$374$204$109$49
46 years$1,091$633$352$189$99$43
47 years$1,056$605$330$174$90$38
48 years$1,022$577$311$161$82$34
49 years$990$551$292$149$74$30
50 years$959$526$274$138$67$27

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $982,000, adding $3,156 every year, while hoping to spend $55,142 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: 45/35/20 Blend
39$982,000$982,000$982,000$982,000
40$1,085,419$1,033,373$1,018,152$1,127,888
41$1,137,462$1,025,338$993,590$1,149,987
42$1,192,964$1,015,061$966,356$1,168,237
43$1,252,221$1,002,374$936,304$1,186,886
44$1,315,556$987,098$903,279$1,205,996
45$1,383,323$969,046$867,119$1,225,641
46$1,455,910$948,018$827,655$1,245,905
47$1,533,742$923,800$784,711$1,266,885
48$1,617,288$896,170$738,103$1,288,692
49$1,707,059$864,890$687,637$1,311,454
50$1,803,617$829,708$633,112$1,335,315
51$1,907,582$790,360$574,317$1,360,442
52$2,019,631$746,563$511,032$1,387,022
53$2,140,509$698,021$443,027$1,415,268
54$2,271,036$644,418$370,063$1,445,421
55$2,412,110$585,424$291,889$1,477,755
56$2,564,722$520,685$208,243$1,512,575
57$2,729,956$449,832$118,852$1,550,229
58$2,909,009$372,471$23,431$1,591,107
59$3,103,194$288,188$0$1,635,646
60$3,313,956$196,546$0$1,701,068
61$3,542,884$97,081$0$1,777,619
62$3,791,727$0$0$1,860,980
63$4,062,407$0$0$1,956,033
64$4,357,039$0$0$2,100,298
65$4,677,953$0$0$2,257,538
66$5,027,709$0$0$2,429,021
67$5,409,128$0$0$2,616,144
68$5,825,312$0$0$2,820,443
69$6,279,677$0$0$3,043,610
70$6,775,983$0$0$3,287,508
71$7,318,369$0$0$3,554,187
72$7,911,392$0$0$3,845,905
73$8,560,071$0$0$4,165,148
74$9,269,928$0$0$4,514,653
75$10,047,048$0$0$4,897,434
76$10,898,129$0$0$5,316,811
77$11,830,549$0$0$5,776,439
78$12,852,430$0$0$6,280,345
79$13,972,722$0$0$6,832,963
80$15,201,277$0$0$7,439,176
81$16,548,950$0$0$8,104,364
82$18,027,696$0$0$8,834,453
83$19,650,682$0$0$9,635,969
84$21,432,415$0$0$10,516,103
85$23,388,871$0$0$11,482,774
86$25,537,651$0$0$12,544,708
87$27,898,145$0$0$13,711,515
88$30,491,713$0$0$14,993,785
89$33,341,885$0$0$16,403,184
90$36,474,585$0$0$17,952,561
91$39,918,374$0$0$19,656,078
92$43,704,715$0$0$21,529,332
93$47,868,275$0$0$23,589,510
94$52,447,247$0$0$25,855,549
95$57,483,711$0$0$28,348,311
96$63,024,030$0$0$31,090,782
97$69,119,287$0$0$34,108,291
98$75,825,764$0$0$37,428,742
99$83,205,475$0$0$41,082,883
100$91,326,750$0$0$45,104,594