Can I retire at age 40 with 983,000?

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 $983,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.1%
1 years$81,175$80,452$79,747$79,058$78,386$76,740
2 years$40,186$39,437$38,712$38,009$37,327$35,677
3 years$26,524$25,773$25,049$24,353$23,682$22,078
4 years$19,695$18,946$18,229$17,545$16,890$15,346
5 years$15,599$14,854$14,147$13,476$12,839$11,359
6 years$12,868$12,129$11,433$10,777$10,159$8,744
7 years$10,919$10,186$9,501$8,860$8,262$6,913
8 years$9,458$8,731$8,057$7,433$6,854$5,570
9 years$8,322$7,602$6,940$6,331$5,772$4,552
10 years$7,413$6,701$6,050$5,457$4,918$3,761
11 years$6,671$5,965$5,327$4,750$4,230$3,134
12 years$6,052$5,354$4,727$4,166$3,666$2,630
13 years$5,530$4,839$4,223$3,678$3,196$2,219
14 years$5,082$4,398$3,795$3,265$2,802$1,880
15 years$4,694$4,018$3,426$2,912$2,467$1,600
16 years$4,355$3,686$3,106$2,607$2,180$1,365
17 years$4,056$3,395$2,827$2,342$1,933$1,168
18 years$3,791$3,137$2,580$2,111$1,719$1,001
19 years$3,554$2,907$2,362$1,907$1,532$860
20 years$3,341$2,702$2,168$1,728$1,369$740
21 years$3,148$2,517$1,994$1,568$1,225$638
22 years$2,974$2,349$1,838$1,426$1,098$550
23 years$2,814$2,197$1,697$1,298$985$475
24 years$2,668$2,059$1,569$1,184$886$410
25 years$2,534$1,932$1,454$1,081$797$355
26 years$2,411$1,816$1,348$989$718$307
27 years$2,297$1,709$1,252$905$647$266
28 years$2,191$1,610$1,164$829$584$230
29 years$2,093$1,519$1,083$760$527$200
30 years$2,001$1,434$1,009$698$477$173
31 years$1,915$1,356$940$641$431$150
32 years$1,835$1,283$877$589$390$130
33 years$1,760$1,215$819$542$353$113
34 years$1,690$1,152$765$498$319$98
35 years$1,624$1,092$716$459$289$85
36 years$1,561$1,037$669$423$262$74
37 years$1,502$985$627$389$238$64
38 years$1,447$936$587$359$215$56
39 years$1,394$890$550$331$195$48
40 years$1,344$847$515$305$177$42
41 years$1,297$806$483$282$161$36
42 years$1,252$768$453$260$146$32
43 years$1,209$731$425$240$132$27
44 years$1,168$697$399$221$120$24
45 years$1,129$665$375$205$109$21
46 years$1,092$634$352$189$99$18
47 years$1,057$605$331$175$90$16
48 years$1,023$578$311$161$82$14
49 years$991$552$292$149$74$12
50 years$960$527$275$138$67$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $983,000, adding $3,821 every year, while hoping to spend $36,139 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: 52/40/8 Blend
39$983,000$983,000$983,000$983,000
40$1,087,207$1,035,108$1,019,872$1,141,371
41$1,159,651$1,047,377$1,015,586$1,190,871
42$1,238,272$1,059,036$1,009,945$1,240,441
43$1,323,664$1,070,016$1,002,866$1,293,490
44$1,416,477$1,080,246$994,261$1,350,353
45$1,517,427$1,089,648$984,039$1,411,402
46$1,627,303$1,098,139$972,103$1,477,044
47$1,746,972$1,105,632$958,352$1,547,733
48$1,877,389$1,112,033$942,682$1,623,967
49$2,019,602$1,117,243$924,982$1,706,297
50$2,174,770$1,121,156$905,137$1,795,333
51$2,344,163$1,123,659$883,026$1,891,744
52$2,529,183$1,124,634$858,522$1,996,276
53$2,731,371$1,123,952$831,494$2,109,745
54$2,952,425$1,121,480$801,803$2,233,058
55$3,194,214$1,117,074$769,305$2,367,213
56$3,458,795$1,110,582$733,848$2,513,314
57$3,748,435$1,101,843$695,275$2,672,579
58$4,065,629$1,090,687$653,420$2,846,352
59$4,413,124$1,076,932$608,111$3,036,117
60$4,793,947$1,060,386$559,167$3,243,514
61$5,211,431$1,040,846$506,401$3,470,352
62$5,669,246$1,018,097$449,614$3,718,627
63$6,171,435$991,909$388,602$3,990,544
64$6,722,450$962,042$323,149$4,288,534
65$7,327,198$928,240$253,032$4,615,284
66$7,991,080$890,231$178,017$4,973,757
67$8,720,048$847,731$97,858$5,367,222
68$9,520,658$800,434$12,302$5,799,288
69$10,400,132$748,022$0$6,273,939
70$11,366,426$690,156$0$6,802,310
71$12,428,304$626,476$0$7,384,067
72$13,595,423$556,606$0$8,023,533
73$14,878,420$480,143$0$8,726,634
74$16,289,015$396,666$0$9,499,911
75$17,840,120$305,729$0$10,350,574
76$19,545,961$206,858$0$11,286,577
77$21,422,211$99,556$0$12,316,694
78$23,486,140$0$0$13,450,598
79$25,756,774$0$0$14,706,312
80$28,255,076$0$0$16,136,258
81$31,004,145$0$0$17,709,852
82$34,029,431$0$0$19,441,674
83$37,358,977$0$0$21,347,792
84$41,023,681$0$0$23,445,911
85$45,057,588$0$0$25,755,539
86$49,498,212$0$0$28,298,170
87$54,386,890$0$0$31,097,490
88$59,769,169$0$0$34,179,597
89$65,695,236$0$0$37,573,250
90$72,220,396$0$0$41,310,135
91$79,405,585$0$0$45,425,172
92$87,317,953$0$0$49,956,838
93$96,031,492$0$0$54,947,529
94$105,627,736$0$0$60,443,966
95$116,196,529$0$0$66,497,632
96$127,836,874$0$0$73,165,255
97$140,657,866$0$0$80,509,349
98$154,779,721$0$0$88,598,799
99$170,334,909$0$0$97,509,515
100$187,469,407$0$0$107,325,143