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%15.7%
1 years$81,175$80,452$79,747$79,058$78,386$76,553
2 years$40,186$39,437$38,712$38,009$37,327$35,491
3 years$26,524$25,773$25,049$24,353$23,682$21,900
4 years$19,695$18,946$18,229$17,545$16,890$15,176
5 years$15,599$14,854$14,147$13,476$12,839$11,198
6 years$12,868$12,129$11,433$10,777$10,159$8,592
7 years$10,919$10,186$9,501$8,860$8,262$6,769
8 years$9,458$8,731$8,057$7,433$6,854$5,435
9 years$8,322$7,602$6,940$6,331$5,772$4,426
10 years$7,413$6,701$6,050$5,457$4,918$3,644
11 years$6,671$5,965$5,327$4,750$4,230$3,025
12 years$6,052$5,354$4,727$4,166$3,666$2,528
13 years$5,530$4,839$4,223$3,678$3,196$2,124
14 years$5,082$4,398$3,795$3,265$2,802$1,793
15 years$4,694$4,018$3,426$2,912$2,467$1,519
16 years$4,355$3,686$3,106$2,607$2,180$1,291
17 years$4,056$3,395$2,827$2,342$1,933$1,100
18 years$3,791$3,137$2,580$2,111$1,719$939
19 years$3,554$2,907$2,362$1,907$1,532$803
20 years$3,341$2,702$2,168$1,728$1,369$688
21 years$3,148$2,517$1,994$1,568$1,225$590
22 years$2,974$2,349$1,838$1,426$1,098$506
23 years$2,814$2,197$1,697$1,298$985$435
24 years$2,668$2,059$1,569$1,184$886$374
25 years$2,534$1,932$1,454$1,081$797$322
26 years$2,411$1,816$1,348$989$718$277
27 years$2,297$1,709$1,252$905$647$239
28 years$2,191$1,610$1,164$829$584$206
29 years$2,093$1,519$1,083$760$527$178
30 years$2,001$1,434$1,009$698$477$153
31 years$1,915$1,356$940$641$431$132
32 years$1,835$1,283$877$589$390$114
33 years$1,760$1,215$819$542$353$98
34 years$1,690$1,152$765$498$319$85
35 years$1,624$1,092$716$459$289$73
36 years$1,561$1,037$669$423$262$63
37 years$1,502$985$627$389$238$55
38 years$1,447$936$587$359$215$47
39 years$1,394$890$550$331$195$41
40 years$1,344$847$515$305$177$35
41 years$1,297$806$483$282$161$30
42 years$1,252$768$453$260$146$26
43 years$1,209$731$425$240$132$23
44 years$1,168$697$399$221$120$20
45 years$1,129$665$375$205$109$17
46 years$1,092$634$352$189$99$15
47 years$1,057$605$331$175$90$13
48 years$1,023$578$311$161$82$11
49 years$991$552$292$149$74$9
50 years$960$527$275$138$67$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $983,000, adding $3,547 every year, while hoping to spend $48,697 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: 26/50/24 Blend
39$983,000$983,000$983,000$983,000
40$1,086,925$1,034,826$1,019,589$1,106,875
41$1,145,978$1,033,719$1,001,932$1,122,111
42$1,209,422$1,030,926$982,052$1,133,989
43$1,277,654$1,026,312$959,821$1,145,704
44$1,351,110$1,019,736$935,110$1,157,275
45$1,430,266$1,011,047$907,780$1,168,724
46$1,515,649$1,000,083$877,686$1,180,082
47$1,607,835$986,677$844,678$1,191,389
48$1,707,458$970,648$808,599$1,202,693
49$1,815,215$951,806$769,283$1,214,052
50$1,931,871$929,949$726,558$1,225,538
51$2,058,268$904,863$680,244$1,237,236
52$2,195,332$876,322$630,153$1,249,245
53$2,344,082$844,087$576,089$1,261,683
54$2,505,635$807,905$517,845$1,274,687
55$2,681,225$767,507$455,208$1,288,416
56$2,872,205$722,610$387,952$1,303,054
57$3,080,066$672,914$315,845$1,318,813
58$3,306,449$618,103$238,641$1,335,936
59$3,553,157$557,840$156,086$1,354,701
60$3,822,177$491,772$67,913$1,375,426
61$4,115,695$419,525$0$1,398,472
62$4,436,116$340,703$0$1,430,954
63$4,786,091$254,888$0$1,485,627
64$5,168,534$161,639$0$1,545,685
65$5,586,655$60,490$0$1,611,803
66$6,043,989$0$0$1,684,735
67$6,544,427$0$0$1,792,311
68$7,092,254$0$0$1,946,666
69$7,692,189$0$0$2,115,869
70$8,349,428$0$0$2,301,406
71$9,069,693$0$0$2,504,914
72$9,859,287$0$0$2,728,196
73$10,725,150$0$0$2,973,237
74$11,674,929$0$0$3,242,226
75$12,717,043$0$0$3,537,572
76$13,860,768$0$0$3,861,930
77$15,116,320$0$0$4,218,223
78$16,494,954$0$0$4,609,672
79$18,009,066$0$0$5,039,827
80$19,672,315$0$0$5,512,597
81$21,499,744$0$0$6,032,289
82$23,507,927$0$0$6,603,647
83$25,715,125$0$0$7,231,900
84$28,141,452$0$0$7,922,808
85$30,809,071$0$0$8,682,715
86$33,742,399$0$0$9,518,614
87$36,968,337$0$0$10,438,208
88$40,516,523$0$0$11,449,985
89$44,419,612$0$0$12,563,295
90$48,713,585$0$0$13,788,444
91$53,438,082$0$0$15,136,785
92$58,636,783$0$0$16,620,826
93$64,357,815$0$0$18,254,353
94$70,654,204$0$0$20,052,553
95$77,584,379$0$0$22,032,161
96$85,212,721$0$0$24,211,618
97$93,610,167$0$0$26,611,243
98$102,854,885$0$0$29,253,426
99$113,033,002$0$0$32,162,839
100$124,239,426$0$0$35,366,667