Can I retire at age 40 with 987,000?

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 $987,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.9%
1 years$81,506$80,780$80,071$79,380$78,705$76,492
2 years$40,349$39,598$38,870$38,163$37,478$35,266
3 years$26,632$25,878$25,151$24,452$23,778$21,635
4 years$19,775$19,023$18,304$17,616$16,959$14,902
5 years$15,662$14,914$14,204$13,531$12,892$10,927
6 years$12,921$12,178$11,479$10,821$10,201$8,329
7 years$10,963$10,227$9,539$8,896$8,296$6,518
8 years$9,496$8,767$8,090$7,463$6,882$5,197
9 years$8,356$7,633$6,968$6,357$5,796$4,201
10 years$7,444$6,728$6,075$5,480$4,938$3,433
11 years$6,698$5,990$5,348$4,769$4,247$2,828
12 years$6,077$5,376$4,746$4,183$3,680$2,345
13 years$5,552$4,858$4,241$3,693$3,209$1,955
14 years$5,102$4,416$3,810$3,278$2,813$1,636
15 years$4,713$4,034$3,440$2,924$2,477$1,375
16 years$4,373$3,701$3,119$2,618$2,189$1,158
17 years$4,073$3,409$2,838$2,352$1,941$978
18 years$3,806$3,150$2,591$2,120$1,726$828
19 years$3,568$2,919$2,372$1,915$1,538$701
20 years$3,355$2,713$2,177$1,735$1,374$595
21 years$3,161$2,527$2,002$1,574$1,230$506
22 years$2,986$2,359$1,845$1,431$1,102$430
23 years$2,826$2,206$1,704$1,304$989$366
24 years$2,679$2,067$1,576$1,189$889$312
25 years$2,545$1,940$1,459$1,086$800$266
26 years$2,421$1,823$1,354$993$721$227
27 years$2,306$1,716$1,257$909$650$194
28 years$2,200$1,617$1,168$833$586$165
29 years$2,101$1,525$1,087$764$530$141
30 years$2,009$1,440$1,013$701$478$121
31 years$1,923$1,362$944$644$433$103
32 years$1,843$1,288$881$591$391$88
33 years$1,768$1,220$823$544$354$75
34 years$1,697$1,156$769$500$321$64
35 years$1,630$1,097$719$461$290$55
36 years$1,568$1,041$672$424$263$47
37 years$1,508$989$629$391$238$40
38 years$1,452$940$589$360$216$34
39 years$1,400$893$552$332$196$29
40 years$1,349$850$517$306$178$25
41 years$1,302$809$485$283$161$21
42 years$1,257$771$455$261$146$18
43 years$1,214$734$427$241$133$16
44 years$1,173$700$401$222$121$13
45 years$1,134$667$376$205$109$11
46 years$1,097$637$354$190$99$10
47 years$1,061$608$332$175$90$8
48 years$1,027$580$312$162$82$7
49 years$995$554$293$150$74$6
50 years$964$529$276$138$68$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $987,000, adding $2,675 every year, while hoping to spend $33,560 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: 58/22/20 Blend
39$987,000$987,000$987,000$987,000
40$1,090,433$1,038,122$1,022,824$1,147,745
41$1,165,950$1,053,283$1,021,381$1,202,161
42$1,248,044$1,068,061$1,018,765$1,257,589
43$1,337,352$1,082,404$1,014,901$1,317,271
44$1,434,573$1,096,252$1,009,711$1,381,625
45$1,540,476$1,109,545$1,003,112$1,451,112
46$1,655,907$1,122,215$995,019$1,526,240
47$1,781,799$1,134,193$985,342$1,607,570
48$1,919,177$1,145,403$973,985$1,695,720
49$2,069,170$1,155,765$960,851$1,791,373
50$2,233,021$1,165,193$945,835$1,895,282
51$2,412,097$1,173,596$928,829$2,008,279
52$2,607,906$1,180,877$909,719$2,131,280
53$2,822,105$1,186,932$888,387$2,265,297
54$3,056,520$1,191,653$864,709$2,411,446
55$3,313,163$1,194,921$838,554$2,570,959
56$3,594,247$1,196,613$809,787$2,745,194
57$3,902,210$1,196,597$778,265$2,935,649
58$4,239,738$1,194,733$743,839$3,143,979
59$4,609,788$1,190,872$706,355$3,372,007
60$5,015,617$1,184,856$665,649$3,621,746
61$5,460,814$1,176,517$621,551$3,895,414
62$5,949,329$1,165,678$573,885$4,195,459
63$6,485,515$1,152,151$522,465$4,524,583
64$7,074,167$1,135,736$467,097$4,885,763
65$7,720,566$1,116,221$407,579$5,282,285
66$8,430,530$1,093,382$343,699$5,717,773
67$9,210,467$1,066,982$275,236$6,196,221
68$10,067,440$1,036,768$201,961$6,722,038
69$11,009,225$1,002,476$123,633$7,300,084
70$12,044,391$963,823$40,000$7,935,719
71$13,182,380$920,511$0$8,634,855
72$14,433,591$872,224$0$9,414,519
73$15,809,484$818,630$0$10,281,184
74$17,322,684$759,375$0$11,234,291
75$18,987,100$694,087$0$12,282,645
76$20,818,057$622,371$0$13,435,950
77$22,832,443$543,810$0$14,704,901
78$25,048,860$457,965$0$16,101,288
79$27,487,808$364,370$0$17,638,105
80$30,171,873$262,533$0$19,329,675
81$33,125,943$151,936$0$21,191,784
82$36,377,440$32,031$0$23,241,833
83$39,956,577$0$0$25,499,000
84$43,896,648$0$0$28,008,088
85$48,234,339$0$0$30,779,026
86$53,010,071$0$0$33,829,895
87$58,268,387$0$0$37,189,161
88$64,058,366$0$0$40,888,194
89$70,434,091$0$0$44,961,559
90$77,455,156$0$0$49,447,344
91$85,187,229$0$0$54,387,521
92$93,702,670$0$0$59,828,336
93$103,081,215$0$0$65,820,753
94$113,410,730$0$0$72,420,930
95$124,788,035$0$0$79,690,748
96$137,319,821$0$0$87,698,398
97$151,123,657$0$0$96,519,024
98$166,329,097$0$0$106,235,427
99$183,078,902$0$0$116,938,855
100$201,530,391$0$0$128,729,857