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%14.2%
1 years$81,506$80,780$80,071$79,380$78,705$77,337
2 years$40,349$39,598$38,870$38,163$37,478$36,105
3 years$26,632$25,878$25,151$24,452$23,778$22,442
4 years$19,775$19,023$18,304$17,616$16,959$15,670
5 years$15,662$14,914$14,204$13,531$12,892$11,654
6 years$12,921$12,178$11,479$10,821$10,201$9,015
7 years$10,963$10,227$9,539$8,896$8,296$7,163
8 years$9,496$8,767$8,090$7,463$6,882$5,802
9 years$8,356$7,633$6,968$6,357$5,796$4,767
10 years$7,444$6,728$6,075$5,480$4,938$3,961
11 years$6,698$5,990$5,348$4,769$4,247$3,319
12 years$6,077$5,376$4,746$4,183$3,680$2,801
13 years$5,552$4,858$4,241$3,693$3,209$2,378
14 years$5,102$4,416$3,810$3,278$2,813$2,027
15 years$4,713$4,034$3,440$2,924$2,477$1,735
16 years$4,373$3,701$3,119$2,618$2,189$1,490
17 years$4,073$3,409$2,838$2,352$1,941$1,283
18 years$3,806$3,150$2,591$2,120$1,726$1,108
19 years$3,568$2,919$2,372$1,915$1,538$958
20 years$3,355$2,713$2,177$1,735$1,374$830
21 years$3,161$2,527$2,002$1,574$1,230$720
22 years$2,986$2,359$1,845$1,431$1,102$625
23 years$2,826$2,206$1,704$1,304$989$544
24 years$2,679$2,067$1,576$1,189$889$473
25 years$2,545$1,940$1,459$1,086$800$412
26 years$2,421$1,823$1,354$993$721$359
27 years$2,306$1,716$1,257$909$650$313
28 years$2,200$1,617$1,168$833$586$273
29 years$2,101$1,525$1,087$764$530$239
30 years$2,009$1,440$1,013$701$478$208
31 years$1,923$1,362$944$644$433$182
32 years$1,843$1,288$881$591$391$159
33 years$1,768$1,220$823$544$354$139
34 years$1,697$1,156$769$500$321$122
35 years$1,630$1,097$719$461$290$106
36 years$1,568$1,041$672$424$263$93
37 years$1,508$989$629$391$238$81
38 years$1,452$940$589$360$216$71
39 years$1,400$893$552$332$196$62
40 years$1,349$850$517$306$178$54
41 years$1,302$809$485$283$161$48
42 years$1,257$771$455$261$146$42
43 years$1,214$734$427$241$133$37
44 years$1,173$700$401$222$121$32
45 years$1,134$667$376$205$109$28
46 years$1,097$637$354$190$99$24
47 years$1,061$608$332$175$90$21
48 years$1,027$580$312$162$82$19
49 years$995$554$293$150$74$16
50 years$964$529$276$138$68$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $987,000, adding $3,767 every year, while hoping to spend $24,768 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: 41/49/10 Blend
39$987,000$987,000$987,000$987,000
40$1,091,560$1,039,249$1,023,950$1,132,929
41$1,176,546$1,063,819$1,031,900$1,186,870
42$1,269,370$1,088,763$1,039,285$1,242,453
43$1,370,807$1,114,073$1,046,062$1,302,053
44$1,481,707$1,139,740$1,052,182$1,366,046
45$1,603,007$1,165,754$1,057,597$1,434,846
46$1,735,740$1,192,102$1,062,253$1,508,907
47$1,881,043$1,218,772$1,066,096$1,588,731
48$2,040,167$1,245,750$1,069,067$1,674,869
49$2,214,490$1,273,017$1,071,107$1,767,930
50$2,405,530$1,300,557$1,072,151$1,868,583
51$2,614,958$1,328,349$1,072,133$1,977,566
52$2,844,617$1,356,371$1,070,982$2,095,693
53$3,096,533$1,384,598$1,068,625$2,223,860
54$3,372,940$1,413,004$1,064,984$2,363,054
55$3,676,298$1,441,560$1,059,980$2,514,364
56$4,009,317$1,470,233$1,053,526$2,678,989
57$4,374,983$1,498,989$1,045,534$2,858,251
58$4,776,582$1,527,791$1,035,911$3,053,606
59$5,217,739$1,556,598$1,024,559$3,266,660
60$5,702,443$1,585,366$1,011,376$3,499,184
61$6,235,090$1,614,047$996,255$3,753,127
62$6,820,523$1,642,590$979,084$4,030,641
63$7,464,079$1,670,939$959,746$4,334,096
64$8,171,635$1,699,035$938,117$4,666,104
65$8,949,668$1,726,813$914,070$5,029,545
66$9,805,312$1,754,205$887,470$5,427,594
67$10,746,430$1,781,137$858,176$5,863,750
68$11,781,682$1,807,530$826,041$6,341,871
69$12,920,613$1,833,297$790,912$6,866,210
70$14,173,736$1,858,350$752,629$7,441,453
71$15,552,637$1,882,589$711,022$8,072,768
72$17,070,081$1,905,911$665,916$8,765,852
73$18,740,133$1,928,204$617,128$9,526,982
74$20,578,291$1,949,351$564,467$10,363,080
75$22,601,631$1,969,224$507,731$11,281,777
76$24,828,969$1,987,687$446,711$12,291,482
77$27,281,038$2,004,598$381,190$13,401,466
78$29,980,682$2,019,801$310,938$14,621,949
79$32,953,075$2,033,135$235,718$15,964,196
80$36,225,955$2,044,424$155,280$17,440,624
81$39,829,885$2,053,484$69,365$19,064,922
82$43,798,546$2,060,118$0$20,852,178
83$48,169,051$2,064,116$0$22,821,404
84$52,982,292$2,065,256$0$24,996,604
85$58,283,334$2,063,302$0$27,390,609
86$64,121,834$2,058,003$0$30,025,725
87$70,552,508$2,049,093$0$32,926,538
88$77,635,655$2,036,289$0$36,120,146
89$85,437,716$2,019,291$0$39,636,414
90$94,031,909$1,997,782$0$43,508,261
91$103,498,915$1,971,425$0$47,771,966
92$113,927,642$1,939,863$0$52,467,517
93$125,416,062$1,902,717$0$57,638,983
94$138,072,137$1,859,586$0$63,334,939
95$152,014,835$1,810,047$0$69,608,919
96$167,375,259$1,753,649$0$76,519,925
97$184,297,875$1,689,917$0$84,132,986
98$202,941,883$1,618,349$0$92,519,774
99$223,482,718$1,538,411$0$101,759,279
100$246,113,702$1,449,539$0$111,938,558