Can I retire at age 40 with 988,000?

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 $988,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$81,588$80,861$80,152$79,460$78,785$77,036
2 years$40,390$39,638$38,909$38,202$37,516$35,764
3 years$26,659$25,904$25,177$24,476$23,802$22,101
4 years$19,795$19,042$18,322$17,634$16,976$15,338
5 years$15,678$14,929$14,219$13,545$12,905$11,336
6 years$12,934$12,191$11,491$10,832$10,211$8,712
7 years$10,975$10,238$9,549$8,905$8,304$6,876
8 years$9,506$8,776$8,098$7,470$6,889$5,530
9 years$8,364$7,641$6,975$6,363$5,802$4,512
10 years$7,451$6,735$6,081$5,485$4,943$3,721
11 years$6,705$5,996$5,354$4,774$4,251$3,095
12 years$6,083$5,382$4,751$4,187$3,684$2,592
13 years$5,558$4,863$4,245$3,697$3,213$2,182
14 years$5,108$4,421$3,814$3,281$2,816$1,846
15 years$4,718$4,038$3,444$2,926$2,480$1,567
16 years$4,377$3,705$3,122$2,620$2,192$1,334
17 years$4,077$3,412$2,841$2,354$1,943$1,139
18 years$3,810$3,153$2,593$2,122$1,728$975
19 years$3,572$2,922$2,374$1,917$1,540$835
20 years$3,358$2,715$2,179$1,736$1,376$717
21 years$3,164$2,529$2,004$1,576$1,231$616
22 years$2,989$2,361$1,847$1,433$1,103$531
23 years$2,829$2,208$1,706$1,305$990$457
24 years$2,682$2,069$1,577$1,190$890$394
25 years$2,547$1,942$1,461$1,087$801$340
26 years$2,423$1,825$1,355$994$722$293
27 years$2,308$1,717$1,258$910$651$253
28 years$2,202$1,618$1,170$833$587$219
29 years$2,103$1,527$1,088$764$530$189
30 years$2,011$1,442$1,014$701$479$164
31 years$1,925$1,363$945$644$433$142
32 years$1,845$1,290$882$592$392$122
33 years$1,769$1,221$823$544$354$106
34 years$1,699$1,158$769$501$321$92
35 years$1,632$1,098$719$461$291$79
36 years$1,569$1,042$673$425$263$69
37 years$1,510$990$630$391$239$60
38 years$1,454$941$590$361$216$52
39 years$1,401$894$553$333$196$45
40 years$1,351$851$518$307$178$39
41 years$1,303$810$486$283$161$33
42 years$1,258$771$456$261$147$29
43 years$1,215$735$427$241$133$25
44 years$1,174$701$401$223$121$22
45 years$1,135$668$377$206$110$19
46 years$1,098$637$354$190$100$16
47 years$1,062$608$332$175$90$14
48 years$1,028$581$312$162$82$12
49 years$996$554$294$150$75$11
50 years$965$530$276$138$68$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $988,000, adding $6,036 every year, while hoping to spend $33,536 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: 37/36/27 Blend
39$988,000$988,000$988,000$988,000
40$1,095,002$1,042,638$1,027,324$1,126,487
41$1,171,010$1,058,045$1,026,057$1,165,643
42$1,253,647$1,073,084$1,023,624$1,204,410
43$1,343,554$1,087,699$1,019,950$1,245,637
44$1,441,435$1,101,835$1,014,957$1,289,570
45$1,548,067$1,115,430$1,008,564$1,336,477
46$1,664,302$1,128,419$1,000,683$1,386,659
47$1,791,081$1,140,732$991,226$1,440,447
48$1,929,437$1,152,294$980,098$1,498,209
49$2,080,510$1,163,026$967,201$1,560,351
50$2,245,551$1,172,843$952,432$1,627,324
51$2,425,941$1,181,656$935,682$1,699,626
52$2,623,197$1,189,368$916,838$1,777,808
53$2,838,993$1,195,877$895,782$1,862,481
54$3,075,169$1,201,073$872,389$1,954,319
55$3,333,754$1,204,843$846,531$2,054,071
56$3,616,978$1,207,062$818,072$2,162,561
57$3,927,302$1,207,600$786,869$2,280,704
58$4,267,432$1,206,318$752,775$2,409,510
59$4,640,352$1,203,069$715,634$2,550,096
60$5,049,345$1,197,697$675,285$2,703,697
61$5,498,029$1,190,035$631,558$2,871,679
62$5,990,389$1,179,907$584,276$3,055,550
63$6,530,814$1,167,128$533,255$3,256,979
64$7,124,138$1,151,499$478,300$3,477,807
65$7,775,688$1,132,810$419,211$3,720,071
66$8,491,330$1,110,839$355,776$3,986,021
67$9,277,527$1,085,351$287,776$4,278,142
68$10,141,398$1,056,097$214,980$4,599,178
69$11,090,788$1,022,813$137,149$4,952,162
70$12,134,336$985,219$54,031$5,340,440
71$13,281,564$943,020$0$5,767,712
72$14,542,959$895,904$0$6,248,046
73$15,930,076$843,539$0$6,793,223
74$17,455,648$785,575$0$7,392,719
75$19,133,699$721,644$0$8,052,114
76$20,979,686$651,354$0$8,777,560
77$23,010,635$574,291$0$9,575,843
78$25,245,308$490,020$0$10,454,447
79$27,704,377$398,078$0$11,421,627
80$30,410,618$297,979$0$12,486,485
81$33,389,128$189,207$0$13,659,057
82$36,667,561$71,220$0$14,950,414
83$40,276,384$0$0$16,372,762
84$44,249,173$0$0$17,961,964
85$48,622,921$0$0$19,742,790
86$53,438,391$0$0$21,703,644
87$58,740,502$0$0$23,862,839
88$64,578,747$0$0$26,240,553
89$71,007,664$0$0$28,859,020
90$78,087,350$0$0$31,742,741
91$85,884,027$0$0$34,918,715
92$94,470,665$0$0$38,416,693
93$103,927,675$0$0$42,269,456
94$114,343,660$0$0$46,513,131
95$125,816,260$0$0$51,187,524
96$138,453,066$0$0$56,336,502
97$152,372,639$0$0$62,008,404
98$167,705,624$0$0$68,256,495
99$184,595,989$0$0$75,139,473
100$203,202,380$0$0$82,722,020