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%18.3%
1 years$81,588$80,861$80,152$79,460$78,785$76,141
2 years$40,390$39,638$38,909$38,202$37,516$34,879
3 years$26,659$25,904$25,177$24,476$23,802$21,254
4 years$19,795$19,042$18,322$17,634$16,976$14,536
5 years$15,678$14,929$14,219$13,545$12,905$10,580
6 years$12,934$12,191$11,491$10,832$10,211$8,003
7 years$10,975$10,238$9,549$8,905$8,304$6,213
8 years$9,506$8,776$8,098$7,470$6,889$4,913
9 years$8,364$7,641$6,975$6,363$5,802$3,938
10 years$7,451$6,735$6,081$5,485$4,943$3,190
11 years$6,705$5,996$5,354$4,774$4,251$2,604
12 years$6,083$5,382$4,751$4,187$3,684$2,139
13 years$5,558$4,863$4,245$3,697$3,213$1,766
14 years$5,108$4,421$3,814$3,281$2,816$1,464
15 years$4,718$4,038$3,444$2,926$2,480$1,218
16 years$4,377$3,705$3,122$2,620$2,192$1,016
17 years$4,077$3,412$2,841$2,354$1,943$849
18 years$3,810$3,153$2,593$2,122$1,728$711
19 years$3,572$2,922$2,374$1,917$1,540$596
20 years$3,358$2,715$2,179$1,736$1,376$501
21 years$3,164$2,529$2,004$1,576$1,231$421
22 years$2,989$2,361$1,847$1,433$1,103$354
23 years$2,829$2,208$1,706$1,305$990$298
24 years$2,682$2,069$1,577$1,190$890$251
25 years$2,547$1,942$1,461$1,087$801$212
26 years$2,423$1,825$1,355$994$722$179
27 years$2,308$1,717$1,258$910$651$151
28 years$2,202$1,618$1,170$833$587$127
29 years$2,103$1,527$1,088$764$530$107
30 years$2,011$1,442$1,014$701$479$91
31 years$1,925$1,363$945$644$433$77
32 years$1,845$1,290$882$592$392$65
33 years$1,769$1,221$823$544$354$55
34 years$1,699$1,158$769$501$321$46
35 years$1,632$1,098$719$461$291$39
36 years$1,569$1,042$673$425$263$33
37 years$1,510$990$630$391$239$28
38 years$1,454$941$590$361$216$24
39 years$1,401$894$553$333$196$20
40 years$1,351$851$518$307$178$17
41 years$1,303$810$486$283$161$14
42 years$1,258$771$456$261$147$12
43 years$1,215$735$427$241$133$10
44 years$1,174$701$401$223$121$9
45 years$1,135$668$377$206$110$7
46 years$1,098$637$354$190$100$6
47 years$1,062$608$332$175$90$5
48 years$1,028$581$312$162$82$4
49 years$996$554$294$150$75$4
50 years$965$530$276$138$68$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $988,000, adding $3,247 every year, while hoping to spend $31,927 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: 50/25/25 Blend
39$988,000$988,000$988,000$988,000
40$1,092,125$1,039,761$1,024,447$1,138,890
41$1,169,552$1,056,740$1,024,796$1,188,768
42$1,253,806$1,073,480$1,024,087$1,239,475
43$1,345,550$1,089,936$1,022,250$1,293,947
44$1,445,514$1,106,061$1,019,213$1,352,552
45$1,554,500$1,121,801$1,014,899$1,415,701
46$1,673,391$1,137,101$1,009,230$1,483,844
47$1,803,159$1,151,901$1,002,122$1,557,480
48$1,944,874$1,166,137$993,486$1,637,160
49$2,099,715$1,179,742$983,232$1,723,491
50$2,268,978$1,192,642$971,262$1,817,144
51$2,454,092$1,204,759$957,478$1,918,859
52$2,656,628$1,216,011$941,772$2,029,454
53$2,878,318$1,226,309$924,035$2,149,830
54$3,121,067$1,235,559$904,151$2,280,985
55$3,386,976$1,243,661$882,000$2,424,016
56$3,678,355$1,250,508$857,454$2,580,139
57$3,997,751$1,255,987$830,383$2,750,690
58$4,347,968$1,259,977$800,647$2,937,149
59$4,732,094$1,262,349$768,102$3,141,145
60$5,153,531$1,262,967$732,597$3,364,479
61$5,616,025$1,261,687$693,973$3,609,137
62$6,123,704$1,258,354$652,066$3,877,309
63$6,681,114$1,252,806$606,702$4,171,413
64$7,293,263$1,244,868$557,702$4,494,116
65$7,965,668$1,234,358$504,876$4,848,363
66$8,704,405$1,221,081$448,028$5,237,398
67$9,516,169$1,204,829$386,953$5,664,804
68$10,408,337$1,185,385$321,434$6,134,533
69$11,389,034$1,162,515$251,249$6,650,942
70$12,467,212$1,135,975$176,163$7,218,840
71$13,652,734$1,105,504$95,930$7,843,530
72$14,956,466$1,070,827$10,297$8,530,861
73$16,390,380$1,031,651$0$9,287,285
74$17,967,666$987,670$0$10,141,547
75$19,702,858$938,555$0$11,084,201
76$21,611,968$883,963$0$12,121,230
77$23,712,638$823,527$0$13,262,258
78$26,024,309$756,861$0$14,517,895
79$28,568,399$683,558$0$15,899,836
80$31,368,509$603,186$0$17,420,969
81$34,450,643$515,288$0$19,095,504
82$37,843,456$419,384$0$20,939,102
83$41,578,519$314,964$0$22,969,025
84$45,690,621$201,491$0$25,204,300
85$50,218,098$78,398$0$27,665,900
86$55,203,189$0$0$30,376,942
87$60,692,439$0$0$33,378,011
88$66,737,135$0$0$36,706,638
89$73,393,794$0$0$40,372,393
90$80,724,691$0$0$44,409,588
91$88,798,448$0$0$48,856,032
92$97,690,683$0$0$53,753,389
93$107,484,722$0$0$59,147,567
94$118,272,385$0$0$65,089,160
95$130,154,853$0$0$71,633,913
96$143,243,621$0$0$78,843,260
97$157,661,552$0$0$86,784,895
98$173,544,035$0$0$95,533,414
99$191,040,263$0$0$105,171,021
100$210,314,640$0$0$115,788,300