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%18.2%
1 years$81,588$80,861$80,152$79,460$78,785$76,171
2 years$40,390$39,638$38,909$38,202$37,516$34,909
3 years$26,659$25,904$25,177$24,476$23,802$21,282
4 years$19,795$19,042$18,322$17,634$16,976$14,563
5 years$15,678$14,929$14,219$13,545$12,905$10,605
6 years$12,934$12,191$11,491$10,832$10,211$8,027
7 years$10,975$10,238$9,549$8,905$8,304$6,235
8 years$9,506$8,776$8,098$7,470$6,889$4,933
9 years$8,364$7,641$6,975$6,363$5,802$3,957
10 years$7,451$6,735$6,081$5,485$4,943$3,207
11 years$6,705$5,996$5,354$4,774$4,251$2,620
12 years$6,083$5,382$4,751$4,187$3,684$2,154
13 years$5,558$4,863$4,245$3,697$3,213$1,779
14 years$5,108$4,421$3,814$3,281$2,816$1,476
15 years$4,718$4,038$3,444$2,926$2,480$1,229
16 years$4,377$3,705$3,122$2,620$2,192$1,026
17 years$4,077$3,412$2,841$2,354$1,943$858
18 years$3,810$3,153$2,593$2,122$1,728$719
19 years$3,572$2,922$2,374$1,917$1,540$603
20 years$3,358$2,715$2,179$1,736$1,376$507
21 years$3,164$2,529$2,004$1,576$1,231$427
22 years$2,989$2,361$1,847$1,433$1,103$359
23 years$2,829$2,208$1,706$1,305$990$303
24 years$2,682$2,069$1,577$1,190$890$255
25 years$2,547$1,942$1,461$1,087$801$215
26 years$2,423$1,825$1,355$994$722$182
27 years$2,308$1,717$1,258$910$651$153
28 years$2,202$1,618$1,170$833$587$130
29 years$2,103$1,527$1,088$764$530$109
30 years$2,011$1,442$1,014$701$479$93
31 years$1,925$1,363$945$644$433$78
32 years$1,845$1,290$882$592$392$66
33 years$1,769$1,221$823$544$354$56
34 years$1,699$1,158$769$501$321$47
35 years$1,632$1,098$719$461$291$40
36 years$1,569$1,042$673$425$263$34
37 years$1,510$990$630$391$239$29
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$15
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$5
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 $3,631 every year, while hoping to spend $51,971 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: 54/19/27 Blend
39$988,000$988,000$988,000$988,000
40$1,092,521$1,040,157$1,024,843$1,143,154
41$1,148,662$1,035,828$1,003,879$1,174,185
42$1,208,787$1,029,545$980,470$1,202,307
43$1,273,248$1,021,158$954,481$1,231,875
44$1,342,430$1,010,506$925,767$1,263,045
45$1,416,758$997,420$894,180$1,295,994
46$1,496,695$981,722$859,563$1,330,919
47$1,582,752$963,220$821,752$1,368,040
48$1,675,488$941,713$780,576$1,407,603
49$1,775,519$916,989$735,857$1,449,882
50$1,883,521$888,820$687,407$1,495,182
51$2,000,237$856,969$635,032$1,543,843
52$2,126,482$821,182$578,527$1,596,244
53$2,263,155$781,191$517,679$1,652,804
54$2,411,240$736,713$452,265$1,713,995
55$2,571,824$687,449$382,053$1,780,335
56$2,746,098$633,082$306,800$1,852,405
57$2,935,375$573,278$226,252$1,930,847
58$3,141,097$507,682$140,145$2,016,377
59$3,364,851$435,921$48,203$2,109,787
60$3,608,385$357,600$0$2,211,957
61$3,873,618$272,301$0$2,338,244
62$4,162,667$179,583$0$2,491,105
63$4,477,858$78,981$0$2,657,931
64$4,821,752$0$0$2,840,147
65$5,197,168$0$0$3,045,597
66$5,607,210$0$0$3,288,120
67$6,055,295$0$0$3,553,235
68$6,545,183$0$0$3,843,178
69$7,081,015$0$0$4,160,411
70$7,667,351$0$0$4,507,647
71$8,309,211$0$0$4,887,872
72$9,012,125$0$0$5,304,373
73$9,782,180$0$0$5,760,773
74$10,626,082$0$0$6,261,059
75$11,551,214$0$0$6,809,625
76$12,565,710$0$0$7,411,306
77$13,678,527$0$0$8,071,433
78$14,899,532$0$0$8,795,874
79$16,239,592$0$0$9,591,095
80$17,710,677$0$0$10,464,217
81$19,325,974$0$0$11,423,084
82$21,100,010$0$0$12,476,338
83$23,048,784$0$0$13,633,499
84$25,189,926$0$0$14,905,055
85$27,542,854$0$0$16,302,559
86$30,128,963$0$0$17,838,740
87$32,971,823$0$0$19,527,621
88$36,097,400$0$0$21,384,652
89$39,534,302$0$0$23,426,854
90$43,314,051$0$0$25,672,982
91$47,471,372$0$0$28,143,696
92$52,044,527$0$0$30,861,764
93$57,075,673$0$0$33,852,269
94$62,611,258$0$0$37,142,846
95$68,702,460$0$0$40,763,949
96$75,405,667$0$0$44,749,129
97$82,783,011$0$0$49,135,356
98$90,902,952$0$0$53,963,365
99$99,840,924$0$0$59,278,041
100$109,680,043$0$0$65,128,843