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%13.5%
1 years$81,588$80,861$80,152$79,460$78,785$77,639
2 years$40,390$39,638$38,909$38,202$37,516$36,365
3 years$26,659$25,904$25,177$24,476$23,802$22,680
4 years$19,795$19,042$18,322$17,634$16,976$15,892
5 years$15,678$14,929$14,219$13,545$12,905$11,863
6 years$12,934$12,191$11,491$10,832$10,211$9,212
7 years$10,975$10,238$9,549$8,905$8,304$7,348
8 years$9,506$8,776$8,098$7,470$6,889$5,976
9 years$8,364$7,641$6,975$6,363$5,802$4,930
10 years$7,451$6,735$6,081$5,485$4,943$4,114
11 years$6,705$5,996$5,354$4,774$4,251$3,463
12 years$6,083$5,382$4,751$4,187$3,684$2,936
13 years$5,558$4,863$4,245$3,697$3,213$2,503
14 years$5,108$4,421$3,814$3,281$2,816$2,144
15 years$4,718$4,038$3,444$2,926$2,480$1,844
16 years$4,377$3,705$3,122$2,620$2,192$1,592
17 years$4,077$3,412$2,841$2,354$1,943$1,378
18 years$3,810$3,153$2,593$2,122$1,728$1,195
19 years$3,572$2,922$2,374$1,917$1,540$1,039
20 years$3,358$2,715$2,179$1,736$1,376$905
21 years$3,164$2,529$2,004$1,576$1,231$789
22 years$2,989$2,361$1,847$1,433$1,103$689
23 years$2,829$2,208$1,706$1,305$990$602
24 years$2,682$2,069$1,577$1,190$890$527
25 years$2,547$1,942$1,461$1,087$801$462
26 years$2,423$1,825$1,355$994$722$405
27 years$2,308$1,717$1,258$910$651$355
28 years$2,202$1,618$1,170$833$587$311
29 years$2,103$1,527$1,088$764$530$273
30 years$2,011$1,442$1,014$701$479$240
31 years$1,925$1,363$945$644$433$211
32 years$1,845$1,290$882$592$392$185
33 years$1,769$1,221$823$544$354$163
34 years$1,699$1,158$769$501$321$143
35 years$1,632$1,098$719$461$291$126
36 years$1,569$1,042$673$425$263$111
37 years$1,510$990$630$391$239$98
38 years$1,454$941$590$361$216$86
39 years$1,401$894$553$333$196$76
40 years$1,351$851$518$307$178$67
41 years$1,303$810$486$283$161$59
42 years$1,258$771$456$261$147$52
43 years$1,215$735$427$241$133$45
44 years$1,174$701$401$223$121$40
45 years$1,135$668$377$206$110$35
46 years$1,098$637$354$190$100$31
47 years$1,062$608$332$175$90$27
48 years$1,028$581$312$162$82$24
49 years$996$554$294$150$75$21
50 years$965$530$276$138$68$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $988,000, adding $3,719 every year, while hoping to spend $45,891 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: 80/8/12 Blend
39$988,000$988,000$988,000$988,000
40$1,092,612$1,040,248$1,024,934$1,177,313
41$1,155,231$1,042,393$1,010,442$1,235,616
42$1,222,699$1,043,104$993,926$1,293,245
43$1,295,462$1,042,264$975,270$1,355,151
44$1,374,010$1,039,746$954,353$1,421,740
45$1,458,882$1,035,417$931,047$1,493,461
46$1,550,670$1,029,134$905,219$1,570,807
47$1,650,025$1,020,748$876,730$1,654,321
48$1,757,660$1,010,098$845,433$1,744,604
49$1,874,364$997,015$811,178$1,842,314
50$2,001,000$981,320$773,803$1,948,181
51$2,138,520$962,822$733,143$2,063,005
52$2,287,969$941,321$689,024$2,187,672
53$2,450,499$916,602$641,263$2,323,154
54$2,627,376$888,441$589,671$2,470,527
55$2,819,992$856,599$534,049$2,630,972
56$3,029,880$820,821$474,189$2,805,796
57$3,258,728$780,842$409,874$2,996,437
58$3,508,392$736,377$340,879$3,204,478
59$3,780,916$687,127$266,966$3,431,669
60$4,078,549$632,776$187,890$3,679,935
61$4,403,769$572,990$103,391$3,951,400
62$4,759,301$507,414$13,202$4,248,405
63$5,148,147$435,674$0$4,573,529
64$5,573,612$357,377$0$4,940,252
65$6,039,336$272,104$0$5,343,569
66$6,549,326$179,415$0$5,785,287
67$7,107,995$78,844$0$6,269,254
68$7,720,204$0$0$6,799,716
69$8,391,305$0$0$7,383,997
70$9,127,192$0$0$8,032,322
71$9,934,359$0$0$8,743,473
72$10,819,958$0$0$9,523,754
73$11,791,864$0$0$10,380,111
74$12,858,756$0$0$11,320,191
75$14,030,191$0$0$12,352,421
76$15,316,696$0$0$13,486,082
77$16,729,872$0$0$14,731,398
78$18,282,493$0$0$16,099,633
79$19,988,637$0$0$17,603,196
80$21,863,809$0$0$19,255,756
81$23,925,093$0$0$21,072,373
82$26,191,310$0$0$23,069,641
83$28,683,196$0$0$25,265,838
84$31,423,596$0$0$27,681,104
85$34,437,680$0$0$30,337,630
86$37,753,180$0$0$33,259,862
87$41,400,652$0$0$36,474,738
88$45,413,760$0$0$40,011,935
89$49,829,597$0$0$43,904,155
90$54,689,034$0$0$48,187,428
91$60,037,104$0$0$52,901,454
92$65,923,425$0$0$58,089,976
93$72,402,671$0$0$63,801,193
94$79,535,084$0$0$70,088,215
95$87,387,045$0$0$77,009,561
96$96,031,696$0$0$84,629,714
97$105,549,633$0$0$93,019,725
98$116,029,665$0$0$102,257,887
99$127,569,651$0$0$112,430,471
100$140,277,421$0$0$123,632,541