Can I retire at age 40 with 997,000?

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 $997,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$82,331$81,598$80,882$80,184$79,502$78,250
2 years$40,758$39,999$39,263$38,550$37,858$36,599
3 years$26,902$26,140$25,406$24,699$24,019$22,793
4 years$19,976$19,216$18,489$17,795$17,130$15,947
5 years$15,821$15,065$14,348$13,668$13,022$11,885
6 years$13,052$12,302$11,596$10,930$10,304$9,214
7 years$11,075$10,331$9,636$8,986$8,380$7,337
8 years$9,592$8,856$8,172$7,538$6,952$5,957
9 years$8,440$7,710$7,039$6,421$5,855$4,906
10 years$7,519$6,796$6,136$5,535$4,988$4,086
11 years$6,766$6,050$5,402$4,817$4,290$3,433
12 years$6,139$5,431$4,794$4,225$3,718$2,905
13 years$5,608$4,908$4,284$3,730$3,242$2,472
14 years$5,154$4,461$3,849$3,311$2,842$2,113
15 years$4,761$4,075$3,475$2,953$2,502$1,814
16 years$4,417$3,739$3,151$2,644$2,211$1,562
17 years$4,114$3,443$2,867$2,376$1,961$1,349
18 years$3,845$3,182$2,617$2,141$1,744$1,168
19 years$3,605$2,949$2,396$1,935$1,554$1,013
20 years$3,388$2,740$2,199$1,752$1,388$880
21 years$3,193$2,552$2,022$1,590$1,242$766
22 years$3,016$2,383$1,864$1,446$1,113$667
23 years$2,854$2,228$1,721$1,317$999$582
24 years$2,706$2,088$1,592$1,201$898$508
25 years$2,570$1,959$1,474$1,097$808$444
26 years$2,445$1,841$1,367$1,003$728$388
27 years$2,329$1,733$1,270$918$657$340
28 years$2,222$1,633$1,180$841$592$297
29 years$2,122$1,541$1,098$771$535$260
30 years$2,029$1,455$1,023$708$483$228
31 years$1,943$1,375$954$650$437$200
32 years$1,862$1,301$890$597$395$175
33 years$1,785$1,232$831$549$358$154
34 years$1,714$1,168$776$505$324$135
35 years$1,647$1,108$726$465$293$118
36 years$1,583$1,052$679$429$266$104
37 years$1,524$999$636$395$241$91
38 years$1,467$949$595$364$218$80
39 years$1,414$903$558$336$198$70
40 years$1,363$859$523$310$180$62
41 years$1,315$817$490$286$163$54
42 years$1,269$778$460$264$148$48
43 years$1,226$742$431$243$134$42
44 years$1,185$707$405$225$122$37
45 years$1,145$674$380$207$111$32
46 years$1,108$643$357$192$100$28
47 years$1,072$614$335$177$91$25
48 years$1,038$586$315$164$83$22
49 years$1,005$560$296$151$75$19
50 years$973$534$279$140$68$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $997,000, adding $4,591 every year, while hoping to spend $51,498 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: 30/47/23 Blend
39$997,000$997,000$997,000$997,000
40$1,103,430$1,050,589$1,035,135$1,128,532
41$1,161,186$1,047,274$1,015,019$1,144,861
42$1,223,107$1,042,071$992,502$1,157,521
43$1,289,565$1,034,833$967,451$1,170,077
44$1,360,964$1,025,403$939,725$1,182,555
45$1,437,752$1,013,617$909,175$1,194,984
46$1,520,418$999,300$875,648$1,207,405
47$1,609,500$982,266$838,982$1,219,866
48$1,705,590$962,318$799,009$1,232,424
49$1,809,337$939,248$755,552$1,245,150
50$1,921,454$912,835$708,427$1,258,127
51$2,042,725$882,847$657,442$1,271,455
52$2,174,012$849,035$602,396$1,285,248
53$2,316,262$811,140$543,077$1,299,641
54$2,470,518$768,883$479,268$1,314,790
55$2,637,925$721,972$410,737$1,330,874
56$2,819,743$670,098$337,247$1,348,102
57$3,017,358$612,934$258,546$1,366,711
58$3,232,295$550,134$174,373$1,386,973
59$3,466,231$481,333$84,457$1,409,197
60$3,721,013$406,144$0$1,433,735
61$3,998,670$324,159$0$1,463,811
62$4,301,439$234,948$0$1,519,357
63$4,631,781$138,055$0$1,580,212
64$4,992,402$32,999$0$1,647,036
65$5,386,284$0$0$1,720,562
66$5,816,709$0$0$1,843,361
67$6,287,289$0$0$1,996,427
68$6,802,003$0$0$2,164,003
69$7,365,230$0$0$2,347,537
70$7,981,793$0$0$2,548,619
71$8,657,003$0$0$2,769,003
72$9,396,708$0$0$3,010,620
73$10,207,349$0$0$3,275,596
74$11,096,018$0$0$3,566,273
75$12,070,528$0$0$3,885,231
76$13,139,484$0$0$4,235,312
77$14,312,364$0$0$4,619,644
78$15,599,605$0$0$5,041,678
79$17,012,707$0$0$5,505,210
80$18,564,338$0$0$6,014,424
81$20,268,448$0$0$6,573,930
82$22,140,411$0$0$7,188,806
83$24,197,158$0$0$7,864,646
84$26,457,343$0$0$8,607,613
85$28,941,518$0$0$9,424,497
86$31,672,323$0$0$10,322,779
87$34,674,701$0$0$11,310,700
88$37,976,133$0$0$12,397,342
89$41,606,897$0$0$13,592,709
90$45,600,351$0$0$14,907,825
91$49,993,247$0$0$16,354,835
92$54,826,081$0$0$17,947,123
93$60,143,471$0$0$19,699,433
94$65,994,575$0$0$21,628,012
95$72,433,561$0$0$23,750,762
96$79,520,112$0$0$26,087,409
97$87,319,987$0$0$28,659,687
98$95,905,648$0$0$31,491,545
99$105,356,935$0$0$34,609,372
100$115,761,825$0$0$38,042,247