Can I retire at age 42 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.1%
1 years$85,882$85,117$84,371$83,642$82,931$82,547
2 years$42,516$41,724$40,957$40,213$39,491$39,103
3 years$28,062$27,267$26,502$25,765$25,055$24,675
4 years$20,837$20,044$19,286$18,562$17,869$17,501
5 years$16,503$15,715$14,967$14,257$13,584$13,228
6 years$13,615$12,832$12,096$11,402$10,748$10,406
7 years$11,552$10,777$10,052$9,374$8,741$8,412
8 years$10,006$9,238$8,524$7,864$7,252$6,935
9 years$8,804$8,043$7,342$6,698$6,107$5,803
10 years$7,843$7,089$6,401$5,774$5,204$4,913
11 years$7,058$6,311$5,635$5,025$4,475$4,197
12 years$6,403$5,665$5,001$4,408$3,878$3,612
13 years$5,850$5,119$4,468$3,891$3,382$3,128
14 years$5,376$4,653$4,015$3,454$2,964$2,723
15 years$4,966$4,251$3,625$3,081$2,610$2,380
16 years$4,608$3,900$3,286$2,758$2,307$2,088
17 years$4,292$3,592$2,991$2,478$2,045$1,838
18 years$4,011$3,319$2,730$2,233$1,819$1,622
19 years$3,760$3,076$2,499$2,018$1,621$1,434
20 years$3,535$2,858$2,294$1,828$1,448$1,271
21 years$3,331$2,662$2,110$1,659$1,296$1,128
22 years$3,146$2,485$1,944$1,508$1,161$1,003
23 years$2,977$2,324$1,795$1,374$1,043$893
24 years$2,823$2,178$1,660$1,253$937$796
25 years$2,681$2,044$1,538$1,144$843$711
26 years$2,551$1,921$1,426$1,046$760$635
27 years$2,430$1,808$1,324$958$685$567
28 years$2,318$1,703$1,231$877$618$508
29 years$2,214$1,607$1,146$805$558$454
30 years$2,117$1,518$1,067$738$504$407
31 years$2,027$1,435$995$678$456$365
32 years$1,942$1,357$928$623$412$327
33 years$1,862$1,286$867$573$373$293
34 years$1,788$1,218$810$527$338$263
35 years$1,718$1,156$757$485$306$236
36 years$1,652$1,097$708$447$277$212
37 years$1,589$1,042$663$412$251$190
38 years$1,530$990$621$380$228$171
39 years$1,475$941$582$350$207$154
40 years$1,422$896$545$323$187$138
41 years$1,372$853$511$298$170$124
42 years$1,324$812$480$275$154$112
43 years$1,279$774$450$254$140$100
44 years$1,236$738$422$234$127$90
45 years$1,195$703$397$216$115$81
46 years$1,155$671$372$200$105$73
47 years$1,118$640$350$185$95$66
48 years$1,082$611$329$171$86$59
49 years$1,048$584$309$158$78$53
50 years$1,015$558$291$146$71$48

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,040,000, adding $3,857 every year, while hoping to spend $49,396 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: 86/6/8 Blend
41$1,040,000$1,040,000$1,040,000$1,040,000
42$1,150,058$1,094,938$1,078,818$1,247,674
43$1,214,808$1,096,034$1,062,402$1,313,027
44$1,284,505$1,095,527$1,043,780$1,377,664
45$1,359,605$1,093,287$1,022,826$1,447,123
46$1,440,603$1,089,177$999,409$1,521,856
47$1,528,046$1,083,048$973,391$1,602,360
48$1,622,533$1,074,744$944,627$1,689,182
49$1,724,726$1,064,100$912,966$1,782,924
50$1,835,347$1,050,941$878,250$1,884,250
51$1,955,196$1,035,080$840,314$1,993,890
52$2,085,147$1,016,320$798,985$2,112,648
53$2,226,164$994,452$754,084$2,241,408
54$2,379,308$969,255$705,420$2,381,147
55$2,545,743$940,495$652,798$2,532,937
56$2,726,753$907,924$596,011$2,697,963
57$2,923,749$871,278$534,844$2,877,527
58$3,138,282$830,282$469,073$3,073,065
59$3,372,062$784,641$398,461$3,286,158
60$3,626,967$734,043$322,765$3,518,548
61$3,905,069$678,162$241,728$3,772,154
62$4,208,643$616,649$155,084$4,049,093
63$4,540,197$549,138$62,552$4,351,692
64$4,902,492$475,240$0$4,682,521
65$5,298,565$394,546$0$5,047,498
66$5,731,763$306,623$0$5,452,549
67$6,205,768$211,013$0$5,895,791
68$6,724,636$107,232$0$6,381,038
69$7,292,835$0$0$6,912,491
70$7,915,281$0$0$7,495,122
71$8,597,393$0$0$8,141,373
72$9,345,134$0$0$8,849,816
73$10,165,075$0$0$9,626,678
74$11,064,453$0$0$10,478,817
75$12,051,237$0$0$11,413,786
76$13,134,207$0$0$12,439,904
77$14,323,032$0$0$13,566,337
78$15,628,366$0$0$14,803,179
79$17,061,942$0$0$16,161,552
80$18,636,686$0$0$17,653,704
81$20,366,838$0$0$19,293,131
82$22,268,087$0$0$21,094,701
83$24,357,713$0$0$23,074,791
84$26,654,757$0$0$25,251,447
85$29,180,195$0$0$27,644,546
86$31,957,137$0$0$30,275,991
87$35,011,045$0$0$33,169,912
88$38,369,971$0$0$36,352,895
89$42,064,824$0$0$39,854,232
90$46,129,657$0$0$43,706,194
91$50,601,990$0$0$47,944,342
92$55,523,166$0$0$52,607,855
93$60,938,734$0$0$57,739,902
94$66,898,885$0$0$63,388,048
95$73,458,919$0$0$69,604,703
96$80,679,773$0$0$76,447,616
97$88,628,586$0$0$83,980,418
98$97,379,342$0$0$92,273,222
99$107,013,561$0$0$101,403,287
100$117,621,067$0$0$111,455,742