Can I retire at age 42 with 1,960,000?

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 $1,960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.6%
1 years$161,855$160,413$159,007$157,634$156,293$151,472
2 years$80,126$78,634$77,188$75,785$74,425$69,610
3 years$52,887$51,388$49,946$48,556$47,218$42,561
4 years$39,270$37,776$36,348$34,982$33,677$29,212
5 years$31,102$29,617$28,207$26,870$25,600$21,340
6 years$25,658$24,184$22,796$21,488$20,257$16,205
7 years$21,771$20,310$18,943$17,666$16,474$12,631
8 years$18,858$17,409$16,065$14,820$13,667$10,029
9 years$16,593$15,158$13,837$12,623$11,510$8,074
10 years$14,782$13,361$12,064$10,881$9,807$6,568
11 years$13,301$11,894$10,621$9,470$8,434$5,386
12 years$12,068$10,676$9,425$8,307$7,309$4,446
13 years$11,025$9,648$8,421$7,333$6,373$3,688
14 years$10,132$8,770$7,566$6,510$5,587$3,073
15 years$9,359$8,011$6,831$5,806$4,919$2,569
16 years$8,684$7,350$6,194$5,198$4,348$2,153
17 years$8,088$6,769$5,636$4,671$3,855$1,809
18 years$7,559$6,255$5,145$4,209$3,428$1,523
19 years$7,086$5,797$4,710$3,803$3,055$1,284
20 years$6,661$5,387$4,323$3,445$2,729$1,084
21 years$6,278$5,018$3,976$3,126$2,442$916
22 years$5,929$4,684$3,664$2,842$2,189$775
23 years$5,611$4,381$3,383$2,589$1,965$656
24 years$5,320$4,104$3,129$2,361$1,766$556
25 years$5,053$3,852$2,898$2,156$1,589$471
26 years$4,807$3,620$2,688$1,972$1,431$400
27 years$4,579$3,407$2,496$1,805$1,291$339
28 years$4,368$3,210$2,320$1,653$1,165$288
29 years$4,172$3,029$2,159$1,516$1,052$244
30 years$3,990$2,860$2,011$1,392$950$207
31 years$3,819$2,704$1,875$1,278$859$176
32 years$3,660$2,558$1,749$1,174$777$150
33 years$3,510$2,423$1,633$1,080$703$127
34 years$3,370$2,296$1,526$994$637$108
35 years$3,237$2,178$1,427$915$577$92
36 years$3,113$2,067$1,335$843$522$78
37 years$2,995$1,963$1,249$776$474$66
38 years$2,884$1,866$1,170$715$429$56
39 years$2,779$1,774$1,096$660$389$48
40 years$2,680$1,688$1,027$608$353$41
41 years$2,585$1,607$963$561$320$35
42 years$2,495$1,530$904$518$291$29
43 years$2,410$1,458$848$478$264$25
44 years$2,329$1,390$796$442$239$21
45 years$2,251$1,325$747$408$217$18
46 years$2,178$1,264$702$377$197$15
47 years$2,107$1,207$660$348$179$13
48 years$2,040$1,152$620$322$163$11
49 years$1,975$1,100$583$297$148$9
50 years$1,914$1,051$548$275$134$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,960,000, adding $4,539 every year, while hoping to spend $26,263 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: 35/43/22 Blend
41$1,960,000$1,960,000$1,960,000$1,960,000
42$2,164,602$2,060,722$2,030,342$2,225,755
43$2,357,448$2,133,754$2,070,415$2,344,282
44$2,569,084$2,209,484$2,110,950$2,469,343
45$2,801,398$2,288,017$2,151,935$2,603,747
46$3,056,473$2,369,461$2,193,356$2,748,345
47$3,336,598$2,453,930$2,235,199$2,904,067
48$3,644,300$2,541,542$2,277,448$3,071,936
49$3,982,360$2,632,419$2,320,083$3,253,078
50$4,353,842$2,726,688$2,363,087$3,448,726
51$4,762,121$2,824,483$2,406,438$3,660,239
52$5,210,917$2,925,942$2,450,113$3,889,107
53$5,704,326$3,031,209$2,494,087$4,136,971
54$6,246,863$3,140,434$2,538,334$4,405,632
55$6,843,500$3,253,772$2,582,826$4,697,074
56$7,499,717$3,371,387$2,627,531$5,013,476
57$8,221,551$3,493,448$2,672,416$5,357,236
58$9,015,653$3,620,131$2,717,446$5,730,989
59$9,889,352$3,751,620$2,762,582$6,137,638
60$10,850,722$3,888,105$2,807,785$6,580,374
61$11,908,661$4,029,788$2,853,011$7,062,709
62$13,072,972$4,176,874$2,898,214$7,588,506
63$14,354,455$4,329,581$2,943,345$8,162,019
64$15,765,013$4,488,134$2,988,350$8,787,927
65$17,317,760$4,652,768$3,033,175$9,471,383
66$19,027,145$4,823,728$3,077,760$10,218,057
67$20,909,091$5,001,268$3,122,043$11,034,190
68$22,981,143$5,185,654$3,165,955$11,926,655
69$25,262,632$5,377,164$3,209,428$12,903,017
70$27,774,863$5,576,087$3,252,386$13,971,606
71$30,541,307$5,782,724$3,294,749$15,141,593
72$33,587,830$5,997,387$3,336,433$16,423,078
73$36,942,936$6,220,406$3,377,351$17,827,182
74$40,638,030$6,452,121$3,417,407$19,366,150
75$44,707,722$6,692,888$3,456,502$21,053,469
76$49,190,148$6,943,077$3,494,533$22,903,993
77$54,127,331$7,203,076$3,531,389$24,934,080
78$59,565,581$7,473,289$3,566,952$27,161,746
79$65,555,926$7,754,136$3,601,100$29,606,835
80$72,154,597$8,046,055$3,633,705$32,291,204
81$79,423,560$8,349,506$3,664,628$35,238,930
82$87,431,097$8,664,966$3,693,727$38,476,531
83$96,252,453$8,992,933$3,720,850$42,033,220
84$105,970,543$9,333,926$3,745,838$45,941,176
85$116,676,739$9,688,489$3,768,524$50,235,848
86$128,471,728$10,057,188$3,788,732$54,956,287
87$141,466,467$10,440,612$3,806,277$60,145,512
88$155,783,223$10,839,379$3,820,964$65,850,917
89$171,556,735$11,254,131$3,832,590$72,124,714
90$188,935,479$11,685,541$3,840,938$79,024,425
91$208,083,073$12,134,308$3,845,785$86,613,422
92$229,179,822$12,601,164$3,846,894$94,961,525
93$252,424,416$13,086,873$3,844,017$104,145,658
94$278,035,808$13,592,232$3,836,894$114,250,570
95$306,255,282$14,118,072$3,825,251$125,369,639
96$337,348,726$14,665,263$3,808,802$137,605,745
97$371,609,146$15,234,712$3,787,247$151,072,242
98$409,359,432$15,827,365$3,760,273$165,894,023
99$450,955,400$16,444,212$3,727,548$182,208,700
100$496,789,158$17,086,286$3,688,728$200,167,895