Can I retire at age 42 with 1,980,000?

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 $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$163,507$162,050$160,629$159,242$157,888$152,956
2 years$80,944$79,436$77,975$76,559$75,185$70,260
3 years$53,427$51,913$50,455$49,052$47,700$42,937
4 years$39,671$38,161$36,718$35,339$34,020$29,455
5 years$31,419$29,919$28,495$27,144$25,862$21,507
6 years$25,920$24,431$23,028$21,707$20,463$16,323
7 years$21,994$20,517$19,137$17,847$16,642$12,715
8 years$19,050$17,587$16,229$14,971$13,806$10,090
9 years$16,762$15,313$13,978$12,752$11,627$8,118
10 years$14,932$13,497$12,187$10,992$9,907$6,600
11 years$13,437$12,016$10,729$9,567$8,520$5,409
12 years$12,191$10,785$9,522$8,391$7,383$4,461
13 years$11,138$9,746$8,507$7,408$6,438$3,699
14 years$10,236$8,859$7,644$6,576$5,644$3,079
15 years$9,455$8,093$6,901$5,865$4,969$2,572
16 years$8,772$7,425$6,257$5,251$4,392$2,155
17 years$8,170$6,838$5,693$4,718$3,894$1,809
18 years$7,636$6,319$5,197$4,252$3,463$1,522
19 years$7,159$5,856$4,758$3,842$3,086$1,282
20 years$6,729$5,442$4,367$3,480$2,757$1,081
21 years$6,342$5,069$4,016$3,158$2,467$913
22 years$5,989$4,732$3,702$2,871$2,211$772
23 years$5,668$4,425$3,418$2,615$1,985$653
24 years$5,375$4,146$3,161$2,385$1,784$553
25 years$5,105$3,891$2,928$2,178$1,605$468
26 years$4,856$3,657$2,715$1,992$1,446$397
27 years$4,626$3,442$2,521$1,823$1,304$336
28 years$4,413$3,243$2,344$1,670$1,176$285
29 years$4,215$3,059$2,181$1,532$1,062$242
30 years$4,030$2,889$2,032$1,406$960$205
31 years$3,858$2,731$1,894$1,291$868$174
32 years$3,697$2,584$1,767$1,186$785$148
33 years$3,546$2,448$1,650$1,091$710$126
34 years$3,404$2,320$1,542$1,004$643$107
35 years$3,270$2,200$1,441$924$583$91
36 years$3,145$2,088$1,348$851$528$77
37 years$3,026$1,983$1,262$784$478$65
38 years$2,914$1,885$1,182$723$434$55
39 years$2,808$1,792$1,107$666$393$47
40 years$2,707$1,705$1,038$615$357$40
41 years$2,612$1,623$973$567$324$34
42 years$2,521$1,546$913$523$294$29
43 years$2,435$1,473$857$483$267$25
44 years$2,353$1,404$804$446$242$21
45 years$2,274$1,339$755$412$220$18
46 years$2,200$1,277$709$381$199$15
47 years$2,129$1,219$666$352$181$13
48 years$2,060$1,164$626$325$164$11
49 years$1,995$1,111$588$300$149$9
50 years$1,933$1,061$553$278$136$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,980,000, adding $4,238 every year, while hoping to spend $41,327 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: 46/48/6 Blend
41$1,980,000$1,980,000$1,980,000$1,980,000
42$2,186,331$2,081,391$2,050,701$2,283,165
43$2,365,366$2,139,408$2,075,428$2,408,169
44$2,561,276$2,198,882$2,099,599$2,539,026
45$2,775,741$2,259,842$2,123,150$2,680,000
46$3,010,607$2,322,315$2,146,016$2,832,040
47$3,267,910$2,386,329$2,168,128$2,996,186
48$3,549,889$2,451,912$2,189,413$3,173,582
49$3,859,013$2,519,091$2,209,794$3,365,490
50$4,197,999$2,587,893$2,229,188$3,573,296
51$4,569,841$2,658,346$2,247,512$3,798,525
52$4,977,836$2,730,475$2,264,674$4,042,857
53$5,425,614$2,804,308$2,280,580$4,308,141
54$5,917,178$2,879,870$2,295,131$4,596,410
55$6,456,933$2,957,186$2,308,220$4,909,906
56$7,049,733$3,036,281$2,319,738$5,251,094
57$7,700,926$3,117,179$2,329,570$5,622,690
58$8,416,402$3,199,903$2,337,592$6,027,684
59$9,202,651$3,284,474$2,343,678$6,469,370
60$10,066,823$3,370,915$2,347,692$6,951,374
61$11,016,793$3,459,244$2,349,494$7,477,691
62$12,061,240$3,549,481$2,348,936$8,052,719
63$13,209,723$3,641,642$2,345,863$8,681,303
64$14,472,776$3,735,744$2,340,110$9,368,782
65$15,862,004$3,831,800$2,331,509$10,121,035
66$17,390,193$3,929,823$2,319,879$10,944,538
67$19,071,431$4,029,822$2,305,033$11,846,427
68$20,921,238$4,131,805$2,286,773$12,834,561
69$22,956,719$4,235,778$2,264,895$13,917,601
70$25,196,717$4,341,744$2,239,181$15,105,086
71$27,661,994$4,449,701$2,209,405$16,407,529
72$30,375,429$4,559,648$2,175,332$17,836,510
73$33,362,229$4,671,577$2,136,712$19,404,789
74$36,650,171$4,785,479$2,093,286$21,126,426
75$40,269,860$4,901,340$2,044,783$23,016,912
76$44,255,021$5,019,140$1,990,919$25,093,315
77$48,642,814$5,138,859$1,931,395$27,374,444
78$53,474,186$5,260,467$1,865,901$29,881,022
79$58,794,256$5,383,934$1,794,113$32,635,885
80$64,652,743$5,509,220$1,715,688$35,664,197
81$71,104,433$5,636,281$1,630,274$38,993,685
82$78,209,693$5,765,067$1,537,496$42,654,903
83$86,035,048$5,895,521$1,436,968$46,681,521
84$94,653,799$6,027,578$1,328,283$51,110,639
85$104,146,723$6,161,166$1,211,017$55,983,142
86$114,602,830$6,296,205$1,084,727$61,344,085
87$126,120,204$6,432,604$948,951$67,243,113
88$138,806,928$6,570,265$803,204$73,734,937
89$152,782,106$6,709,079$646,983$80,879,848
90$168,176,983$6,848,926$479,759$88,744,283
91$185,136,188$6,989,676$300,983$97,401,459
92$203,819,094$7,131,184$110,080$106,932,056
93$224,401,325$7,273,296$0$117,424,989
94$247,076,413$7,415,840$0$128,984,232
95$272,057,623$7,558,633$0$141,719,676
96$299,579,970$7,701,475$0$155,743,300
97$329,902,428$7,844,148$0$171,186,274
98$363,310,383$7,986,420$0$188,193,149
99$400,118,325$8,128,037$0$206,923,217
100$440,672,810$8,268,727$0$227,552,019