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%17.1%
1 years$163,507$162,050$160,629$159,242$157,888$153,325
2 years$80,944$79,436$77,975$76,559$75,185$70,624
3 years$53,427$51,913$50,455$49,052$47,700$43,285
4 years$39,671$38,161$36,718$35,339$34,020$29,784
5 years$31,419$29,919$28,495$27,144$25,862$21,816
6 years$25,920$24,431$23,028$21,707$20,463$16,611
7 years$21,994$20,517$19,137$17,847$16,642$12,984
8 years$19,050$17,587$16,229$14,971$13,806$10,340
9 years$16,762$15,313$13,978$12,752$11,627$8,350
10 years$14,932$13,497$12,187$10,992$9,907$6,813
11 years$13,437$12,016$10,729$9,567$8,520$5,606
12 years$12,191$10,785$9,522$8,391$7,383$4,642
13 years$11,138$9,746$8,507$7,408$6,438$3,864
14 years$10,236$8,859$7,644$6,576$5,644$3,231
15 years$9,455$8,093$6,901$5,865$4,969$2,710
16 years$8,772$7,425$6,257$5,251$4,392$2,280
17 years$8,170$6,838$5,693$4,718$3,894$1,923
18 years$7,636$6,319$5,197$4,252$3,463$1,624
19 years$7,159$5,856$4,758$3,842$3,086$1,375
20 years$6,729$5,442$4,367$3,480$2,757$1,165
21 years$6,342$5,069$4,016$3,158$2,467$989
22 years$5,989$4,732$3,702$2,871$2,211$840
23 years$5,668$4,425$3,418$2,615$1,985$714
24 years$5,375$4,146$3,161$2,385$1,784$607
25 years$5,105$3,891$2,928$2,178$1,605$517
26 years$4,856$3,657$2,715$1,992$1,446$440
27 years$4,626$3,442$2,521$1,823$1,304$375
28 years$4,413$3,243$2,344$1,670$1,176$319
29 years$4,215$3,059$2,181$1,532$1,062$272
30 years$4,030$2,889$2,032$1,406$960$232
31 years$3,858$2,731$1,894$1,291$868$198
32 years$3,697$2,584$1,767$1,186$785$169
33 years$3,546$2,448$1,650$1,091$710$144
34 years$3,404$2,320$1,542$1,004$643$123
35 years$3,270$2,200$1,441$924$583$105
36 years$3,145$2,088$1,348$851$528$90
37 years$3,026$1,983$1,262$784$478$76
38 years$2,914$1,885$1,182$723$434$65
39 years$2,808$1,792$1,107$666$393$56
40 years$2,707$1,705$1,038$615$357$48
41 years$2,612$1,623$973$567$324$41
42 years$2,521$1,546$913$523$294$35
43 years$2,435$1,473$857$483$267$30
44 years$2,353$1,404$804$446$242$25
45 years$2,274$1,339$755$412$220$22
46 years$2,200$1,277$709$381$199$18
47 years$2,129$1,219$666$352$181$16
48 years$2,060$1,164$626$325$164$13
49 years$1,995$1,111$588$300$149$11
50 years$1,933$1,061$553$278$136$10

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 $4,769 every year, while hoping to spend $27,781 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: 63/25/12 Blend
41$1,980,000$1,980,000$1,980,000$1,980,000
42$2,186,879$2,081,939$2,051,249$2,318,251
43$2,380,382$2,154,395$2,090,407$2,479,227
44$2,592,691$2,229,471$2,129,946$2,651,292
45$2,825,695$2,307,265$2,169,849$2,838,485
46$3,081,475$2,387,880$2,210,098$3,042,275
47$3,362,323$2,471,423$2,250,673$3,264,280
48$3,670,763$2,558,006$2,291,554$3,506,279
49$4,009,577$2,647,744$2,332,717$3,770,230
50$4,381,828$2,740,757$2,374,137$4,058,289
51$4,790,891$2,837,172$2,415,788$4,372,829
52$5,240,486$2,937,117$2,457,641$4,716,463
53$5,734,709$3,040,729$2,499,665$5,092,065
54$6,278,073$3,148,149$2,541,827$5,502,803
55$6,875,550$3,259,522$2,584,092$5,952,162
56$7,532,619$3,375,001$2,626,422$6,443,982
57$8,255,316$3,494,746$2,668,777$6,982,489
58$9,050,290$3,618,920$2,711,113$7,572,339
59$9,924,869$3,747,697$2,753,385$8,218,658
60$10,887,126$3,881,254$2,795,543$8,927,091
61$11,945,956$4,019,778$2,837,537$9,703,857
62$13,111,159$4,163,463$2,879,310$10,555,804
63$14,393,534$4,312,509$2,920,803$11,490,474
64$15,804,980$4,467,128$2,961,956$12,516,177
65$17,358,607$4,627,537$3,002,701$13,642,063
66$19,068,863$4,793,964$3,042,969$14,878,213
67$20,951,664$4,966,645$3,082,686$16,235,731
68$23,024,552$5,145,829$3,121,774$17,726,850
69$25,306,851$5,331,770$3,160,149$19,365,044
70$27,819,861$5,524,737$3,197,724$21,165,160
71$30,587,045$5,725,008$3,234,407$23,143,549
72$33,634,264$5,932,874$3,270,100$25,318,229
73$36,990,011$6,148,636$3,304,699$27,709,049
74$40,685,682$6,372,610$3,338,097$30,337,875
75$44,755,877$6,605,123$3,370,179$33,228,800
76$49,238,720$6,846,517$3,400,823$36,408,367
77$54,176,222$7,097,149$3,429,903$39,905,820
78$59,614,676$7,357,389$3,457,284$43,753,380
79$65,605,095$7,627,623$3,482,826$47,986,548
80$72,203,694$7,908,256$3,506,380$52,644,437
81$79,472,417$8,199,706$3,527,789$57,770,144
82$87,479,523$8,502,411$3,546,890$63,411,155
83$96,300,233$8,816,828$3,563,510$69,619,790
84$106,017,437$9,143,433$3,577,467$76,453,698
85$116,722,474$9,482,720$3,588,571$83,976,399
86$128,516,000$9,835,206$3,596,621$92,257,887
87$141,508,932$10,201,432$3,601,408$101,375,280
88$155,823,499$10,581,957$3,602,711$111,413,560
89$171,594,392$10,977,370$3,600,298$122,466,360
90$188,970,038$11,388,279$3,593,927$134,636,860
91$208,114,001$11,815,324$3,583,342$148,038,749
92$229,206,522$12,259,167$3,568,277$162,797,304
93$252,446,224$12,720,503$3,548,451$179,050,569
94$278,051,985$13,200,055$3,523,571$196,950,656
95$306,265,007$13,698,576$3,493,329$216,665,179
96$337,351,085$14,216,854$3,457,403$238,378,839
97$371,603,126$14,755,710$3,415,456$262,295,161
98$409,343,905$15,316,000$3,367,134$288,638,418
99$450,929,117$15,898,618$3,312,067$317,655,742
100$496,750,733$16,504,496$3,249,867$349,619,460