Can I retire at age 40?

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 $1,000,000

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
1%2%3%4%5%6%7%8%9%10%
1 years$82,954$82,579$82,209$81,843$81,482$81,126$80,774$80,425$80,081$79,741
2 years$41,271$40,881$40,497$40,119$39,748$39,381$39,021$38,666$38,316$37,972
3 years$27,377$26,983$26,597$26,218$25,847$25,482$25,125$24,774$24,429$24,091
4 years$20,430$20,036$19,650$19,273$18,905$18,545$18,192$17,848$17,511$17,182
5 years$16,262$15,868$15,484$15,111$14,746$14,391$14,046$13,709$13,381$13,061
6 years$13,484$13,091$12,709$12,339$11,979$11,630$11,292$10,963$10,644$10,335
7 years$11,500$11,108$10,729$10,362$10,008$9,665$9,334$9,013$8,704$8,405
8 years$10,012$9,621$9,245$8,882$8,533$8,197$7,873$7,561$7,261$6,973
9 years$8,855$8,466$8,092$7,734$7,390$7,060$6,743$6,440$6,150$5,872
10 years$7,929$7,542$7,171$6,817$6,478$6,155$5,846$5,552$5,271$5,003
11 years$7,172$6,786$6,419$6,069$5,735$5,419$5,118$4,832$4,560$4,303
12 years$6,541$6,157$5,793$5,447$5,119$4,809$4,515$4,238$3,976$3,729
13 years$6,007$5,625$5,264$4,922$4,600$4,296$4,010$3,742$3,489$3,252
14 years$5,550$5,170$4,811$4,474$4,158$3,860$3,582$3,321$3,078$2,850
15 years$5,153$4,775$4,420$4,087$3,776$3,485$3,214$2,962$2,727$2,510
16 years$4,807$4,430$4,078$3,750$3,444$3,160$2,896$2,652$2,426$2,218
17 years$4,501$4,126$3,778$3,454$3,153$2,875$2,619$2,383$2,166$1,967
18 years$4,229$3,857$3,511$3,191$2,896$2,625$2,376$2,148$1,939$1,749
19 years$3,986$3,615$3,273$2,958$2,668$2,403$2,161$1,940$1,740$1,559
20 years$3,767$3,399$3,059$2,748$2,464$2,205$1,970$1,757$1,565$1,392
21 years$3,570$3,203$2,867$2,560$2,281$2,029$1,800$1,595$1,411$1,246
22 years$3,390$3,025$2,692$2,390$2,116$1,870$1,648$1,450$1,274$1,117
23 years$3,226$2,863$2,533$2,235$1,967$1,726$1,512$1,321$1,152$1,002
24 years$3,075$2,714$2,388$2,094$1,831$1,596$1,388$1,205$1,043$901
25 years$2,937$2,578$2,255$1,965$1,707$1,479$1,277$1,100$945$811
26 years$2,810$2,453$2,132$1,847$1,594$1,371$1,176$1,006$858$730
27 years$2,691$2,336$2,019$1,738$1,490$1,273$1,084$921$780$658
28 years$2,582$2,229$1,915$1,638$1,395$1,184$1,001$844$709$594
29 years$2,480$2,129$1,818$1,545$1,307$1,102$925$774$645$537
30 years$2,385$2,036$1,728$1,459$1,226$1,026$855$710$588$485

Sample Expected Returns by Investment Class

Person retiring at age 40 starting with $1,000,000, adding $5,220 every year, while hoping to spend $51,691 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: 50/30/20 Blend
39$1,000,000$1,000,000$1,000,000$1,000,000
40$1,107,384$1,054,384$1,038,884$1,156,331
41$1,165,339$1,051,050$1,018,688$1,187,412
42$1,227,472$1,045,821$996,083$1,215,455
43$1,294,156$1,038,548$970,933$1,244,839
44$1,365,798$1,029,075$943,098$1,275,713
45$1,442,847$1,017,236$912,429$1,308,240
46$1,525,793$1,002,857$878,771$1,342,602
47$1,615,176$985,749$841,962$1,379,007
48$1,711,590$965,717$801,834$1,417,683
49$1,815,685$942,550$758,209$1,458,888
50$1,928,178$916,028$710,902$1,502,907
51$2,049,855$885,916$659,719$1,550,062
52$2,181,580$851,966$604,460$1,600,707
53$2,324,305$813,916$544,913$1,655,242
54$2,479,074$771,488$480,858$1,714,109
55$2,647,037$724,388$412,063$1,777,802
56$2,829,457$672,305$338,290$1,846,870
57$3,027,726$614,912$259,287$1,921,925
58$3,243,372$551,861$174,791$2,003,644
59$3,478,079$482,786$84,530$2,092,785
60$3,733,699$407,298$0$2,190,187
61$4,012,268$324,988$0$2,299,299
62$4,316,030$235,423$0$2,438,053
63$4,647,454$138,147$0$2,589,608
64$5,009,254$32,676$0$2,755,309
65$5,404,423$0$0$2,936,641
66$5,836,253$0$0$3,162,155
67$6,308,367$0$0$3,420,600
68$6,824,756$0$0$3,703,389
69$7,389,814$0$0$4,012,939
70$8,008,380$0$0$4,351,915
71$8,685,781$0$0$4,723,251
72$9,427,884$0$0$5,130,177
73$10,241,151$0$0$5,576,253
74$11,132,697$0$0$6,065,396
75$12,110,359$0$0$6,601,923
76$13,182,770$0$0$7,190,588
77$14,359,437$0$0$7,836,629
78$15,650,833$0$0$8,545,812
79$17,068,493$0$0$9,324,492
80$18,625,125$0$0$10,179,669
81$20,334,726$0$0$11,119,052
82$22,212,717$0$0$12,151,135
83$24,276,083$0$0$13,285,276
84$26,543,540$0$0$14,531,783
85$29,035,703$0$0$15,902,013
86$31,775,286$0$0$17,408,478
87$34,787,311$0$0$19,064,963
88$38,099,347$0$0$20,886,655
89$41,741,769$0$0$22,890,288
90$45,748,040$0$0$25,094,297
91$50,155,033$0$0$27,518,994
92$55,003,371$0$0$30,186,761
93$60,337,814$0$0$33,122,256
94$66,207,678$0$0$36,352,649
95$72,667,305$0$0$39,907,878
96$79,776,566$0$0$43,820,929
97$87,601,434$0$0$48,128,149
98$96,214,600$0$0$52,869,585
99$105,696,159$0$0$58,089,368
100$116,134,370$0$0$63,836,122

Retirement Simulation By Amount