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 $6,945 every year, while hoping to spend $67,708 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$1,109,164$1,056,164$1,040,664$1,158,111
41$1,150,258$1,035,875$1,003,485$1,172,418
42$1,193,274$1,012,323$962,792$1,180,461
43$1,238,337$985,276$918,395$1,187,772
44$1,285,582$954,489$870,095$1,194,306
45$1,335,155$919,703$817,688$1,200,022
46$1,387,216$880,644$760,955$1,204,875
47$1,441,938$837,020$699,673$1,208,823
48$1,499,507$788,526$633,603$1,211,824
49$1,560,129$734,836$562,501$1,213,838
50$1,624,026$675,607$486,109$1,214,826
51$1,691,441$610,476$404,158$1,214,752
52$1,762,637$539,058$316,366$1,213,584
53$1,837,904$460,950$222,442$1,211,292
54$1,917,555$375,722$122,079$1,207,852
55$2,001,935$282,921$14,958$1,203,245
56$2,091,418$182,070$0$1,197,458
57$2,186,415$72,664$0$1,211,691
58$2,287,375$0$0$1,229,528
59$2,394,787$0$0$1,262,999
60$2,509,190$0$0$1,324,254
61$2,631,171$0$0$1,389,629
62$2,761,374$0$0$1,459,476
63$2,900,506$0$0$1,534,184
64$3,049,340$0$0$1,614,175
65$3,208,723$0$0$1,699,916
66$3,379,587$0$0$1,791,917
67$3,562,951$0$0$1,890,738
68$3,759,936$0$0$1,996,995
69$3,971,770$0$0$2,111,362
70$4,199,804$0$0$2,234,580
71$4,445,519$0$0$2,367,465
72$4,710,543$0$0$2,510,909
73$4,996,665$0$0$2,665,897
74$5,305,848$0$0$2,833,508
75$5,640,253$0$0$3,014,930
76$6,002,254$0$0$3,211,468
77$6,394,459$0$0$3,424,556
78$6,819,739$0$0$3,655,773
79$7,281,248$0$0$3,906,855
80$7,782,457$0$0$4,179,710
81$8,327,182$0$0$4,476,438
82$8,919,624$0$0$4,799,350
83$9,564,401$0$0$5,150,989
84$10,266,596$0$0$5,534,150
85$11,031,805$0$0$5,951,914
86$11,866,183$0$0$6,407,668
87$12,776,504$0$0$6,905,141
88$13,770,228$0$0$7,448,439
89$14,855,563$0$0$8,042,082
90$16,041,546$0$0$8,691,043
91$17,338,127$0$0$9,400,802
92$18,756,260$0$0$10,177,390
93$20,308,007$0$0$11,027,447
94$22,006,648$0$0$11,958,287
95$23,866,807$0$0$12,977,962
96$25,904,591$0$0$14,095,343
97$28,137,735$0$0$15,320,195
98$30,585,772$0$0$16,663,277
99$33,270,216$0$0$18,136,437
100$36,214,760$0$0$19,752,724

Retirement Simulation By Amount