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 $2,905 every year, while hoping to spend $43,771 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$1,104,997$1,051,997$1,036,497$1,153,943
41$1,171,134$1,056,972$1,024,647$1,193,090
42$1,242,551$1,060,725$1,010,934$1,230,894
43$1,319,739$1,063,148$995,248$1,271,054
44$1,403,239$1,064,129$977,475$1,313,811
45$1,493,646$1,063,548$957,498$1,359,430
46$1,591,614$1,061,278$935,190$1,408,205
47$1,697,862$1,057,184$910,422$1,460,463
48$1,813,179$1,051,122$883,057$1,516,567
49$1,938,437$1,042,940$852,952$1,576,918
50$2,074,590$1,032,477$819,959$1,641,963
51$2,222,692$1,019,562$783,921$1,712,194
52$2,383,900$1,004,014$744,676$1,788,159
53$2,559,487$985,640$702,052$1,870,465
54$2,750,856$964,238$655,872$1,959,782
55$2,959,549$939,591$605,950$2,056,856
56$3,187,265$911,472$552,090$2,162,509
57$3,435,871$879,639$494,090$2,277,654
58$3,707,425$843,837$431,738$2,403,299
59$4,004,192$803,795$364,811$2,540,563
60$4,328,666$759,227$293,078$2,690,681
61$4,683,592$709,831$216,298$2,855,021
62$5,071,992$655,287$134,218$3,035,096
63$5,497,195$595,256$46,574$3,232,579
64$5,962,866$529,381$0$3,449,321
65$6,473,043$457,284$0$3,697,388
66$7,032,169$378,567$0$3,980,279
67$7,645,140$292,807$0$4,290,610
68$8,317,349$199,559$0$4,631,210
69$9,054,734$98,352$0$5,005,204
70$9,863,836$0$0$5,416,040
71$10,751,860$0$0$5,871,254
72$11,726,743$0$0$6,406,744
73$12,797,227$0$0$6,994,858
74$13,972,943$0$0$7,640,900
75$15,264,499$0$0$8,350,715
76$16,683,583$0$0$9,130,740
77$18,243,070$0$0$9,988,067
78$19,957,144$0$0$10,930,510
79$21,841,432$0$0$11,966,677
80$23,913,150$0$0$13,106,053
81$26,191,266$0$0$14,359,087
82$28,696,678$0$0$15,737,292
83$31,452,409$0$0$17,253,351
84$34,483,829$0$0$18,921,239
85$37,818,886$0$0$20,756,356
86$41,488,376$0$0$22,775,667
87$45,526,232$0$0$24,997,866
88$49,969,839$0$0$27,443,550
89$54,860,392$0$0$30,135,415
90$60,243,280$0$0$33,098,468
91$66,168,518$0$0$36,360,263
92$72,691,213$0$0$39,951,163
93$79,872,089$0$0$43,904,622
94$87,778,055$0$0$48,257,505
95$96,482,838$0$0$53,050,432
96$106,067,679$0$0$58,328,163
97$116,622,096$0$0$64,140,021
98$128,244,733$0$0$70,540,353
99$141,044,285$0$0$77,589,048
100$155,140,528$0$0$85,352,097

Retirement Simulation By Amount