Can I retire at age 40 with 1,020,000?

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 $1,020,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.3%
1 years$84,231$83,480$82,748$82,034$81,336$78,922
2 years$41,698$40,922$40,169$39,439$38,732$36,320
3 years$27,523$26,743$25,992$25,269$24,573$22,238
4 years$20,436$19,659$18,916$18,205$17,526$15,286
5 years$16,186$15,413$14,679$13,983$13,323$11,185
6 years$13,353$12,586$11,863$11,182$10,542$8,508
7 years$11,330$10,569$9,858$9,194$8,573$6,642
8 years$9,814$9,060$8,361$7,712$7,112$5,284
9 years$8,635$7,888$7,201$6,569$5,990$4,261
10 years$7,692$6,953$6,278$5,663$5,103$3,473
11 years$6,922$6,190$5,527$4,928$4,389$2,854
12 years$6,280$5,556$4,905$4,323$3,804$2,360
13 years$5,738$5,021$4,382$3,816$3,317$1,962
14 years$5,273$4,564$3,938$3,388$2,907$1,638
15 years$4,871$4,169$3,555$3,021$2,560$1,372
16 years$4,519$3,825$3,223$2,705$2,262$1,153
17 years$4,209$3,523$2,933$2,431$2,006$971
18 years$3,934$3,255$2,677$2,190$1,784$819
19 years$3,688$3,017$2,451$1,979$1,590$692
20 years$3,467$2,803$2,249$1,793$1,420$585
21 years$3,267$2,611$2,069$1,627$1,271$496
22 years$3,085$2,438$1,907$1,479$1,139$421
23 years$2,920$2,280$1,761$1,347$1,023$357
24 years$2,769$2,136$1,628$1,229$919$303
25 years$2,630$2,005$1,508$1,122$827$258
26 years$2,502$1,884$1,399$1,026$745$219
27 years$2,383$1,773$1,299$939$672$186
28 years$2,273$1,671$1,208$860$606$158
29 years$2,171$1,576$1,124$789$547$135
30 years$2,076$1,488$1,047$724$494$115
31 years$1,988$1,407$976$665$447$98
32 years$1,905$1,331$910$611$404$83
33 years$1,827$1,261$850$562$366$71
34 years$1,754$1,195$794$517$331$60
35 years$1,685$1,133$743$476$300$51
36 years$1,620$1,076$695$438$272$44
37 years$1,559$1,022$650$404$246$37
38 years$1,501$971$609$372$223$32
39 years$1,446$923$570$343$203$27
40 years$1,395$879$535$317$184$23
41 years$1,345$836$501$292$167$20
42 years$1,299$796$470$270$151$17
43 years$1,254$759$441$249$137$14
44 years$1,212$723$414$230$125$12
45 years$1,172$690$389$212$113$10
46 years$1,133$658$365$196$103$9
47 years$1,097$628$343$181$93$8
48 years$1,061$599$323$167$85$6
49 years$1,028$572$303$155$77$5
50 years$996$547$285$143$70$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,020,000, adding $2,300 every year, while hoping to spend $34,218 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: 83/11/6 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,126,412$1,072,352$1,056,542$1,219,321
41$1,204,899$1,088,490$1,055,529$1,296,479
42$1,290,244$1,104,272$1,053,335$1,376,331
43$1,383,111$1,119,643$1,049,884$1,462,942
44$1,484,231$1,134,548$1,045,097$1,556,967
45$1,594,406$1,148,925$1,038,892$1,659,130
46$1,714,521$1,162,707$1,031,180$1,770,226
47$1,845,548$1,175,826$1,021,870$1,891,131
48$1,988,559$1,188,206$1,010,868$2,022,810
49$2,144,731$1,199,768$998,071$2,166,327
50$2,315,364$1,210,426$983,377$2,322,852
51$2,501,885$1,220,091$966,674$2,493,674
52$2,705,867$1,228,666$947,847$2,680,215
53$2,929,043$1,236,047$926,777$2,884,038
54$3,173,318$1,242,127$903,337$3,106,868
55$3,440,793$1,246,787$877,396$3,350,604
56$3,733,780$1,249,906$848,815$3,617,338
57$4,054,826$1,251,352$817,450$3,909,376
58$4,406,734$1,250,984$783,151$4,229,256
59$4,792,595$1,248,656$745,760$4,579,779
60$5,215,808$1,244,209$705,112$4,964,026
61$5,680,122$1,237,477$661,035$5,385,396
62$6,189,664$1,228,283$613,349$5,847,632
63$6,748,979$1,216,438$561,865$6,354,859
64$7,363,076$1,201,744$506,388$6,911,621
65$8,037,470$1,183,990$446,713$7,522,929
66$8,778,238$1,162,951$382,623$8,194,300
67$9,592,074$1,138,391$313,897$8,931,817
68$10,486,352$1,110,060$240,300$9,742,181
69$11,469,198$1,077,690$161,587$10,632,779
70$12,549,561$1,041,002$77,505$11,611,747
71$13,737,301$999,696$0$12,688,056
72$15,043,284$953,459$0$13,872,371
73$16,479,477$901,956$0$15,180,146
74$18,059,067$844,836$0$16,618,437
75$19,796,585$781,726$0$18,200,488
76$21,708,037$712,231$0$19,940,897
77$23,811,062$635,935$0$21,855,748
78$26,125,093$552,399$0$23,962,765
79$28,671,541$461,155$0$26,281,480
80$31,474,001$361,715$0$28,833,415
81$34,558,468$253,557$0$31,642,289
82$37,953,584$136,134$0$34,734,236
83$41,690,913$8,868$0$38,138,058
84$45,805,230$0$0$41,885,495
85$50,334,855$0$0$46,027,117
86$55,322,013$0$0$50,588,288
87$60,813,231$0$0$55,610,490
88$66,859,777$0$0$61,140,616
89$73,518,144$0$0$67,230,338
90$80,850,583$0$0$73,936,592
91$88,925,688$0$0$81,322,121
92$97,819,046$0$0$89,456,059
93$107,613,950$0$0$98,414,589
94$118,402,181$0$0$108,281,662
95$130,284,877$0$0$119,149,782
96$143,373,487$0$0$131,120,888
97$157,790,821$0$0$144,307,308
98$173,672,210$0$0$158,832,823
99$191,166,783$0$0$174,833,836
100$210,438,872$0$0$192,460,653