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%11.9%
1 years$84,231$83,480$82,748$82,034$81,336$80,688
2 years$41,698$40,922$40,169$39,439$38,732$38,079
3 years$27,523$26,743$25,992$25,269$24,573$23,935
4 years$20,436$19,659$18,916$18,205$17,526$16,908
5 years$16,186$15,413$14,679$13,983$13,323$12,726
6 years$13,353$12,586$11,863$11,182$10,542$9,968
7 years$11,330$10,569$9,858$9,194$8,573$8,022
8 years$9,814$9,060$8,361$7,712$7,112$6,584
9 years$8,635$7,888$7,201$6,569$5,990$5,484
10 years$7,692$6,953$6,278$5,663$5,103$4,620
11 years$6,922$6,190$5,527$4,928$4,389$3,928
12 years$6,280$5,556$4,905$4,323$3,804$3,364
13 years$5,738$5,021$4,382$3,816$3,317$2,898
14 years$5,273$4,564$3,938$3,388$2,907$2,509
15 years$4,871$4,169$3,555$3,021$2,560$2,182
16 years$4,519$3,825$3,223$2,705$2,262$1,904
17 years$4,209$3,523$2,933$2,431$2,006$1,666
18 years$3,934$3,255$2,677$2,190$1,784$1,462
19 years$3,688$3,017$2,451$1,979$1,590$1,286
20 years$3,467$2,803$2,249$1,793$1,420$1,133
21 years$3,267$2,611$2,069$1,627$1,271$1,000
22 years$3,085$2,438$1,907$1,479$1,139$884
23 years$2,920$2,280$1,761$1,347$1,023$782
24 years$2,769$2,136$1,628$1,229$919$693
25 years$2,630$2,005$1,508$1,122$827$615
26 years$2,502$1,884$1,399$1,026$745$545
27 years$2,383$1,773$1,299$939$672$485
28 years$2,273$1,671$1,208$860$606$431
29 years$2,171$1,576$1,124$789$547$383
30 years$2,076$1,488$1,047$724$494$341
31 years$1,988$1,407$976$665$447$303
32 years$1,905$1,331$910$611$404$270
33 years$1,827$1,261$850$562$366$241
34 years$1,754$1,195$794$517$331$215
35 years$1,685$1,133$743$476$300$191
36 years$1,620$1,076$695$438$272$171
37 years$1,559$1,022$650$404$246$152
38 years$1,501$971$609$372$223$136
39 years$1,446$923$570$343$203$121
40 years$1,395$879$535$317$184$108
41 years$1,345$836$501$292$167$97
42 years$1,299$796$470$270$151$86
43 years$1,254$759$441$249$137$77
44 years$1,212$723$414$230$125$69
45 years$1,172$690$389$212$113$61
46 years$1,133$658$365$196$103$55
47 years$1,097$628$343$181$93$49
48 years$1,061$599$323$167$85$44
49 years$1,028$572$303$155$77$39
50 years$996$547$285$143$70$35

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 $5,466 every year, while hoping to spend $22,684 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: 58/20/22 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,129,678$1,075,618$1,059,808$1,188,248
41$1,220,770$1,104,188$1,071,176$1,257,321
42$1,320,392$1,133,397$1,082,165$1,329,681
43$1,429,392$1,163,254$1,092,737$1,408,077
44$1,548,701$1,193,764$1,102,855$1,493,098
45$1,679,345$1,224,935$1,112,477$1,585,391
46$1,822,455$1,256,773$1,121,561$1,685,672
47$1,979,273$1,289,283$1,130,061$1,794,725
48$2,151,171$1,322,470$1,137,931$1,913,417
49$2,339,658$1,356,339$1,145,119$2,042,703
50$2,546,397$1,390,893$1,151,574$2,183,633
51$2,773,218$1,426,135$1,157,240$2,337,367
52$3,022,137$1,462,067$1,162,059$2,505,180
53$3,295,378$1,498,690$1,165,970$2,688,478
54$3,595,385$1,536,005$1,168,909$2,888,812
55$3,924,856$1,574,011$1,170,809$3,107,889
56$4,286,759$1,612,705$1,171,599$3,347,590
57$4,684,365$1,652,085$1,171,205$3,609,989
58$5,121,279$1,692,145$1,169,548$3,897,370
59$5,601,470$1,732,880$1,166,548$4,212,251
60$6,129,311$1,774,283$1,162,119$4,557,407
61$6,709,622$1,816,344$1,156,171$4,935,895
62$7,347,711$1,859,052$1,148,610$5,351,085
63$8,049,426$1,902,395$1,139,338$5,806,690
64$8,821,213$1,946,357$1,128,251$6,306,802
65$9,670,170$1,990,922$1,115,241$6,855,932
66$10,604,120$2,036,070$1,100,194$7,459,049
67$11,631,683$2,081,780$1,082,993$8,121,630
68$12,762,354$2,128,027$1,063,513$8,849,713
69$14,006,597$2,174,783$1,041,623$9,649,950
70$15,375,941$2,222,018$1,017,189$10,529,673
71$16,883,089$2,269,700$990,067$11,496,961
72$18,542,039$2,317,789$960,109$12,560,720
73$20,368,213$2,366,247$927,158$13,730,764
74$22,378,606$2,415,028$891,053$15,017,908
75$24,591,943$2,464,084$851,623$16,434,073
76$27,028,858$2,513,361$808,689$17,992,395
77$29,712,088$2,562,802$762,066$19,707,352
78$32,666,685$2,612,343$711,559$21,594,899
79$35,920,255$2,661,917$656,965$23,672,622
80$39,503,220$2,711,449$598,072$25,959,899
81$43,449,098$2,760,860$534,657$28,478,089
82$47,794,827$2,810,063$466,489$31,250,729
83$52,581,109$2,858,966$393,326$34,303,761
84$57,852,795$2,907,468$314,916$37,665,772
85$63,659,308$2,955,461$230,993$41,368,271
86$70,055,109$3,002,831$141,283$45,445,979
87$77,100,212$3,049,452$45,498$49,937,164
88$84,860,750$3,095,191$0$54,883,999
89$93,409,596$3,139,905$0$60,346,276
90$102,827,056$3,183,441$0$66,374,165
91$113,201,622$3,225,636$0$73,013,499
92$124,630,808$3,266,313$0$80,326,571
93$137,222,075$3,305,287$0$88,382,023
94$151,093,837$3,342,356$0$97,255,499
95$166,376,584$3,377,307$0$107,030,359
96$183,214,114$3,409,914$0$117,798,462
97$201,764,886$3,439,932$0$129,661,039
98$222,203,519$3,467,103$0$142,729,644
99$244,722,438$3,491,152$0$157,127,210
100$269,533,694$3,511,786$0$172,989,207