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%18.5%
1 years$84,231$83,480$82,748$82,034$81,336$78,544
2 years$41,698$40,922$40,169$39,439$38,732$35,947
3 years$27,523$26,743$25,992$25,269$24,573$21,883
4 years$20,436$19,659$18,916$18,205$17,526$14,952
5 years$16,186$15,413$14,679$13,983$13,323$10,871
6 years$13,353$12,586$11,863$11,182$10,542$8,214
7 years$11,330$10,569$9,858$9,194$8,573$6,370
8 years$9,814$9,060$8,361$7,712$7,112$5,031
9 years$8,635$7,888$7,201$6,569$5,990$4,028
10 years$7,692$6,953$6,278$5,663$5,103$3,258
11 years$6,922$6,190$5,527$4,928$4,389$2,656
12 years$6,280$5,556$4,905$4,323$3,804$2,180
13 years$5,738$5,021$4,382$3,816$3,317$1,797
14 years$5,273$4,564$3,938$3,388$2,907$1,488
15 years$4,871$4,169$3,555$3,021$2,560$1,236
16 years$4,519$3,825$3,223$2,705$2,262$1,029
17 years$4,209$3,523$2,933$2,431$2,006$859
18 years$3,934$3,255$2,677$2,190$1,784$718
19 years$3,688$3,017$2,451$1,979$1,590$602
20 years$3,467$2,803$2,249$1,793$1,420$504
21 years$3,267$2,611$2,069$1,627$1,271$423
22 years$3,085$2,438$1,907$1,479$1,139$356
23 years$2,920$2,280$1,761$1,347$1,023$299
24 years$2,769$2,136$1,628$1,229$919$251
25 years$2,630$2,005$1,508$1,122$827$212
26 years$2,502$1,884$1,399$1,026$745$178
27 years$2,383$1,773$1,299$939$672$150
28 years$2,273$1,671$1,208$860$606$126
29 years$2,171$1,576$1,124$789$547$107
30 years$2,076$1,488$1,047$724$494$90
31 years$1,988$1,407$976$665$447$76
32 years$1,905$1,331$910$611$404$64
33 years$1,827$1,261$850$562$366$54
34 years$1,754$1,195$794$517$331$45
35 years$1,685$1,133$743$476$300$38
36 years$1,620$1,076$695$438$272$32
37 years$1,559$1,022$650$404$246$27
38 years$1,501$971$609$372$223$23
39 years$1,446$923$570$343$203$19
40 years$1,395$879$535$317$184$16
41 years$1,345$836$501$292$167$14
42 years$1,299$796$470$270$151$12
43 years$1,254$759$441$249$137$10
44 years$1,212$723$414$230$125$8
45 years$1,172$690$389$212$113$7
46 years$1,133$658$365$196$103$6
47 years$1,097$628$343$181$93$5
48 years$1,061$599$323$167$85$4
49 years$1,028$572$303$155$77$4
50 years$996$547$285$143$70$3

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 $2,870 every year, while hoping to spend $21,915 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: 38/33/29 Blend
39$1,020,000$1,020,000$1,020,000$1,020,000
40$1,127,000$1,072,940$1,057,130$1,160,009
41$1,218,637$1,102,197$1,069,227$1,213,835
42$1,318,886$1,132,153$1,080,994$1,269,759
43$1,428,603$1,162,819$1,092,398$1,329,787
44$1,548,729$1,194,206$1,103,402$1,394,305
45$1,680,303$1,226,325$1,113,969$1,463,740
46$1,824,465$1,259,186$1,124,058$1,538,563
47$1,982,474$1,292,800$1,133,628$1,619,290
48$2,155,715$1,327,176$1,142,633$1,706,493
49$2,345,715$1,362,324$1,151,028$1,800,799
50$2,554,153$1,398,253$1,158,762$1,902,901
51$2,782,880$1,434,971$1,165,785$2,013,562
52$3,033,936$1,472,487$1,172,041$2,133,621
53$3,309,567$1,510,809$1,177,474$2,264,005
54$3,612,247$1,549,942$1,182,023$2,405,734
55$3,944,700$1,589,893$1,185,625$2,559,933
56$4,309,930$1,630,669$1,188,214$2,727,841
57$4,711,244$1,672,272$1,189,720$2,910,824
58$5,152,286$1,714,708$1,190,070$3,110,388
59$5,637,069$1,757,979$1,189,188$3,328,190
60$6,170,016$1,802,087$1,186,992$3,566,061
61$6,756,001$1,847,031$1,183,399$3,826,015
62$7,400,389$1,892,813$1,178,320$4,110,273
63$8,109,097$1,939,428$1,171,661$4,421,284
64$8,888,640$1,986,875$1,163,327$4,761,746
65$9,746,197$2,035,148$1,153,214$5,134,633
66$10,689,678$2,084,240$1,141,216$5,543,224
67$11,727,800$2,134,142$1,127,222$5,991,131
68$12,870,166$2,184,845$1,111,113$6,482,338
69$14,127,355$2,236,335$1,092,768$7,021,235
70$15,511,028$2,288,598$1,072,059$7,612,660
71$17,034,030$2,341,616$1,048,850$8,261,946
72$18,710,516$2,395,370$1,023,001$8,974,972
73$20,556,082$2,449,837$994,365$9,758,217
74$22,587,914$2,504,991$962,788$10,618,824
75$24,824,949$2,560,803$928,109$11,564,664
76$27,288,054$2,617,242$890,160$12,604,414
77$30,000,220$2,674,272$848,766$13,747,636
78$32,986,784$2,731,853$803,741$15,004,873
79$36,275,664$2,789,941$754,894$16,387,742
80$39,897,622$2,848,489$702,024$17,909,049
81$43,886,558$2,907,444$644,920$19,582,909
82$48,279,827$2,966,748$583,364$21,424,878
83$53,118,589$3,026,339$517,127$23,452,104
84$58,448,202$3,086,147$445,968$25,683,484
85$64,318,649$3,146,098$369,638$28,139,849
86$70,785,007$3,206,112$287,877$30,844,156
87$77,907,968$3,266,102$200,410$33,821,711
88$85,754,411$3,325,972$106,955$37,100,400
89$94,398,037$3,385,620$7,214$40,710,963
90$103,920,057$3,444,936$0$44,687,278
91$114,409,967$3,503,802$0$49,097,386
92$125,966,384$3,562,088$0$53,956,114
93$138,697,983$3,619,659$0$59,306,688
94$152,724,522$3,676,366$0$65,199,206
95$168,177,966$3,732,052$0$71,688,873
96$185,203,741$3,786,545$0$78,836,529
97$203,962,102$3,839,665$0$86,709,218
98$224,629,644$3,891,216$0$95,380,823
99$247,400,973$3,940,991$0$104,932,764
100$272,490,539$3,988,766$0$115,454,766