Can I retire at age 40 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$85,882$85,117$84,371$83,642$82,931$81,423
2 years$42,516$41,724$40,957$40,213$39,491$37,977
3 years$28,062$27,267$26,502$25,765$25,055$23,582
4 years$20,837$20,044$19,286$18,562$17,869$16,449
5 years$16,503$15,715$14,967$14,257$13,584$12,221
6 years$13,615$12,832$12,096$11,402$10,748$9,443
7 years$11,552$10,777$10,052$9,374$8,741$7,495
8 years$10,006$9,238$8,524$7,864$7,252$6,064
9 years$8,804$8,043$7,342$6,698$6,107$4,976
10 years$7,843$7,089$6,401$5,774$5,204$4,129
11 years$7,058$6,311$5,635$5,025$4,475$3,456
12 years$6,403$5,665$5,001$4,408$3,878$2,913
13 years$5,850$5,119$4,468$3,891$3,382$2,469
14 years$5,376$4,653$4,015$3,454$2,964$2,103
15 years$4,966$4,251$3,625$3,081$2,610$1,797
16 years$4,608$3,900$3,286$2,758$2,307$1,541
17 years$4,292$3,592$2,991$2,478$2,045$1,326
18 years$4,011$3,319$2,730$2,233$1,819$1,142
19 years$3,760$3,076$2,499$2,018$1,621$987
20 years$3,535$2,858$2,294$1,828$1,448$853
21 years$3,331$2,662$2,110$1,659$1,296$739
22 years$3,146$2,485$1,944$1,508$1,161$641
23 years$2,977$2,324$1,795$1,374$1,043$556
24 years$2,823$2,178$1,660$1,253$937$484
25 years$2,681$2,044$1,538$1,144$843$420
26 years$2,551$1,921$1,426$1,046$760$366
27 years$2,430$1,808$1,324$958$685$319
28 years$2,318$1,703$1,231$877$618$278
29 years$2,214$1,607$1,146$805$558$242
30 years$2,117$1,518$1,067$738$504$211
31 years$2,027$1,435$995$678$456$184
32 years$1,942$1,357$928$623$412$160
33 years$1,862$1,286$867$573$373$140
34 years$1,788$1,218$810$527$338$122
35 years$1,718$1,156$757$485$306$107
36 years$1,652$1,097$708$447$277$93
37 years$1,589$1,042$663$412$251$81
38 years$1,530$990$621$380$228$71
39 years$1,475$941$582$350$207$62
40 years$1,422$896$545$323$187$54
41 years$1,372$853$511$298$170$47
42 years$1,324$812$480$275$154$41
43 years$1,279$774$450$254$140$36
44 years$1,236$738$422$234$127$32
45 years$1,195$703$397$216$115$28
46 years$1,155$671$372$200$105$24
47 years$1,118$640$350$185$95$21
48 years$1,082$611$329$171$86$18
49 years$1,048$584$309$158$78$16
50 years$1,015$558$291$146$71$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,040,000, adding $2,015 every year, while hoping to spend $48,267 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: 80/14/6 Blend
39$1,040,000$1,040,000$1,040,000$1,040,000
40$1,148,158$1,093,038$1,076,918$1,239,332
41$1,213,915$1,095,242$1,061,640$1,301,513
42$1,284,761$1,095,935$1,044,231$1,363,139
43$1,361,164$1,094,994$1,024,571$1,429,290
44$1,443,640$1,092,285$1,002,531$1,500,392
45$1,532,752$1,087,668$977,977$1,576,914
46$1,629,123$1,080,994$950,769$1,659,372
47$1,733,434$1,072,104$920,760$1,748,338
48$1,846,437$1,060,829$887,798$1,844,437
49$1,968,956$1,046,992$851,721$1,948,362
50$2,101,898$1,030,403$812,363$2,060,875
51$2,246,262$1,010,864$769,548$2,182,816
52$2,403,146$988,161$723,092$2,315,109
53$2,573,756$962,070$672,805$2,458,774
54$2,759,421$932,353$618,486$2,614,936
55$2,961,603$898,759$559,926$2,784,834
56$3,181,910$861,022$496,908$2,969,833
57$3,422,113$818,860$429,202$3,171,438
58$3,684,159$771,975$356,571$3,391,309
59$3,970,193$720,052$278,766$3,631,275
60$4,282,575$662,757$195,527$3,893,351
61$4,623,905$599,739$106,584$4,179,760
62$4,997,041$530,625$11,653$4,492,953
63$5,405,135$455,021$0$4,835,630
64$5,851,654$372,512$0$5,216,508
65$6,340,417$282,659$0$5,634,300
66$6,875,628$184,998$0$6,091,896
67$7,461,918$79,039$0$6,593,308
68$8,104,386$0$0$7,142,955
69$8,808,649$0$0$7,751,214
70$9,580,891$0$0$8,431,567
71$10,427,926$0$0$9,177,842
72$11,357,256$0$0$9,996,653
73$12,377,147$0$0$10,895,288
74$13,496,702$0$0$11,881,772
75$14,725,950$0$0$12,964,944
76$16,075,938$0$0$14,154,544
77$17,558,835$0$0$15,461,298
78$19,188,047$0$0$16,897,026
79$20,978,342$0$0$18,474,747
80$22,945,990$0$0$20,208,803
81$25,108,916$0$0$22,114,996
82$27,486,867$0$0$24,210,736
83$30,101,599$0$0$26,515,200
84$32,977,083$0$0$29,049,522
85$36,139,727$0$0$31,836,983
86$39,618,629$0$0$34,903,233
87$43,445,848$0$0$38,276,536
88$47,656,705$0$0$41,988,030
89$52,290,121$0$0$46,072,026
90$57,388,976$0$0$50,566,329
91$63,000,521$0$0$55,512,591
92$69,176,816$0$0$60,956,709
93$75,975,226$0$0$66,949,256
94$83,458,958$0$0$73,545,954
95$91,697,660$0$0$80,808,202
96$100,768,075$0$0$88,803,658
97$110,754,766$0$0$97,606,870
98$121,750,913$0$0$107,299,985
99$133,859,190$0$0$117,973,521
100$147,192,736$0$0$129,727,218