Can I retire at age 40 with 1,050,000?

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 $1,050,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$86,708$85,936$85,182$84,447$83,728$83,236
2 years$42,925$42,125$41,351$40,599$39,871$39,374
3 years$28,332$27,529$26,757$26,012$25,296$24,809
4 years$21,037$20,237$19,472$18,740$18,041$17,570
5 years$16,662$15,866$15,111$14,394$13,715$13,259
6 years$13,745$12,956$12,212$11,511$10,852$10,413
7 years$11,663$10,880$10,148$9,464$8,825$8,404
8 years$10,102$9,326$8,606$7,939$7,322$6,917
9 years$8,889$8,120$7,413$6,762$6,166$5,778
10 years$7,919$7,158$6,463$5,829$5,254$4,883
11 years$7,125$6,372$5,690$5,073$4,518$4,164
12 years$6,465$5,719$5,049$4,450$3,915$3,577
13 years$5,906$5,168$4,511$3,929$3,414$3,092
14 years$5,428$4,698$4,053$3,487$2,993$2,686
15 years$5,014$4,292$3,660$3,110$2,635$2,343
16 years$4,652$3,938$3,318$2,785$2,329$2,051
17 years$4,333$3,626$3,019$2,502$2,065$1,802
18 years$4,049$3,351$2,756$2,255$1,836$1,586
19 years$3,796$3,106$2,523$2,037$1,637$1,400
20 years$3,569$2,886$2,316$1,845$1,462$1,238
21 years$3,363$2,688$2,130$1,675$1,308$1,097
22 years$3,176$2,509$1,963$1,523$1,173$973
23 years$3,006$2,347$1,813$1,387$1,053$864
24 years$2,850$2,199$1,676$1,265$946$769
25 years$2,707$2,063$1,553$1,155$851$684
26 years$2,575$1,939$1,440$1,056$767$610
27 years$2,453$1,825$1,337$967$691$544
28 years$2,340$1,720$1,243$886$624$485
29 years$2,235$1,622$1,157$812$563$433
30 years$2,137$1,532$1,077$745$509$387
31 years$2,046$1,448$1,004$685$460$346
32 years$1,961$1,371$937$629$416$310
33 years$1,880$1,298$875$579$377$277
34 years$1,805$1,230$818$532$341$248
35 years$1,734$1,167$764$490$309$222
36 years$1,668$1,107$715$451$280$199
37 years$1,605$1,052$669$416$254$178
38 years$1,545$1,000$627$383$230$160
39 years$1,489$951$587$353$209$143
40 years$1,436$904$550$326$189$128
41 years$1,385$861$516$301$172$115
42 years$1,337$820$484$278$156$103
43 years$1,291$781$454$256$141$92
44 years$1,248$745$426$237$128$83
45 years$1,206$710$400$218$116$74
46 years$1,167$677$376$202$106$67
47 years$1,129$646$353$186$96$60
48 years$1,093$617$332$172$87$54
49 years$1,058$589$312$159$79$48
50 years$1,025$563$293$147$72$43

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,050,000, adding $3,418 every year, while hoping to spend $30,882 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: 27/46/27 Blend
39$1,050,000$1,050,000$1,050,000$1,050,000
40$1,160,626$1,104,976$1,088,701$1,182,116
41$1,246,151$1,126,261$1,092,314$1,220,993
42$1,339,365$1,147,555$1,095,013$1,259,818
43$1,441,020$1,168,824$1,096,735$1,300,871
44$1,551,942$1,190,034$1,097,414$1,344,364
45$1,673,042$1,211,148$1,096,979$1,390,530
46$1,805,322$1,232,124$1,095,358$1,439,628
47$1,949,886$1,252,920$1,092,474$1,491,943
48$2,107,950$1,273,488$1,088,247$1,547,792
49$2,280,849$1,293,778$1,082,592$1,607,525
50$2,470,058$1,313,735$1,075,421$1,671,530
51$2,677,198$1,333,302$1,066,641$1,740,235
52$2,904,055$1,352,416$1,056,156$1,814,115
53$3,152,595$1,371,011$1,043,864$1,893,695
54$3,424,985$1,389,016$1,029,659$1,979,555
55$3,723,610$1,406,354$1,013,429$2,072,336
56$4,051,096$1,422,943$995,057$2,172,749
57$4,410,338$1,438,698$974,421$2,281,580
58$4,804,523$1,453,524$951,394$2,399,694
59$5,237,160$1,467,323$925,843$2,528,054
60$5,712,118$1,479,990$897,626$2,667,718
61$6,233,656$1,491,411$866,598$2,819,860
62$6,806,466$1,501,467$832,606$2,985,775
63$7,435,718$1,510,031$795,491$3,166,895
64$8,127,105$1,516,967$755,084$3,364,803
65$8,886,902$1,522,130$711,211$3,581,247
66$9,722,019$1,525,368$663,690$3,818,158
67$10,640,071$1,526,516$612,329$4,077,670
68$11,649,445$1,525,403$556,930$4,362,141
69$12,759,385$1,521,844$497,283$4,674,172
70$13,980,072$1,515,644$433,172$5,016,640
71$15,322,725$1,506,596$364,368$5,392,718
72$16,799,704$1,494,481$290,636$5,805,912
73$18,424,628$1,479,064$211,726$6,260,094
74$20,212,501$1,460,100$127,381$6,759,535
75$22,179,858$1,437,326$37,329$7,308,955
76$24,344,913$1,410,465$0$7,913,561
77$26,727,740$1,379,224$0$8,596,033
78$29,350,454$1,343,290$0$9,358,360
79$32,237,424$1,302,335$0$10,196,870
80$35,415,502$1,256,010$0$11,119,382
81$38,914,274$1,203,945$0$12,134,520
82$42,766,342$1,145,751$0$13,251,796
83$47,007,630$1,081,013$0$14,481,699
84$51,677,721$1,009,296$0$15,835,794
85$56,820,234$930,137$0$17,326,836
86$62,483,232$843,048$0$18,968,889
87$68,719,676$747,512$0$20,777,462
88$75,587,928$642,985$0$22,769,655
89$83,152,295$528,889$0$24,964,323
90$91,483,640$404,617$0$27,382,257
91$100,660,052$269,524$0$30,046,378
92$110,767,579$122,931$0$32,981,961
93$121,901,039$0$0$36,216,872
94$134,164,919$0$0$39,799,994
95$147,674,360$0$0$43,815,831
96$162,556,240$0$0$48,239,905
97$178,950,372$0$0$53,113,812
98$197,010,828$0$0$58,483,391
99$216,907,387$0$0$64,399,154
100$238,827,141$0$0$70,916,764