Can I retire at age 40 with 1,120,000?

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 $1,120,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.2%
1 years$92,489$91,665$90,861$90,076$89,310$87,400
2 years$45,786$44,934$44,107$43,306$42,529$40,613
3 years$30,221$29,365$28,540$27,747$26,982$25,121
4 years$22,440$21,586$20,770$19,990$19,244$17,452
5 years$17,772$16,924$16,118$15,354$14,629$12,912
6 years$14,662$13,820$13,026$12,279$11,575$9,934
7 years$12,441$11,606$10,825$10,095$9,414$7,849
8 years$10,776$9,948$9,180$8,469$7,810$6,321
9 years$9,482$8,662$7,907$7,213$6,577$5,163
10 years$8,447$7,635$6,893$6,218$5,604$4,263
11 years$7,601$6,797$6,069$5,411$4,819$3,550
12 years$6,896$6,100$5,386$4,747$4,176$2,977
13 years$6,300$5,513$4,812$4,191$3,642$2,510
14 years$5,790$5,011$4,324$3,720$3,193$2,126
15 years$5,348$4,578$3,904$3,317$2,811$1,807
16 years$4,962$4,200$3,539$2,970$2,484$1,541
17 years$4,622$3,868$3,221$2,669$2,203$1,317
18 years$4,319$3,574$2,940$2,405$1,959$1,129
19 years$4,049$3,313$2,691$2,173$1,746$969
20 years$3,807$3,078$2,470$1,968$1,559$833
21 years$3,587$2,867$2,272$1,786$1,395$717
22 years$3,388$2,677$2,094$1,624$1,251$618
23 years$3,206$2,503$1,933$1,479$1,123$533
24 years$3,040$2,345$1,788$1,349$1,009$461
25 years$2,888$2,201$1,656$1,232$908$398
26 years$2,747$2,069$1,536$1,127$818$344
27 years$2,617$1,947$1,426$1,031$737$298
28 years$2,496$1,834$1,326$945$665$258
29 years$2,384$1,731$1,234$866$601$223
30 years$2,280$1,634$1,149$795$543$193
31 years$2,182$1,545$1,071$730$491$167
32 years$2,091$1,462$1,000$671$444$145
33 years$2,006$1,384$933$617$402$126
34 years$1,925$1,312$872$568$364$109
35 years$1,850$1,245$815$523$330$95
36 years$1,779$1,181$763$481$299$82
37 years$1,712$1,122$714$444$271$71
38 years$1,648$1,066$669$409$245$62
39 years$1,588$1,014$626$377$222$54
40 years$1,531$965$587$348$202$46
41 years$1,477$918$551$321$183$40
42 years$1,426$874$516$296$166$35
43 years$1,377$833$485$273$151$30
44 years$1,331$794$455$252$137$26
45 years$1,286$757$427$233$124$23
46 years$1,244$723$401$215$113$20
47 years$1,204$689$377$199$102$17
48 years$1,166$658$354$184$93$15
49 years$1,129$629$333$170$84$13
50 years$1,094$600$313$157$77$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,120,000, adding $2,240 every year, while hoping to spend $43,593 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: 85/5/10 Blend
39$1,120,000$1,120,000$1,120,000$1,120,000
40$1,236,551$1,177,191$1,159,831$1,339,675
41$1,316,296$1,188,490$1,152,302$1,418,692
42$1,402,715$1,198,883$1,143,061$1,499,365
43$1,496,441$1,208,277$1,132,003$1,586,648
44$1,598,172$1,216,577$1,119,019$1,681,177
45$1,708,677$1,223,681$1,103,998$1,783,655
46$1,828,799$1,229,478$1,086,819$1,894,855
47$1,959,468$1,233,854$1,067,358$2,015,629
48$2,101,705$1,236,684$1,045,486$2,146,913
49$2,256,635$1,237,837$1,021,066$2,289,740
50$2,425,495$1,237,175$993,955$2,445,248
51$2,609,647$1,234,548$964,004$2,614,689
52$2,810,591$1,229,801$931,058$2,799,443
53$3,029,976$1,222,765$894,953$3,001,030
54$3,269,618$1,213,266$855,518$3,221,125
55$3,531,517$1,201,114$812,576$3,461,573
56$3,817,874$1,186,111$765,940$3,724,406
57$4,131,114$1,168,046$715,415$4,011,863
58$4,473,904$1,146,697$660,798$4,326,412
59$4,849,183$1,121,826$601,876$4,670,771
60$5,260,187$1,093,183$538,426$5,047,935
61$5,710,480$1,060,503$470,217$5,461,205
62$6,203,986$1,023,505$397,007$5,914,216
63$6,745,027$981,891$318,541$6,410,977
64$7,338,364$935,348$234,556$6,955,902
65$7,989,240$883,543$144,776$7,553,857
66$8,703,429$826,123$48,913$8,210,203
67$9,487,293$762,718$0$8,930,849
68$10,347,839$692,933$0$9,728,002
69$11,292,785$616,353$0$10,609,080
70$12,330,634$532,539$0$11,576,799
71$13,470,752$441,027$0$12,639,909
72$14,723,457$341,326$0$13,808,049
73$16,100,117$232,918$0$15,091,839
74$17,613,255$115,257$0$16,502,981
75$19,276,667$0$0$18,054,367
76$21,105,553$0$0$19,760,878
77$23,116,659$0$0$21,644,407
78$25,328,436$0$0$23,715,896
79$27,761,211$0$0$25,994,385
80$30,437,381$0$0$28,500,853
81$33,381,624$0$0$31,258,415
82$36,621,127$0$0$34,292,538
83$40,185,849$0$0$37,631,284
84$44,108,798$0$0$41,305,569
85$48,426,343$0$0$45,349,463
86$53,178,559$0$0$49,800,502
87$58,409,602$0$0$54,700,046
88$64,168,126$0$0$60,093,671
89$70,507,743$0$0$66,031,593
90$77,487,527$0$0$72,569,147
91$85,172,571$0$0$79,767,305
92$93,634,601$0$0$87,693,252
93$102,952,652$0$0$96,421,021
94$113,213,816$0$0$106,032,189
95$124,514,057$0$0$116,616,646
96$136,959,125$0$0$128,273,448
97$150,665,546$0$0$141,111,743
98$165,761,724$0$0$155,251,808
99$182,389,154$0$0$170,826,179
100$200,703,753$0$0$187,980,906