Can I retire at age 40 with 1,250,000?

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 $1,250,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.9%
1 years$103,224$102,304$101,407$100,532$99,677$98,472
2 years$51,101$50,149$49,227$48,333$47,465$46,253
3 years$33,729$32,773$31,853$30,967$30,114$28,931
4 years$25,045$24,092$23,181$22,310$21,477$20,334
5 years$19,835$18,888$17,989$17,136$16,327$15,226
6 years$16,364$15,424$14,538$13,704$12,919$11,862
7 years$13,885$12,953$12,081$11,267$10,506$9,493
8 years$12,027$11,103$10,246$9,451$8,716$7,747
9 years$10,582$9,667$8,825$8,051$7,340$6,415
10 years$9,427$8,521$7,694$6,940$6,254$5,372
11 years$8,483$7,586$6,773$6,040$5,379$4,539
12 years$7,696$6,809$6,011$5,298$4,661$3,863
13 years$7,031$6,153$5,371$4,677$4,065$3,306
14 years$6,462$5,593$4,825$4,152$3,563$2,844
15 years$5,969$5,109$4,357$3,703$3,137$2,456
16 years$5,538$4,688$3,950$3,315$2,773$2,129
17 years$5,158$4,317$3,594$2,979$2,458$1,850
18 years$4,821$3,989$3,281$2,684$2,186$1,612
19 years$4,519$3,697$3,004$2,426$1,948$1,407
20 years$4,248$3,436$2,757$2,197$1,740$1,231
21 years$4,004$3,200$2,536$1,994$1,557$1,078
22 years$3,781$2,987$2,337$1,813$1,396$946
23 years$3,579$2,794$2,158$1,651$1,253$831
24 years$3,393$2,618$1,996$1,506$1,126$730
25 years$3,223$2,457$1,848$1,375$1,014$643
26 years$3,066$2,309$1,714$1,257$913$566
27 years$2,921$2,173$1,592$1,151$823$499
28 years$2,786$2,047$1,480$1,054$743$440
29 years$2,661$1,931$1,377$967$671$388
30 years$2,544$1,824$1,283$887$606$342
31 years$2,436$1,724$1,196$815$548$302
32 years$2,334$1,632$1,116$749$496$267
33 years$2,239$1,545$1,042$689$448$236
34 years$2,149$1,464$973$634$406$209
35 years$2,065$1,389$910$583$368$184
36 years$1,985$1,318$851$537$333$163
37 years$1,910$1,252$797$495$302$144
38 years$1,840$1,190$746$456$274$128
39 years$1,772$1,132$699$421$248$113
40 years$1,709$1,077$655$388$225$100
41 years$1,649$1,025$614$358$204$88
42 years$1,591$976$576$330$185$78
43 years$1,537$930$541$305$168$69
44 years$1,485$886$508$282$153$61
45 years$1,436$845$477$260$139$54
46 years$1,389$806$448$240$126$48
47 years$1,344$770$421$222$114$43
48 years$1,301$735$395$205$104$38
49 years$1,260$702$372$190$94$33
50 years$1,220$670$349$175$86$30

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,250,000, adding $6,464 every year, while hoping to spend $37,795 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: 55/29/16 Blend
39$1,250,000$1,250,000$1,250,000$1,250,000
40$1,384,168$1,317,918$1,298,543$1,454,090
41$1,485,139$1,342,282$1,301,830$1,526,792
42$1,595,143$1,366,573$1,303,961$1,601,303
43$1,715,061$1,390,749$1,304,857$1,681,587
44$1,845,862$1,414,761$1,304,435$1,768,202
45$1,988,615$1,438,559$1,302,609$1,861,768
46$2,144,495$1,462,089$1,299,287$1,962,964
47$2,314,795$1,485,293$1,294,375$2,072,542
48$2,500,940$1,508,109$1,287,772$2,191,328
49$2,704,498$1,530,468$1,279,375$2,320,237
50$2,927,196$1,552,300$1,269,073$2,460,275
51$3,170,934$1,573,527$1,256,751$2,612,551
52$3,437,806$1,594,066$1,242,288$2,778,290
53$3,730,117$1,613,830$1,225,560$2,958,841
54$4,050,406$1,632,725$1,206,433$3,155,692
55$4,401,469$1,650,650$1,184,770$3,370,485
56$4,786,384$1,667,498$1,160,426$3,605,031
57$5,208,544$1,683,154$1,133,249$3,861,323
58$5,671,684$1,697,497$1,103,081$4,141,564
59$6,179,918$1,710,396$1,069,757$4,448,181
60$6,737,778$1,721,714$1,033,102$4,783,849
61$7,350,256$1,731,303$992,935$5,151,520
62$8,022,851$1,739,006$949,068$5,554,448
63$8,761,622$1,744,657$901,302$5,996,221
64$9,573,241$1,748,079$849,429$6,480,796
65$10,465,060$1,749,083$793,233$7,012,536
66$11,445,178$1,747,470$732,489$7,596,252
67$12,522,518$1,743,028$666,959$8,237,249
68$13,706,909$1,735,531$596,396$8,941,374
69$15,009,182$1,724,740$520,543$9,715,077
70$16,441,267$1,710,401$439,131$10,565,468
71$18,016,312$1,692,246$351,877$11,500,387
72$19,748,799$1,669,989$258,488$12,528,477
73$21,654,687$1,643,329$158,658$13,659,268
74$23,751,558$1,611,945$52,066$14,903,267
75$26,058,785$1,575,499$0$16,272,057
76$28,597,713$1,533,630$0$17,788,940
77$31,391,861$1,485,959$0$19,467,635
78$34,467,143$1,432,083$0$21,314,827
79$37,852,113$1,371,577$0$23,347,693
80$41,578,234$1,303,989$0$25,585,164
81$45,680,173$1,228,844$0$28,048,109
82$50,196,130$1,145,637$0$30,759,525
83$55,168,197$1,053,835$0$33,744,763
84$60,642,755$952,874$0$37,031,761
85$66,670,911$842,160$0$40,651,315
86$73,308,980$721,062$0$44,637,365
87$80,619,018$588,916$0$49,027,320
88$88,669,405$445,020$0$53,862,411
89$97,535,489$288,631$0$59,188,082
90$107,300,300$118,965$0$65,054,417
91$118,055,333$0$0$71,516,618
92$129,901,406$0$0$78,656,207
93$142,949,618$0$0$86,562,302
94$157,322,393$0$0$95,271,138
95$173,154,637$0$0$104,864,479
96$190,595,009$0$0$115,432,425
97$209,807,324$0$0$127,074,262
98$230,972,101$0$0$139,899,400
99$254,288,266$0$0$154,028,404
100$279,975,025$0$0$169,594,134