Can I retire at age 40 with 1,260,000?

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 $1,260,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$104,050$103,123$102,219$101,336$100,474$99,591
2 years$51,510$50,550$49,621$48,719$47,845$46,955
3 years$33,999$33,035$32,108$31,215$30,355$29,485
4 years$25,245$24,284$23,366$22,489$21,649$20,807
5 years$19,994$19,039$18,133$17,273$16,457$15,645
6 years$16,495$15,547$14,654$13,814$13,022$12,241
7 years$13,996$13,056$12,178$11,357$10,591$9,841
8 years$12,123$11,192$10,328$9,527$8,786$8,068
9 years$10,667$9,744$8,895$8,115$7,399$6,712
10 years$9,502$8,589$7,755$6,995$6,304$5,648
11 years$8,551$7,646$6,827$6,088$5,422$4,796
12 years$7,758$6,863$6,059$5,340$4,699$4,102
13 years$7,088$6,202$5,414$4,714$4,097$3,529
14 years$6,514$5,638$4,864$4,185$3,592$3,052
15 years$6,017$5,150$4,392$3,732$3,162$2,650
16 years$5,582$4,725$3,982$3,342$2,795$2,309
17 years$5,199$4,352$3,623$3,003$2,478$2,018
18 years$4,859$4,021$3,307$2,706$2,203$1,768
19 years$4,555$3,727$3,028$2,445$1,964$1,553
20 years$4,282$3,463$2,779$2,214$1,754$1,366
21 years$4,036$3,226$2,556$2,010$1,570$1,204
22 years$3,811$3,011$2,356$1,827$1,407$1,063
23 years$3,607$2,816$2,175$1,664$1,263$939
24 years$3,420$2,639$2,012$1,518$1,135$831
25 years$3,248$2,476$1,863$1,386$1,022$736
26 years$3,090$2,327$1,728$1,267$920$652
27 years$2,944$2,190$1,605$1,160$830$578
28 years$2,808$2,064$1,492$1,063$749$513
29 years$2,682$1,947$1,388$975$676$456
30 years$2,565$1,839$1,293$895$611$405
31 years$2,455$1,738$1,205$822$552$360
32 years$2,353$1,645$1,125$755$500$320
33 years$2,256$1,558$1,050$694$452$285
34 years$2,166$1,476$981$639$409$253
35 years$2,081$1,400$917$588$371$225
36 years$2,001$1,329$858$542$336$201
37 years$1,926$1,262$803$499$304$179
38 years$1,854$1,200$752$460$276$159
39 years$1,787$1,141$705$424$250$142
40 years$1,723$1,085$660$391$227$126
41 years$1,662$1,033$619$361$206$113
42 years$1,604$984$581$333$187$100
43 years$1,549$937$545$307$170$89
44 years$1,497$894$512$284$154$80
45 years$1,447$852$480$262$140$71
46 years$1,400$813$451$242$127$63
47 years$1,355$776$424$224$115$56
48 years$1,311$740$398$207$105$50
49 years$1,270$707$374$191$95$45
50 years$1,230$675$352$177$86$40

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,260,000, adding $4,197 every year, while hoping to spend $46,911 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: 27/44/29 Blend
39$1,260,000$1,260,000$1,260,000$1,260,000
40$1,392,849$1,326,069$1,306,539$1,417,824
41$1,485,007$1,341,134$1,300,395$1,453,546
42$1,584,992$1,355,364$1,292,473$1,487,582
43$1,693,555$1,368,670$1,282,664$1,523,181
44$1,811,517$1,380,955$1,270,854$1,560,508
45$1,939,787$1,392,116$1,256,922$1,599,751
46$2,079,360$1,402,045$1,240,743$1,641,118
47$2,231,333$1,410,623$1,222,187$1,684,842
48$2,396,914$1,417,729$1,201,115$1,731,184
49$2,577,430$1,423,229$1,177,384$1,780,436
50$2,774,345$1,426,983$1,150,843$1,832,923
51$2,989,266$1,428,844$1,121,334$1,889,007
52$3,223,965$1,428,651$1,088,692$1,949,093
53$3,480,391$1,426,237$1,052,746$2,013,633
54$3,760,693$1,421,424$1,013,314$2,083,128
55$4,067,232$1,414,022$970,208$2,158,138
56$4,402,610$1,403,830$923,232$2,239,285
57$4,769,694$1,390,636$872,177$2,327,263
58$5,171,638$1,374,212$816,830$2,422,840
59$5,611,917$1,354,319$756,965$2,526,874
60$6,094,356$1,330,705$692,347$2,640,314
61$6,623,169$1,303,099$622,730$2,764,216
62$7,202,998$1,271,216$547,858$2,899,754
63$7,838,954$1,234,756$467,461$3,048,230
64$8,536,667$1,193,399$381,261$3,211,086
65$9,302,338$1,146,806$288,964$3,389,924
66$10,142,798$1,094,621$190,265$3,586,521
67$11,065,571$1,036,465$84,847$3,802,846
68$12,078,945$971,937$0$4,041,079
69$13,192,051$900,616$0$4,312,197
70$14,414,947$822,053$0$4,638,893
71$15,758,713$735,775$0$4,997,964
72$17,235,557$641,283$0$5,392,810
73$18,858,927$538,049$0$5,827,188
74$20,643,639$425,515$0$6,305,249
75$22,606,016$303,092$0$6,831,574
76$24,764,043$170,156$0$7,411,229
77$27,137,533$26,051$0$8,049,803
78$29,748,317$0$0$8,753,470
79$32,620,448$0$0$9,591,951
80$35,780,427$0$0$10,528,582
81$39,257,454$0$0$11,559,435
82$43,083,701$0$0$12,694,077
83$47,294,618$0$0$13,943,055
84$51,929,265$0$0$15,317,984
85$57,030,679$0$0$16,831,668
86$62,646,284$0$0$18,498,212
87$68,828,332$0$0$20,333,160
88$75,634,401$0$0$22,353,638
89$83,127,935$0$0$24,578,519
90$91,378,842$0$0$27,028,600
91$100,464,155$0$0$29,726,796
92$110,468,757$0$0$32,698,358
93$121,486,183$0$0$35,971,111
94$133,619,499$0$0$39,575,718
95$146,982,277$0$0$43,545,964
96$161,699,666$0$0$47,919,081
97$177,909,573$0$0$52,736,096
98$195,763,962$0$0$58,042,218
99$215,430,288$0$0$63,887,267
100$237,093,079$0$0$70,326,140