Can I retire at age 40 with 1,270,000?

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 $1,270,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.6%
1 years$104,875$103,941$103,030$102,140$101,272$97,369
2 years$51,919$50,952$50,014$49,106$48,225$44,339
3 years$34,269$33,297$32,363$31,463$30,596$26,850
4 years$25,445$24,477$23,552$22,667$21,821$18,243
5 years$20,153$19,190$18,277$17,410$16,588$13,188
6 years$16,625$15,670$14,771$13,923$13,126$9,905
7 years$14,107$13,160$12,274$11,447$10,675$7,632
8 years$12,219$11,281$10,410$9,603$8,856$5,989
9 years$10,751$9,822$8,966$8,179$7,458$4,763
10 years$9,578$8,657$7,817$7,051$6,354$3,826
11 years$8,618$7,707$6,882$6,136$5,465$3,097
12 years$7,819$6,918$6,107$5,382$4,736$2,522
13 years$7,144$6,251$5,456$4,752$4,130$2,064
14 years$6,565$5,682$4,903$4,218$3,620$1,696
15 years$6,064$5,191$4,426$3,762$3,187$1,398
16 years$5,627$4,763$4,013$3,368$2,817$1,155
17 years$5,241$4,386$3,652$3,026$2,498$956
18 years$4,898$4,053$3,334$2,727$2,221$793
19 years$4,592$3,756$3,052$2,464$1,980$658
20 years$4,316$3,491$2,801$2,232$1,768$547
21 years$4,068$3,251$2,576$2,026$1,582$456
22 years$3,842$3,035$2,374$1,842$1,418$379
23 years$3,636$2,839$2,192$1,677$1,273$316
24 years$3,447$2,660$2,028$1,530$1,144$264
25 years$3,274$2,496$1,878$1,397$1,030$220
26 years$3,115$2,346$1,742$1,277$928$184
27 years$2,967$2,208$1,617$1,169$836$153
28 years$2,831$2,080$1,503$1,071$755$128
29 years$2,704$1,962$1,399$982$681$107
30 years$2,585$1,853$1,303$902$616$89
31 years$2,475$1,752$1,215$828$557$75
32 years$2,371$1,658$1,134$761$503$62
33 years$2,274$1,570$1,058$700$456$52
34 years$2,183$1,488$989$644$413$44
35 years$2,098$1,411$925$593$374$36
36 years$2,017$1,339$865$546$339$30
37 years$1,941$1,272$810$503$307$25
38 years$1,869$1,209$758$464$278$21
39 years$1,801$1,150$710$427$252$18
40 years$1,736$1,094$666$394$229$15
41 years$1,675$1,041$624$364$208$12
42 years$1,617$992$586$336$188$10
43 years$1,562$945$549$310$171$9
44 years$1,509$901$516$286$155$7
45 years$1,459$859$484$264$141$6
46 years$1,411$819$455$244$128$5
47 years$1,365$782$427$226$116$4
48 years$1,322$746$402$208$105$4
49 years$1,280$713$377$193$96$3
50 years$1,240$681$355$178$87$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,270,000, adding $5,435 every year, while hoping to spend $27,774 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: 65/27/8 Blend
39$1,270,000$1,270,000$1,270,000$1,270,000
40$1,405,146$1,337,836$1,318,151$1,493,945
41$1,518,920$1,373,839$1,332,758$1,589,736
42$1,643,367$1,410,675$1,346,923$1,690,559
43$1,779,549$1,448,355$1,360,603$1,799,988
44$1,928,630$1,486,892$1,373,750$1,918,858
45$2,091,895$1,526,295$1,386,316$2,048,088
46$2,270,761$1,566,576$1,398,250$2,188,691
47$2,466,783$1,607,742$1,409,496$2,341,781
48$2,681,678$1,649,805$1,419,997$2,508,584
49$2,917,336$1,692,773$1,429,694$2,690,453
50$3,175,838$1,736,652$1,438,523$2,888,874
51$3,459,477$1,781,452$1,446,417$3,105,487
52$3,770,778$1,827,177$1,453,306$3,342,096
53$4,112,522$1,873,833$1,459,116$3,600,690
54$4,487,773$1,921,425$1,463,770$3,883,458
55$4,899,907$1,969,956$1,467,188$4,192,811
56$5,352,642$2,019,428$1,469,282$4,531,408
57$5,850,073$2,069,841$1,469,965$4,902,175
58$6,396,713$2,121,196$1,469,142$5,308,337
59$6,997,533$2,173,491$1,466,713$5,753,444
60$7,658,010$2,226,720$1,462,577$6,241,412
61$8,384,178$2,280,880$1,456,624$6,776,552
62$9,182,684$2,335,964$1,448,741$7,363,613
63$10,060,853$2,391,960$1,438,808$8,007,831
64$11,026,752$2,448,859$1,426,701$8,714,971
65$12,089,274$2,506,646$1,412,289$9,491,387
66$13,258,214$2,565,305$1,395,434$10,344,080
67$14,544,364$2,624,818$1,375,994$11,280,763
68$15,959,616$2,685,161$1,353,817$12,309,938
69$17,517,074$2,746,311$1,328,746$13,440,968
70$19,231,174$2,808,239$1,300,618$14,684,175
71$21,117,824$2,870,913$1,269,259$16,050,929
72$23,194,552$2,934,298$1,234,489$17,553,761
73$25,480,672$2,998,354$1,196,120$19,206,479
74$27,997,465$3,063,037$1,153,954$21,024,298
75$30,768,380$3,128,299$1,107,785$23,023,984
76$33,819,256$3,194,088$1,057,398$25,224,014
77$37,178,566$3,260,344$1,002,566$27,644,746
78$40,877,682$3,327,003$943,054$30,308,616
79$44,951,175$3,393,996$878,616$33,240,347
80$49,437,140$3,461,246$808,995$36,467,183
81$54,377,553$3,528,672$733,921$40,019,147
82$59,818,670$3,596,183$653,113$43,929,324
83$65,811,460$3,663,682$566,279$48,234,171
84$72,412,091$3,731,064$473,111$52,973,866
85$79,682,453$3,798,216$373,289$58,192,683
86$87,690,749$3,865,014$266,480$63,939,413
87$96,512,133$3,931,327$152,335$70,267,824
88$106,229,421$3,997,013$30,489$77,237,166
89$116,933,874$4,061,918$0$84,912,735
90$128,726,056$4,125,879$0$93,374,983
91$141,716,785$4,188,719$0$102,698,039
92$156,028,181$4,250,249$0$112,966,716
93$171,794,811$4,310,268$0$124,277,351
94$189,164,968$4,368,557$0$136,736,101
95$208,302,064$4,424,886$0$150,459,955
96$229,386,176$4,479,007$0$165,577,830
97$252,615,742$4,530,654$0$182,231,794
98$278,209,437$4,579,546$0$200,578,403
99$306,408,237$4,625,380$0$220,790,182
100$337,477,689$4,667,835$0$243,057,253