Can I retire at age 40 with 1,280,000?

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 $1,280,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.8%
1 years$105,701$104,760$103,841$102,944$102,069$98,841
2 years$52,327$51,353$50,408$49,493$48,604$45,382
3 years$34,538$33,560$32,618$31,710$30,837$27,720
4 years$25,646$24,670$23,737$22,846$21,993$19,007
5 years$20,311$19,341$18,421$17,548$16,719$13,870
6 years$16,756$15,794$14,887$14,033$13,229$10,521
7 years$14,218$13,264$12,371$11,537$10,759$8,191
8 years$12,315$11,369$10,492$9,678$8,925$6,496
9 years$10,836$9,899$9,036$8,244$7,516$5,223
10 years$9,653$8,726$7,878$7,106$6,404$4,244
11 years$8,686$7,768$6,936$6,185$5,508$3,476
12 years$7,881$6,972$6,155$5,425$4,773$2,865
13 years$7,200$6,301$5,499$4,789$4,162$2,374
14 years$6,617$5,727$4,941$4,251$3,649$1,975
15 years$6,112$5,232$4,461$3,791$3,212$1,648
16 years$5,671$4,800$4,045$3,395$2,839$1,380
17 years$5,282$4,421$3,681$3,050$2,517$1,158
18 years$4,936$4,085$3,360$2,749$2,238$973
19 years$4,628$3,786$3,076$2,484$1,995$819
20 years$4,350$3,518$2,823$2,250$1,782$691
21 years$4,100$3,277$2,596$2,042$1,595$583
22 years$3,872$3,059$2,393$1,856$1,429$492
23 years$3,664$2,861$2,210$1,691$1,283$416
24 years$3,475$2,680$2,043$1,542$1,153$352
25 years$3,300$2,515$1,893$1,408$1,038$298
26 years$3,139$2,364$1,755$1,288$935$252
27 years$2,991$2,225$1,630$1,179$843$214
28 years$2,853$2,097$1,515$1,080$761$181
29 years$2,725$1,978$1,410$990$687$153
30 years$2,606$1,868$1,313$909$621$130
31 years$2,494$1,766$1,225$835$561$110
32 years$2,390$1,671$1,142$767$507$94
33 years$2,292$1,582$1,067$705$459$79
34 years$2,201$1,500$997$649$416$67
35 years$2,114$1,422$932$597$377$57
36 years$2,033$1,350$872$550$341$48
37 years$1,956$1,282$816$507$309$41
38 years$1,884$1,219$764$467$280$35
39 years$1,815$1,159$716$431$254$30
40 years$1,750$1,102$671$397$231$25
41 years$1,688$1,049$629$367$209$21
42 years$1,630$999$590$338$190$18
43 years$1,574$952$554$312$172$15
44 years$1,521$908$520$288$156$13
45 years$1,470$866$488$266$142$11
46 years$1,422$826$458$246$129$9
47 years$1,376$788$431$227$117$8
48 years$1,332$752$405$210$106$7
49 years$1,290$718$380$194$97$6
50 years$1,250$686$358$179$88$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,280,000, adding $3,832 every year, while hoping to spend $42,311 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: 42/33/25 Blend
39$1,280,000$1,280,000$1,280,000$1,280,000
40$1,414,513$1,346,673$1,326,833$1,463,425
41$1,513,774$1,367,641$1,326,263$1,519,778
42$1,621,743$1,388,219$1,324,256$1,576,451
43$1,739,261$1,408,342$1,320,719$1,636,994
44$1,867,257$1,427,943$1,315,555$1,701,788
45$2,006,753$1,446,947$1,308,662$1,771,255
46$2,158,872$1,465,278$1,299,932$1,845,860
47$2,324,851$1,482,850$1,289,254$1,926,117
48$2,506,052$1,499,576$1,276,510$2,012,596
49$2,703,973$1,515,359$1,261,577$2,105,926
50$2,920,265$1,530,098$1,244,326$2,206,803
51$3,156,744$1,543,685$1,224,623$2,315,993
52$3,415,410$1,556,004$1,202,326$2,434,348
53$3,698,465$1,566,932$1,177,287$2,562,805
54$4,008,335$1,576,337$1,149,353$2,702,402
55$4,347,689$1,584,082$1,118,360$2,854,285
56$4,719,468$1,590,016$1,084,139$3,019,719
57$5,126,910$1,593,984$1,046,515$3,200,104
58$5,573,582$1,595,816$1,005,300$3,396,985
59$6,063,412$1,595,336$960,303$3,612,067
60$6,600,727$1,592,354$911,319$3,847,236
61$7,190,291$1,586,670$858,139$4,104,574
62$7,837,354$1,578,070$800,540$4,386,379
63$8,547,698$1,566,329$738,291$4,695,190
64$9,327,690$1,551,206$671,152$5,033,809
65$10,184,349$1,532,449$598,869$5,405,331
66$11,125,401$1,509,788$521,180$5,813,171
67$12,159,361$1,482,937$437,809$6,261,101
68$13,295,610$1,451,595$348,469$6,753,283
69$14,544,479$1,415,440$252,860$7,294,311
70$15,917,354$1,374,134$150,668$7,889,258
71$17,426,776$1,327,319$41,568$8,543,719
72$19,086,563$1,274,614$0$9,263,870
73$20,911,940$1,215,617$0$10,076,496
74$22,919,679$1,149,904$0$10,982,279
75$25,128,262$1,077,024$0$11,978,517
76$27,558,049$996,503$0$13,074,469
77$30,231,476$907,838$0$14,280,342
78$33,173,261$810,496$0$15,607,395
79$36,410,641$703,918$0$17,068,036
80$39,973,626$587,509$0$18,675,950
81$43,895,281$460,643$0$20,446,224
82$48,212,043$322,657$0$22,395,491
83$52,964,056$172,852$0$24,542,089
84$58,195,558$10,490$0$26,906,236
85$63,955,292$0$0$29,510,222
86$70,296,968$0$0$32,438,612
87$77,279,769$0$0$35,667,457
88$84,968,910$0$0$39,223,126
89$93,436,252$0$0$43,138,878
90$102,760,979$0$0$47,451,360
91$113,030,346$0$0$52,200,952
92$124,340,503$0$0$57,432,153
93$136,797,398$0$0$63,193,998
94$150,517,784$0$0$69,540,520
95$165,630,311$0$0$76,531,261
96$182,276,747$0$0$84,231,831
97$200,613,311$0$0$92,714,533
98$220,812,152$0$0$102,059,038
99$243,062,968$0$0$112,353,144
100$267,574,798$0$0$123,693,596