Can I retire at age 40 with 1,320,000?

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 $1,320,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$109,004$108,033$107,086$106,161$105,259$104,815
2 years$53,963$52,958$51,984$51,039$50,123$49,675
3 years$35,618$34,608$33,637$32,701$31,800$31,362
4 years$26,447$25,441$24,479$23,559$22,680$22,255
5 years$20,946$19,946$18,997$18,096$17,241$16,830
6 years$17,280$16,287$15,352$14,471$13,642$13,246
7 years$14,662$13,678$12,758$11,898$11,095$10,714
8 years$12,700$11,725$10,820$9,981$9,204$8,838
9 years$11,175$10,208$9,319$8,501$7,751$7,400
10 years$9,955$8,998$8,124$7,328$6,604$6,268
11 years$8,958$8,011$7,153$6,378$5,680$5,358
12 years$8,127$7,190$6,348$5,594$4,922$4,615
13 years$7,425$6,498$5,671$4,939$4,292$3,999
14 years$6,824$5,906$5,096$4,384$3,763$3,483
15 years$6,303$5,395$4,601$3,910$3,313$3,046
16 years$5,848$4,950$4,171$3,501$2,928$2,675
17 years$5,447$4,559$3,796$3,146$2,596$2,355
18 years$5,091$4,213$3,465$2,835$2,308$2,080
19 years$4,772$3,904$3,172$2,561$2,057$1,841
20 years$4,486$3,628$2,911$2,320$1,838$1,633
21 years$4,228$3,379$2,678$2,105$1,645$1,450
22 years$3,993$3,154$2,468$1,914$1,474$1,291
23 years$3,779$2,950$2,279$1,743$1,323$1,150
24 years$3,583$2,764$2,107$1,590$1,189$1,026
25 years$3,403$2,594$1,952$1,452$1,070$916
26 years$3,237$2,438$1,810$1,328$964$819
27 years$3,084$2,294$1,681$1,215$869$733
28 years$2,942$2,162$1,563$1,114$784$656
29 years$2,810$2,040$1,454$1,021$708$588
30 years$2,687$1,926$1,355$937$640$527
31 years$2,572$1,821$1,263$861$579$472
32 years$2,465$1,723$1,178$791$523$424
33 years$2,364$1,632$1,100$727$474$380
34 years$2,269$1,546$1,028$669$429$342
35 years$2,180$1,467$961$616$388$307
36 years$2,096$1,392$899$567$352$276
37 years$2,017$1,322$841$523$319$248
38 years$1,943$1,257$788$482$289$223
39 years$1,872$1,195$738$444$262$200
40 years$1,805$1,137$692$410$238$180
41 years$1,741$1,082$649$378$216$162
42 years$1,681$1,031$609$349$196$146
43 years$1,623$982$571$322$178$131
44 years$1,568$936$536$297$161$118
45 years$1,516$893$503$275$146$106
46 years$1,466$852$473$254$133$96
47 years$1,419$813$444$234$121$86
48 years$1,374$776$417$217$110$77
49 years$1,330$741$392$200$100$70
50 years$1,289$708$369$185$90$63

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,320,000, adding $6,641 every year, while hoping to spend $20,385 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: 64/18/18 Blend
39$1,320,000$1,320,000$1,320,000$1,320,000
40$1,461,490$1,391,530$1,371,070$1,548,020
41$1,588,873$1,438,026$1,395,312$1,653,436
42$1,728,565$1,486,116$1,419,682$1,765,627
43$1,881,801$1,535,859$1,444,164$1,887,705
44$2,049,941$1,587,311$1,468,739$2,020,635
45$2,234,480$1,640,535$1,493,387$2,165,482
46$2,437,070$1,695,594$1,518,088$2,323,418
47$2,659,525$1,752,552$1,542,819$2,495,731
48$2,903,848$1,811,479$1,567,555$2,683,841
49$3,172,244$1,872,444$1,592,270$2,889,312
50$3,467,139$1,935,521$1,616,938$3,113,866
51$3,791,211$2,000,785$1,641,530$3,359,398
52$4,147,407$2,068,316$1,666,013$3,627,996
53$4,538,974$2,138,195$1,690,356$3,921,960
54$4,969,489$2,210,506$1,714,523$4,243,823
55$5,442,895$2,285,338$1,738,477$4,596,374
56$5,963,533$2,362,783$1,762,178$4,982,687
57$6,536,188$2,442,934$1,785,586$5,406,145
58$7,166,132$2,525,890$1,808,656$5,870,477
59$7,859,172$2,611,754$1,831,341$6,379,790
60$8,621,709$2,700,631$1,853,592$6,938,609
61$9,460,793$2,792,632$1,875,357$7,551,917
62$10,384,193$2,887,870$1,896,580$8,225,205
63$11,400,469$2,986,464$1,917,204$8,964,523
64$12,519,054$3,088,538$1,937,168$9,776,534
65$13,750,340$3,194,219$1,956,406$10,668,581
66$15,105,779$3,303,640$1,974,850$11,648,752
67$16,597,989$3,416,939$1,992,428$12,725,960
68$18,240,875$3,534,260$2,009,065$13,910,025
69$20,049,756$3,655,751$2,024,681$15,211,764
70$22,041,515$3,781,566$2,039,192$16,643,098
71$24,234,755$3,911,868$2,052,509$18,217,162
72$26,649,972$4,046,822$2,064,541$19,948,425
73$29,309,754$4,186,601$2,075,188$21,852,834
74$32,238,991$4,331,387$2,084,349$23,947,956
75$35,465,109$4,481,366$2,091,916$26,253,152
76$39,018,330$4,636,732$2,097,775$28,789,751
77$42,931,957$4,797,689$2,101,807$31,581,257
78$47,242,686$4,964,446$2,103,887$34,653,570
79$51,990,958$5,137,221$2,103,885$38,035,227
80$57,221,333$5,316,243$2,101,663$41,757,673
81$62,982,917$5,501,746$2,097,076$45,855,560
82$69,329,820$5,693,977$2,089,973$50,367,068
83$76,321,670$5,893,190$2,080,196$55,334,272
84$84,024,175$6,099,651$2,067,577$60,803,533
85$92,509,743$6,313,637$2,051,944$66,825,938
86$101,858,165$6,535,433$2,033,112$73,457,784
87$112,157,367$6,765,339$2,010,891$80,761,104
88$123,504,243$7,003,665$1,985,080$88,804,255
89$136,005,565$7,250,733$1,955,469$97,662,566
90$149,778,994$7,506,881$1,921,839$107,419,042
91$164,954,191$7,772,457$1,883,959$118,165,154
92$181,674,036$8,047,825$1,841,590$130,001,697
93$200,095,982$8,333,363$1,794,478$143,039,745
94$220,393,540$8,629,465$1,742,360$157,401,696
95$242,757,913$8,936,541$1,684,962$173,222,429
96$267,399,806$9,255,018$1,621,993$190,650,576
97$294,551,410$9,585,337$1,553,154$209,849,925
98$324,468,598$9,927,963$1,478,129$231,000,968
99$357,433,337$10,283,375$1,396,588$254,302,599
100$393,756,350$10,652,073$1,308,187$279,973,998