Can I retire at age 40 with 1,600,000?

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 $1,600,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.1%
1 years$132,127$130,950$129,801$128,681$127,586$123,403
2 years$65,409$64,191$63,010$61,866$60,755$56,581
3 years$43,173$41,950$40,772$39,638$38,546$34,511
4 years$32,057$30,837$29,671$28,557$27,491$23,627
5 years$25,389$24,177$23,026$21,934$20,898$17,215
6 years$20,945$19,742$18,609$17,541$16,536$13,037
7 years$17,773$16,579$15,464$14,422$13,448$10,132
8 years$15,394$14,212$13,115$12,098$11,157$8,022
9 years$13,545$12,374$11,296$10,305$9,396$6,438
10 years$12,067$10,907$9,848$8,883$8,005$5,221
11 years$10,858$9,710$8,670$7,731$6,885$4,268
12 years$9,851$8,715$7,694$6,781$5,966$3,511
13 years$9,000$7,876$6,874$5,986$5,203$2,903
14 years$8,271$7,159$6,177$5,314$4,561$2,410
15 years$7,640$6,540$5,577$4,739$4,016$2,007
16 years$7,089$6,000$5,056$4,243$3,549$1,677
17 years$6,602$5,526$4,601$3,813$3,147$1,404
18 years$6,171$5,106$4,200$3,436$2,798$1,177
19 years$5,785$4,732$3,845$3,105$2,494$989
20 years$5,438$4,398$3,529$2,812$2,228$832
21 years$5,124$4,096$3,246$2,552$1,993$700
22 years$4,840$3,824$2,991$2,320$1,787$590
23 years$4,581$3,576$2,762$2,113$1,604$498
24 years$4,343$3,351$2,554$1,927$1,442$420
25 years$4,125$3,144$2,366$1,760$1,297$354
26 years$3,924$2,955$2,194$1,609$1,169$299
27 years$3,738$2,781$2,038$1,473$1,054$253
28 years$3,566$2,621$1,894$1,350$951$214
29 years$3,406$2,472$1,763$1,238$858$181
30 years$3,257$2,335$1,642$1,136$776$153
31 years$3,118$2,207$1,531$1,043$701$129
32 years$2,987$2,088$1,428$959$634$109
33 years$2,865$1,978$1,333$882$574$93
34 years$2,751$1,875$1,246$811$520$78
35 years$2,643$1,778$1,165$747$471$66
36 years$2,541$1,688$1,090$688$427$56
37 years$2,445$1,603$1,020$634$387$47
38 years$2,355$1,523$955$584$350$40
39 years$2,269$1,448$895$539$318$34
40 years$2,187$1,378$839$497$288$29
41 years$2,110$1,312$786$458$262$24
42 years$2,037$1,249$738$423$237$21
43 years$1,967$1,190$692$390$215$17
44 years$1,901$1,135$650$361$195$15
45 years$1,838$1,082$610$333$177$13
46 years$1,778$1,032$573$308$161$11
47 years$1,720$985$538$284$146$9
48 years$1,665$940$506$263$133$8
49 years$1,612$898$476$243$121$6
50 years$1,562$858$447$224$110$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,600,000, adding $4,866 every year, while hoping to spend $55,393 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: 77/13/10 Blend
39$1,600,000$1,600,000$1,600,000$1,600,000
40$1,768,219$1,683,419$1,658,619$1,900,948
41$1,889,640$1,706,969$1,655,245$2,012,486
42$2,021,589$1,729,816$1,649,902$2,127,177
43$2,165,082$1,751,868$1,642,464$2,251,344
44$2,321,235$1,773,025$1,632,802$2,385,908
45$2,491,279$1,793,181$1,620,779$2,531,883
46$2,676,566$1,812,223$1,606,251$2,690,386
47$2,878,584$1,830,030$1,589,068$2,862,651
48$3,098,971$1,846,473$1,569,074$3,050,031
49$3,339,531$1,861,416$1,546,103$3,254,024
50$3,602,249$1,874,711$1,519,984$3,476,274
51$3,889,310$1,886,203$1,490,535$3,718,597
52$4,203,120$1,895,727$1,457,567$3,982,992
53$4,546,327$1,903,106$1,420,884$4,271,662
54$4,921,847$1,908,153$1,380,279$4,587,036
55$5,332,892$1,910,670$1,335,535$4,931,788
56$5,782,997$1,910,443$1,286,426$5,308,867
57$6,276,057$1,907,249$1,232,715$5,721,522
58$6,816,360$1,900,849$1,174,156$6,173,335
59$7,408,628$1,890,990$1,110,490$6,668,252
60$8,058,063$1,877,403$1,041,446$7,210,621
61$8,770,394$1,859,804$966,743$7,805,237
62$9,551,930$1,837,891$886,085$8,457,382
63$10,409,622$1,811,343$799,164$9,172,879
64$11,351,126$1,779,821$705,658$9,958,144
65$12,384,874$1,742,965$605,231$10,820,250
66$13,520,156$1,700,396$497,532$11,766,991
67$14,767,206$1,651,709$382,193$12,806,959
68$16,137,297$1,596,479$258,832$13,949,622
69$17,642,848$1,534,253$127,050$15,205,416
70$19,297,541$1,464,554$0$16,585,841
71$21,116,449$1,386,876$0$18,105,025
72$23,116,179$1,300,684$0$19,790,050
73$25,315,025$1,205,414$0$21,642,794
74$27,733,144$1,100,466$0$23,680,278
75$30,392,746$985,209$0$25,921,260
76$33,318,297$858,976$0$28,386,413
77$36,536,758$721,061$0$31,098,515
78$40,077,832$570,717$0$34,082,670
79$43,974,246$407,158$0$37,366,541
80$48,262,062$229,551$0$40,980,613
81$52,981,012$37,018$0$44,958,481
82$58,174,875$0$0$49,337,167
83$63,891,891$0$0$54,181,986
84$70,185,214$0$0$59,521,087
85$77,113,410$0$0$65,398,872
86$84,741,015$0$0$71,870,099
87$93,139,140$0$0$78,995,109
88$102,386,142$0$0$86,840,389
89$112,568,362$0$0$95,479,202
90$123,780,943$0$0$104,992,279
91$136,128,720$0$0$115,468,577
92$149,727,218$0$0$127,006,120
93$164,703,734$0$0$139,712,925
94$181,198,541$0$0$153,708,018
95$199,366,211$0$0$169,122,558
96$219,377,075$0$0$186,101,076
97$241,418,825$0$0$204,802,835
98$265,698,291$0$0$225,403,335
99$292,443,386$0$0$248,095,971
100$321,905,263$0$0$273,093,853