Can I retire at age 40 with 948,000?

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 $948,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$78,285$77,588$76,907$76,243$75,595$72,768
2 years$38,755$38,033$37,334$36,655$35,998$33,182
3 years$25,580$24,855$24,157$23,485$22,838$20,123
4 years$18,994$18,271$17,580$16,920$16,288$13,693
5 years$15,043$14,325$13,643$12,996$12,382$9,914
6 years$12,410$11,697$11,026$10,393$9,798$7,458
7 years$10,530$9,823$9,162$8,545$7,968$5,757
8 years$9,121$8,420$7,770$7,168$6,610$4,526
9 years$8,025$7,331$6,693$6,106$5,567$3,606
10 years$7,149$6,462$5,835$5,263$4,743$2,902
11 years$6,433$5,753$5,137$4,580$4,079$2,354
12 years$5,837$5,164$4,559$4,018$3,535$1,921
13 years$5,333$4,666$4,073$3,547$3,083$1,575
14 years$4,901$4,242$3,660$3,149$2,702$1,297
15 years$4,527$3,875$3,304$2,808$2,379$1,071
16 years$4,200$3,555$2,996$2,514$2,103$887
17 years$3,912$3,274$2,726$2,259$1,864$736
18 years$3,656$3,025$2,488$2,036$1,658$612
19 years$3,427$2,804$2,278$1,840$1,478$509
20 years$3,222$2,606$2,091$1,666$1,320$424
21 years$3,036$2,427$1,923$1,512$1,181$354
22 years$2,868$2,265$1,772$1,375$1,059$295
23 years$2,714$2,119$1,636$1,252$950$247
24 years$2,573$1,985$1,513$1,142$854$206
25 years$2,444$1,863$1,402$1,043$769$172
26 years$2,325$1,751$1,300$954$692$144
27 years$2,215$1,648$1,207$873$624$121
28 years$2,113$1,553$1,122$800$563$101
29 years$2,018$1,465$1,044$733$509$85
30 years$1,930$1,383$973$673$460$71
31 years$1,847$1,308$907$618$415$59
32 years$1,770$1,237$846$568$376$50
33 years$1,698$1,172$790$522$340$42
34 years$1,630$1,111$738$481$308$35
35 years$1,566$1,053$690$442$279$29
36 years$1,506$1,000$646$407$253$25
37 years$1,449$950$604$375$229$21
38 years$1,395$902$566$346$208$17
39 years$1,344$858$530$319$188$14
40 years$1,296$816$497$294$171$12
41 years$1,250$777$466$272$155$10
42 years$1,207$740$437$251$141$8
43 years$1,166$705$410$231$128$7
44 years$1,126$672$385$214$116$6
45 years$1,089$641$362$197$105$5
46 years$1,053$612$340$182$95$4
47 years$1,019$584$319$168$87$4
48 years$987$557$300$156$79$3
49 years$955$532$282$144$72$2
50 years$926$508$265$133$65$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $948,000, adding $5,162 every year, while hoping to spend $28,980 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: 71/19/10 Blend
39$948,000$948,000$948,000$948,000
40$1,050,021$999,777$985,083$1,122,178
41$1,126,288$1,017,931$987,248$1,188,770
42$1,209,364$1,036,004$988,515$1,257,586
43$1,299,911$1,053,961$988,823$1,332,128
44$1,398,661$1,071,763$988,107$1,412,954
45$1,506,417$1,089,373$986,302$1,500,678
46$1,624,065$1,106,745$983,336$1,595,978
47$1,752,579$1,123,835$979,137$1,699,598
48$1,893,031$1,140,592$973,628$1,812,361
49$2,046,603$1,156,964$966,726$1,935,171
50$2,214,594$1,172,892$958,349$2,069,025
51$2,398,436$1,188,318$948,408$2,215,023
52$2,599,706$1,203,174$936,808$2,374,376
53$2,820,139$1,217,393$923,454$2,548,417
54$3,061,647$1,230,899$908,244$2,738,617
55$3,326,335$1,243,613$891,070$2,946,597
56$3,616,521$1,255,451$871,822$3,174,143
57$3,934,761$1,266,322$850,382$3,423,222
58$4,283,865$1,276,130$826,628$3,696,004
59$4,666,932$1,284,774$800,433$3,994,879
60$5,087,375$1,292,143$771,664$4,322,482
61$5,548,952$1,298,123$740,179$4,681,716
62$6,055,804$1,302,590$705,834$5,075,781
63$6,612,492$1,305,413$668,475$5,508,205
64$7,224,040$1,306,452$627,943$5,982,874
65$7,895,984$1,305,560$584,071$6,504,073
66$8,634,422$1,302,580$536,685$7,076,524
67$9,446,071$1,297,345$485,602$7,705,432
68$10,338,334$1,289,677$430,633$8,396,531
69$11,319,363$1,279,390$371,578$9,156,145
70$12,398,142$1,266,285$308,230$9,991,242
71$13,584,569$1,250,150$240,373$10,909,500
72$14,889,549$1,230,761$167,779$11,919,385
73$16,325,097$1,207,882$90,213$13,030,226
74$17,904,450$1,181,261$7,429$14,252,305
75$19,642,194$1,150,633$0$15,596,955
76$21,554,400$1,115,717$0$17,085,299
77$23,658,775$1,076,213$0$18,723,878
78$25,974,830$1,031,808$0$20,527,101
79$28,524,063$982,166$0$22,511,722
80$31,330,161$926,936$0$24,696,204
81$34,419,225$865,744$0$27,100,894
82$37,820,016$798,195$0$29,748,216
83$41,564,223$723,872$0$32,662,882
84$45,686,767$642,334$0$35,872,126
85$50,226,124$553,116$0$39,405,960
86$55,224,693$455,723$0$43,297,460
87$60,729,195$349,637$0$47,583,077
88$66,791,111$234,307$0$52,302,981
89$73,467,170$109,154$0$57,501,442
90$80,819,883$0$0$63,227,249
91$88,918,133$0$0$69,539,694
92$97,837,825$0$0$76,517,644
93$107,662,603$0$0$84,203,718
94$118,484,635$0$0$92,670,032
95$130,405,488$0$0$101,996,053
96$143,537,084$0$0$112,269,348
97$158,002,755$0$0$123,586,415
98$173,938,409$0$0$136,053,589
99$191,493,810$0$0$149,788,048
100$210,833,993$0$0$164,918,917