Can I retire at age 40 with 950,000?

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 $950,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.4%
1 years$78,450$77,751$77,070$76,404$75,754$74,684
2 years$38,837$38,113$37,412$36,733$36,073$34,997
3 years$25,634$24,908$24,208$23,535$22,887$21,838
4 years$19,034$18,310$17,617$16,956$16,323$15,310
5 years$15,075$14,355$13,672$13,024$12,408$11,434
6 years$12,436$11,722$11,049$10,415$9,818$8,883
7 years$10,552$9,844$9,182$8,563$7,985$7,090
8 years$9,140$8,438$7,787$7,183$6,624$5,769
9 years$8,042$7,347$6,707$6,118$5,579$4,763
10 years$7,165$6,476$5,847$5,274$4,753$3,977
11 years$6,447$5,765$5,148$4,590$4,088$3,349
12 years$5,849$5,175$4,568$4,026$3,543$2,841
13 years$5,344$4,676$4,082$3,554$3,089$2,424
14 years$4,911$4,251$3,667$3,155$2,708$2,078
15 years$4,536$3,883$3,311$2,814$2,384$1,789
16 years$4,209$3,563$3,002$2,520$2,107$1,545
17 years$3,920$3,281$2,732$2,264$1,868$1,338
18 years$3,664$3,032$2,494$2,040$1,661$1,161
19 years$3,435$2,810$2,283$1,843$1,481$1,010
20 years$3,229$2,611$2,095$1,670$1,323$880
21 years$3,043$2,432$1,927$1,515$1,184$768
22 years$2,874$2,270$1,776$1,378$1,061$672
23 years$2,720$2,123$1,640$1,255$952$587
24 years$2,579$1,989$1,517$1,144$856$515
25 years$2,449$1,867$1,405$1,045$770$451
26 years$2,330$1,755$1,303$956$694$396
27 years$2,220$1,651$1,210$875$626$347
28 years$2,117$1,556$1,125$801$564$305
29 years$2,022$1,468$1,047$735$510$268
30 years$1,934$1,386$975$674$461$236
31 years$1,851$1,311$909$619$416$207
32 years$1,774$1,240$848$569$377$182
33 years$1,701$1,174$792$523$341$160
34 years$1,633$1,113$740$482$309$141
35 years$1,569$1,056$692$443$280$124
36 years$1,509$1,002$647$408$253$109
37 years$1,452$952$606$376$230$96
38 years$1,398$904$567$347$208$85
39 years$1,347$860$531$320$189$75
40 years$1,299$818$498$295$171$66
41 years$1,253$779$467$272$155$58
42 years$1,209$742$438$251$141$51
43 years$1,168$707$411$232$128$45
44 years$1,129$674$386$214$116$40
45 years$1,091$642$362$198$105$35
46 years$1,055$613$340$183$96$31
47 years$1,021$585$320$169$87$27
48 years$989$558$300$156$79$24
49 years$957$533$282$144$72$21
50 years$928$509$265$133$65$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $950,000, adding $5,153 every year, while hoping to spend $45,059 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: 84/5/11 Blend
39$950,000$950,000$950,000$950,000
40$1,052,215$1,001,865$987,140$1,138,298
41$1,111,599$1,003,014$972,267$1,196,527
42$1,175,529$1,002,709$955,385$1,253,910
43$1,244,423$1,000,832$936,380$1,315,567
44$1,318,737$997,255$915,132$1,381,902
45$1,398,973$991,846$891,514$1,453,359
46$1,485,684$984,462$865,396$1,530,426
47$1,579,476$974,953$836,639$1,613,641
48$1,681,016$963,159$805,099$1,703,598
49$1,791,037$948,911$770,627$1,800,947
50$1,910,344$932,029$733,064$1,906,409
51$2,039,824$912,323$692,247$2,020,776
52$2,180,451$889,592$648,003$2,144,919
53$2,333,299$863,624$600,152$2,279,800
54$2,499,545$834,192$548,508$2,426,477
55$2,680,489$801,057$492,873$2,586,118
56$2,877,558$763,968$433,043$2,760,008
57$3,092,323$722,657$368,804$2,949,563
58$3,326,514$676,840$299,932$3,156,343
59$3,582,033$626,221$226,195$3,382,069
60$3,860,976$570,481$147,349$3,628,637
61$4,165,649$509,288$63,138$3,898,133
62$4,498,591$442,289$0$4,192,861
63$4,862,596$369,109$0$4,518,493
64$5,260,742$289,357$0$4,882,800
65$5,696,416$202,614$0$5,281,479
66$6,173,351$108,442$0$5,717,958
67$6,695,653$6,377$0$6,196,018
68$7,267,848$0$0$6,719,821
69$7,894,918$0$0$7,299,677
70$8,582,350$0$0$7,935,751
71$9,336,188$0$0$8,633,288
72$10,163,089$0$0$9,398,449
73$11,070,383$0$0$10,238,019
74$12,066,147$0$0$11,159,475
75$13,159,276$0$0$12,171,051
76$14,359,570$0$0$13,281,817
77$15,677,822$0$0$14,501,764
78$17,125,923$0$0$15,841,900
79$18,716,974$0$0$17,314,349
80$20,465,403$0$0$18,932,471
81$22,387,111$0$0$20,710,981
82$24,499,611$0$0$22,666,092
83$26,822,200$0$0$24,815,666
84$29,376,137$0$0$27,179,382
85$32,184,846$0$0$29,778,921
86$35,274,131$0$0$32,638,172
87$38,672,426$0$0$35,783,452
88$42,411,058$0$0$39,243,762
89$46,524,543$0$0$43,051,050
90$51,050,911$0$0$47,240,521
91$56,032,065$0$0$51,850,963
92$61,514,178$0$0$56,925,116
93$67,548,121$0$0$62,510,071
94$74,189,951$0$0$68,657,716
95$81,501,433$0$0$75,425,228
96$89,550,625$0$0$82,875,606
97$98,412,521$0$0$91,078,267
98$108,169,753$0$0$100,109,705
99$118,913,376$0$0$110,054,204
100$130,743,724$0$0$121,004,643