Can I retire at age 40 with 954,000?

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 $954,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.3%
1 years$78,780$78,079$77,394$76,726$76,073$75,029
2 years$39,000$38,274$37,570$36,887$36,225$35,176
3 years$25,742$25,012$24,310$23,634$22,983$21,960
4 years$19,114$18,387$17,692$17,027$16,392$15,403
5 years$15,138$14,415$13,729$13,078$12,461$11,509
6 years$12,489$11,771$11,095$10,459$9,860$8,947
7 years$10,597$9,886$9,220$8,599$8,019$7,145
8 years$9,179$8,474$7,820$7,213$6,652$5,817
9 years$8,076$7,378$6,735$6,144$5,602$4,805
10 years$7,195$6,503$5,872$5,296$4,773$4,014
11 years$6,474$5,789$5,169$4,609$4,105$3,383
12 years$5,874$5,196$4,588$4,043$3,557$2,872
13 years$5,366$4,696$4,099$3,569$3,102$2,452
14 years$4,932$4,268$3,683$3,169$2,719$2,103
15 years$4,556$3,899$3,325$2,826$2,394$1,812
16 years$4,227$3,578$3,015$2,530$2,116$1,566
17 years$3,937$3,295$2,743$2,273$1,876$1,357
18 years$3,679$3,045$2,504$2,049$1,668$1,179
19 years$3,449$2,822$2,292$1,851$1,487$1,026
20 years$3,242$2,622$2,104$1,677$1,328$895
21 years$3,055$2,442$1,935$1,522$1,189$782
22 years$2,886$2,280$1,784$1,384$1,065$684
23 years$2,731$2,132$1,647$1,260$956$599
24 years$2,590$1,998$1,523$1,149$860$525
25 years$2,460$1,875$1,411$1,050$774$460
26 years$2,340$1,762$1,308$960$697$404
27 years$2,229$1,658$1,215$878$628$355
28 years$2,126$1,563$1,129$805$567$312
29 years$2,031$1,474$1,051$738$512$274
30 years$1,942$1,392$979$677$462$241
31 years$1,859$1,316$913$622$418$212
32 years$1,781$1,245$852$572$378$187
33 years$1,708$1,179$795$526$342$165
34 years$1,640$1,118$743$484$310$145
35 years$1,576$1,060$695$445$281$128
36 years$1,515$1,006$650$410$254$113
37 years$1,458$956$608$378$230$99
38 years$1,404$908$569$348$209$88
39 years$1,353$864$534$321$189$77
40 years$1,304$822$500$296$172$68
41 years$1,258$782$469$273$156$60
42 years$1,215$745$440$252$141$53
43 years$1,173$710$413$233$128$47
44 years$1,133$677$387$215$117$41
45 years$1,096$645$364$199$106$36
46 years$1,060$615$342$183$96$32
47 years$1,026$587$321$169$87$28
48 years$993$561$302$157$79$25
49 years$961$535$284$145$72$22
50 years$931$511$267$134$65$19

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $954,000, adding $3,395 every year, while hoping to spend $32,133 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: 61/27/12 Blend
39$954,000$954,000$954,000$954,000
40$1,054,810$1,004,248$989,461$1,115,932
41$1,128,211$1,019,267$988,419$1,172,394
42$1,208,023$1,033,945$986,264$1,230,020
43$1,294,864$1,048,231$982,927$1,292,117
44$1,389,417$1,062,071$978,332$1,359,119
45$1,492,433$1,075,408$972,401$1,431,504
46$1,604,736$1,088,179$965,053$1,509,799
47$1,727,238$1,100,317$956,200$1,594,587
48$1,860,937$1,111,754$945,754$1,686,509
49$2,006,936$1,122,413$933,620$1,786,273
50$2,166,446$1,132,214$919,698$1,894,658
51$2,340,802$1,141,071$903,887$2,012,525
52$2,531,474$1,148,894$886,078$2,140,822
53$2,740,080$1,155,585$866,157$2,280,596
54$2,968,401$1,161,042$844,006$2,433,001
55$3,218,400$1,165,154$819,502$2,599,308
56$3,492,235$1,167,806$792,514$2,780,922
57$3,792,287$1,168,872$762,907$2,979,389
58$4,121,175$1,168,222$730,539$3,196,416
59$4,481,785$1,165,715$695,263$3,433,886
60$4,877,295$1,161,203$656,922$3,693,872
61$5,311,206$1,154,529$615,356$3,978,665
62$5,787,373$1,145,525$570,394$4,290,787
63$6,310,044$1,134,014$521,861$4,633,021
64$6,883,896$1,119,809$469,571$5,008,437
65$7,514,084$1,102,709$413,332$5,420,419
66$8,206,283$1,082,505$352,941$5,872,697
67$8,966,749$1,058,972$288,190$6,369,387
68$9,802,370$1,031,874$218,856$6,915,026
69$10,720,736$1,000,961$144,712$7,514,617
70$11,730,208$965,965$65,518$8,173,675
71$12,840,000$926,608$0$8,898,284
72$14,060,260$882,592$0$9,697,581
73$15,402,169$833,602$0$10,585,638
74$16,878,048$779,306$0$11,562,246
75$18,501,470$719,352$0$12,636,428
76$20,287,389$653,370$0$13,818,132
77$22,252,283$580,965$0$15,118,324
78$24,414,307$501,724$0$16,549,090
79$26,793,464$415,206$0$18,123,752
80$29,411,796$320,950$0$19,856,995
81$32,293,588$218,465$0$21,765,005
82$35,465,599$107,235$0$23,865,625
83$38,957,314$0$0$26,178,519
84$42,801,223$0$0$28,729,312
85$47,033,123$0$0$31,572,741
86$51,692,461$0$0$34,703,459
87$56,822,704$0$0$38,150,686
88$62,471,746$0$0$41,946,615
89$68,692,364$0$0$46,126,722
90$75,542,713$0$0$50,730,099
91$83,086,875$0$0$55,799,822
92$91,395,463$0$0$61,383,357
93$100,546,290$0$0$67,533,010
94$110,625,099$0$0$74,306,416
95$121,726,374$0$0$81,767,088
96$133,954,230$0$0$89,985,013
97$147,423,399$0$0$99,037,314
98$162,260,306$0$0$109,008,975
99$178,604,269$0$0$119,993,646
100$196,608,809$0$0$132,094,525