Can I retire at age 40 with 955,000?

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 $955,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.8%
1 years$78,863$78,161$77,475$76,806$76,153$74,342
2 years$39,041$38,314$37,609$36,926$36,263$34,450
3 years$25,769$25,039$24,336$23,659$23,007$21,247
4 years$19,134$18,406$17,710$17,045$16,409$14,716
5 years$15,154$14,431$13,744$13,092$12,474$10,853
6 years$12,502$11,784$11,107$10,470$9,870$8,323
7 years$10,608$9,896$9,230$8,608$8,027$6,554
8 years$9,188$8,483$7,828$7,221$6,659$5,259
9 years$8,085$7,386$6,742$6,151$5,608$4,280
10 years$7,202$6,510$5,878$5,302$4,778$3,521
11 years$6,481$5,796$5,175$4,614$4,109$2,921
12 years$5,880$5,202$4,592$4,047$3,561$2,440
13 years$5,372$4,701$4,103$3,573$3,105$2,049
14 years$4,937$4,273$3,687$3,172$2,722$1,728
15 years$4,560$3,903$3,329$2,829$2,397$1,463
16 years$4,231$3,581$3,018$2,533$2,118$1,242
17 years$3,941$3,298$2,746$2,276$1,878$1,058
18 years$3,683$3,048$2,507$2,051$1,670$902
19 years$3,453$2,825$2,295$1,853$1,489$771
20 years$3,246$2,625$2,106$1,678$1,330$660
21 years$3,059$2,445$1,937$1,523$1,190$566
22 years$2,889$2,282$1,785$1,385$1,067$485
23 years$2,734$2,134$1,649$1,261$957$417
24 years$2,592$2,000$1,525$1,150$861$358
25 years$2,462$1,877$1,412$1,051$774$308
26 years$2,342$1,764$1,310$961$697$265
27 years$2,231$1,660$1,216$879$629$228
28 years$2,128$1,564$1,131$806$567$196
29 years$2,033$1,476$1,052$739$512$169
30 years$1,944$1,394$980$678$463$146
31 years$1,861$1,317$914$623$419$126
32 years$1,783$1,247$852$572$379$108
33 years$1,710$1,181$796$526$343$94
34 years$1,642$1,119$744$484$310$81
35 years$1,577$1,061$695$446$281$70
36 years$1,517$1,007$650$411$255$60
37 years$1,460$957$609$378$231$52
38 years$1,405$909$570$349$209$45
39 years$1,354$865$534$321$190$39
40 years$1,306$823$501$296$172$33
41 years$1,260$783$469$274$156$29
42 years$1,216$746$440$252$142$25
43 years$1,174$710$413$233$129$21
44 years$1,135$677$388$215$117$19
45 years$1,097$646$364$199$106$16
46 years$1,061$616$342$184$96$14
47 years$1,027$588$321$170$87$12
48 years$994$561$302$157$79$10
49 years$962$536$284$145$72$9
50 years$932$512$267$134$65$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $955,000, adding $6,437 every year, while hoping to spend $39,541 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: 50/30/20 Blend
39$955,000$955,000$955,000$955,000
40$1,059,050$1,008,435$993,632$1,105,794
41$1,125,002$1,015,777$984,848$1,146,155
42$1,196,355$1,022,153$974,443$1,185,423
43$1,273,620$1,027,475$962,324$1,227,264
44$1,357,355$1,031,648$948,388$1,271,937
45$1,448,178$1,034,571$932,531$1,319,728
46$1,546,763$1,036,136$914,642$1,370,952
47$1,653,857$1,036,231$894,607$1,425,961
48$1,770,279$1,034,734$872,304$1,485,144
49$1,896,928$1,031,517$847,608$1,548,930
50$2,034,798$1,026,444$820,385$1,617,796
51$2,184,978$1,019,371$790,499$1,692,268
52$2,348,669$1,010,144$757,804$1,772,932
53$2,527,193$998,601$722,150$1,860,431
54$2,722,004$984,569$683,379$1,955,481
55$2,934,702$967,866$641,326$2,058,872
56$3,167,049$948,300$595,818$2,171,480
57$3,420,986$925,664$546,676$2,294,270
58$3,698,647$899,742$493,710$2,428,314
59$4,002,384$870,305$436,725$2,574,793
60$4,334,787$837,109$375,515$2,735,016
61$4,698,706$799,898$309,865$2,910,428
62$5,097,280$758,399$239,552$3,102,627
63$5,533,967$712,325$164,341$3,313,380
64$6,012,574$661,372$83,989$3,544,638
65$6,537,294$605,217$0$3,798,559
66$7,112,747$543,521$0$4,077,901
67$7,744,017$475,924$0$4,404,072
68$8,436,710$402,046$0$4,762,097
69$9,196,995$321,487$0$5,155,251
70$10,031,671$233,823$0$5,587,146
71$10,948,226$138,605$0$6,061,765
72$11,954,910$35,361$0$6,583,506
73$13,060,809$0$0$7,157,217
74$14,275,935$0$0$7,813,473
75$15,611,316$0$0$8,547,611
76$17,079,101$0$0$9,354,653
77$18,692,676$0$0$10,241,972
78$20,466,789$0$0$11,217,690
79$22,417,687$0$0$12,290,760
80$24,563,269$0$0$13,471,042
81$26,923,258$0$0$14,769,402
82$29,519,384$0$0$16,197,810
83$32,375,589$0$0$17,769,457
84$35,518,251$0$0$19,498,875
85$38,976,436$0$0$21,402,077
86$42,782,169$0$0$23,496,706
87$46,970,735$0$0$25,802,204
88$51,581,016$0$0$28,339,990
89$56,655,852$0$0$31,133,669
90$62,242,450$0$0$34,209,247
91$68,392,823$0$0$37,595,383
92$75,164,285$0$0$41,323,653
93$82,619,992$0$0$45,428,854
94$90,829,532$0$0$49,949,326
95$99,869,589$0$0$54,927,318
96$109,824,657$0$0$60,409,385
97$120,787,846$0$0$66,446,826
98$132,861,755$0$0$73,096,170
99$146,159,439$0$0$80,419,708
100$160,805,478$0$0$88,486,080