Can I retire at age 40 with 956,000?

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 $956,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.8%
1 years$78,946$78,242$77,556$76,887$76,233$73,822
2 years$39,082$38,354$37,649$36,965$36,301$33,894
3 years$25,796$25,065$24,361$23,684$23,031$20,703
4 years$19,154$18,425$17,729$17,063$16,426$14,196
5 years$15,170$14,446$13,758$13,106$12,487$10,359
6 years$12,515$11,796$11,119$10,481$9,880$7,858
7 years$10,619$9,906$9,240$8,617$8,035$6,118
8 years$9,198$8,491$7,836$7,228$6,666$4,852
9 years$8,093$7,393$6,749$6,157$5,614$3,901
10 years$7,210$6,517$5,884$5,307$4,783$3,170
11 years$6,488$5,802$5,180$4,619$4,114$2,596
12 years$5,886$5,207$4,597$4,052$3,565$2,140
13 years$5,378$4,706$4,107$3,577$3,109$1,773
14 years$4,942$4,277$3,691$3,175$2,725$1,475
15 years$4,565$3,908$3,332$2,832$2,399$1,231
16 years$4,235$3,585$3,021$2,535$2,121$1,031
17 years$3,945$3,302$2,749$2,278$1,880$865
18 years$3,687$3,051$2,509$2,053$1,672$727
19 years$3,456$2,828$2,297$1,855$1,490$612
20 years$3,249$2,628$2,108$1,680$1,331$516
21 years$3,062$2,447$1,939$1,525$1,191$435
22 years$2,892$2,285$1,787$1,386$1,068$368
23 years$2,737$2,137$1,650$1,263$958$311
24 years$2,595$2,002$1,526$1,152$861$263
25 years$2,465$1,879$1,414$1,052$775$222
26 years$2,345$1,766$1,311$962$698$188
27 years$2,234$1,662$1,217$880$630$160
28 years$2,131$1,566$1,132$806$568$135
29 years$2,035$1,477$1,053$740$513$115
30 years$1,946$1,395$981$679$463$97
31 years$1,863$1,319$915$623$419$82
32 years$1,785$1,248$853$573$379$70
33 years$1,712$1,182$797$527$343$59
34 years$1,644$1,120$744$485$311$50
35 years$1,579$1,062$696$446$281$43
36 years$1,518$1,008$651$411$255$36
37 years$1,461$958$609$379$231$31
38 years$1,407$910$571$349$209$26
39 years$1,356$865$535$322$190$22
40 years$1,307$823$501$297$172$19
41 years$1,261$784$470$274$156$16
42 years$1,217$746$441$253$142$14
43 years$1,175$711$414$233$129$11
44 years$1,136$678$388$215$117$10
45 years$1,098$646$365$199$106$8
46 years$1,062$617$342$184$96$7
47 years$1,028$589$322$170$87$6
48 years$995$562$302$157$79$5
49 years$963$537$284$145$72$4
50 years$933$513$267$134$65$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $956,000, adding $6,656 every year, while hoping to spend $48,929 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: 40/40/20 Blend
39$956,000$956,000$956,000$956,000
40$1,060,378$1,009,710$994,892$1,096,272
41$1,116,476$1,007,125$976,160$1,119,998
42$1,176,657$1,002,775$955,162$1,140,470
43$1,241,284$996,519$931,768$1,161,611
44$1,310,759$988,212$905,846$1,183,509
45$1,385,520$977,698$877,256$1,206,263
46$1,466,050$964,813$845,851$1,229,987
47$1,552,880$949,381$811,480$1,254,810
48$1,646,591$931,218$773,981$1,280,878
49$1,747,823$910,127$733,189$1,308,357
50$1,857,279$885,901$688,929$1,337,432
51$1,975,731$858,320$641,018$1,368,315
52$2,104,029$827,152$589,266$1,401,244
53$2,243,108$792,150$533,474$1,436,485
54$2,393,992$753,053$473,433$1,474,339
55$2,557,813$709,586$408,927$1,515,144
56$2,735,812$661,458$339,728$1,559,278
57$2,929,356$608,360$265,600$1,607,165
58$3,139,948$549,967$186,295$1,659,281
59$3,369,242$485,935$101,554$1,716,156
60$3,619,057$415,898$11,110$1,778,385
61$3,891,398$339,474$0$1,846,631
62$4,188,468$256,256$0$1,939,862
63$4,512,694$165,815$0$2,044,393
64$4,866,747$67,698$0$2,158,836
65$5,253,566$0$0$2,284,288
66$5,676,389$0$0$2,438,940
67$6,138,779$0$0$2,640,770
68$6,644,659$0$0$2,861,708
69$7,198,351$0$0$3,103,657
70$7,804,612$0$0$3,368,711
71$8,468,680$0$0$3,659,178
72$9,196,325$0$0$3,977,599
73$9,993,900$0$0$4,326,772
74$10,868,405$0$0$4,709,779
75$11,827,545$0$0$5,130,016
76$12,879,810$0$0$5,591,223
77$14,034,550$0$0$6,097,517
78$15,302,066$0$0$6,653,437
79$16,693,702$0$0$7,263,981
80$18,221,956$0$0$7,934,655
81$19,900,594$0$0$8,671,526
82$21,744,784$0$0$9,481,274
83$23,771,233$0$0$10,371,262
84$25,998,347$0$0$11,349,600
85$28,446,403$0$0$12,425,223
86$31,137,742$0$0$13,607,976
87$34,096,977$0$0$14,908,704
88$37,351,224$0$0$16,339,357
89$40,930,359$0$0$17,913,101
90$44,867,299$0$0$19,644,440
91$49,198,312$0$0$21,549,359
92$53,963,356$0$0$23,645,467
93$59,206,459$0$0$25,952,167
94$64,976,133$0$0$28,490,839
95$71,325,827$0$0$31,285,039
96$78,314,437$0$0$34,360,724
97$86,006,857$0$0$37,746,494
98$94,474,591$0$0$41,473,863
99$103,796,427$0$0$45,577,556
100$114,059,181$0$0$50,095,837