Can I retire at age 40 with 960,000?

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 $960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.3%
1 years$79,276$78,570$77,881$77,208$76,552$74,280
2 years$39,245$38,515$37,806$37,119$36,453$34,183
3 years$25,904$25,170$24,463$23,783$23,127$20,930
4 years$19,234$18,502$17,803$17,134$16,495$14,387
5 years$15,234$14,506$13,816$13,161$12,539$10,527
6 years$12,567$11,845$11,165$10,525$9,922$8,007
7 years$10,664$9,948$9,278$8,653$8,069$6,252
8 years$9,236$8,527$7,869$7,259$6,694$4,973
9 years$8,127$7,424$6,777$6,183$5,637$4,011
10 years$7,240$6,544$5,909$5,330$4,803$3,269
11 years$6,515$5,826$5,202$4,638$4,131$2,686
12 years$5,911$5,229$4,617$4,068$3,580$2,221
13 years$5,400$4,725$4,125$3,592$3,122$1,847
14 years$4,963$4,295$3,706$3,188$2,736$1,542
15 years$4,584$3,924$3,346$2,844$2,409$1,291
16 years$4,253$3,600$3,034$2,546$2,129$1,085
17 years$3,961$3,316$2,760$2,288$1,888$913
18 years$3,702$3,064$2,520$2,062$1,679$771
19 years$3,471$2,839$2,307$1,863$1,496$651
20 years$3,263$2,639$2,117$1,687$1,337$551
21 years$3,075$2,458$1,947$1,531$1,196$467
22 years$2,904$2,294$1,795$1,392$1,072$396
23 years$2,748$2,146$1,657$1,268$962$336
24 years$2,606$2,010$1,533$1,156$865$285
25 years$2,475$1,887$1,420$1,056$778$242
26 years$2,354$1,773$1,317$966$701$206
27 years$2,243$1,669$1,223$884$632$175
28 years$2,140$1,572$1,136$810$570$149
29 years$2,044$1,483$1,058$743$515$127
30 years$1,954$1,401$985$682$465$108
31 years$1,871$1,324$918$626$421$92
32 years$1,792$1,253$857$575$381$78
33 years$1,719$1,187$800$529$344$67
34 years$1,650$1,125$748$487$312$57
35 years$1,586$1,067$699$448$282$48
36 years$1,525$1,013$654$413$256$41
37 years$1,467$962$612$380$232$35
38 years$1,413$914$573$350$210$30
39 years$1,361$869$537$323$191$26
40 years$1,312$827$503$298$173$22
41 years$1,266$787$472$275$157$19
42 years$1,222$750$443$254$142$16
43 years$1,180$714$415$234$129$13
44 years$1,141$681$390$216$117$11
45 years$1,103$649$366$200$106$10
46 years$1,067$619$344$185$97$8
47 years$1,032$591$323$170$88$7
48 years$999$564$304$158$80$6
49 years$967$539$285$146$72$5
50 years$937$515$268$135$66$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $960,000, adding $3,959 every year, while hoping to spend $37,479 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: 71/5/24 Blend
39$960,000$960,000$960,000$960,000
40$1,062,004$1,011,124$996,244$1,130,736
41$1,130,451$1,020,791$989,741$1,186,829
42$1,204,623$1,029,677$981,763$1,243,455
43$1,285,066$1,037,702$972,223$1,304,556
44$1,372,377$1,044,783$961,027$1,370,575
45$1,467,215$1,050,833$948,077$1,441,998
46$1,570,304$1,055,758$933,271$1,519,361
47$1,682,442$1,059,457$916,503$1,603,256
48$1,804,505$1,061,824$897,659$1,694,336
49$1,937,457$1,062,746$876,624$1,793,321
50$2,082,361$1,062,104$853,274$1,901,005
51$2,240,384$1,059,769$827,481$2,018,263
52$2,412,813$1,055,608$799,111$2,146,062
53$2,601,063$1,049,475$768,024$2,285,466
54$2,806,692$1,041,220$734,073$2,437,651
55$3,031,415$1,030,680$697,105$2,603,912
56$3,277,120$1,017,685$656,960$2,785,679
57$3,545,887$1,002,052$613,469$2,984,526
58$3,840,006$983,591$566,458$3,202,192
59$4,161,996$962,097$515,744$3,440,594
60$4,514,634$937,354$461,136$3,701,844
61$4,900,977$909,134$402,434$3,988,274
62$5,324,391$877,196$339,429$4,302,452
63$5,788,583$841,283$271,905$4,647,213
64$6,297,639$801,126$199,634$5,025,682
65$6,856,054$756,438$122,378$5,441,303
66$7,468,784$706,915$39,890$5,897,877
67$8,141,284$652,239$0$6,399,591
68$8,879,566$592,069$0$6,963,391
69$9,690,251$526,050$0$7,593,745
70$10,580,633$453,802$0$8,286,114
71$11,558,745$374,926$0$9,046,761
72$12,633,440$289,000$0$9,882,591
73$13,814,468$195,579$0$10,801,209
74$15,112,572$94,191$0$11,810,994
75$16,539,588$0$0$12,921,181
76$18,108,553$0$0$14,142,804
77$19,833,833$0$0$15,491,888
78$21,731,256$0$0$16,975,635
79$23,818,258$0$0$18,607,686
80$26,114,053$0$0$20,403,074
81$28,639,808$0$0$22,378,359
82$31,418,847$0$0$24,551,789
83$34,476,868$0$0$26,943,472
84$37,842,186$0$0$29,575,558
85$41,545,999$0$0$32,472,459
86$45,622,685$0$0$35,661,070
87$50,110,122$0$0$39,171,026
88$55,050,045$0$0$43,034,983
89$60,488,444$0$0$47,288,921
90$66,475,994$0$0$51,972,489
91$73,068,533$0$0$57,129,373
92$80,327,587$0$0$62,807,714
93$88,320,957$0$0$69,060,557
94$97,123,349$0$0$75,946,354
95$106,817,084$0$0$83,529,512
96$117,492,876$0$0$91,881,007
97$129,250,684$0$0$101,079,045
98$142,200,653$0$0$111,209,809
99$156,464,162$0$0$122,368,262
100$172,174,958$0$0$134,659,051