Can I retire at age 40 with 968,000?

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 $968,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$79,937$79,225$78,530$77,852$77,190$76,864
2 years$39,573$38,836$38,121$37,429$36,757$36,429
3 years$26,120$25,379$24,667$23,981$23,320$22,999
4 years$19,395$18,657$17,951$17,277$16,632$16,320
5 years$15,360$14,627$13,931$13,270$12,643$12,342
6 years$12,672$11,944$11,258$10,612$10,004$9,714
7 years$10,752$10,031$9,356$8,725$8,136$7,857
8 years$9,313$8,598$7,934$7,319$6,750$6,481
9 years$8,195$7,486$6,834$6,234$5,684$5,427
10 years$7,300$6,599$5,958$5,374$4,843$4,597
11 years$6,569$5,874$5,245$4,677$4,165$3,929
12 years$5,960$5,273$4,655$4,102$3,610$3,384
13 years$5,445$4,765$4,159$3,622$3,148$2,932
14 years$5,004$4,331$3,737$3,215$2,759$2,554
15 years$4,622$3,957$3,374$2,867$2,429$2,234
16 years$4,289$3,630$3,059$2,567$2,147$1,961
17 years$3,994$3,343$2,783$2,307$1,904$1,727
18 years$3,733$3,089$2,541$2,079$1,693$1,525
19 years$3,500$2,863$2,326$1,878$1,509$1,350
20 years$3,290$2,660$2,135$1,701$1,348$1,197
21 years$3,100$2,478$1,964$1,544$1,206$1,064
22 years$2,928$2,313$1,810$1,404$1,081$946
23 years$2,771$2,164$1,671$1,278$970$843
24 years$2,628$2,027$1,545$1,166$872$752
25 years$2,496$1,902$1,431$1,065$785$672
26 years$2,374$1,788$1,327$974$707$601
27 years$2,262$1,683$1,233$891$637$537
28 years$2,157$1,586$1,146$817$575$481
29 years$2,061$1,496$1,066$749$519$431
30 years$1,970$1,413$993$687$469$386
31 years$1,886$1,335$926$631$424$346
32 years$1,807$1,264$864$580$384$311
33 years$1,734$1,197$807$533$347$279
34 years$1,664$1,134$754$491$314$251
35 years$1,599$1,076$705$452$285$225
36 years$1,537$1,021$659$416$258$202
37 years$1,479$970$617$383$234$182
38 years$1,425$922$578$353$212$163
39 years$1,373$876$541$326$192$147
40 years$1,323$834$507$301$174$132
41 years$1,277$794$476$277$158$119
42 years$1,232$756$446$256$144$107
43 years$1,190$720$419$236$130$96
44 years$1,150$686$393$218$118$87
45 years$1,112$655$369$201$107$78
46 years$1,075$624$347$186$97$70
47 years$1,041$596$326$172$89$63
48 years$1,007$569$306$159$80$57
49 years$976$543$288$147$73$51
50 years$945$519$270$136$66$46

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $968,000, adding $5,468 every year, while hoping to spend $43,307 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: 39/35/26 Blend
39$968,000$968,000$968,000$968,000
40$1,072,376$1,021,072$1,006,068$1,105,743
41$1,135,680$1,025,026$993,693$1,134,471
42$1,203,990$1,027,723$979,452$1,161,088
43$1,277,770$1,029,054$963,237$1,189,027
44$1,357,531$1,028,907$944,934$1,218,436
45$1,443,835$1,027,159$924,425$1,249,479
46$1,537,299$1,023,682$901,586$1,282,342
47$1,638,601$1,018,340$876,286$1,317,232
48$1,748,487$1,010,988$848,391$1,354,378
49$1,867,779$1,001,472$817,758$1,394,041
50$1,997,378$989,630$784,239$1,436,507
51$2,138,277$975,289$747,678$1,482,099
52$2,291,569$958,266$707,912$1,531,175
53$2,458,455$938,367$664,773$1,584,136
54$2,640,258$915,387$618,083$1,641,426
55$2,838,432$889,109$567,657$1,703,542
56$3,054,579$859,302$513,301$1,771,035
57$3,290,462$825,724$454,812$1,844,520
58$3,548,021$788,116$391,980$1,924,679
59$3,829,392$746,207$324,585$2,012,271
60$4,136,926$699,707$252,394$2,108,139
61$4,473,213$648,312$175,169$2,213,219
62$4,841,101$591,700$92,658$2,328,551
63$5,243,730$529,530$4,599$2,455,287
64$5,684,556$461,443$0$2,594,708
65$6,167,383$387,056$0$2,773,029
66$6,696,404$305,970$0$2,970,000
67$7,276,233$217,758$0$3,186,172
68$7,911,954$121,973$0$3,423,564
69$8,609,165$18,142$0$3,684,409
70$9,374,033$0$0$3,971,172
71$10,213,349$0$0$4,322,871
72$11,134,595$0$0$4,716,706
73$12,146,012$0$0$5,149,228
74$13,256,678$0$0$5,624,337
75$14,476,592$0$0$6,146,329
76$15,816,771$0$0$6,719,935
77$17,289,351$0$0$7,350,370
78$18,907,701$0$0$8,043,377
79$20,686,551$0$0$8,805,283
80$22,642,126$0$0$9,643,061
81$24,792,304$0$0$10,564,390
82$27,156,782$0$0$11,577,734
83$29,757,260$0$0$12,692,415
84$32,617,648$0$0$13,918,708
85$35,764,287$0$0$15,267,930
86$39,226,202$0$0$16,752,552
87$43,035,371$0$0$18,386,315
88$47,227,032$0$0$20,184,360
89$51,840,006$0$0$22,163,368
90$56,917,072$0$0$24,341,722
91$62,505,364$0$0$26,739,675
92$68,656,818$0$0$29,379,545
93$75,428,662$0$0$32,285,923
94$82,883,953$0$0$35,485,906
95$91,092,173$0$0$39,009,352
96$100,129,884$0$0$42,889,162
97$110,081,450$0$0$47,161,589
98$121,039,833$0$0$51,866,583
99$133,107,469$0$0$57,048,163
100$146,397,233$0$0$62,754,837