Can I retire at age 40 with 970,000?

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 $970,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$80,102$79,388$78,692$78,013$77,349$74,457
2 years$39,654$38,916$38,200$37,506$36,833$33,952
3 years$26,174$25,432$24,718$24,030$23,368$20,590
4 years$19,435$18,695$17,988$17,313$16,666$14,011
5 years$15,392$14,657$13,960$13,298$12,670$10,144
6 years$12,698$11,969$11,282$10,634$10,025$7,632
7 years$10,775$10,051$9,375$8,743$8,153$5,891
8 years$9,333$8,616$7,951$7,334$6,764$4,631
9 years$8,212$7,502$6,848$6,247$5,696$3,689
10 years$7,315$6,612$5,970$5,385$4,853$2,969
11 years$6,583$5,887$5,256$4,687$4,174$2,408
12 years$5,972$5,283$4,665$4,111$3,617$1,965
13 years$5,456$4,775$4,168$3,629$3,154$1,612
14 years$5,015$4,340$3,745$3,222$2,765$1,327
15 years$4,632$3,965$3,381$2,873$2,434$1,096
16 years$4,297$3,638$3,065$2,573$2,152$907
17 years$4,003$3,350$2,789$2,311$1,908$753
18 years$3,741$3,096$2,546$2,083$1,696$626
19 years$3,507$2,869$2,331$1,882$1,512$521
20 years$3,297$2,666$2,139$1,705$1,350$434
21 years$3,107$2,483$1,968$1,547$1,209$362
22 years$2,934$2,318$1,814$1,407$1,083$302
23 years$2,777$2,168$1,674$1,281$972$253
24 years$2,633$2,031$1,549$1,168$874$211
25 years$2,501$1,906$1,434$1,067$786$177
26 years$2,379$1,792$1,330$976$708$148
27 years$2,266$1,686$1,235$893$639$124
28 years$2,162$1,589$1,148$818$576$103
29 years$2,065$1,499$1,069$750$520$87
30 years$1,975$1,415$995$689$470$73
31 years$1,890$1,338$928$632$425$61
32 years$1,811$1,266$866$581$385$51
33 years$1,737$1,199$808$535$348$43
34 years$1,668$1,136$755$492$315$36
35 years$1,602$1,078$706$453$285$30
36 years$1,541$1,023$661$417$259$25
37 years$1,482$972$618$384$234$21
38 years$1,427$923$579$354$212$18
39 years$1,375$878$542$326$193$15
40 years$1,326$835$508$301$175$12
41 years$1,279$795$477$278$159$10
42 years$1,235$757$447$256$144$9
43 years$1,193$722$420$237$131$7
44 years$1,152$688$394$219$119$6
45 years$1,114$656$370$202$108$5
46 years$1,078$626$347$186$98$4
47 years$1,043$597$326$172$89$4
48 years$1,009$570$307$159$81$3
49 years$978$544$288$147$73$3
50 years$947$520$271$136$66$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $970,000, adding $5,647 every year, while hoping to spend $49,019 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: 74/14/12 Blend
39$970,000$970,000$970,000$970,000
40$1,074,765$1,023,355$1,008,320$1,151,288
41$1,132,235$1,021,343$989,943$1,200,586
42$1,193,924$1,017,591$969,307$1,247,924
43$1,260,211$1,011,959$946,285$1,298,444
44$1,331,511$1,004,304$920,745$1,352,447
45$1,408,281$994,470$892,545$1,410,265
46$1,491,021$982,294$861,541$1,472,266
47$1,580,282$967,604$827,579$1,538,853
48$1,676,669$950,215$790,501$1,610,473
49$1,780,846$929,932$750,140$1,687,619
50$1,893,544$906,550$706,321$1,770,835
51$2,015,565$879,850$658,862$1,860,722
52$2,147,792$849,602$607,573$1,957,940
53$2,291,195$815,561$552,255$2,063,222
54$2,446,841$777,468$492,701$2,177,374
55$2,615,905$735,050$428,692$2,301,287
56$2,799,677$688,017$360,003$2,435,942
57$2,999,577$636,063$286,396$2,582,425
58$3,217,169$578,866$207,626$2,741,930
59$3,454,172$516,082$123,433$2,915,780
60$3,712,478$447,350$33,548$3,105,430
61$3,994,170$372,289$0$3,312,487
62$4,301,539$290,495$0$3,546,714
63$4,637,108$201,542$0$3,807,182
64$5,003,656$104,980$0$4,091,790
65$5,404,238$334$0$4,402,963
66$5,842,222$0$0$4,743,370
67$6,321,312$0$0$5,133,349
68$6,845,590$0$0$5,560,208
69$7,419,549$0$0$6,027,559
70$8,048,136$0$0$6,539,437
71$8,736,801$0$0$7,100,285
72$9,491,544$0$0$7,714,993
73$10,318,973$0$0$8,388,953
74$11,226,368$0$0$9,128,098
75$12,221,746$0$0$9,938,964
76$13,313,936$0$0$10,828,753
77$14,512,665$0$0$11,805,395
78$15,828,647$0$0$12,877,626
79$17,273,683$0$0$14,055,069
80$18,860,773$0$0$15,348,325
81$20,604,241$0$0$16,769,071
82$22,519,861$0$0$18,330,173
83$24,625,015$0$0$20,045,803
84$26,938,851$0$0$21,931,575
85$29,482,464$0$0$24,004,690
86$32,279,095$0$0$26,284,100
87$35,354,349$0$0$28,790,684
88$38,736,436$0$0$31,547,446
89$42,456,439$0$0$34,579,731
90$46,548,601$0$0$37,915,465
91$51,050,655$0$0$41,585,414
92$56,004,173$0$0$45,623,479
93$61,454,959$0$0$50,067,012
94$67,453,484$0$0$54,957,169
95$74,055,357$0$0$60,339,296
96$81,321,852$0$0$66,263,359
97$89,320,485$0$0$72,784,415
98$98,125,647$0$0$79,963,127
99$107,819,313$0$0$87,866,342
100$118,491,805$0$0$96,567,713