Can I retire at age 40 with 972,000?

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 $972,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.1%
1 years$80,267$79,552$78,854$78,173$77,509$76,193
2 years$39,736$38,996$38,279$37,583$36,909$35,588
3 years$26,228$25,484$24,769$24,080$23,417$22,131
4 years$19,475$18,734$18,025$17,348$16,701$15,460
5 years$15,424$14,687$13,988$13,325$12,696$11,504
6 years$12,724$11,993$11,305$10,656$10,046$8,904
7 years$10,797$10,072$9,394$8,761$8,170$7,079
8 years$9,352$8,634$7,967$7,349$6,778$5,737
9 years$8,229$7,517$6,862$6,260$5,708$4,717
10 years$7,330$6,626$5,983$5,396$4,863$3,921
11 years$6,596$5,899$5,267$4,696$4,183$3,288
12 years$5,985$5,294$4,674$4,119$3,625$2,777
13 years$5,468$4,785$4,176$3,637$3,161$2,358
14 years$5,025$4,349$3,752$3,228$2,771$2,012
15 years$4,641$3,973$3,388$2,879$2,439$1,724
16 years$4,306$3,645$3,072$2,578$2,156$1,481
17 years$4,011$3,357$2,795$2,316$1,912$1,277
18 years$3,749$3,102$2,551$2,087$1,700$1,103
19 years$3,514$2,875$2,336$1,886$1,515$954
20 years$3,304$2,671$2,144$1,708$1,353$827
21 years$3,113$2,488$1,972$1,550$1,211$718
22 years$2,940$2,323$1,817$1,410$1,086$624
23 years$2,783$2,172$1,678$1,284$974$543
24 years$2,638$2,035$1,552$1,171$876$473
25 years$2,506$1,910$1,437$1,069$788$412
26 years$2,384$1,795$1,333$978$710$360
27 years$2,271$1,690$1,238$895$640$314
28 years$2,166$1,592$1,151$820$578$274
29 years$2,069$1,502$1,071$752$521$240
30 years$1,979$1,418$997$690$471$209
31 years$1,894$1,341$930$634$426$183
32 years$1,815$1,269$868$582$385$160
33 years$1,741$1,202$810$536$349$140
34 years$1,671$1,139$757$493$316$123
35 years$1,606$1,080$708$454$286$107
36 years$1,544$1,025$662$418$259$94
37 years$1,485$974$620$385$235$82
38 years$1,430$925$580$355$213$72
39 years$1,378$880$544$327$193$63
40 years$1,329$837$510$302$175$55
41 years$1,282$797$478$278$159$48
42 years$1,237$759$448$257$144$42
43 years$1,195$723$421$237$131$37
44 years$1,155$689$395$219$119$32
45 years$1,116$657$371$202$108$28
46 years$1,080$627$348$187$98$25
47 years$1,045$598$327$173$89$22
48 years$1,012$571$307$159$81$19
49 years$980$545$289$147$73$17
50 years$949$521$272$136$67$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $972,000, adding $2,539 every year, while hoping to spend $52,153 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: 36/45/19 Blend
39$972,000$972,000$972,000$972,000
40$1,073,763$1,022,247$1,007,181$1,106,139
41$1,127,796$1,016,847$985,431$1,124,540
42$1,185,593$1,009,434$961,205$1,139,327
43$1,247,482$999,855$934,364$1,154,205
44$1,313,825$987,946$904,764$1,169,211
45$1,385,015$973,536$872,254$1,184,393
46$1,461,488$956,441$836,676$1,199,804
47$1,543,721$936,467$797,865$1,215,511
48$1,632,235$913,409$755,649$1,231,589
49$1,727,607$887,050$709,846$1,248,129
50$1,830,465$857,158$660,269$1,265,236
51$1,941,505$823,491$606,721$1,283,030
52$2,061,488$785,791$548,995$1,301,653
53$2,191,250$743,785$486,876$1,321,266
54$2,331,711$697,185$420,141$1,342,053
55$2,483,884$645,685$348,554$1,364,226
56$2,648,880$588,964$271,870$1,388,025
57$2,827,923$526,680$189,834$1,413,726
58$3,022,356$458,472$102,179$1,441,639
59$3,233,661$383,962$8,626$1,472,117
60$3,463,463$302,745$0$1,505,560
61$3,713,555$214,398$0$1,560,908
62$3,985,906$118,472$0$1,623,246
63$4,282,684$14,492$0$1,691,460
64$4,606,275$0$0$1,766,261
65$4,959,305$0$0$1,896,986
66$5,344,665$0$0$2,047,647
67$5,765,536$0$0$2,212,325
68$6,225,421$0$0$2,392,409
69$6,728,176$0$0$2,589,425
70$7,278,046$0$0$2,805,057
71$7,879,706$0$0$3,041,156
72$8,538,304$0$0$3,299,761
73$9,259,507$0$0$3,583,118
74$10,049,558$0$0$3,893,702
75$10,915,329$0$0$4,234,236
76$11,864,391$0$0$4,607,721
77$12,905,082$0$0$5,017,462
78$14,046,585$0$0$5,467,099
79$15,299,015$0$0$5,960,640
80$16,673,512$0$0$6,502,504
81$18,182,349$0$0$7,097,556
82$19,839,044$0$0$7,751,154
83$21,658,488$0$0$8,469,202
84$23,657,084$0$0$9,258,206
85$25,852,905$0$0$10,125,331
86$28,265,857$0$0$11,078,470
87$30,917,873$0$0$12,126,320
88$33,833,115$0$0$13,278,463
89$37,038,203$0$0$14,545,455
90$40,562,464$0$0$15,938,928
91$44,438,211$0$0$17,471,694
92$48,701,042$0$0$19,157,872
93$53,390,181$0$0$21,013,019
94$58,548,844$0$0$23,054,274
95$64,224,646$0$0$25,300,522
96$70,470,049$0$0$27,772,570
97$77,342,861$0$0$30,493,346
98$84,906,772$0$0$33,488,112
99$93,231,963$0$0$36,784,705
100$102,395,762$0$0$40,413,795