Can I retire at age 40 with 974,000?

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 $974,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$80,432$79,716$79,017$78,334$77,668$74,616
2 years$39,818$39,076$38,358$37,661$36,985$33,947
3 years$26,282$25,537$24,820$24,130$23,465$20,537
4 years$19,515$18,772$18,063$17,384$16,735$13,940
5 years$15,456$14,718$14,017$13,353$12,722$10,066
6 years$12,751$12,018$11,328$10,678$10,066$7,552
7 years$10,819$10,093$9,414$8,779$8,187$5,813
8 years$9,371$8,651$7,984$7,365$6,792$4,556
9 years$8,246$7,533$6,876$6,273$5,720$3,619
10 years$7,346$6,640$5,995$5,407$4,873$2,903
11 years$6,610$5,911$5,278$4,706$4,191$2,347
12 years$5,997$5,305$4,684$4,128$3,632$1,909
13 years$5,479$4,794$4,185$3,644$3,167$1,560
14 years$5,035$4,358$3,760$3,235$2,776$1,280
15 years$4,651$3,981$3,395$2,885$2,445$1,053
16 years$4,315$3,653$3,078$2,583$2,160$869
17 years$4,019$3,364$2,801$2,321$1,916$718
18 years$3,756$3,108$2,557$2,092$1,703$595
19 years$3,521$2,881$2,341$1,890$1,518$493
20 years$3,310$2,677$2,148$1,712$1,356$409
21 years$3,120$2,494$1,976$1,554$1,214$340
22 years$2,946$2,328$1,821$1,413$1,088$283
23 years$2,788$2,177$1,681$1,286$976$235
24 years$2,644$2,040$1,555$1,173$878$196
25 years$2,511$1,914$1,440$1,072$790$163
26 years$2,389$1,799$1,336$980$711$136
27 years$2,276$1,693$1,240$897$641$113
28 years$2,171$1,595$1,153$822$579$95
29 years$2,073$1,505$1,073$753$523$79
30 years$1,983$1,421$999$691$472$66
31 years$1,898$1,344$932$635$427$55
32 years$1,819$1,271$869$584$386$46
33 years$1,744$1,204$812$537$349$38
34 years$1,674$1,141$758$494$316$32
35 years$1,609$1,082$709$455$287$27
36 years$1,547$1,027$663$419$260$22
37 years$1,489$976$621$386$235$18
38 years$1,433$927$581$356$213$15
39 years$1,381$882$545$328$193$13
40 years$1,332$839$511$302$175$11
41 years$1,285$799$479$279$159$9
42 years$1,240$761$449$257$144$7
43 years$1,198$725$421$238$131$6
44 years$1,157$691$396$219$119$5
45 years$1,119$659$371$203$108$4
46 years$1,082$628$349$187$98$4
47 years$1,047$600$328$173$89$3
48 years$1,014$572$308$160$81$3
49 years$982$547$289$148$73$2
50 years$951$522$272$137$67$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $974,000, adding $2,045 every year, while hoping to spend $38,721 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: 52/33/15 Blend
39$974,000$974,000$974,000$974,000
40$1,075,457$1,023,835$1,008,738$1,126,924
41$1,143,955$1,032,805$1,001,332$1,171,348
42$1,218,142$1,040,915$992,380$1,215,376
43$1,298,557$1,048,085$981,790$1,262,397
44$1,385,794$1,054,225$969,464$1,312,704
45$1,480,505$1,059,242$955,300$1,366,624
46$1,583,407$1,063,035$939,193$1,424,516
47$1,695,289$1,065,499$921,031$1,486,779
48$1,817,020$1,066,520$900,698$1,553,853
49$1,949,556$1,065,979$878,071$1,626,226
50$2,093,947$1,063,748$853,022$1,704,436
51$2,251,350$1,059,692$825,419$1,789,078
52$2,423,039$1,053,668$795,121$1,880,812
53$2,610,414$1,045,523$761,983$1,980,364
54$2,815,019$1,035,097$725,853$2,088,540
55$3,038,551$1,022,217$686,569$2,206,229
56$3,282,880$1,006,702$643,966$2,334,413
57$3,550,065$988,361$597,869$2,474,178
58$3,842,370$966,990$548,097$2,626,725
59$4,162,292$942,373$494,459$2,793,379
60$4,512,578$914,281$436,755$2,975,606
61$4,896,254$882,474$374,779$3,175,022
62$5,316,652$846,695$308,314$3,393,417
63$5,777,441$806,673$237,133$3,632,763
64$6,282,663$762,123$161,000$3,895,242
65$6,836,769$712,742$79,668$4,183,260
66$7,444,662$658,209$0$4,499,478
67$8,111,742$598,186$0$4,847,972
68$8,843,958$532,315$0$5,244,523
69$9,647,862$460,218$0$5,679,992
70$10,530,671$381,496$0$6,158,376
71$11,500,336$295,727$0$6,684,085
72$12,565,617$202,464$0$7,261,983
73$13,736,162$101,237$0$7,897,436
74$15,022,602$0$0$8,596,364
75$16,436,647$0$0$9,368,364
76$17,991,200$0$0$10,257,594
77$19,700,474$0$0$11,235,436
78$21,580,131$0$0$12,310,862
79$23,647,424$0$0$13,493,759
80$25,921,364$0$0$14,795,017
81$28,422,896$0$0$16,226,637
82$31,175,097$0$0$17,801,842
83$34,203,394$0$0$19,535,202
84$37,535,803$0$0$21,442,767
85$41,203,193$0$0$23,542,226
86$45,239,578$0$0$25,853,066
87$49,682,433$0$0$28,396,763
88$54,573,056$0$0$31,196,978
89$59,956,946$0$0$34,279,782
90$65,884,243$0$0$37,673,905
91$72,410,192$0$0$41,411,002
92$79,595,669$0$0$45,525,956
93$87,507,754$0$0$50,057,202
94$96,220,361$0$0$55,047,095
95$105,814,939$0$0$60,542,304
96$116,381,237$0$0$66,594,258
97$128,018,152$0$0$73,259,625
98$140,834,662$0$0$80,600,852
99$154,950,854$0$0$88,686,749
100$170,499,056$0$0$97,593,142