Can I retire at age 40 with 975,000?

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 $975,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$80,515$79,797$79,098$78,415$77,748$77,064
2 years$39,859$39,116$38,397$37,699$37,023$36,334
3 years$26,309$25,563$24,845$24,154$23,489$22,816
4 years$19,535$18,791$18,081$17,402$16,752$16,101
5 years$15,472$14,733$14,032$13,366$12,735$12,107
6 years$12,764$12,030$11,340$10,689$10,077$9,472
7 years$10,830$10,103$9,423$8,788$8,195$7,615
8 years$9,381$8,660$7,992$7,372$6,799$6,243
9 years$8,254$7,540$6,883$6,279$5,725$5,194
10 years$7,353$6,646$6,001$5,413$4,878$4,370
11 years$6,617$5,917$5,283$4,711$4,196$3,711
12 years$6,003$5,311$4,689$4,132$3,636$3,174
13 years$5,485$4,799$4,189$3,648$3,170$2,731
14 years$5,040$4,362$3,764$3,238$2,779$2,362
15 years$4,656$3,985$3,398$2,888$2,447$2,051
16 years$4,320$3,656$3,081$2,586$2,163$1,787
17 years$4,023$3,367$2,804$2,323$1,918$1,562
18 years$3,760$3,112$2,559$2,094$1,705$1,368
19 years$3,525$2,884$2,343$1,892$1,520$1,202
20 years$3,314$2,680$2,150$1,714$1,357$1,057
21 years$3,123$2,496$1,978$1,555$1,215$932
22 years$2,949$2,330$1,823$1,414$1,089$822
23 years$2,791$2,179$1,683$1,288$977$727
24 years$2,647$2,042$1,557$1,174$879$643
25 years$2,514$1,916$1,442$1,073$791$569
26 years$2,391$1,801$1,337$981$712$504
27 years$2,278$1,695$1,242$898$642$447
28 years$2,173$1,597$1,154$822$579$397
29 years$2,076$1,507$1,074$754$523$353
30 years$1,985$1,423$1,000$692$473$313
31 years$1,900$1,345$933$636$427$278
32 years$1,820$1,273$870$584$387$248
33 years$1,746$1,205$813$537$350$220
34 years$1,676$1,142$759$494$317$196
35 years$1,610$1,083$710$455$287$174
36 years$1,549$1,028$664$419$260$155
37 years$1,490$977$622$386$236$138
38 years$1,435$928$582$356$214$123
39 years$1,383$883$545$328$194$110
40 years$1,333$840$511$303$176$98
41 years$1,286$799$479$279$159$87
42 years$1,241$761$450$258$145$78
43 years$1,199$725$422$238$131$69
44 years$1,158$691$396$220$119$62
45 years$1,120$659$372$203$108$55
46 years$1,083$629$349$187$98$49
47 years$1,048$600$328$173$89$44
48 years$1,015$573$308$160$81$39
49 years$983$547$290$148$74$35
50 years$952$523$272$137$67$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $975,000, adding $4,661 every year, while hoping to spend $27,825 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: 43/43/14 Blend
39$975,000$975,000$975,000$975,000
40$1,079,258$1,027,583$1,012,470$1,121,089
41$1,159,737$1,048,329$1,016,782$1,171,602
42$1,247,492$1,069,159$1,020,307$1,223,156
43$1,343,236$1,090,047$1,022,987$1,278,402
44$1,447,753$1,110,967$1,024,764$1,337,692
45$1,561,908$1,131,889$1,025,578$1,401,411
46$1,686,651$1,152,780$1,025,363$1,469,988
47$1,823,029$1,173,605$1,024,052$1,543,892
48$1,972,194$1,194,328$1,021,574$1,623,642
49$2,135,415$1,214,908$1,017,854$1,709,811
50$2,314,090$1,235,300$1,012,815$1,803,030
51$2,509,756$1,255,459$1,006,373$1,903,996
52$2,724,109$1,275,334$998,444$2,013,475
53$2,959,014$1,294,872$988,938$2,132,316
54$3,216,526$1,314,013$977,760$2,261,452
55$3,498,909$1,332,697$964,813$2,401,913
56$3,808,655$1,350,857$949,991$2,554,837
57$4,148,511$1,368,421$933,189$2,721,476
58$4,521,500$1,385,315$914,291$2,903,213
59$4,930,953$1,401,456$893,181$3,101,573
60$5,380,541$1,416,758$869,733$3,318,238
61$5,874,307$1,431,129$843,819$3,555,063
62$6,416,702$1,444,471$815,303$3,814,095
63$7,012,632$1,456,677$784,043$4,097,590
64$7,667,503$1,467,636$749,890$4,408,037
65$8,387,267$1,477,229$712,691$4,748,182
66$9,178,484$1,485,329$672,282$5,121,052
67$10,048,380$1,491,801$628,494$5,529,985
68$11,004,917$1,496,501$581,150$5,978,665
69$12,056,866$1,499,277$530,066$6,471,153
70$13,213,892$1,499,967$475,049$7,011,926
71$14,486,641$1,498,398$415,896$7,605,925
72$15,886,847$1,494,388$352,396$8,258,594
73$17,427,434$1,487,742$284,331$8,975,940
74$19,122,646$1,478,254$211,469$9,764,586
75$20,988,173$1,465,707$133,571$10,631,835
76$23,041,308$1,449,867$50,386$11,585,739
77$25,301,101$1,430,490$0$12,635,178
78$27,788,545$1,407,316$0$13,795,676
79$30,526,770$1,380,068$0$15,080,700
80$33,541,264$1,348,454$0$16,494,661
81$36,860,110$1,312,165$0$18,050,726
82$40,514,253$1,270,874$0$19,763,411
83$44,537,794$1,224,234$0$21,648,718
84$48,968,304$1,171,877$0$23,724,286
85$53,847,188$1,113,416$0$26,009,558
86$59,220,068$1,048,440$0$28,525,968
87$65,137,217$976,515$0$31,297,142
88$71,654,030$897,181$0$34,349,123
89$78,831,552$809,954$0$37,710,617
90$86,737,050$714,321$0$41,413,268
91$95,444,645$609,739$0$45,491,956
92$105,036,018$495,635$0$49,985,125
93$115,601,175$371,405$0$54,935,154
94$127,239,301$236,410$0$60,388,752
95$140,059,689$89,974$0$66,397,406
96$154,182,780$0$0$73,017,866
97$169,741,292$0$0$80,345,147
98$186,881,475$0$0$88,464,408
99$205,764,494$0$0$97,409,441
100$226,567,946$0$0$107,264,400