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%17.2%
1 years$80,515$79,797$79,098$78,415$77,748$75,471
2 years$39,859$39,116$38,397$37,699$37,023$34,747
3 years$26,309$25,563$24,845$24,154$23,489$21,286
4 years$19,535$18,791$18,081$17,402$16,752$14,639
5 years$15,472$14,733$14,032$13,366$12,735$10,717
6 years$12,764$12,030$11,340$10,689$10,077$8,156
7 years$10,830$10,103$9,423$8,788$8,195$6,372
8 years$9,381$8,660$7,992$7,372$6,799$5,071
9 years$8,254$7,540$6,883$6,279$5,725$4,092
10 years$7,353$6,646$6,001$5,413$4,878$3,337
11 years$6,617$5,917$5,283$4,711$4,196$2,744
12 years$6,003$5,311$4,689$4,132$3,636$2,271
13 years$5,485$4,799$4,189$3,648$3,170$1,889
14 years$5,040$4,362$3,764$3,238$2,779$1,578
15 years$4,656$3,985$3,398$2,888$2,447$1,323
16 years$4,320$3,656$3,081$2,586$2,163$1,112
17 years$4,023$3,367$2,804$2,323$1,918$937
18 years$3,760$3,112$2,559$2,094$1,705$791
19 years$3,525$2,884$2,343$1,892$1,520$669
20 years$3,314$2,680$2,150$1,714$1,357$567
21 years$3,123$2,496$1,978$1,555$1,215$480
22 years$2,949$2,330$1,823$1,414$1,089$408
23 years$2,791$2,179$1,683$1,288$977$346
24 years$2,647$2,042$1,557$1,174$879$294
25 years$2,514$1,916$1,442$1,073$791$250
26 years$2,391$1,801$1,337$981$712$213
27 years$2,278$1,695$1,242$898$642$181
28 years$2,173$1,597$1,154$822$579$154
29 years$2,076$1,507$1,074$754$523$131
30 years$1,985$1,423$1,000$692$473$112
31 years$1,900$1,345$933$636$427$95
32 years$1,820$1,273$870$584$387$81
33 years$1,746$1,205$813$537$350$69
34 years$1,676$1,142$759$494$317$59
35 years$1,610$1,083$710$455$287$50
36 years$1,549$1,028$664$419$260$43
37 years$1,490$977$622$386$236$37
38 years$1,435$928$582$356$214$31
39 years$1,383$883$545$328$194$27
40 years$1,333$840$511$303$176$23
41 years$1,286$799$479$279$159$19
42 years$1,241$761$450$258$145$17
43 years$1,199$725$422$238$131$14
44 years$1,158$691$396$220$119$12
45 years$1,120$659$372$203$108$10
46 years$1,083$629$349$187$98$9
47 years$1,048$600$328$173$89$7
48 years$1,015$573$308$160$81$6
49 years$983$547$290$148$74$5
50 years$952$523$272$137$67$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $975,000, adding $6,986 every year, while hoping to spend $51,822 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: 63/27/10 Blend
39$975,000$975,000$975,000$975,000
40$1,081,656$1,029,981$1,014,869$1,146,976
41$1,136,847$1,025,312$993,728$1,186,826
42$1,195,930$1,018,677$970,143$1,223,668
43$1,259,248$1,009,926$943,976$1,262,590
44$1,327,177$998,897$915,085$1,303,790
45$1,400,128$985,423$883,320$1,347,491
46$1,478,554$969,321$848,524$1,393,942
47$1,562,951$950,403$810,534$1,443,415
48$1,653,865$928,465$769,179$1,496,214
49$1,751,894$903,294$724,282$1,552,677
50$1,857,696$874,665$675,654$1,613,177
51$1,971,994$842,336$623,101$1,678,127
52$2,095,581$806,054$566,419$1,747,986
53$2,229,332$765,552$505,395$1,823,263
54$2,374,205$720,546$439,807$1,904,520
55$2,531,256$670,734$369,423$1,992,382
56$2,701,644$615,801$293,999$2,087,539
57$2,886,647$555,410$213,283$2,190,756
58$3,087,667$489,207$127,010$2,302,880
59$3,306,249$416,818$34,904$2,424,849
60$3,544,090$337,847$0$2,557,699
61$3,803,061$251,874$0$2,709,343
62$4,085,217$158,460$0$2,878,702
63$4,392,821$57,137$0$3,063,487
64$4,728,365$0$0$3,265,287
65$5,094,590$0$0$3,501,483
66$5,494,513$0$0$3,778,016
67$5,931,458$0$0$4,080,216
68$6,409,080$0$0$4,410,621
69$6,931,408$0$0$4,772,025
70$7,502,873$0$0$5,167,506
71$8,128,359$0$0$5,600,450
72$8,813,241$0$0$6,074,589
73$9,563,437$0$0$6,594,032
74$10,385,469$0$0$7,163,303
75$11,286,513$0$0$7,787,384
76$12,274,479$0$0$8,471,765
77$13,358,075$0$0$9,222,490
78$14,546,893$0$0$10,046,217
79$15,851,499$0$0$10,950,280
80$17,283,530$0$0$11,942,756
81$18,855,806$0$0$13,032,545
82$20,582,450$0$0$14,229,448
83$22,479,017$0$0$15,544,265
84$24,562,644$0$0$16,988,890
85$26,852,210$0$0$18,576,429
86$29,368,513$0$0$20,321,319
87$32,134,467$0$0$22,239,466
88$35,175,314$0$0$24,348,394
89$38,518,867$0$0$26,667,407
90$42,195,766$0$0$29,217,778
91$46,239,769$0$0$32,022,940
92$50,688,072$0$0$35,108,716
93$55,581,655$0$0$38,503,552
94$60,965,670$0$0$42,238,795
95$66,889,868$0$0$46,348,980
96$73,409,064$0$0$50,872,163
97$80,583,655$0$0$55,850,271
98$88,480,190$0$0$61,329,504
99$97,171,998$0$0$67,360,767
100$106,739,875$0$0$74,000,153