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%18.5%
1 years$80,515$79,797$79,098$78,415$77,748$75,079
2 years$39,859$39,116$38,397$37,699$37,023$34,361
3 years$26,309$25,563$24,845$24,154$23,489$20,918
4 years$19,535$18,791$18,081$17,402$16,752$14,292
5 years$15,472$14,733$14,032$13,366$12,735$10,391
6 years$12,764$12,030$11,340$10,689$10,077$7,852
7 years$10,830$10,103$9,423$8,788$8,195$6,089
8 years$9,381$8,660$7,992$7,372$6,799$4,809
9 years$8,254$7,540$6,883$6,279$5,725$3,850
10 years$7,353$6,646$6,001$5,413$4,878$3,114
11 years$6,617$5,917$5,283$4,711$4,196$2,539
12 years$6,003$5,311$4,689$4,132$3,636$2,083
13 years$5,485$4,799$4,189$3,648$3,170$1,718
14 years$5,040$4,362$3,764$3,238$2,779$1,422
15 years$4,656$3,985$3,398$2,888$2,447$1,181
16 years$4,320$3,656$3,081$2,586$2,163$984
17 years$4,023$3,367$2,804$2,323$1,918$821
18 years$3,760$3,112$2,559$2,094$1,705$687
19 years$3,525$2,884$2,343$1,892$1,520$575
20 years$3,314$2,680$2,150$1,714$1,357$482
21 years$3,123$2,496$1,978$1,555$1,215$405
22 years$2,949$2,330$1,823$1,414$1,089$340
23 years$2,791$2,179$1,683$1,288$977$286
24 years$2,647$2,042$1,557$1,174$879$240
25 years$2,514$1,916$1,442$1,073$791$202
26 years$2,391$1,801$1,337$981$712$170
27 years$2,278$1,695$1,242$898$642$143
28 years$2,173$1,597$1,154$822$579$121
29 years$2,076$1,507$1,074$754$523$102
30 years$1,985$1,423$1,000$692$473$86
31 years$1,900$1,345$933$636$427$72
32 years$1,820$1,273$870$584$387$61
33 years$1,746$1,205$813$537$350$51
34 years$1,676$1,142$759$494$317$43
35 years$1,610$1,083$710$455$287$37
36 years$1,549$1,028$664$419$260$31
37 years$1,490$977$622$386$236$26
38 years$1,435$928$582$356$214$22
39 years$1,383$883$545$328$194$19
40 years$1,333$840$511$303$176$16
41 years$1,286$799$479$279$159$13
42 years$1,241$761$450$258$145$11
43 years$1,199$725$422$238$131$9
44 years$1,158$691$396$220$119$8
45 years$1,120$659$372$203$108$7
46 years$1,083$629$349$187$98$6
47 years$1,048$600$328$173$89$5
48 years$1,015$573$308$160$81$4
49 years$983$547$290$148$74$3
50 years$952$523$272$137$67$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $975,000, adding $2,611 every year, while hoping to spend $44,611 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: 60/16/24 Blend
39$975,000$975,000$975,000$975,000
40$1,077,143$1,025,468$1,010,356$1,134,723
41$1,139,546$1,028,250$996,737$1,176,939
42$1,206,819$1,029,674$981,167$1,217,912
43$1,279,411$1,029,625$963,533$1,261,646
44$1,357,817$1,027,982$943,717$1,308,420
45$1,442,579$1,024,618$921,596$1,358,540
46$1,534,295$1,019,397$897,042$1,412,346
47$1,633,619$1,012,174$869,919$1,470,214
48$1,741,274$1,002,796$840,087$1,532,560
49$1,858,051$991,100$807,398$1,599,846
50$1,984,824$976,916$771,697$1,672,580
51$2,122,551$960,059$732,824$1,751,326
52$2,272,287$940,338$690,609$1,836,708
53$2,435,194$917,548$644,878$1,929,415
54$2,612,547$891,472$595,445$2,030,210
55$2,805,753$861,880$542,118$2,139,937
56$3,016,358$828,530$484,697$2,259,526
57$3,246,063$791,165$422,972$2,390,009
58$3,496,743$749,513$356,722$2,532,525
59$3,770,459$703,287$285,721$2,688,331
60$4,069,481$652,183$209,727$2,858,819
61$4,396,308$595,880$128,493$3,045,526
62$4,753,691$534,038$41,757$3,250,148
63$5,144,659$466,297$0$3,474,562
64$5,572,548$392,280$0$3,733,848
65$6,041,030$311,584$0$4,029,543
66$6,554,150$223,786$0$4,353,544
67$7,116,362$128,440$0$4,708,721
68$7,732,570$25,074$0$5,098,236
69$8,408,178$0$0$5,525,578
70$9,149,134$0$0$6,009,877
71$9,961,993$0$0$6,546,094
72$10,853,972$0$0$7,134,586
73$11,833,022$0$0$7,780,609
74$12,907,902$0$0$8,489,953
75$14,088,258$0$0$9,268,995
76$15,384,719$0$0$10,124,761
77$16,808,993$0$0$11,064,991
78$18,373,975$0$0$12,098,210
79$20,093,875$0$0$13,233,812
80$21,984,347$0$0$14,482,146
81$24,062,635$0$0$15,854,612
82$26,347,738$0$0$17,363,771
83$28,860,590$0$0$19,023,462
84$31,624,252$0$0$20,848,932
85$34,664,134$0$0$22,856,979
86$38,008,231$0$0$25,066,114
87$41,687,390$0$0$27,496,728
88$45,735,596$0$0$30,171,292
89$50,190,295$0$0$33,114,563
90$55,092,749$0$0$36,353,821
91$60,488,419$0$0$39,919,122
92$66,427,397$0$0$43,843,586
93$72,964,880$0$0$48,163,706
94$80,161,686$0$0$52,919,693
95$88,084,829$0$0$58,155,854
96$96,808,152$0$0$63,921,012
97$106,413,022$0$0$70,268,963
98$116,989,098$0$0$77,258,987
99$128,635,175$0$0$84,956,406
100$141,460,117$0$0$93,433,197