Can I retire at age 40 with 978,000?

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 $978,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$80,762$80,043$79,341$78,656$77,987$76,569
2 years$39,981$39,237$38,515$37,815$37,137$35,713
3 years$26,389$25,642$24,922$24,229$23,561$22,176
4 years$19,595$18,849$18,137$17,455$16,804$15,469
5 years$15,519$14,778$14,075$13,407$12,774$11,492
6 years$12,803$12,067$11,375$10,722$10,108$8,881
7 years$10,863$10,134$9,452$8,815$8,220$7,048
8 years$9,410$8,687$8,016$7,395$6,820$5,702
9 years$8,279$7,563$6,904$6,299$5,743$4,680
10 years$7,376$6,667$6,019$5,430$4,893$3,883
11 years$6,637$5,935$5,299$4,725$4,208$3,250
12 years$6,022$5,327$4,703$4,145$3,647$2,740
13 years$5,501$4,814$4,202$3,659$3,180$2,322
14 years$5,056$4,376$3,775$3,248$2,788$1,977
15 years$4,670$3,997$3,409$2,897$2,455$1,690
16 years$4,333$3,668$3,091$2,594$2,169$1,450
17 years$4,036$3,378$2,812$2,331$1,923$1,246
18 years$3,772$3,121$2,567$2,100$1,710$1,074
19 years$3,536$2,893$2,350$1,898$1,524$928
20 years$3,324$2,688$2,157$1,719$1,362$802
21 years$3,132$2,504$1,984$1,560$1,219$695
22 years$2,958$2,337$1,828$1,418$1,092$603
23 years$2,800$2,186$1,688$1,292$980$523
24 years$2,655$2,048$1,561$1,178$881$455
25 years$2,521$1,922$1,446$1,076$793$395
26 years$2,399$1,806$1,341$984$714$344
27 years$2,285$1,700$1,245$900$644$300
28 years$2,180$1,602$1,158$825$581$261
29 years$2,082$1,511$1,077$757$525$227
30 years$1,991$1,427$1,004$694$474$198
31 years$1,906$1,349$936$638$429$173
32 years$1,826$1,277$873$586$388$151
33 years$1,751$1,209$815$539$351$132
34 years$1,681$1,146$762$496$318$115
35 years$1,615$1,087$712$456$288$100
36 years$1,553$1,032$666$420$261$88
37 years$1,495$980$623$387$236$76
38 years$1,439$931$584$357$214$67
39 years$1,387$885$547$329$194$58
40 years$1,337$842$513$304$176$51
41 years$1,290$802$481$280$160$45
42 years$1,245$764$451$259$145$39
43 years$1,203$728$423$239$132$34
44 years$1,162$694$397$220$119$30
45 years$1,123$661$373$204$108$26
46 years$1,087$631$350$188$98$23
47 years$1,051$602$329$174$89$20
48 years$1,018$575$309$160$81$17
49 years$986$549$291$148$74$15
50 years$955$524$273$137$67$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $978,000, adding $2,552 every year, while hoping to spend $58,279 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: 54/39/7 Blend
39$978,000$978,000$978,000$978,000
40$1,080,388$1,028,554$1,013,395$1,136,822
41$1,128,580$1,016,945$985,336$1,163,668
42$1,179,733$1,002,814$954,383$1,186,237
43$1,234,089$985,975$920,378$1,209,388
44$1,291,912$966,233$883,156$1,233,187
45$1,353,488$943,380$842,543$1,257,707
46$1,419,134$917,196$798,359$1,283,032
47$1,489,196$887,448$750,413$1,309,260
48$1,564,050$853,890$698,509$1,336,500
49$1,644,113$816,260$642,439$1,364,878
50$1,729,839$774,283$581,987$1,394,537
51$1,821,727$727,668$516,928$1,425,638
52$1,920,324$676,104$447,026$1,458,363
53$2,026,230$619,267$372,034$1,492,918
54$2,140,105$556,810$291,697$1,529,536
55$2,262,672$488,370$205,745$1,568,479
56$2,394,726$413,561$113,898$1,610,042
57$2,537,138$331,976$15,865$1,654,558
58$2,690,869$243,185$0$1,702,398
59$2,856,970$146,735$0$1,760,611
60$3,036,601$42,144$0$1,824,730
61$3,231,033$0$0$1,894,121
62$3,441,664$0$0$1,999,907
63$3,670,034$0$0$2,134,288
64$3,917,833$0$0$2,280,184
65$4,186,922$0$0$2,438,699
66$4,479,346$0$0$2,611,050
67$4,797,355$0$0$2,798,574
68$5,143,427$0$0$3,002,743
69$5,520,286$0$0$3,225,176
70$5,930,929$0$0$3,467,657
71$6,378,657$0$0$3,732,147
72$6,867,100$0$0$4,020,804
73$7,400,256$0$0$4,336,006
74$7,982,524$0$0$4,680,368
75$8,618,748$0$0$5,056,771
76$9,314,260$0$0$5,468,386
77$10,074,931$0$0$5,918,704
78$10,907,224$0$0$6,411,570
79$11,818,258$0$0$6,951,216
80$12,815,870$0$0$7,542,305
81$13,908,691$0$0$8,189,970
82$15,106,227$0$0$8,899,865
83$16,418,944$0$0$9,678,216
84$17,858,374$0$0$10,531,882
85$19,437,213$0$0$11,468,416
86$21,169,448$0$0$12,496,139
87$23,070,485$0$0$13,624,215
88$25,157,292$0$0$14,862,738
89$27,448,563$0$0$16,222,830
90$29,964,889$0$0$17,716,740
91$32,728,951$0$0$19,357,963
92$35,765,739$0$0$21,161,366
93$39,102,779$0$0$23,143,326
94$42,770,400$0$0$25,321,886
95$46,802,010$0$0$27,716,924
96$51,234,419$0$0$30,350,340
97$56,108,180$0$0$33,246,263
98$61,467,972$0$0$36,431,277
99$67,363,020$0$0$39,934,669
100$73,847,561$0$0$43,788,710