Can I retire at age 40 with 981,000?

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 $981,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$81,010$80,288$79,584$78,897$78,226$76,335
2 years$40,104$39,357$38,633$37,931$37,251$35,357
3 years$26,470$25,720$24,998$24,303$23,633$21,796
4 years$19,655$18,907$18,192$17,509$16,855$15,089
5 years$15,567$14,823$14,118$13,449$12,813$11,122
6 years$12,842$12,104$11,409$10,755$10,139$8,524
7 years$10,897$10,165$9,481$8,842$8,245$6,709
8 years$9,438$8,714$8,041$7,418$6,840$5,380
9 years$8,305$7,587$6,926$6,318$5,761$4,376
10 years$7,398$6,687$6,038$5,446$4,908$3,598
11 years$6,657$5,953$5,316$4,740$4,221$2,983
12 years$6,040$5,343$4,718$4,157$3,658$2,490
13 years$5,518$4,829$4,215$3,670$3,190$2,089
14 years$5,071$4,389$3,787$3,258$2,796$1,761
15 years$4,684$4,010$3,419$2,906$2,462$1,490
16 years$4,346$3,679$3,100$2,602$2,176$1,264
17 years$4,048$3,388$2,821$2,338$1,929$1,075
18 years$3,783$3,131$2,575$2,107$1,716$917
19 years$3,547$2,902$2,357$1,904$1,529$783
20 years$3,334$2,696$2,163$1,724$1,366$670
21 years$3,142$2,511$1,990$1,565$1,222$573
22 years$2,968$2,344$1,834$1,423$1,096$492
23 years$2,808$2,193$1,693$1,296$983$422
24 years$2,663$2,054$1,566$1,182$884$362
25 years$2,529$1,928$1,451$1,079$795$311
26 years$2,406$1,812$1,345$987$716$268
27 years$2,292$1,705$1,249$903$646$230
28 years$2,186$1,607$1,161$828$583$198
29 years$2,088$1,516$1,081$759$526$171
30 years$1,997$1,432$1,007$696$476$147
31 years$1,912$1,353$938$640$430$126
32 years$1,832$1,280$876$588$389$109
33 years$1,757$1,213$818$541$352$94
34 years$1,687$1,149$764$497$319$81
35 years$1,620$1,090$714$458$289$70
36 years$1,558$1,035$668$422$262$60
37 years$1,499$983$625$389$237$52
38 years$1,444$934$586$358$215$45
39 years$1,391$888$549$330$195$39
40 years$1,341$845$514$305$177$33
41 years$1,294$804$482$281$160$29
42 years$1,249$766$452$259$146$25
43 years$1,206$730$424$239$132$21
44 years$1,166$696$398$221$120$18
45 years$1,127$663$374$204$109$16
46 years$1,090$633$351$189$99$14
47 years$1,055$604$330$174$90$12
48 years$1,021$577$310$161$81$10
49 years$989$551$292$149$74$9
50 years$958$526$274$138$67$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $981,000, adding $5,359 every year, while hoping to spend $32,828 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: 73/10/17 Blend
39$981,000$981,000$981,000$981,000
40$1,086,590$1,034,597$1,019,391$1,161,279
41$1,162,493$1,050,363$1,018,612$1,227,298
42$1,245,039$1,065,802$1,016,707$1,295,081
43$1,334,869$1,080,863$1,013,602$1,368,477
44$1,432,691$1,095,490$1,009,224$1,448,035
45$1,539,283$1,109,627$1,003,490$1,534,363
46$1,655,502$1,123,211$996,320$1,628,128
47$1,782,291$1,136,176$987,624$1,730,066
48$1,920,687$1,148,451$977,312$1,840,988
49$2,071,832$1,159,960$965,287$1,961,789
50$2,236,984$1,170,623$951,449$2,093,455
51$2,417,527$1,180,354$935,693$2,237,071
52$2,614,985$1,189,062$917,909$2,393,834
53$2,831,036$1,196,649$897,982$2,565,065
54$3,067,528$1,203,011$875,790$2,752,218
55$3,326,496$1,208,038$851,209$2,956,895
56$3,610,179$1,211,613$824,106$3,180,865
57$3,921,047$1,213,612$794,343$3,426,075
58$4,261,816$1,213,901$761,775$3,694,672
59$4,635,479$1,212,340$726,252$3,989,023
60$5,045,333$1,208,779$687,617$4,311,736
61$5,495,009$1,203,061$645,704$4,665,687
62$5,988,505$1,195,017$600,341$5,054,045
63$6,530,228$1,184,469$551,348$5,480,305
64$7,125,030$1,171,226$498,537$5,948,317
65$7,778,257$1,155,090$441,711$6,462,326
66$8,495,796$1,135,847$380,666$7,027,011
67$9,284,136$1,113,271$315,186$7,647,529
68$10,150,422$1,087,126$245,049$8,329,565
69$11,102,527$1,057,157$170,020$9,079,386
70$12,149,125$1,023,098$89,856$9,903,898
71$13,299,771$984,665$4,302$10,810,714
72$14,564,993$941,559$0$11,808,225
73$15,956,390$893,463$0$12,921,461
74$17,486,742$840,043$0$14,146,695
75$19,170,128$780,943$0$15,494,434
76$21,022,060$715,789$0$16,977,119
77$23,059,632$644,184$0$18,608,457
78$25,301,676$565,711$0$20,403,556
79$27,768,943$479,926$0$22,379,060
80$30,484,295$386,362$0$24,553,313
81$33,472,925$284,526$0$26,946,529
82$36,762,591$173,895$0$29,580,984
83$40,383,879$53,920$0$32,481,224
84$44,370,490$0$0$35,674,300
85$48,759,561$0$0$39,198,383
86$53,592,011$0$0$43,085,053
87$58,912,928$0$0$47,364,649
88$64,771,996$0$0$52,077,139
89$71,223,963$0$0$57,266,564
90$78,329,155$0$0$62,981,454
91$86,154,047$0$0$69,275,283
92$94,771,891$0$0$76,206,980
93$104,263,405$0$0$83,841,476
94$114,717,533$0$0$92,250,325
95$126,232,289$0$0$101,512,372
96$138,915,677$0$0$111,714,502
97$152,886,713$0$0$122,952,458
98$168,276,547$0$0$135,331,741
99$185,229,699$0$0$148,968,613
100$203,905,423$0$0$163,991,187