Can I retire at age 40 with 983,000?

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 $983,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$81,175$80,452$79,747$79,058$78,386$76,460
2 years$40,186$39,437$38,712$38,009$37,327$35,398
3 years$26,524$25,773$25,049$24,353$23,682$21,811
4 years$19,695$18,946$18,229$17,545$16,890$15,091
5 years$15,599$14,854$14,147$13,476$12,839$11,118
6 years$12,868$12,129$11,433$10,777$10,159$8,517
7 years$10,919$10,186$9,501$8,860$8,262$6,699
8 years$9,458$8,731$8,057$7,433$6,854$5,369
9 years$8,322$7,602$6,940$6,331$5,772$4,365
10 years$7,413$6,701$6,050$5,457$4,918$3,586
11 years$6,671$5,965$5,327$4,750$4,230$2,971
12 years$6,052$5,354$4,727$4,166$3,666$2,478
13 years$5,530$4,839$4,223$3,678$3,196$2,078
14 years$5,082$4,398$3,795$3,265$2,802$1,751
15 years$4,694$4,018$3,426$2,912$2,467$1,480
16 years$4,355$3,686$3,106$2,607$2,180$1,255
17 years$4,056$3,395$2,827$2,342$1,933$1,067
18 years$3,791$3,137$2,580$2,111$1,719$909
19 years$3,554$2,907$2,362$1,907$1,532$775
20 years$3,341$2,702$2,168$1,728$1,369$663
21 years$3,148$2,517$1,994$1,568$1,225$567
22 years$2,974$2,349$1,838$1,426$1,098$486
23 years$2,814$2,197$1,697$1,298$985$416
24 years$2,668$2,059$1,569$1,184$886$357
25 years$2,534$1,932$1,454$1,081$797$307
26 years$2,411$1,816$1,348$989$718$264
27 years$2,297$1,709$1,252$905$647$227
28 years$2,191$1,610$1,164$829$584$195
29 years$2,093$1,519$1,083$760$527$168
30 years$2,001$1,434$1,009$698$477$144
31 years$1,915$1,356$940$641$431$124
32 years$1,835$1,283$877$589$390$107
33 years$1,760$1,215$819$542$353$92
34 years$1,690$1,152$765$498$319$79
35 years$1,624$1,092$716$459$289$68
36 years$1,561$1,037$669$423$262$59
37 years$1,502$985$627$389$238$51
38 years$1,447$936$587$359$215$44
39 years$1,394$890$550$331$195$38
40 years$1,344$847$515$305$177$32
41 years$1,297$806$483$282$161$28
42 years$1,252$768$453$260$146$24
43 years$1,209$731$425$240$132$21
44 years$1,168$697$399$221$120$18
45 years$1,129$665$375$205$109$15
46 years$1,092$634$352$189$99$13
47 years$1,057$605$331$175$90$11
48 years$1,023$578$311$161$82$10
49 years$991$552$292$149$74$8
50 years$960$527$275$138$67$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $983,000, adding $6,322 every year, while hoping to spend $54,703 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: 30/43/27 Blend
39$983,000$983,000$983,000$983,000
40$1,089,787$1,037,688$1,022,452$1,113,268
41$1,142,742$1,030,331$998,500$1,124,702
42$1,199,265$1,020,781$971,913$1,131,773
43$1,259,661$1,008,871$942,544$1,138,287
44$1,324,268$994,426$910,240$1,144,235
45$1,393,452$977,262$874,842$1,149,610
46$1,467,618$957,181$836,183$1,154,409
47$1,547,207$933,976$794,087$1,158,638
48$1,632,706$907,425$748,373$1,162,305
49$1,724,648$877,294$698,850$1,165,430
50$1,823,619$843,338$645,318$1,168,037
51$1,930,261$805,295$587,569$1,170,165
52$2,045,280$762,887$525,385$1,171,861
53$2,169,452$715,822$458,539$1,173,187
54$2,303,630$663,791$386,793$1,174,218
55$2,448,750$606,466$309,901$1,175,047
56$2,605,842$543,503$227,602$1,175,787
57$2,776,038$474,534$139,627$1,176,573
58$2,960,583$399,175$45,693$1,177,562
59$3,160,845$317,017$0$1,178,942
60$3,378,329$227,630$0$1,196,645
61$3,614,692$130,557$0$1,230,278
62$3,871,755$25,318$0$1,267,049
63$4,151,522$0$0$1,307,390
64$4,456,197$0$0$1,393,708
65$4,788,208$0$0$1,500,966
66$5,150,225$0$0$1,618,065
67$5,545,186$0$0$1,745,974
68$5,976,327$0$0$1,885,761
69$6,447,209$0$0$2,038,599
70$6,961,751$0$0$2,205,782
71$7,524,270$0$0$2,388,734
72$8,139,517$0$0$2,589,023
73$8,812,724$0$0$2,808,375
74$9,549,652$0$0$3,048,692
75$10,356,645$0$0$3,312,069
76$11,240,688$0$0$3,600,811
77$12,209,475$0$0$3,917,458
78$13,271,478$0$0$4,264,808
79$14,436,031$0$0$4,645,942
80$15,713,409$0$0$5,064,255
81$17,114,935$0$0$5,523,486
82$18,653,077$0$0$6,027,752
83$20,341,571$0$0$6,581,591
84$22,195,546$0$0$7,190,001
85$24,231,669$0$0$7,858,486
86$26,468,301$0$0$8,593,112
87$28,925,667$0$0$9,400,562
88$31,626,049$0$0$10,288,197
89$34,593,993$0$0$11,264,127
90$37,856,543$0$0$12,337,288
91$41,443,493$0$0$13,517,524
92$45,387,668$0$0$14,815,682
93$49,725,233$0$0$16,243,712
94$54,496,032$0$0$17,814,781
95$59,743,965$0$0$19,543,398
96$65,517,401$0$0$21,445,545
97$71,869,634$0$0$23,538,836
98$78,859,383$0$0$25,842,677
99$86,551,346$0$0$28,378,451
100$95,016,811$0$0$31,169,718