Can I retire at age 40 with 987,000?

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 $987,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.4%
1 years$81,506$80,780$80,071$79,380$78,705$76,958
2 years$40,349$39,598$38,870$38,163$37,478$35,728
3 years$26,632$25,878$25,151$24,452$23,778$22,078
4 years$19,775$19,023$18,304$17,616$16,959$15,323
5 years$15,662$14,914$14,204$13,531$12,892$11,324
6 years$12,921$12,178$11,479$10,821$10,201$8,703
7 years$10,963$10,227$9,539$8,896$8,296$6,869
8 years$9,496$8,767$8,090$7,463$6,882$5,525
9 years$8,356$7,633$6,968$6,357$5,796$4,507
10 years$7,444$6,728$6,075$5,480$4,938$3,717
11 years$6,698$5,990$5,348$4,769$4,247$3,092
12 years$6,077$5,376$4,746$4,183$3,680$2,589
13 years$5,552$4,858$4,241$3,693$3,209$2,180
14 years$5,102$4,416$3,810$3,278$2,813$1,844
15 years$4,713$4,034$3,440$2,924$2,477$1,565
16 years$4,373$3,701$3,119$2,618$2,189$1,333
17 years$4,073$3,409$2,838$2,352$1,941$1,138
18 years$3,806$3,150$2,591$2,120$1,726$974
19 years$3,568$2,919$2,372$1,915$1,538$834
20 years$3,355$2,713$2,177$1,735$1,374$716
21 years$3,161$2,527$2,002$1,574$1,230$616
22 years$2,986$2,359$1,845$1,431$1,102$530
23 years$2,826$2,206$1,704$1,304$989$457
24 years$2,679$2,067$1,576$1,189$889$394
25 years$2,545$1,940$1,459$1,086$800$340
26 years$2,421$1,823$1,354$993$721$293
27 years$2,306$1,716$1,257$909$650$253
28 years$2,200$1,617$1,168$833$586$219
29 years$2,101$1,525$1,087$764$530$189
30 years$2,009$1,440$1,013$701$478$164
31 years$1,923$1,362$944$644$433$141
32 years$1,843$1,288$881$591$391$122
33 years$1,768$1,220$823$544$354$106
34 years$1,697$1,156$769$500$321$92
35 years$1,630$1,097$719$461$290$79
36 years$1,568$1,041$672$424$263$69
37 years$1,508$989$629$391$238$59
38 years$1,452$940$589$360$216$52
39 years$1,400$893$552$332$196$45
40 years$1,349$850$517$306$178$39
41 years$1,302$809$485$283$161$33
42 years$1,257$771$455$261$146$29
43 years$1,214$734$427$241$133$25
44 years$1,173$700$401$222$121$22
45 years$1,134$667$376$205$109$19
46 years$1,097$637$354$190$99$16
47 years$1,061$608$332$175$90$14
48 years$1,027$580$312$162$82$12
49 years$995$554$293$150$74$11
50 years$964$529$276$138$68$9

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $987,000, adding $3,503 every year, while hoping to spend $47,002 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: 64/31/5 Blend
39$987,000$987,000$987,000$987,000
40$1,091,287$1,038,976$1,023,678$1,160,130
41$1,152,589$1,039,876$1,007,961$1,207,250
42$1,218,568$1,039,245$990,143$1,252,787
43$1,289,652$1,036,958$970,103$1,301,275
44$1,366,310$1,032,883$947,715$1,352,996
45$1,449,059$1,026,879$922,848$1,408,262
46$1,538,464$1,018,798$895,365$1,467,416
47$1,635,150$1,008,481$865,122$1,530,840
48$1,739,800$995,761$831,968$1,598,954
49$1,853,166$980,461$795,747$1,672,222
50$1,976,078$962,392$756,293$1,751,161
51$2,109,444$941,355$713,434$1,836,336
52$2,254,265$917,139$666,992$1,928,377
53$2,411,642$889,521$616,778$2,027,978
54$2,582,785$858,264$562,597$2,135,906
55$2,769,028$823,117$504,242$2,253,008
56$2,971,836$783,817$441,501$2,380,222
57$3,192,822$740,083$374,150$2,518,583
58$3,433,761$691,618$301,955$2,669,234
59$3,696,606$638,109$224,673$2,833,439
60$3,983,509$579,226$142,049$3,012,594
61$4,296,837$514,617$53,817$3,208,241
62$4,639,194$443,913$0$3,422,084
63$5,013,451$366,724$0$3,658,156
64$5,422,765$282,635$0$3,919,587
65$5,870,614$191,212$0$4,205,814
66$6,360,827$91,992$0$4,519,388
67$6,897,622$0$0$4,863,124
68$7,485,642$0$0$5,245,422
69$8,130,000$0$0$5,698,803
70$8,836,329$0$0$6,195,856
71$9,610,831$0$0$6,740,955
72$10,460,337$0$0$7,338,918
73$11,392,374$0$0$7,995,050
74$12,415,228$0$0$8,715,196
75$13,538,029$0$0$9,505,794
76$14,770,835$0$0$10,373,934
77$16,124,722$0$0$11,327,429
78$17,611,894$0$0$12,374,884
79$19,245,795$0$0$13,525,779
80$21,041,235$0$0$14,790,558
81$23,014,529$0$0$16,180,727
82$25,183,653$0$0$17,708,961
83$27,568,409$0$0$19,389,226
84$30,190,615$0$0$21,236,907
85$33,074,308$0$0$23,268,957
86$36,245,972$0$0$25,504,050
87$39,734,785$0$0$27,962,766
88$43,572,896$0$0$30,667,775
89$47,795,727$0$0$33,644,059
90$52,442,306$0$0$36,919,141
91$57,555,636$0$0$40,523,349
92$63,183,099$0$0$44,490,097
93$69,376,902$0$0$48,856,204
94$76,194,569$0$0$53,662,239
95$83,699,488$0$0$58,952,906
96$91,961,500$0$0$64,777,460
97$101,057,564$0$0$71,190,176
98$111,072,481$0$0$78,250,860
99$122,099,691$0$0$86,025,410
100$134,242,157$0$0$94,586,444