Can I retire at age 40 with 995,000?

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 $995,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$82,166$81,434$80,720$80,023$79,343$78,612
2 years$40,676$39,919$39,185$38,473$37,782$37,046
3 years$26,848$26,087$25,355$24,650$23,971$23,252
4 years$19,935$19,177$18,452$17,759$17,096$16,400
5 years$15,789$15,035$14,319$13,640$12,996$12,325
6 years$13,025$12,277$11,572$10,908$10,283$9,638
7 years$11,052$10,310$9,617$8,968$8,363$7,744
8 years$9,573$8,838$8,156$7,523$6,938$6,345
9 years$8,423$7,695$7,024$6,408$5,843$5,276
10 years$7,504$6,783$6,124$5,524$4,978$4,437
11 years$6,752$6,038$5,392$4,808$4,282$3,765
12 years$6,126$5,420$4,785$4,217$3,710$3,218
13 years$5,597$4,898$4,275$3,723$3,235$2,767
14 years$5,144$4,452$3,841$3,305$2,836$2,391
15 years$4,751$4,067$3,468$2,947$2,497$2,075
16 years$4,408$3,731$3,144$2,639$2,207$1,807
17 years$4,106$3,436$2,861$2,371$1,957$1,578
18 years$3,837$3,175$2,612$2,137$1,740$1,382
19 years$3,597$2,943$2,391$1,931$1,551$1,213
20 years$3,382$2,735$2,194$1,749$1,385$1,066
21 years$3,187$2,547$2,018$1,587$1,240$939
22 years$3,010$2,378$1,860$1,443$1,111$828
23 years$2,849$2,224$1,718$1,314$997$731
24 years$2,701$2,084$1,588$1,199$897$646
25 years$2,565$1,955$1,471$1,095$807$572
26 years$2,440$1,838$1,365$1,001$727$506
27 years$2,325$1,730$1,267$916$655$449
28 years$2,218$1,630$1,178$839$591$398
29 years$2,118$1,537$1,096$770$534$353
30 years$2,025$1,452$1,021$706$482$313
31 years$1,939$1,373$952$649$436$278
32 years$1,858$1,299$888$596$394$247
33 years$1,782$1,230$829$548$357$220
34 years$1,711$1,166$775$504$323$195
35 years$1,644$1,106$724$464$293$174
36 years$1,580$1,049$678$428$265$155
37 years$1,521$997$634$394$240$137
38 years$1,464$947$594$363$218$122
39 years$1,411$901$556$335$198$109
40 years$1,360$857$522$309$179$97
41 years$1,312$816$489$285$163$86
42 years$1,267$777$459$263$148$77
43 years$1,223$740$430$243$134$68
44 years$1,182$706$404$224$122$61
45 years$1,143$673$379$207$110$54
46 years$1,105$642$356$191$100$48
47 years$1,070$613$335$177$91$43
48 years$1,035$585$315$163$83$38
49 years$1,003$558$296$151$75$34
50 years$971$533$278$139$68$30

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $995,000, adding $3,467 every year, while hoping to spend $41,545 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: 61/15/24 Blend
39$995,000$995,000$995,000$995,000
40$1,100,066$1,047,331$1,031,909$1,159,961
41$1,168,069$1,054,447$1,022,274$1,208,112
42$1,241,617$1,060,519$1,010,924$1,255,800
43$1,321,229$1,065,452$997,758$1,306,940
44$1,407,481$1,069,145$982,669$1,361,873
45$1,501,002$1,071,492$965,547$1,420,981
46$1,602,486$1,072,376$946,274$1,484,681
47$1,712,695$1,071,679$924,730$1,553,439
48$1,832,469$1,069,269$900,787$1,627,765
49$1,962,729$1,065,012$874,312$1,708,226
50$2,104,491$1,058,762$845,166$1,795,447
51$2,258,873$1,050,364$813,202$1,890,119
52$2,427,102$1,039,657$778,269$1,993,004
53$2,610,533$1,026,466$740,207$2,104,945
54$2,810,653$1,010,609$698,850$2,226,873
55$3,029,101$991,890$654,023$2,359,816
56$3,267,682$970,106$605,545$2,504,910
57$3,528,381$945,036$553,226$2,663,407
58$3,813,384$916,451$496,868$2,836,692
59$4,125,099$884,106$436,262$3,026,294
60$4,466,174$847,743$371,192$3,233,899
61$4,839,530$807,088$301,433$3,461,371
62$5,248,378$761,852$226,747$3,710,765
63$5,696,259$711,729$146,889$3,984,351
64$6,187,068$656,395$61,601$4,284,635
65$6,725,099$595,507$0$4,614,382
66$7,315,077$528,706$0$4,984,175
67$7,962,210$455,607$0$5,407,173
68$8,672,232$375,808$0$5,871,376
69$9,451,459$288,882$0$6,380,962
70$10,306,849$194,379$0$6,940,537
71$11,246,066$91,822$0$7,555,176
72$12,277,552$0$0$8,230,477
73$13,410,609$0$0$8,975,790
74$14,655,481$0$0$9,811,387
75$16,023,454$0$0$10,729,696
76$17,526,965$0$0$11,739,076
77$19,179,710$0$0$12,848,733
78$20,996,783$0$0$14,068,812
79$22,994,811$0$0$15,410,488
80$25,192,112$0$0$16,886,075
81$27,608,871$0$0$18,509,139
82$30,267,326$0$0$20,294,627
83$33,191,976$0$0$22,259,008
84$36,409,819$0$0$24,420,427
85$39,950,597$0$0$26,798,877
86$43,847,085$0$0$29,416,388
87$48,135,393$0$0$32,297,231
88$52,855,309$0$0$35,468,152
89$58,050,675$0$0$38,958,621
90$63,769,798$0$0$42,801,107
91$70,065,908$0$0$47,031,392
92$76,997,655$0$0$51,688,899
93$84,629,669$0$0$56,817,072
94$93,033,163$0$0$62,463,779
95$102,286,609$0$0$68,681,769
96$112,476,475$0$0$75,529,164
97$123,698,040$0$0$83,070,012
98$136,056,298$0$0$91,374,888
99$149,666,941$0$0$100,521,561
100$164,657,456$0$0$110,595,727