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%12.9%
1 years$82,166$81,434$80,720$80,023$79,343$78,384
2 years$40,676$39,919$39,185$38,473$37,782$36,817
3 years$26,848$26,087$25,355$24,650$23,971$23,029
4 years$19,935$19,177$18,452$17,759$17,096$16,186
5 years$15,789$15,035$14,319$13,640$12,996$12,120
6 years$13,025$12,277$11,572$10,908$10,283$9,442
7 years$11,052$10,310$9,617$8,968$8,363$7,557
8 years$9,573$8,838$8,156$7,523$6,938$6,167
9 years$8,423$7,695$7,024$6,408$5,843$5,106
10 years$7,504$6,783$6,124$5,524$4,978$4,276
11 years$6,752$6,038$5,392$4,808$4,282$3,613
12 years$6,126$5,420$4,785$4,217$3,710$3,075
13 years$5,597$4,898$4,275$3,723$3,235$2,632
14 years$5,144$4,452$3,841$3,305$2,836$2,264
15 years$4,751$4,067$3,468$2,947$2,497$1,955
16 years$4,408$3,731$3,144$2,639$2,207$1,694
17 years$4,106$3,436$2,861$2,371$1,957$1,473
18 years$3,837$3,175$2,612$2,137$1,740$1,283
19 years$3,597$2,943$2,391$1,931$1,551$1,120
20 years$3,382$2,735$2,194$1,749$1,385$980
21 years$3,187$2,547$2,018$1,587$1,240$858
22 years$3,010$2,378$1,860$1,443$1,111$753
23 years$2,849$2,224$1,718$1,314$997$661
24 years$2,701$2,084$1,588$1,199$897$581
25 years$2,565$1,955$1,471$1,095$807$512
26 years$2,440$1,838$1,365$1,001$727$451
27 years$2,325$1,730$1,267$916$655$397
28 years$2,218$1,630$1,178$839$591$350
29 years$2,118$1,537$1,096$770$534$309
30 years$2,025$1,452$1,021$706$482$273
31 years$1,939$1,373$952$649$436$241
32 years$1,858$1,299$888$596$394$213
33 years$1,782$1,230$829$548$357$188
34 years$1,711$1,166$775$504$323$166
35 years$1,644$1,106$724$464$293$147
36 years$1,580$1,049$678$428$265$130
37 years$1,521$997$634$394$240$115
38 years$1,464$947$594$363$218$102
39 years$1,411$901$556$335$198$90
40 years$1,360$857$522$309$179$80
41 years$1,312$816$489$285$163$70
42 years$1,267$777$459$263$148$62
43 years$1,223$740$430$243$134$55
44 years$1,182$706$404$224$122$49
45 years$1,143$673$379$207$110$43
46 years$1,105$642$356$191$100$38
47 years$1,070$613$335$177$91$34
48 years$1,035$585$315$163$83$30
49 years$1,003$558$296$151$75$27
50 years$971$533$278$139$68$24

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $995,000, adding $5,429 every year, while hoping to spend $48,129 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: 34/50/16 Blend
39$995,000$995,000$995,000$995,000
40$1,102,090$1,049,355$1,033,933$1,133,927
41$1,163,294$1,049,565$1,017,360$1,157,895
42$1,229,128$1,048,171$998,620$1,178,837
43$1,300,014$1,045,046$977,588$1,200,386
44$1,376,413$1,040,051$954,135$1,222,624
45$1,458,834$1,033,041$928,126$1,245,642
46$1,547,837$1,023,861$899,419$1,269,546
47$1,644,034$1,012,348$867,868$1,294,455
48$1,748,100$998,328$833,316$1,320,505
49$1,860,777$981,616$795,603$1,347,850
50$1,982,879$962,019$754,558$1,376,667
51$2,115,304$939,328$710,007$1,407,153
52$2,259,036$913,326$661,763$1,439,533
53$2,415,159$883,782$609,634$1,474,060
54$2,584,867$850,449$553,419$1,511,018
55$2,769,472$813,068$492,906$1,550,729
56$2,970,415$771,366$427,876$1,593,553
57$3,189,287$725,052$358,099$1,639,896
58$3,427,833$673,819$283,335$1,690,210
59$3,687,979$617,343$203,333$1,745,007
60$3,971,840$555,280$117,832$1,804,856
61$4,281,747$487,268$26,559$1,870,395
62$4,620,266$412,925$0$1,942,337
63$4,990,219$331,844$0$2,033,573
64$5,394,716$243,600$0$2,138,524
65$5,837,180$147,739$0$2,253,696
66$6,321,380$43,785$0$2,380,250
67$6,851,466$0$0$2,519,477
68$7,432,007$0$0$2,710,644
69$8,068,037$0$0$2,946,621
70$8,765,098$0$0$3,205,392
71$9,529,293$0$0$3,489,242
72$10,367,347$0$0$3,800,686
73$11,286,663$0$0$4,142,497
74$12,295,398$0$0$4,517,729
75$13,402,535$0$0$4,929,744
76$14,617,969$0$0$5,382,247
77$15,952,602$0$0$5,879,321
78$17,418,440$0$0$6,425,460
79$19,028,712$0$0$7,025,619
80$20,797,990$0$0$7,685,255
81$22,742,328$0$0$8,410,378
82$24,879,410$0$0$9,207,612
83$27,228,722$0$0$10,084,255
84$29,811,730$0$0$11,048,345
85$32,652,083$0$0$12,108,741
86$35,775,838$0$0$13,275,202
87$39,211,704$0$0$14,558,479
88$42,991,309$0$0$15,970,421
89$47,149,505$0$0$17,524,080
90$51,724,689$0$0$19,233,841
91$56,759,169$0$0$21,115,549
92$62,299,560$0$0$23,186,667
93$68,397,226$0$0$25,466,435
94$75,108,762$0$0$27,976,053
95$82,496,528$0$0$30,738,882
96$90,629,236$0$0$33,780,661
97$99,582,599$0$0$37,129,754
98$109,440,045$0$0$40,817,413
99$120,293,501$0$0$44,878,077
100$132,244,262$0$0$49,349,693