Can I retire at age 40 with 997,000?

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 $997,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.6%
1 years$82,331$81,598$80,882$80,184$79,502$78,314
2 years$40,758$39,999$39,263$38,550$37,858$36,664
3 years$26,902$26,140$25,406$24,699$24,019$22,855
4 years$19,976$19,216$18,489$17,795$17,130$16,007
5 years$15,821$15,065$14,348$13,668$13,022$11,942
6 years$13,052$12,302$11,596$10,930$10,304$9,268
7 years$11,075$10,331$9,636$8,986$8,380$7,389
8 years$9,592$8,856$8,172$7,538$6,952$6,006
9 years$8,440$7,710$7,039$6,421$5,855$4,952
10 years$7,519$6,796$6,136$5,535$4,988$4,130
11 years$6,766$6,050$5,402$4,817$4,290$3,474
12 years$6,139$5,431$4,794$4,225$3,718$2,943
13 years$5,608$4,908$4,284$3,730$3,242$2,508
14 years$5,154$4,461$3,849$3,311$2,842$2,147
15 years$4,761$4,075$3,475$2,953$2,502$1,845
16 years$4,417$3,739$3,151$2,644$2,211$1,592
17 years$4,114$3,443$2,867$2,376$1,961$1,376
18 years$3,845$3,182$2,617$2,141$1,744$1,193
19 years$3,605$2,949$2,396$1,935$1,554$1,036
20 years$3,388$2,740$2,199$1,752$1,388$902
21 years$3,193$2,552$2,022$1,590$1,242$786
22 years$3,016$2,383$1,864$1,446$1,113$686
23 years$2,854$2,228$1,721$1,317$999$599
24 years$2,706$2,088$1,592$1,201$898$524
25 years$2,570$1,959$1,474$1,097$808$458
26 years$2,445$1,841$1,367$1,003$728$401
27 years$2,329$1,733$1,270$918$657$352
28 years$2,222$1,633$1,180$841$592$308
29 years$2,122$1,541$1,098$771$535$271
30 years$2,029$1,455$1,023$708$483$237
31 years$1,943$1,375$954$650$437$208
32 years$1,862$1,301$890$597$395$183
33 years$1,785$1,232$831$549$358$161
34 years$1,714$1,168$776$505$324$141
35 years$1,647$1,108$726$465$293$124
36 years$1,583$1,052$679$429$266$109
37 years$1,524$999$636$395$241$96
38 years$1,467$949$595$364$218$84
39 years$1,414$903$558$336$198$74
40 years$1,363$859$523$310$180$65
41 years$1,315$817$490$286$163$57
42 years$1,269$778$460$264$148$51
43 years$1,226$742$431$243$134$44
44 years$1,185$707$405$225$122$39
45 years$1,145$674$380$207$111$34
46 years$1,108$643$357$192$100$30
47 years$1,072$614$335$177$91$27
48 years$1,038$586$315$164$83$23
49 years$1,005$560$296$151$75$21
50 years$973$534$279$140$68$18

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $997,000, adding $2,801 every year, while hoping to spend $47,349 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: 56/16/28 Blend
39$997,000$997,000$997,000$997,000
40$1,101,583$1,048,742$1,033,289$1,154,628
41$1,163,566$1,049,752$1,017,525$1,192,447
42$1,230,284$1,049,224$999,646$1,228,475
43$1,302,170$1,047,033$979,531$1,266,771
44$1,379,700$1,043,046$957,054$1,307,568
45$1,463,396$1,037,122$932,083$1,351,127
46$1,553,833$1,029,112$904,478$1,397,739
47$1,651,641$1,018,855$874,095$1,447,722
48$1,757,514$1,006,185$840,783$1,501,435
49$1,872,215$990,922$804,384$1,559,270
50$1,996,581$972,878$764,731$1,621,667
51$2,131,535$951,851$721,652$1,689,110
52$2,278,090$927,630$674,965$1,762,138
53$2,437,361$899,991$624,483$1,841,345
54$2,610,576$868,694$570,007$1,927,394
55$2,799,083$833,489$511,331$2,021,014
56$3,004,369$794,109$448,240$2,123,015
57$3,228,067$750,272$380,508$2,234,293
58$3,471,975$701,681$307,901$2,355,841
59$3,738,073$648,020$230,172$2,488,756
60$4,028,540$588,957$147,066$2,634,253
61$4,345,774$524,139$58,316$2,793,675
62$4,692,415$453,193$0$2,968,509
63$5,071,370$375,728$0$3,171,273
64$5,485,838$291,327$0$3,412,208
65$5,939,344$199,552$0$3,675,976
66$6,435,766$99,940$0$3,964,890
67$6,979,378$0$0$4,281,507
68$7,574,883$0$0$4,630,048
69$8,227,464$0$0$5,031,365
70$8,942,827$0$0$5,471,382
71$9,727,256$0$0$5,953,975
72$10,587,672$0$0$6,483,414
73$11,531,700$0$0$7,064,404
74$12,567,738$0$0$7,702,125
75$13,705,036$0$0$8,402,283
76$14,953,783$0$0$9,171,165
77$16,325,203$0$0$10,015,697
78$17,831,661$0$0$10,943,507
79$19,486,779$0$0$11,962,999
80$21,305,562$0$0$13,083,432
81$23,304,541$0$0$14,315,005
82$25,501,929$0$0$15,668,956
83$27,917,791$0$0$17,157,666
84$30,574,233$0$0$18,794,774
85$33,495,609$0$0$20,595,309
86$36,708,755$0$0$22,575,827
87$40,243,234$0$0$24,754,571
88$44,131,621$0$0$27,151,642
89$48,409,807$0$0$29,789,186
90$53,117,335$0$0$32,691,603
91$58,297,777$0$0$35,885,780
92$63,999,142$0$0$39,401,342
93$70,274,329$0$0$43,270,930
94$77,181,624$0$0$47,530,512
95$84,785,252$0$0$52,219,719
96$93,155,979$0$0$57,382,219
97$102,371,783$0$0$63,066,131
98$112,518,587$0$0$69,324,476
99$123,691,069$0$0$76,215,678
100$135,993,555$0$0$83,804,117