Can I retire at age 42 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.3%
1 years$85,882$85,117$84,371$83,642$82,931$79,830
2 years$42,516$41,724$40,957$40,213$39,491$36,402
3 years$28,062$27,267$26,502$25,765$25,055$22,075
4 years$20,837$20,044$19,286$18,562$17,869$15,022
5 years$16,503$15,715$14,967$14,257$13,584$10,876
6 years$13,615$12,832$12,096$11,402$10,748$8,182
7 years$11,552$10,777$10,052$9,374$8,741$6,316
8 years$10,006$9,238$8,524$7,864$7,252$4,965
9 years$8,804$8,043$7,342$6,698$6,107$3,956
10 years$7,843$7,089$6,401$5,774$5,204$3,183
11 years$7,058$6,311$5,635$5,025$4,475$2,582
12 years$6,403$5,665$5,001$4,408$3,878$2,107
13 years$5,850$5,119$4,468$3,891$3,382$1,728
14 years$5,376$4,653$4,015$3,454$2,964$1,423
15 years$4,966$4,251$3,625$3,081$2,610$1,175
16 years$4,608$3,900$3,286$2,758$2,307$973
17 years$4,292$3,592$2,991$2,478$2,045$807
18 years$4,011$3,319$2,730$2,233$1,819$671
19 years$3,760$3,076$2,499$2,018$1,621$558
20 years$3,535$2,858$2,294$1,828$1,448$465
21 years$3,331$2,662$2,110$1,659$1,296$388
22 years$3,146$2,485$1,944$1,508$1,161$324
23 years$2,977$2,324$1,795$1,374$1,043$271
24 years$2,823$2,178$1,660$1,253$937$226
25 years$2,681$2,044$1,538$1,144$843$189
26 years$2,551$1,921$1,426$1,046$760$158
27 years$2,430$1,808$1,324$958$685$132
28 years$2,318$1,703$1,231$877$618$111
29 years$2,214$1,607$1,146$805$558$93
30 years$2,117$1,518$1,067$738$504$78
31 years$2,027$1,435$995$678$456$65
32 years$1,942$1,357$928$623$412$55
33 years$1,862$1,286$867$573$373$46
34 years$1,788$1,218$810$527$338$38
35 years$1,718$1,156$757$485$306$32
36 years$1,652$1,097$708$447$277$27
37 years$1,589$1,042$663$412$251$23
38 years$1,530$990$621$380$228$19
39 years$1,475$941$582$350$207$16
40 years$1,422$896$545$323$187$13
41 years$1,372$853$511$298$170$11
42 years$1,324$812$480$275$154$9
43 years$1,279$774$450$254$140$8
44 years$1,236$738$422$234$127$7
45 years$1,195$703$397$216$115$5
46 years$1,155$671$372$200$105$5
47 years$1,118$640$350$185$95$4
48 years$1,082$611$329$171$86$3
49 years$1,048$584$309$158$78$3
50 years$1,015$558$291$146$71$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,040,000, adding $4,555 every year, while hoping to spend $50,867 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: 55/22/23 Blend
41$1,040,000$1,040,000$1,040,000$1,040,000
42$1,150,778$1,095,658$1,079,538$1,206,604
43$1,214,036$1,095,224$1,061,581$1,244,963
44$1,282,041$1,093,063$1,041,317$1,280,992
45$1,355,223$1,089,037$1,018,616$1,319,154
46$1,434,056$1,083,001$993,340$1,359,669
47$1,519,060$1,074,797$965,346$1,402,781
48$1,610,803$1,064,262$934,485$1,448,764
49$1,709,914$1,051,219$900,599$1,497,918
50$1,817,080$1,035,484$863,524$1,550,581
51$1,933,059$1,016,860$823,089$1,607,124
52$2,058,683$995,138$779,114$1,667,962
53$2,194,867$970,098$731,413$1,733,553
54$2,342,617$941,506$679,788$1,804,408
55$2,503,040$909,115$624,037$1,881,091
56$2,677,352$872,664$563,944$1,964,230
57$2,866,892$831,875$499,287$2,054,518
58$3,073,134$786,455$429,831$2,152,725
59$3,297,697$736,096$355,335$2,259,706
60$3,542,366$680,468$275,542$2,376,403
61$3,809,103$619,226$190,188$2,503,865
62$4,100,067$552,004$98,995$2,643,251
63$4,417,636$478,415$1,674$2,795,842
64$4,764,428$398,050$0$2,963,060
65$5,143,322$310,477$0$3,171,553
66$5,557,491$215,240$0$3,400,052
67$6,010,425$111,858$0$3,650,149
68$6,505,971$0$0$3,924,058
69$7,048,359$0$0$4,224,262
70$7,642,254$0$0$4,582,717
71$8,292,786$0$0$4,975,454
72$9,005,610$0$0$5,405,896
73$9,786,952$0$0$5,877,816
74$10,643,667$0$0$6,395,369
75$11,583,309$0$0$6,963,129
76$12,614,195$0$0$7,586,137
77$13,745,486$0$0$8,269,944
78$14,987,276$0$0$9,020,665
79$16,350,680$0$0$9,845,037
80$17,847,945$0$0$10,750,478
81$19,492,560$0$0$11,745,163
82$21,299,385$0$0$12,838,098
83$23,284,793$0$0$14,039,202
84$25,466,817$0$0$15,359,405
85$27,865,327$0$0$16,810,747
86$30,502,213$0$0$18,406,493
87$33,401,593$0$0$20,161,259
88$36,590,036$0$0$22,091,146
89$40,096,817$0$0$24,213,894
90$43,954,189$0$0$26,549,051
91$48,197,689$0$0$29,118,152
92$52,866,472$0$0$31,944,925
93$58,003,679$0$0$35,055,517
94$63,656,842$0$0$38,478,733
95$69,878,337$0$0$42,246,315
96$76,725,872$0$0$46,393,237
97$84,263,034$0$0$50,958,036
98$92,559,886$0$0$55,983,174
99$101,693,632$0$0$61,515,440
100$111,749,337$0$0$67,606,389