Fri. Feb 3rd, 2023

Index funds give investors access to near-market returns with no stock picking or market timing required. But are market-level returns enough to grow your retirement account to seven figures? That’s the million-dollar question.

The easy answer is — yes — you can retire a millionaire with index funds. Though as you might expect, it depends on how much you invest in those index funds and for how long. Specifically, if you have more than 30 years between now and retirement, an ongoing monthly contribution of $400 to $900 in index funds should get you to millionaire status.

As the table below demonstrates, when your timeline is shorter than 30 years, reaching the seven-figure goal is harder, because the monthly contributions required get pretty steep.  

Years Until Retirement

Monthly Contribution to Reach $1 Million















Data source: Author calculations.

These figures assume average annual growth of 7%, which aligns with the stock market’s long-term performance after inflation.

By senior