Can I retire at age 40 with 12,500,000?

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 $12,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$1,032,238$1,023,044$1,014,073$1,005,317$996,768$970,702
2 years$511,009$501,492$492,268$483,326$474,651$448,568
3 years$337,289$327,731$318,530$309,671$301,138$275,854
4 years$250,446$240,917$231,808$223,101$214,774$190,483
5 years$198,353$188,882$179,893$171,363$163,268$140,037
6 years$163,636$154,236$145,380$137,040$129,188$107,041
7 years$138,848$129,527$120,812$112,668$105,065$84,001
8 years$120,266$111,029$102,458$94,515$87,161$67,172
9 years$105,820$96,670$88,247$80,506$73,402$54,470
10 years$94,271$85,210$76,936$69,397$62,543$44,643
11 years$84,827$75,858$67,733$60,396$53,789$36,896
12 years$76,963$68,086$60,111$52,975$46,612$30,695
13 years$70,314$61,530$53,705$46,769$40,647$25,673
14 years$64,620$55,929$48,255$41,516$35,631$21,566
15 years$59,690$51,092$43,567$37,025$31,372$18,180
16 years$55,380$46,876$39,500$33,152$27,727$15,371
17 years$51,581$43,171$35,944$29,787$24,584$13,028
18 years$48,208$39,892$32,812$26,844$21,859$11,065
19 years$45,193$36,971$30,038$24,256$19,484$9,414
20 years$42,484$34,356$27,567$21,968$17,403$8,021
21 years$40,035$32,001$25,356$19,938$15,574$6,842
22 years$37,812$29,872$23,370$18,128$13,960$5,843
23 years$35,786$27,938$21,578$16,509$12,531$4,994
24 years$33,931$26,176$19,956$15,058$11,263$4,271
25 years$32,227$24,565$18,483$13,752$10,135$3,656
26 years$30,657$23,087$17,142$12,574$9,129$3,130
27 years$29,205$21,728$15,918$11,509$8,231$2,682
28 years$27,860$20,474$14,798$10,545$7,427$2,299
29 years$26,609$19,315$13,771$9,670$6,706$1,971
30 years$25,445$18,241$12,827$8,874$6,060$1,690
31 years$24,357$17,244$11,958$8,150$5,478$1,450
32 years$23,340$16,316$11,157$7,490$4,956$1,244
33 years$22,386$15,452$10,418$6,888$4,485$1,068
34 years$21,490$14,645$9,734$6,338$4,061$916
35 years$20,647$13,890$9,100$5,834$3,678$787
36 years$19,853$13,184$8,513$5,373$3,332$675
37 years$19,103$12,522$7,968$4,951$3,020$580
38 years$18,395$11,900$7,462$4,563$2,738$498
39 years$17,725$11,316$6,991$4,207$2,483$427
40 years$17,089$10,766$6,552$3,881$2,252$367
41 years$16,487$10,248$6,144$3,580$2,043$315
42 years$15,914$9,760$5,763$3,304$1,854$271
43 years$15,370$9,299$5,408$3,050$1,683$233
44 years$14,852$8,864$5,077$2,816$1,527$200
45 years$14,358$8,453$4,767$2,601$1,387$172
46 years$13,887$8,064$4,477$2,403$1,259$147
47 years$13,438$7,695$4,206$2,220$1,143$127
48 years$13,008$7,346$3,953$2,051$1,038$109
49 years$12,597$7,015$3,715$1,896$943$93
50 years$12,204$6,701$3,493$1,752$856$80

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $12,500,000, adding $2,852 every year, while hoping to spend $21,498 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: 56/21/23 Blend
39$12,500,000$12,500,000$12,500,000$12,500,000
40$13,777,942$13,115,442$12,921,692$14,463,174
41$15,160,418$13,735,225$13,331,695$15,552,259
42$16,683,187$14,384,657$13,754,712$16,735,660
43$18,360,534$15,065,167$14,191,158$18,024,496
44$20,208,205$15,778,256$14,641,457$19,428,913
45$22,243,547$16,525,496$15,106,051$20,960,068
46$24,485,678$17,308,535$15,585,394$22,630,231
47$26,955,665$18,129,101$16,079,952$24,452,894
48$29,676,723$18,989,007$16,590,211$26,442,899
49$32,674,434$19,890,154$17,116,668$28,616,568
50$35,976,988$20,834,533$17,659,838$30,991,861
51$39,615,449$21,824,234$18,220,252$33,588,534
52$43,624,052$22,861,448$18,798,457$36,428,327
53$48,040,518$23,948,472$19,395,018$39,535,159
54$52,906,419$25,087,715$20,010,519$42,935,353
55$58,267,563$26,281,702$20,645,560$46,657,880
56$64,174,431$27,533,082$21,300,764$50,734,622
57$70,682,653$28,844,633$21,976,769$55,200,673
58$77,853,530$30,219,267$22,674,237$60,094,663
59$85,754,615$31,660,036$23,393,849$65,459,115
60$94,460,352$33,170,144$24,136,310$71,340,842
61$104,052,776$34,752,949$24,902,344$77,791,382
62$114,622,287$36,411,971$25,692,700$84,867,477
63$126,268,506$38,150,903$26,508,151$92,631,602
64$139,101,213$39,973,618$27,349,494$101,152,547
65$153,241,387$41,884,175$28,217,552$110,506,060
66$168,822,341$43,886,832$29,113,173$120,775,551
67$185,990,989$45,986,056$30,037,233$132,052,876
68$204,909,224$48,186,527$30,990,635$144,439,189
69$225,755,455$50,493,157$31,974,312$158,045,893
70$248,726,285$52,911,095$32,989,224$172,995,677
71$274,038,368$55,445,741$34,036,365$189,423,671
72$301,930,457$58,102,757$35,116,758$207,478,702
73$332,665,654$60,888,083$36,231,460$227,324,698
74$366,533,897$63,807,945$37,381,561$249,142,216
75$403,854,696$66,868,876$38,568,185$273,130,137
76$444,980,148$70,077,724$39,792,492$299,507,533
77$490,298,263$73,441,673$41,055,681$328,515,719
78$540,236,626$76,968,254$42,358,985$360,420,519
79$595,266,431$80,665,368$43,703,681$395,514,761
80$655,906,935$84,541,299$45,091,082$434,121,025
81$722,730,355$88,604,736$46,522,546$476,594,676
82$796,367,273$92,864,789$47,999,473$523,327,198
83$877,512,587$97,331,016$49,523,307$574,749,876
84$966,932,072$102,013,437$51,095,539$631,337,845
85$1,065,469,610$106,922,562$52,717,707$693,614,565
86$1,174,055,157$112,069,415$54,391,397$762,156,734
87$1,293,713,521$117,465,554$56,118,246$837,599,718
88$1,425,574,037$123,123,103$57,899,945$920,643,525
89$1,570,881,230$129,054,777$59,738,234$1,012,059,392
90$1,731,006,565$135,273,909$61,634,914$1,112,697,041
91$1,907,461,390$141,794,486$63,591,839$1,223,492,679
92$2,101,911,210$148,631,175$65,610,924$1,345,477,808
93$2,316,191,407$155,799,356$67,694,144$1,479,788,937
94$2,552,324,571$163,315,165$69,843,538$1,627,678,286
95$2,812,539,588$171,195,519$72,061,208$1,790,525,572
96$3,099,292,692$179,458,165$74,349,324$1,969,851,011
97$3,415,290,645$188,121,714$76,710,125$2,167,329,633
98$3,763,516,298$197,205,685$79,145,921$2,384,807,064
99$4,147,256,746$206,730,549$81,659,095$2,624,316,913
100$4,570,134,367$216,717,779$84,252,107$2,888,099,936