Can I retire at age 40 with 1,540,000?

Use the below retirement simulation to view the chances of a successful retirement.
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 $1,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$127,172$126,039$124,934$123,855$122,802$118,966
2 years$62,956$61,784$60,647$59,546$58,477$54,647
3 years$41,554$40,376$39,243$38,152$37,100$33,396
4 years$30,855$29,681$28,559$27,486$26,460$22,910
5 years$24,437$23,270$22,163$21,112$20,115$16,728
6 years$20,160$19,002$17,911$16,883$15,916$12,695
7 years$17,106$15,958$14,884$13,881$12,944$9,890
8 years$14,817$13,679$12,623$11,644$10,738$7,848
9 years$13,037$11,910$10,872$9,918$9,043$6,314
10 years$11,614$10,498$9,478$8,550$7,705$5,133
11 years$10,451$9,346$8,345$7,441$6,627$4,207
12 years$9,482$8,388$7,406$6,527$5,743$3,470
13 years$8,663$7,580$6,617$5,762$5,008$2,877
14 years$7,961$6,890$5,945$5,115$4,390$2,395
15 years$7,354$6,295$5,368$4,562$3,865$2,001
16 years$6,823$5,775$4,866$4,084$3,416$1,676
17 years$6,355$5,319$4,428$3,670$3,029$1,407
18 years$5,939$4,915$4,042$3,307$2,693$1,183
19 years$5,568$4,555$3,701$2,988$2,400$997
20 years$5,234$4,233$3,396$2,707$2,144$841
21 years$4,932$3,943$3,124$2,456$1,919$710
22 years$4,658$3,680$2,879$2,233$1,720$601
23 years$4,409$3,442$2,658$2,034$1,544$508
24 years$4,180$3,225$2,459$1,855$1,388$430
25 years$3,970$3,026$2,277$1,694$1,249$364
26 years$3,777$2,844$2,112$1,549$1,125$309
27 years$3,598$2,677$1,961$1,418$1,014$262
28 years$3,432$2,522$1,823$1,299$915$222
29 years$3,278$2,380$1,697$1,191$826$188
30 years$3,135$2,247$1,580$1,093$747$160
31 years$3,001$2,124$1,473$1,004$675$136
32 years$2,875$2,010$1,375$923$611$115
33 years$2,758$1,904$1,283$849$553$98
34 years$2,648$1,804$1,199$781$500$83
35 years$2,544$1,711$1,121$719$453$70
36 years$2,446$1,624$1,049$662$411$60
37 years$2,354$1,543$982$610$372$51
38 years$2,266$1,466$919$562$337$43
39 years$2,184$1,394$861$518$306$37
40 years$2,105$1,326$807$478$277$31
41 years$2,031$1,263$757$441$252$26
42 years$1,961$1,202$710$407$228$22
43 years$1,894$1,146$666$376$207$19
44 years$1,830$1,092$625$347$188$16
45 years$1,769$1,041$587$320$171$14
46 years$1,711$993$552$296$155$12
47 years$1,656$948$518$273$141$10
48 years$1,603$905$487$253$128$8
49 years$1,552$864$458$234$116$7
50 years$1,504$826$430$216$106$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,540,000, adding $4,346 every year, while hoping to spend $22,326 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: 79/8/13 Blend
39$1,540,000$1,540,000$1,540,000$1,540,000
40$1,701,563$1,619,943$1,596,073$1,831,334
41$1,851,368$1,675,565$1,625,787$1,972,920
42$2,015,704$1,733,165$1,655,748$2,124,914
43$2,196,031$1,792,815$1,685,940$2,291,034
44$2,393,955$1,854,592$1,716,348$2,472,684
45$2,611,247$1,918,575$1,746,954$2,671,407
46$2,849,854$1,984,846$1,777,737$2,888,907
47$3,111,927$2,053,491$1,808,679$3,127,057
48$3,399,829$2,124,597$1,839,755$3,387,922
49$3,716,167$2,198,258$1,870,943$3,673,774
50$4,063,813$2,274,570$1,902,216$3,987,119
51$4,445,930$2,353,631$1,933,548$4,330,714
52$4,866,002$2,435,547$1,964,909$4,707,599
53$5,327,869$2,520,423$1,996,268$5,121,121
54$5,835,761$2,608,373$2,027,593$5,574,967
55$6,394,338$2,699,513$2,058,846$6,073,200
56$7,008,734$2,793,963$2,089,992$6,620,295
57$7,684,608$2,891,850$2,120,989$7,221,182
58$8,428,192$2,993,305$2,151,796$7,881,294
59$9,246,353$3,098,462$2,182,367$8,606,614
60$10,146,659$3,207,465$2,212,655$9,403,735
61$11,137,448$3,320,460$2,242,608$10,279,923
62$12,227,905$3,437,601$2,272,173$11,243,180
63$13,428,155$3,559,046$2,301,294$12,302,324
64$14,749,349$3,684,962$2,329,910$13,467,072
65$16,203,777$3,815,520$2,357,957$14,748,130
66$17,804,983$3,950,901$2,385,369$16,157,291
67$19,567,887$4,091,290$2,412,074$17,707,553
68$21,508,930$4,236,883$2,437,998$19,413,237
69$23,646,232$4,387,881$2,463,061$21,290,122
70$25,999,755$4,544,495$2,487,181$23,355,595
71$28,591,498$4,706,943$2,510,270$25,628,812
72$31,445,702$4,875,454$2,532,235$28,130,886
73$34,589,077$5,050,265$2,552,979$30,885,077
74$38,051,058$5,231,623$2,572,398$33,917,016
75$41,864,079$5,419,785$2,590,386$37,254,948
76$46,063,880$5,615,020$2,606,829$40,929,995
77$50,689,845$5,817,605$2,621,607$44,976,451
78$55,785,373$6,027,831$2,634,595$49,432,106
79$61,398,288$6,246,002$2,645,661$54,338,602
80$67,581,288$6,472,431$2,654,665$59,741,827
81$74,392,446$6,707,447$2,661,463$65,692,343
82$81,895,755$6,951,391$2,665,902$72,245,872
83$90,161,733$7,204,620$2,667,821$79,463,813
84$99,268,088$7,467,505$2,667,051$87,413,826
85$109,300,452$7,740,431$2,663,416$96,170,469
86$120,353,188$8,023,802$2,656,730$105,815,903
87$132,530,281$8,318,037$2,646,799$116,440,663
88$145,946,322$8,623,573$2,633,419$128,144,520
89$160,727,585$8,940,866$2,616,376$141,037,415
90$177,013,221$9,270,390$2,595,447$155,240,500
91$194,956,571$9,612,641$2,570,396$170,887,282
92$214,726,615$9,968,135$2,540,978$188,124,881
93$236,509,565$10,337,408$2,506,936$207,115,420
94$260,510,622$10,721,022$2,467,999$228,037,555
95$286,955,914$11,119,561$2,423,886$251,088,161
96$316,094,633$11,533,635$2,374,302$276,484,188
97$348,201,381$11,963,879$2,318,936$304,464,714
98$383,578,767$12,410,955$2,257,467$335,293,197
99$422,560,264$12,875,554$2,189,555$369,259,963
100$465,513,353$13,358,398$2,114,846$406,684,947