Can I retire at age 40 with 1,550,000?

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 $1,550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.8%
1 years$127,998$126,857$125,745$124,659$123,599$120,660
2 years$63,365$62,185$61,041$59,932$58,857$55,913
3 years$41,824$40,639$39,498$38,399$37,341$34,485
4 years$31,055$29,874$28,744$27,664$26,632$23,885
5 years$24,596$23,421$22,307$21,249$20,245$17,615
6 years$20,291$19,125$18,027$16,993$16,019$13,508
7 years$17,217$16,061$14,981$13,971$13,028$10,637
8 years$14,913$13,768$12,705$11,720$10,808$8,536
9 years$13,122$11,987$10,943$9,983$9,102$6,947
10 years$11,690$10,566$9,540$8,605$7,755$5,715
11 years$10,519$9,406$8,399$7,489$6,670$4,741
12 years$9,543$8,443$7,454$6,569$5,780$3,960
13 years$8,719$7,630$6,659$5,799$5,040$3,325
14 years$8,013$6,935$5,984$5,148$4,418$2,805
15 years$7,402$6,335$5,402$4,591$3,890$2,375
16 years$6,867$5,813$4,898$4,111$3,438$2,016
17 years$6,396$5,353$4,457$3,694$3,048$1,716
18 years$5,978$4,947$4,069$3,329$2,711$1,464
19 years$5,604$4,584$3,725$3,008$2,416$1,251
20 years$5,268$4,260$3,418$2,724$2,158$1,071
21 years$4,964$3,968$3,144$2,472$1,931$918
22 years$4,689$3,704$2,898$2,248$1,731$787
23 years$4,437$3,464$2,676$2,047$1,554$676
24 years$4,207$3,246$2,475$1,867$1,397$581
25 years$3,996$3,046$2,292$1,705$1,257$500
26 years$3,801$2,863$2,126$1,559$1,132$430
27 years$3,621$2,694$1,974$1,427$1,021$370
28 years$3,455$2,539$1,835$1,308$921$319
29 years$3,300$2,395$1,708$1,199$832$275
30 years$3,155$2,262$1,591$1,100$751$237
31 years$3,020$2,138$1,483$1,011$679$204
32 years$2,894$2,023$1,383$929$615$176
33 years$2,776$1,916$1,292$854$556$152
34 years$2,665$1,816$1,207$786$504$131
35 years$2,560$1,722$1,128$723$456$113
36 years$2,462$1,635$1,056$666$413$97
37 years$2,369$1,553$988$614$374$84
38 years$2,281$1,476$925$566$340$73
39 years$2,198$1,403$867$522$308$63
40 years$2,119$1,335$813$481$279$54
41 years$2,044$1,271$762$444$253$47
42 years$1,973$1,210$715$410$230$40
43 years$1,906$1,153$671$378$209$35
44 years$1,842$1,099$629$349$189$30
45 years$1,780$1,048$591$323$172$26
46 years$1,722$1,000$555$298$156$22
47 years$1,666$954$522$275$142$19
48 years$1,613$911$490$254$129$17
49 years$1,562$870$461$235$117$14
50 years$1,513$831$433$217$106$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,550,000, adding $2,660 every year, while hoping to spend $42,337 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: 48/44/8 Blend
39$1,550,000$1,550,000$1,550,000$1,550,000
40$1,710,844$1,628,694$1,604,669$1,789,181
41$1,840,304$1,663,454$1,613,379$1,877,922
42$1,981,549$1,698,498$1,620,962$1,969,541
43$2,135,739$1,733,795$1,627,335$2,068,027
44$2,304,145$1,769,312$1,632,412$2,174,031
45$2,488,172$1,805,013$1,636,102$2,288,271
46$2,689,363$1,840,856$1,638,309$2,411,537
47$2,909,419$1,876,799$1,638,934$2,544,701
48$3,150,212$1,912,794$1,637,869$2,688,721
49$3,413,802$1,948,789$1,635,007$2,844,656
50$3,702,460$1,984,730$1,630,229$3,013,671
51$4,018,685$2,020,556$1,623,416$3,197,051
52$4,365,230$2,056,202$1,614,440$3,396,212
53$4,745,127$2,091,599$1,603,167$3,612,715
54$5,161,714$2,126,673$1,589,458$3,848,278
55$5,618,670$2,161,341$1,573,166$4,104,800
56$6,120,045$2,195,517$1,554,137$4,384,369
57$6,670,301$2,229,108$1,532,212$4,689,289
58$7,274,352$2,262,015$1,507,222$5,022,101
59$7,937,612$2,294,130$1,478,990$5,385,604
60$8,666,045$2,325,339$1,447,333$5,782,885
61$9,466,221$2,355,520$1,412,057$6,217,346
62$10,345,376$2,384,541$1,372,962$6,692,739
63$11,311,483$2,412,262$1,329,835$7,213,200
64$12,373,325$2,438,534$1,282,455$7,783,286
65$13,540,580$2,463,198$1,230,593$8,408,025
66$14,823,908$2,486,083$1,174,007$9,092,957
67$16,235,054$2,507,009$1,112,443$9,844,191
68$17,786,959$2,525,781$1,045,640$10,668,461
69$19,493,880$2,542,196$973,320$11,573,191
70$21,371,525$2,556,033$895,196$12,566,565
71$23,437,203$2,567,061$810,967$13,657,607
72$25,709,981$2,575,031$720,318$14,856,263
73$28,210,872$2,579,680$622,921$16,173,499
74$30,963,026$2,580,729$518,434$17,621,403
75$33,991,950$2,577,880$406,497$19,213,302
76$37,325,752$2,570,819$286,738$20,963,888
77$40,995,400$2,559,211$158,765$22,889,353
78$45,035,018$2,542,699$22,171$25,007,553
79$49,482,208$2,520,909$0$27,338,166
80$54,378,399$2,493,440$0$29,913,439
81$59,769,246$2,459,869$0$32,749,441
82$65,705,053$2,419,746$0$35,870,680
83$72,241,252$2,372,597$0$39,306,257
84$79,438,922$2,317,918$0$43,088,250
85$87,365,371$2,255,174$0$47,252,013
86$96,094,764$2,183,802$0$51,836,518
87$105,708,825$2,103,204$0$56,884,717
88$116,297,611$2,012,747$0$62,443,954
89$127,960,358$1,911,762$0$68,566,411
90$140,806,417$1,799,541$0$75,309,607
91$154,956,288$1,675,335$0$82,736,933
92$170,542,756$1,538,353$0$90,918,262
93$187,712,143$1,387,759$0$99,930,607
94$206,625,690$1,222,667$0$109,858,849
95$227,461,075$1,042,143$0$120,796,543
96$250,414,097$845,199$0$132,846,800
97$275,700,514$630,793$0$146,123,268
98$303,558,088$397,823$0$160,751,204
99$334,248,821$145,125$0$176,868,660
100$368,061,436$0$0$194,627,792