Can I retire at age 40 with 1,950,000?

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 $1,950,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$161,029$159,595$158,195$156,829$155,496$154,451
2 years$79,717$78,233$76,794$75,399$74,046$72,992
3 years$52,617$51,126$49,691$48,309$46,978$45,948
4 years$39,070$37,583$36,162$34,804$33,505$32,507
5 years$30,943$29,466$28,063$26,733$25,470$24,506
6 years$25,527$24,061$22,679$21,378$20,153$19,226
7 years$21,660$20,206$18,847$17,576$16,390$15,499
8 years$18,761$17,320$15,983$14,744$13,597$12,742
9 years$16,508$15,081$13,767$12,559$11,451$10,632
10 years$14,706$13,293$12,002$10,826$9,757$8,973
11 years$13,233$11,834$10,566$9,422$8,391$7,642
12 years$12,006$10,621$9,377$8,264$7,271$6,557
13 years$10,969$9,599$8,378$7,296$6,341$5,660
14 years$10,081$8,725$7,528$6,477$5,558$4,911
15 years$9,312$7,970$6,797$5,776$4,894$4,278
16 years$8,639$7,313$6,162$5,172$4,325$3,741
17 years$8,047$6,735$5,607$4,647$3,835$3,281
18 years$7,520$6,223$5,119$4,188$3,410$2,885
19 years$7,050$5,768$4,686$3,784$3,039$2,542
20 years$6,627$5,359$4,300$3,427$2,715$2,245
21 years$6,245$4,992$3,956$3,110$2,430$1,986
22 years$5,899$4,660$3,646$2,828$2,178$1,759
23 years$5,583$4,358$3,366$2,575$1,955$1,560
24 years$5,293$4,084$3,113$2,349$1,757$1,386
25 years$5,027$3,832$2,883$2,145$1,581$1,232
26 years$4,782$3,602$2,674$1,961$1,424$1,096
27 years$4,556$3,390$2,483$1,795$1,284$976
28 years$4,346$3,194$2,308$1,645$1,159$869
29 years$4,151$3,013$2,148$1,508$1,046$775
30 years$3,969$2,846$2,001$1,384$945$691
31 years$3,800$2,690$1,865$1,271$855$617
32 years$3,641$2,545$1,741$1,169$773$551
33 years$3,492$2,410$1,625$1,075$700$492
34 years$3,352$2,285$1,518$989$633$440
35 years$3,221$2,167$1,420$910$574$393
36 years$3,097$2,057$1,328$838$520$351
37 years$2,980$1,953$1,243$772$471$314
38 years$2,870$1,856$1,164$712$427$281
39 years$2,765$1,765$1,091$656$387$251
40 years$2,666$1,679$1,022$605$351$225
41 years$2,572$1,599$958$559$319$201
42 years$2,483$1,523$899$515$289$180
43 years$2,398$1,451$844$476$262$161
44 years$2,317$1,383$792$439$238$144
45 years$2,240$1,319$744$406$216$129
46 years$2,166$1,258$698$375$196$116
47 years$2,096$1,200$656$346$178$104
48 years$2,029$1,146$617$320$162$93
49 years$1,965$1,094$580$296$147$83
50 years$1,904$1,045$545$273$134$74

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,950,000, adding $2,195 every year, while hoping to spend $54,903 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: 66/12/22 Blend
39$1,950,000$1,950,000$1,950,000$1,950,000
40$2,151,164$2,047,814$2,017,589$2,280,920
41$2,312,167$2,089,741$2,026,762$2,410,273
42$2,487,751$2,131,881$2,034,402$2,545,169
43$2,679,347$2,174,189$2,040,400$2,691,363
44$2,888,528$2,216,612$2,044,641$2,849,967
45$3,117,026$2,259,094$2,047,004$3,022,206
46$3,366,747$2,301,574$2,047,364$3,209,430
47$3,639,792$2,343,988$2,045,587$3,413,129
48$3,938,470$2,386,263$2,041,534$3,634,942
49$4,265,327$2,428,323$2,035,058$3,876,678
50$4,623,166$2,470,086$2,026,008$4,140,331
51$5,015,071$2,511,462$2,014,221$4,428,096
52$5,444,442$2,552,357$1,999,531$4,742,396
53$5,915,020$2,592,668$1,981,760$5,085,899
54$6,430,927$2,632,284$1,960,725$5,461,548
55$6,996,703$2,671,087$1,936,230$5,872,585
56$7,617,347$2,708,951$1,908,075$6,322,585
57$8,298,368$2,745,740$1,876,046$6,815,490
58$9,045,829$2,781,310$1,839,922$7,355,641
59$9,866,414$2,815,504$1,799,469$7,947,827
60$10,767,483$2,848,159$1,754,446$8,597,325
61$11,757,144$2,879,096$1,704,598$9,309,953
62$12,844,329$2,908,128$1,649,658$10,092,123
63$14,038,877$2,935,053$1,589,348$10,950,903
64$15,351,629$2,959,657$1,523,378$11,894,084
65$16,794,526$2,981,711$1,451,442$12,930,254
66$18,380,725$3,000,972$1,373,222$14,068,881
67$20,124,721$3,017,182$1,288,387$15,320,397
68$22,042,483$3,030,064$1,196,588$16,696,305
69$24,151,605$3,039,326$1,097,463$18,209,282
70$26,471,473$3,044,657$990,632$19,873,303
71$29,023,444$3,045,726$875,699$21,703,769
72$31,831,050$3,042,182$752,250$23,717,658
73$34,920,219$3,033,651$619,853$25,933,683
74$38,319,520$3,019,738$478,056$28,372,471
75$42,060,428$3,000,022$326,388$31,056,754
76$46,177,627$2,974,058$164,357$34,011,592
77$50,709,332$2,941,374$0$37,264,602
78$55,697,650$2,901,468$0$40,848,236
79$61,188,980$2,853,810$0$44,835,340
80$67,234,446$2,797,837$0$49,224,404
81$73,890,382$2,732,953$0$54,056,326
82$81,218,861$2,658,527$0$59,376,173
83$89,288,282$2,573,892$0$65,233,607
84$98,174,014$2,478,340$0$71,683,356
85$107,959,108$2,371,124$0$78,785,729
86$118,735,080$2,251,452$0$86,607,187
87$130,602,771$2,118,485$0$95,220,968
88$143,673,303$1,971,341$0$104,707,779
89$158,069,124$1,809,081$0$115,156,562
90$173,925,165$1,630,716$0$126,665,328
91$191,390,111$1,435,200$0$139,342,087
92$210,627,806$1,221,429$0$153,305,864
93$231,818,797$988,234$0$168,687,828
94$255,162,039$734,381$0$185,632,524
95$280,876,769$458,568$0$204,299,244
96$309,204,580$159,419$0$224,863,529
97$340,411,696$0$0$247,518,824
98$374,791,489$0$0$272,500,034
99$412,667,241$0$0$300,044,887
100$454,395,200$0$0$330,391,435