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%11.8%
1 years$161,029$159,595$158,195$156,829$155,496$154,322
2 years$79,717$78,233$76,794$75,399$74,046$72,862
3 years$52,617$51,126$49,691$48,309$46,978$45,821
4 years$39,070$37,583$36,162$34,804$33,505$32,384
5 years$30,943$29,466$28,063$26,733$25,470$24,388
6 years$25,527$24,061$22,679$21,378$20,153$19,113
7 years$21,660$20,206$18,847$17,576$16,390$15,391
8 years$18,761$17,320$15,983$14,744$13,597$12,639
9 years$16,508$15,081$13,767$12,559$11,451$10,533
10 years$14,706$13,293$12,002$10,826$9,757$8,879
11 years$13,233$11,834$10,566$9,422$8,391$7,553
12 years$12,006$10,621$9,377$8,264$7,271$6,473
13 years$10,969$9,599$8,378$7,296$6,341$5,580
14 years$10,081$8,725$7,528$6,477$5,558$4,835
15 years$9,312$7,970$6,797$5,776$4,894$4,207
16 years$8,639$7,313$6,162$5,172$4,325$3,673
17 years$8,047$6,735$5,607$4,647$3,835$3,217
18 years$7,520$6,223$5,119$4,188$3,410$2,825
19 years$7,050$5,768$4,686$3,784$3,039$2,486
20 years$6,627$5,359$4,300$3,427$2,715$2,192
21 years$6,245$4,992$3,956$3,110$2,430$1,936
22 years$5,899$4,660$3,646$2,828$2,178$1,712
23 years$5,583$4,358$3,366$2,575$1,955$1,517
24 years$5,293$4,084$3,113$2,349$1,757$1,345
25 years$5,027$3,832$2,883$2,145$1,581$1,194
26 years$4,782$3,602$2,674$1,961$1,424$1,060
27 years$4,556$3,390$2,483$1,795$1,284$943
28 years$4,346$3,194$2,308$1,645$1,159$838
29 years$4,151$3,013$2,148$1,508$1,046$746
30 years$3,969$2,846$2,001$1,384$945$665
31 years$3,800$2,690$1,865$1,271$855$592
32 years$3,641$2,545$1,741$1,169$773$528
33 years$3,492$2,410$1,625$1,075$700$471
34 years$3,352$2,285$1,518$989$633$420
35 years$3,221$2,167$1,420$910$574$375
36 years$3,097$2,057$1,328$838$520$334
37 years$2,980$1,953$1,243$772$471$299
38 years$2,870$1,856$1,164$712$427$267
39 years$2,765$1,765$1,091$656$387$238
40 years$2,666$1,679$1,022$605$351$213
41 years$2,572$1,599$958$559$319$190
42 years$2,483$1,523$899$515$289$170
43 years$2,398$1,451$844$476$262$152
44 years$2,317$1,383$792$439$238$136
45 years$2,240$1,319$744$406$216$121
46 years$2,166$1,258$698$375$196$108
47 years$2,096$1,200$656$346$178$97
48 years$2,029$1,146$617$320$162$87
49 years$1,965$1,094$580$296$147$77
50 years$1,904$1,045$545$273$134$69

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 $3,286 every year, while hoping to spend $21,768 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: 87/7/6 Blend
39$1,950,000$1,950,000$1,950,000$1,950,000
40$2,152,290$2,048,940$2,018,715$2,338,801
41$2,348,662$2,126,177$2,063,180$2,538,001
42$2,564,335$2,206,469$2,108,406$2,753,544
43$2,801,254$2,289,943$2,154,395$2,989,740
44$3,061,563$2,376,730$2,201,148$3,248,653
45$3,347,622$2,466,970$2,248,666$3,532,558
46$3,662,033$2,560,806$2,296,951$3,843,959
47$4,007,663$2,658,387$2,346,000$4,185,615
48$4,387,668$2,759,871$2,395,815$4,560,565
49$4,805,527$2,865,422$2,446,391$4,972,155
50$5,265,072$2,975,209$2,497,727$5,424,073
51$5,770,527$3,089,412$2,549,818$5,920,379
52$6,326,543$3,208,215$2,602,660$6,465,548
53$6,938,247$3,331,814$2,656,245$7,064,508
54$7,611,285$3,460,411$2,710,567$7,722,689
55$8,351,882$3,594,217$2,765,617$8,446,070
56$9,166,894$3,733,453$2,821,385$9,241,243
57$10,063,875$3,878,350$2,877,859$10,115,466
58$11,051,150$4,029,149$2,935,027$11,076,737
59$12,137,891$4,186,101$2,992,874$12,133,867
60$13,334,204$4,349,468$3,051,383$13,296,565
61$14,651,226$4,519,525$3,110,538$14,575,526
62$16,101,228$4,696,559$3,170,318$15,982,535
63$17,697,730$4,880,867$3,230,701$17,530,576
64$19,455,633$5,072,764$3,291,663$19,233,954
65$21,391,353$5,272,574$3,353,179$21,108,433
66$23,522,980$5,480,640$3,415,220$23,171,379
67$25,870,449$5,697,316$3,477,755$25,441,929
68$28,455,726$5,922,976$3,540,750$27,941,168
69$31,303,015$6,158,007$3,604,171$30,692,328
70$34,438,990$6,402,816$3,667,978$33,721,009
71$37,893,040$6,657,828$3,732,128$37,055,418
72$41,697,554$6,923,485$3,796,578$40,726,635
73$45,888,220$7,200,251$3,861,279$44,768,909
74$50,504,366$7,488,611$3,926,179$49,219,977
75$55,589,328$7,789,070$3,991,223$54,121,421
76$61,190,862$8,102,157$4,056,352$59,519,061
77$67,361,592$8,428,425$4,121,502$65,463,389
78$74,159,509$8,768,452$4,186,607$72,010,039
79$81,648,515$9,122,843$4,251,594$79,220,317
80$89,899,029$9,492,227$4,316,388$87,161,780
81$98,988,649$9,877,266$4,380,906$95,908,867
82$109,002,888$10,278,649$4,445,064$105,543,608
83$120,035,978$10,697,098$4,508,769$116,156,395
84$132,191,759$11,133,366$4,571,923$127,846,833
85$145,584,661$11,588,244$4,634,425$140,724,682
86$160,340,783$12,062,555$4,696,166$154,910,892
87$176,599,085$12,557,161$4,757,028$170,538,747
88$194,512,694$13,072,965$4,816,892$187,755,114
89$214,250,357$13,610,909$4,875,626$206,721,840
90$235,998,030$14,171,979$4,933,095$227,617,271
91$259,960,630$14,757,207$4,989,155$250,637,938
92$286,363,975$15,367,672$5,043,653$276,000,411
93$315,456,914$16,004,501$5,096,428$303,943,344
94$347,513,672$16,668,874$5,147,312$334,729,725
95$382,836,445$17,362,027$5,196,125$368,649,361
96$421,758,246$18,085,251$5,242,679$406,021,609
97$464,646,054$18,839,895$5,286,776$447,198,392
98$511,904,276$19,627,374$5,328,207$492,567,524
99$563,978,562$20,449,165$5,366,752$542,556,362
100$621,360,017$21,306,816$5,402,180$597,635,847