Can I retire at age 40 with 1,960,000?

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 $1,960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.1%
1 years$161,855$160,413$159,007$157,634$156,293$151,777
2 years$80,126$78,634$77,188$75,785$74,425$69,911
3 years$52,887$51,388$49,946$48,556$47,218$42,848
4 years$39,270$37,776$36,348$34,982$33,677$29,483
5 years$31,102$29,617$28,207$26,870$25,600$21,595
6 years$25,658$24,184$22,796$21,488$20,257$16,444
7 years$21,771$20,310$18,943$17,666$16,474$12,853
8 years$18,858$17,409$16,065$14,820$13,667$10,236
9 years$16,593$15,158$13,837$12,623$11,510$8,265
10 years$14,782$13,361$12,064$10,881$9,807$6,745
11 years$13,301$11,894$10,621$9,470$8,434$5,549
12 years$12,068$10,676$9,425$8,307$7,309$4,595
13 years$11,025$9,648$8,421$7,333$6,373$3,825
14 years$10,132$8,770$7,566$6,510$5,587$3,198
15 years$9,359$8,011$6,831$5,806$4,919$2,683
16 years$8,684$7,350$6,194$5,198$4,348$2,257
17 years$8,088$6,769$5,636$4,671$3,855$1,903
18 years$7,559$6,255$5,145$4,209$3,428$1,608
19 years$7,086$5,797$4,710$3,803$3,055$1,361
20 years$6,661$5,387$4,323$3,445$2,729$1,153
21 years$6,278$5,018$3,976$3,126$2,442$979
22 years$5,929$4,684$3,664$2,842$2,189$831
23 years$5,611$4,381$3,383$2,589$1,965$706
24 years$5,320$4,104$3,129$2,361$1,766$601
25 years$5,053$3,852$2,898$2,156$1,589$511
26 years$4,807$3,620$2,688$1,972$1,431$435
27 years$4,579$3,407$2,496$1,805$1,291$371
28 years$4,368$3,210$2,320$1,653$1,165$316
29 years$4,172$3,029$2,159$1,516$1,052$269
30 years$3,990$2,860$2,011$1,392$950$230
31 years$3,819$2,704$1,875$1,278$859$196
32 years$3,660$2,558$1,749$1,174$777$167
33 years$3,510$2,423$1,633$1,080$703$143
34 years$3,370$2,296$1,526$994$637$122
35 years$3,237$2,178$1,427$915$577$104
36 years$3,113$2,067$1,335$843$522$89
37 years$2,995$1,963$1,249$776$474$76
38 years$2,884$1,866$1,170$715$429$65
39 years$2,779$1,774$1,096$660$389$55
40 years$2,680$1,688$1,027$608$353$47
41 years$2,585$1,607$963$561$320$40
42 years$2,495$1,530$904$518$291$34
43 years$2,410$1,458$848$478$264$29
44 years$2,329$1,390$796$442$239$25
45 years$2,251$1,325$747$408$217$21
46 years$2,178$1,264$702$377$197$18
47 years$2,107$1,207$660$348$179$16
48 years$2,040$1,152$620$322$163$13
49 years$1,975$1,100$583$297$148$11
50 years$1,914$1,051$548$275$134$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,960,000, adding $5,622 every year, while hoping to spend $54,847 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: 49/38/13 Blend
39$1,960,000$1,960,000$1,960,000$1,960,000
40$2,165,719$2,061,839$2,031,459$2,263,849
41$2,328,266$2,104,512$2,041,156$2,374,615
42$2,505,554$2,147,439$2,049,340$2,488,691
43$2,699,029$2,190,572$2,055,902$2,611,378
44$2,910,283$2,233,863$2,060,727$2,743,499
45$3,141,067$2,277,258$2,063,697$2,885,962
46$3,393,311$2,320,698$2,064,685$3,039,769
47$3,669,136$2,364,120$2,063,560$3,206,023
48$3,970,882$2,407,455$2,060,183$3,385,942
49$4,301,121$2,450,630$2,054,409$3,580,866
50$4,662,690$2,493,565$2,046,086$3,792,274
51$5,058,708$2,536,173$2,035,053$4,021,795
52$5,492,613$2,578,363$2,021,144$4,271,227
53$5,968,191$2,620,034$2,004,184$4,542,551
54$6,489,611$2,661,080$1,983,989$4,837,950
55$7,061,464$2,701,386$1,960,366$5,159,833
56$7,688,809$2,740,830$1,933,114$5,510,856
57$8,377,216$2,779,279$1,902,021$5,893,944
58$9,132,821$2,816,593$1,866,868$6,312,327
59$9,962,384$2,852,621$1,827,423$6,769,564
60$10,873,349$2,887,201$1,783,444$7,269,577
61$11,873,919$2,920,163$1,734,678$7,816,693
62$12,973,130$2,951,321$1,680,860$8,415,684
63$14,180,933$2,980,480$1,621,713$9,071,808
64$15,508,296$3,007,431$1,556,948$9,790,864
65$16,967,299$3,031,952$1,486,262$10,579,247
66$18,571,250$3,053,804$1,409,339$11,444,007
67$20,334,813$3,072,736$1,325,847$12,392,916
68$22,274,141$3,088,478$1,235,441$13,434,544
69$24,407,035$3,100,744$1,137,759$14,578,339
70$26,753,103$3,109,231$1,032,425$15,834,719
71$29,333,951$3,113,616$919,043$17,215,170
72$32,173,385$3,113,554$797,201$18,732,352
73$35,297,634$3,108,681$666,471$20,400,228
74$38,735,596$3,098,610$526,401$22,234,187
75$42,519,115$3,082,930$376,524$24,251,198
76$46,683,277$3,061,205$216,349$26,469,967
77$51,266,740$3,032,973$45,366$28,911,116
78$56,312,101$2,997,743$0$31,597,380
79$61,866,299$2,954,996$0$34,572,841
80$67,981,052$2,904,181$0$37,854,062
81$74,713,347$2,844,714$0$41,465,284
82$82,125,981$2,775,977$0$45,440,168
83$90,288,147$2,697,316$0$49,815,816
84$99,276,092$2,608,038$0$54,633,123
85$109,173,831$2,507,410$0$59,937,164
86$120,073,945$2,394,656$0$65,777,620
87$132,078,448$2,268,956$0$72,209,249
88$145,299,755$2,129,440$0$79,292,406
89$159,861,739$1,975,191$0$87,093,615
90$175,900,899$1,805,238$0$95,686,193
91$193,567,651$1,618,555$0$105,150,955
92$213,027,745$1,414,058$0$115,576,968
93$234,463,829$1,190,600$0$127,062,401
94$258,077,171$946,972$0$139,715,452
95$284,089,563$681,893$0$153,655,374
96$312,745,407$394,015$0$169,013,600
97$344,314,026$81,909$0$185,934,990
98$379,092,206$0$0$204,579,201
99$417,406,991$0$0$225,229,215
100$459,618,776$0$0$248,017,625