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%19.1%
1 years$161,855$160,413$159,007$157,634$156,293$150,568
2 years$80,126$78,634$77,188$75,785$74,425$68,721
3 years$52,887$51,388$49,946$48,556$47,218$41,715
4 years$39,270$37,776$36,348$34,982$33,677$28,415
5 years$31,102$29,617$28,207$26,870$25,600$20,595
6 years$25,658$24,184$22,796$21,488$20,257$15,511
7 years$21,771$20,310$18,943$17,666$16,474$11,986
8 years$18,858$17,409$16,065$14,820$13,667$9,434
9 years$16,593$15,158$13,837$12,623$11,510$7,525
10 years$14,782$13,361$12,064$10,881$9,807$6,064
11 years$13,301$11,894$10,621$9,470$8,434$4,925
12 years$12,068$10,676$9,425$8,307$7,309$4,024
13 years$11,025$9,648$8,421$7,333$6,373$3,305
14 years$10,132$8,770$7,566$6,510$5,587$2,725
15 years$9,359$8,011$6,831$5,806$4,919$2,253
16 years$8,684$7,350$6,194$5,198$4,348$1,869
17 years$8,088$6,769$5,636$4,671$3,855$1,553
18 years$7,559$6,255$5,145$4,209$3,428$1,293
19 years$7,086$5,797$4,710$3,803$3,055$1,078
20 years$6,661$5,387$4,323$3,445$2,729$899
21 years$6,278$5,018$3,976$3,126$2,442$751
22 years$5,929$4,684$3,664$2,842$2,189$628
23 years$5,611$4,381$3,383$2,589$1,965$526
24 years$5,320$4,104$3,129$2,361$1,766$440
25 years$5,053$3,852$2,898$2,156$1,589$369
26 years$4,807$3,620$2,688$1,972$1,431$309
27 years$4,579$3,407$2,496$1,805$1,291$259
28 years$4,368$3,210$2,320$1,653$1,165$217
29 years$4,172$3,029$2,159$1,516$1,052$182
30 years$3,990$2,860$2,011$1,392$950$153
31 years$3,819$2,704$1,875$1,278$859$128
32 years$3,660$2,558$1,749$1,174$777$107
33 years$3,510$2,423$1,633$1,080$703$90
34 years$3,370$2,296$1,526$994$637$76
35 years$3,237$2,178$1,427$915$577$64
36 years$3,113$2,067$1,335$843$522$53
37 years$2,995$1,963$1,249$776$474$45
38 years$2,884$1,866$1,170$715$429$38
39 years$2,779$1,774$1,096$660$389$32
40 years$2,680$1,688$1,027$608$353$26
41 years$2,585$1,607$963$561$320$22
42 years$2,495$1,530$904$518$291$19
43 years$2,410$1,458$848$478$264$16
44 years$2,329$1,390$796$442$239$13
45 years$2,251$1,325$747$408$217$11
46 years$2,178$1,264$702$377$197$9
47 years$2,107$1,207$660$348$179$8
48 years$2,040$1,152$620$322$163$7
49 years$1,975$1,100$583$297$148$5
50 years$1,914$1,051$548$275$134$5

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 $6,821 every year, while hoping to spend $59,016 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: 33/48/19 Blend
39$1,960,000$1,960,000$1,960,000$1,960,000
40$2,166,956$2,063,076$2,032,696$2,225,538
41$2,325,193$2,101,374$2,037,999$2,307,845
42$2,497,592$2,139,571$2,041,501$2,390,586
43$2,685,535$2,177,599$2,043,081$2,478,521
44$2,890,545$2,215,386$2,042,608$2,572,143
45$3,114,294$2,252,854$2,039,950$2,671,993
46$3,358,627$2,289,918$2,034,962$2,778,673
47$3,625,572$2,326,489$2,027,499$2,892,845
48$3,917,362$2,362,469$2,017,402$3,015,243
49$4,236,458$2,397,755$2,004,510$3,146,677
50$4,585,566$2,432,235$1,988,651$3,288,042
51$4,967,669$2,465,789$1,969,646$3,440,327
52$5,386,049$2,498,291$1,947,307$3,604,625
53$5,844,322$2,529,603$1,921,437$3,782,144
54$6,346,469$2,559,579$1,891,831$3,974,217
55$6,896,874$2,588,064$1,858,273$4,182,319
56$7,500,368$2,614,892$1,820,537$4,408,078
57$8,162,268$2,639,884$1,778,388$4,653,292
58$8,888,433$2,662,852$1,731,578$4,919,949
59$9,685,316$2,683,595$1,679,848$5,210,242
60$10,560,024$2,701,897$1,622,929$5,526,597
61$11,520,387$2,717,530$1,560,538$5,871,689
62$12,575,029$2,730,251$1,492,378$6,248,475
63$13,733,450$2,739,802$1,418,141$6,660,219
64$15,006,118$2,745,908$1,337,505$7,110,526
65$16,404,560$2,748,276$1,250,130$7,603,376
66$17,941,480$2,746,597$1,155,664$8,143,161
67$19,630,872$2,740,540$1,053,739$8,734,734
68$21,488,151$2,729,757$943,969$9,383,449
69$23,530,302$2,713,875$825,953$10,095,217
70$25,776,040$2,692,502$699,269$10,876,563
71$28,245,980$2,665,219$563,479$11,734,689
72$30,962,840$2,631,584$418,125$12,677,542
73$33,951,645$2,591,128$262,728$13,713,895
74$37,239,973$2,543,353$96,789$14,853,427
75$40,858,206$2,487,732$0$16,106,821
76$44,839,820$2,423,709$0$17,502,141
77$49,221,703$2,350,692$0$19,058,113
78$54,044,497$2,268,056$0$20,769,559
79$59,352,985$2,175,139$0$22,652,431
80$65,196,510$2,071,243$0$24,724,319
81$71,629,445$1,955,625$0$27,004,624
82$78,711,701$1,827,502$0$29,514,737
83$86,509,293$1,686,048$0$32,278,246
84$95,094,962$1,530,386$0$35,321,165
85$104,548,863$1,359,590$0$38,672,175
86$114,959,321$1,172,683$0$42,362,903
87$126,423,659$968,632$0$46,428,219
88$139,049,121$746,344$0$50,906,575
89$152,953,884$504,668$0$55,840,363
90$168,268,168$242,384$0$61,276,326
91$185,135,468$0$0$67,265,999
92$203,713,907$0$0$73,888,274
93$224,177,727$0$0$81,324,026
94$246,718,934$0$0$89,515,047
95$271,549,109$0$0$98,538,276
96$298,901,405$0$0$108,478,494
97$329,032,745$0$0$119,429,127
98$362,226,249$0$0$131,493,129
99$398,793,904$0$0$144,783,949
100$439,079,507$0$0$159,426,606