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

Use the below retirement simulation to view the chances of a successful retirement.
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%15.9%
1 years$161,855$160,413$159,007$157,634$156,293$152,515
2 years$80,126$78,634$77,188$75,785$74,425$70,641
3 years$52,887$51,388$49,946$48,556$47,218$43,547
4 years$39,270$37,776$36,348$34,982$33,677$30,146
5 years$31,102$29,617$28,207$26,870$25,600$22,221
6 years$25,658$24,184$22,796$21,488$20,257$17,032
7 years$21,771$20,310$18,943$17,666$16,474$13,404
8 years$18,858$17,409$16,065$14,820$13,667$10,750
9 years$16,593$15,158$13,837$12,623$11,510$8,743
10 years$14,782$13,361$12,064$10,881$9,807$7,188
11 years$13,301$11,894$10,621$9,470$8,434$5,960
12 years$12,068$10,676$9,425$8,307$7,309$4,974
13 years$11,025$9,648$8,421$7,333$6,373$4,175
14 years$10,132$8,770$7,566$6,510$5,587$3,519
15 years$9,359$8,011$6,831$5,806$4,919$2,977
16 years$8,684$7,350$6,194$5,198$4,348$2,526
17 years$8,088$6,769$5,636$4,671$3,855$2,149
18 years$7,559$6,255$5,145$4,209$3,428$1,832
19 years$7,086$5,797$4,710$3,803$3,055$1,564
20 years$6,661$5,387$4,323$3,445$2,729$1,338
21 years$6,278$5,018$3,976$3,126$2,442$1,146
22 years$5,929$4,684$3,664$2,842$2,189$982
23 years$5,611$4,381$3,383$2,589$1,965$843
24 years$5,320$4,104$3,129$2,361$1,766$724
25 years$5,053$3,852$2,898$2,156$1,589$622
26 years$4,807$3,620$2,688$1,972$1,431$535
27 years$4,579$3,407$2,496$1,805$1,291$460
28 years$4,368$3,210$2,320$1,653$1,165$396
29 years$4,172$3,029$2,159$1,516$1,052$341
30 years$3,990$2,860$2,011$1,392$950$293
31 years$3,819$2,704$1,875$1,278$859$253
32 years$3,660$2,558$1,749$1,174$777$218
33 years$3,510$2,423$1,633$1,080$703$188
34 years$3,370$2,296$1,526$994$637$162
35 years$3,237$2,178$1,427$915$577$139
36 years$3,113$2,067$1,335$843$522$120
37 years$2,995$1,963$1,249$776$474$104
38 years$2,884$1,866$1,170$715$429$89
39 years$2,779$1,774$1,096$660$389$77
40 years$2,680$1,688$1,027$608$353$66
41 years$2,585$1,607$963$561$320$57
42 years$2,495$1,530$904$518$291$49
43 years$2,410$1,458$848$478$264$43
44 years$2,329$1,390$796$442$239$37
45 years$2,251$1,325$747$408$217$32
46 years$2,178$1,264$702$377$197$27
47 years$2,107$1,207$660$348$179$24
48 years$2,040$1,152$620$322$163$20
49 years$1,975$1,100$583$297$148$18
50 years$1,914$1,051$548$275$134$15

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 $2,588 every year, while hoping to spend $26,531 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: 78/8/14 Blend
39$1,960,000$1,960,000$1,960,000$1,960,000
40$2,162,590$2,058,710$2,028,330$2,324,886
41$2,354,945$2,131,358$2,068,050$2,504,795
42$2,566,031$2,206,676$2,108,211$2,698,447
43$2,797,731$2,284,768$2,148,801$2,910,114
44$3,052,119$2,365,740$2,189,805$3,141,586
45$3,331,477$2,449,704$2,231,206$3,394,835
46$3,638,324$2,536,776$2,272,988$3,672,029
47$3,975,431$2,627,076$2,315,131$3,975,560
48$4,345,852$2,720,729$2,357,614$4,308,059
49$4,752,950$2,817,867$2,400,416$4,672,428
50$5,200,434$2,918,625$2,443,512$5,071,858
51$5,692,385$3,023,144$2,486,877$5,509,869
52$6,233,302$3,131,572$2,530,481$5,990,335
53$6,828,142$3,244,063$2,574,296$6,517,526
54$7,482,366$3,360,775$2,618,288$7,096,144
55$8,201,990$3,481,876$2,662,423$7,731,370
56$8,993,643$3,607,538$2,706,665$8,428,911
57$9,864,629$3,737,941$2,750,972$9,195,055
58$10,822,994$3,873,273$2,795,303$10,036,727
59$11,877,607$4,013,731$2,839,612$10,961,561
60$13,038,236$4,159,516$2,883,852$11,977,964
61$14,315,646$4,310,843$2,927,971$13,095,199
62$15,721,698$4,467,931$2,971,915$14,323,472
63$17,269,462$4,631,010$3,015,625$15,674,028
64$18,973,339$4,800,322$3,059,040$17,159,258
65$20,849,197$4,976,114$3,102,095$18,792,813
66$22,914,520$5,158,649$3,144,721$20,589,733
67$25,188,576$5,348,198$3,186,843$22,566,592
68$27,692,594$5,545,042$3,228,386$24,741,651
69$30,449,967$5,749,478$3,269,265$27,135,031
70$33,486,473$5,961,812$3,309,395$29,768,902
71$36,830,517$6,182,364$3,348,683$32,667,695
72$40,513,399$6,411,469$3,387,033$35,858,327
73$44,569,609$6,649,475$3,424,342$39,370,460
74$49,037,153$6,896,743$3,460,502$43,236,777
75$53,957,913$7,153,654$3,495,399$47,493,292
76$59,378,038$7,420,600$3,528,913$52,179,691
77$65,348,382$7,697,994$3,560,916$57,339,702
78$71,924,986$7,986,265$3,591,275$63,021,511
79$79,169,602$8,285,860$3,619,851$69,278,217
80$87,150,280$8,597,245$3,646,494$76,168,329
81$95,942,005$8,920,907$3,671,049$83,756,322
82$105,627,413$9,257,355$3,693,352$92,113,244
83$116,297,561$9,607,117$3,713,231$101,317,384
84$128,052,792$9,970,746$3,730,504$111,455,014
85$141,003,683$10,348,818$3,744,982$122,621,202
86$155,272,084$10,741,936$3,756,465$134,920,708
87$170,992,272$11,150,726$3,764,741$148,468,973
88$188,312,216$11,575,844$3,769,592$163,393,208
89$207,394,974$12,017,972$3,770,786$179,833,596
90$228,420,233$12,477,825$3,768,079$197,944,615
91$251,586,005$12,956,146$3,761,217$217,896,491
92$277,110,492$13,453,712$3,749,933$239,876,812
93$305,234,153$13,971,334$3,733,946$264,092,293
94$336,221,966$14,509,859$3,712,963$290,770,729
95$370,365,936$15,070,171$3,686,676$320,163,142
96$407,987,844$15,653,192$3,654,762$352,546,158
97$449,442,291$16,259,885$3,616,884$388,224,607
98$495,120,041$16,891,257$3,572,687$427,534,409
99$545,451,713$17,548,356$3,521,800$470,845,741
100$600,911,843$18,232,281$3,463,835$518,566,532