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%17.3%
1 years$161,855$160,413$159,007$157,634$156,293$151,655
2 years$80,126$78,634$77,188$75,785$74,425$69,790
3 years$52,887$51,388$49,946$48,556$47,218$42,733
4 years$39,270$37,776$36,348$34,982$33,677$29,374
5 years$31,102$29,617$28,207$26,870$25,600$21,493
6 years$25,658$24,184$22,796$21,488$20,257$16,348
7 years$21,771$20,310$18,943$17,666$16,474$12,764
8 years$18,858$17,409$16,065$14,820$13,667$10,153
9 years$16,593$15,158$13,837$12,623$11,510$8,188
10 years$14,782$13,361$12,064$10,881$9,807$6,673
11 years$13,301$11,894$10,621$9,470$8,434$5,483
12 years$12,068$10,676$9,425$8,307$7,309$4,535
13 years$11,025$9,648$8,421$7,333$6,373$3,770
14 years$10,132$8,770$7,566$6,510$5,587$3,147
15 years$9,359$8,011$6,831$5,806$4,919$2,636
16 years$8,684$7,350$6,194$5,198$4,348$2,215
17 years$8,088$6,769$5,636$4,671$3,855$1,865
18 years$7,559$6,255$5,145$4,209$3,428$1,573
19 years$7,086$5,797$4,710$3,803$3,055$1,330
20 years$6,661$5,387$4,323$3,445$2,729$1,125
21 years$6,278$5,018$3,976$3,126$2,442$953
22 years$5,929$4,684$3,664$2,842$2,189$808
23 years$5,611$4,381$3,383$2,589$1,965$686
24 years$5,320$4,104$3,129$2,361$1,766$582
25 years$5,053$3,852$2,898$2,156$1,589$495
26 years$4,807$3,620$2,688$1,972$1,431$421
27 years$4,579$3,407$2,496$1,805$1,291$358
28 years$4,368$3,210$2,320$1,653$1,165$304
29 years$4,172$3,029$2,159$1,516$1,052$259
30 years$3,990$2,860$2,011$1,392$950$221
31 years$3,819$2,704$1,875$1,278$859$188
32 years$3,660$2,558$1,749$1,174$777$160
33 years$3,510$2,423$1,633$1,080$703$136
34 years$3,370$2,296$1,526$994$637$116
35 years$3,237$2,178$1,427$915$577$99
36 years$3,113$2,067$1,335$843$522$84
37 years$2,995$1,963$1,249$776$474$72
38 years$2,884$1,866$1,170$715$429$61
39 years$2,779$1,774$1,096$660$389$52
40 years$2,680$1,688$1,027$608$353$44
41 years$2,585$1,607$963$561$320$38
42 years$2,495$1,530$904$518$291$32
43 years$2,410$1,458$848$478$264$28
44 years$2,329$1,390$796$442$239$23
45 years$2,251$1,325$747$408$217$20
46 years$2,178$1,264$702$377$197$17
47 years$2,107$1,207$660$348$179$15
48 years$2,040$1,152$620$322$163$12
49 years$1,975$1,100$583$297$148$11
50 years$1,914$1,051$548$275$134$9

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 $4,185 every year, while hoping to spend $47,963 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: 55/39/6 Blend
39$1,960,000$1,960,000$1,960,000$1,960,000
40$2,164,237$2,060,357$2,029,977$2,280,202
41$2,333,957$2,110,282$2,046,949$2,408,821
42$2,519,381$2,161,046$2,062,882$2,543,086
43$2,722,059$2,212,639$2,077,690$2,688,084
44$2,943,701$2,265,050$2,091,285$2,844,838
45$3,186,186$2,318,265$2,103,570$3,014,477
46$3,451,585$2,372,268$2,114,447$3,198,243
47$3,742,177$2,427,039$2,123,812$3,397,504
48$4,060,473$2,482,559$2,131,554$3,613,766
49$4,409,238$2,538,801$2,137,558$3,848,688
50$4,791,517$2,595,739$2,141,702$4,104,098
51$5,210,663$2,653,341$2,143,861$4,382,006
52$5,670,370$2,711,575$2,143,900$4,684,630
53$6,174,707$2,770,400$2,141,679$5,014,411
54$6,728,153$2,829,776$2,137,051$5,374,039
55$7,335,645$2,889,655$2,129,863$5,766,477
56$8,002,619$2,949,987$2,119,952$6,194,990
57$8,735,065$3,010,716$2,107,149$6,663,174
58$9,539,581$3,071,779$2,091,278$7,174,992
59$10,423,433$3,133,112$2,072,151$7,734,811
60$11,394,629$3,194,640$2,049,574$8,347,442
61$12,461,990$3,256,286$2,023,342$9,018,186
62$13,635,231$3,317,962$1,993,243$9,752,885
63$14,925,061$3,379,578$1,959,052$10,557,976
64$16,343,272$3,441,033$1,920,536$11,440,553
65$17,902,861$3,502,218$1,877,449$12,408,432
66$19,618,143$3,563,018$1,829,534$13,470,229
67$21,504,894$3,623,306$1,776,524$14,635,436
68$23,580,493$3,682,948$1,718,137$15,914,514
69$25,864,090$3,741,799$1,654,081$17,318,993
70$28,376,782$3,799,702$1,584,048$18,861,577
71$31,141,818$3,856,491$1,507,717$20,556,270
72$34,184,811$3,911,987$1,424,754$22,418,503
73$37,533,985$3,965,998$1,334,806$24,465,280
74$41,220,438$4,018,318$1,237,509$26,715,346
75$45,278,436$4,068,729$1,132,478$29,189,354
76$49,745,735$4,116,995$1,019,315$31,910,070
77$54,663,939$4,162,867$897,601$34,902,580
78$60,078,891$4,206,077$766,901$38,194,534
79$66,041,103$4,246,340$626,757$41,816,403
80$72,606,236$4,283,352$476,695$45,801,771
81$79,835,626$4,316,790$316,217$50,187,648
82$87,796,854$4,346,307$144,805$55,014,825
83$96,564,395$4,371,538$0$60,328,256
84$106,220,312$4,392,092$0$66,179,925
85$116,855,032$4,407,552$0$72,632,047
86$128,568,201$4,417,478$0$79,735,555
87$141,469,623$4,421,400$0$87,556,810
88$155,680,295$4,418,819$0$96,168,944
89$171,333,550$4,409,206$0$105,652,555
90$188,576,314$4,391,999$0$116,096,462
91$207,570,492$4,366,601$0$127,598,555
92$228,494,497$4,332,379$0$140,266,709
93$251,544,933$4,288,663$0$154,219,812
94$276,938,449$4,234,740$0$169,588,885
95$304,913,786$4,169,858$0$186,518,319
96$335,734,026$4,093,215$0$205,167,242
97$369,689,081$4,003,967$0$225,711,023
98$407,098,423$3,901,217$0$248,342,928
99$448,314,100$3,784,015$0$273,275,945
100$493,724,064$3,651,357$0$300,744,800