Can I retire at age 40 with 1,970,000?

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 $1,970,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$162,681$161,232$159,818$158,438$157,091$153,107
2 years$80,535$79,035$77,582$76,172$74,805$70,817
3 years$53,157$51,650$50,200$48,804$47,459$43,592
4 years$39,470$37,968$36,533$35,161$33,848$30,132
5 years$31,260$29,768$28,351$27,007$25,731$22,175
6 years$25,789$24,308$22,912$21,598$20,360$16,969
7 years$21,883$20,413$19,040$17,757$16,558$13,331
8 years$18,954$17,498$16,147$14,896$13,737$10,673
9 years$16,677$15,235$13,908$12,688$11,568$8,665
10 years$14,857$13,429$12,125$10,937$9,857$7,111
11 years$13,369$11,955$10,675$9,518$8,477$5,884
12 years$12,129$10,730$9,474$8,349$7,346$4,902
13 years$11,082$9,697$8,464$7,371$6,406$4,105
14 years$10,184$8,814$7,605$6,543$5,615$3,453
15 years$9,407$8,052$6,866$5,835$4,944$2,915
16 years$8,728$7,388$6,225$5,225$4,370$2,468
17 years$8,129$6,804$5,665$4,694$3,875$2,095
18 years$7,598$6,287$5,171$4,231$3,445$1,782
19 years$7,122$5,827$4,734$3,823$3,071$1,518
20 years$6,695$5,414$4,345$3,462$2,743$1,296
21 years$6,310$5,043$3,996$3,142$2,454$1,107
22 years$5,959$4,708$3,683$2,857$2,200$947
23 years$5,640$4,403$3,401$2,602$1,975$810
24 years$5,347$4,125$3,145$2,373$1,775$694
25 years$5,079$3,871$2,913$2,167$1,597$595
26 years$4,831$3,639$2,702$1,982$1,439$511
27 years$4,603$3,424$2,509$1,814$1,297$438
28 years$4,391$3,227$2,332$1,662$1,170$376
29 years$4,194$3,044$2,170$1,524$1,057$323
30 years$4,010$2,875$2,022$1,399$955$277
31 years$3,839$2,718$1,885$1,285$863$238
32 years$3,678$2,571$1,758$1,180$781$205
33 years$3,528$2,435$1,642$1,086$707$176
34 years$3,387$2,308$1,534$999$640$151
35 years$3,254$2,189$1,434$919$580$130
36 years$3,129$2,078$1,342$847$525$112
37 years$3,011$1,973$1,256$780$476$96
38 years$2,899$1,875$1,176$719$432$83
39 years$2,793$1,783$1,102$663$391$71
40 years$2,693$1,697$1,033$612$355$61
41 years$2,598$1,615$968$564$322$53
42 years$2,508$1,538$908$521$292$45
43 years$2,422$1,466$852$481$265$39
44 years$2,341$1,397$800$444$241$34
45 years$2,263$1,332$751$410$219$29
46 years$2,189$1,271$706$379$198$25
47 years$2,118$1,213$663$350$180$21
48 years$2,050$1,158$623$323$164$18
49 years$1,985$1,106$586$299$149$16
50 years$1,923$1,056$550$276$135$14

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,970,000, adding $5,764 every year, while hoping to spend $56,086 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: 46/26/28 Blend
39$1,970,000$1,970,000$1,970,000$1,970,000
40$2,176,886$2,072,476$2,041,941$2,259,240
41$2,339,253$2,114,352$2,050,671$2,360,025
42$2,516,302$2,156,400$2,057,813$2,463,440
43$2,709,471$2,198,570$2,063,256$2,574,572
44$2,920,343$2,240,806$2,066,881$2,694,173
45$3,150,661$2,283,049$2,068,565$2,823,077
46$3,402,343$2,325,233$2,068,177$2,962,200
47$3,677,502$2,367,289$2,065,581$3,112,554
48$3,978,463$2,409,142$2,060,633$3,275,257
49$4,307,787$2,450,711$2,053,185$3,451,541
50$4,668,292$2,491,906$2,043,078$3,642,765
51$5,063,084$2,532,636$2,030,147$3,850,432
52$5,495,581$2,572,798$2,014,219$4,076,195
53$5,969,549$2,612,284$1,995,115$4,321,882
54$6,489,135$2,650,977$1,972,642$4,589,509
55$7,058,905$2,688,753$1,946,604$4,881,299
56$7,683,890$2,725,479$1,916,792$5,199,706
57$8,369,630$2,761,010$1,882,988$5,547,437
58$9,122,228$2,795,195$1,844,963$5,927,477
59$9,948,406$2,827,871$1,802,480$6,343,121
60$10,855,569$2,858,862$1,755,289$6,798,003
61$11,851,874$2,887,984$1,703,129$7,296,133
62$12,946,307$2,915,037$1,645,725$7,841,931
63$14,148,767$2,939,810$1,582,793$8,440,276
64$15,470,158$2,962,078$1,514,034$9,096,549
65$16,922,495$2,981,601$1,439,136$9,816,683
66$18,519,014$2,998,124$1,357,771$10,607,225
67$20,274,296$3,011,374$1,269,599$11,475,393
68$22,204,407$3,021,064$1,174,263$12,429,150
69$24,327,046$3,026,886$1,071,390$13,477,276
70$26,661,715$3,028,513$960,592$14,629,457
71$29,229,899$3,025,599$841,461$15,896,371
72$32,055,271$3,017,777$713,573$17,289,796
73$35,163,916$3,004,654$576,484$18,822,719
74$38,584,570$2,985,817$429,731$20,509,463
75$42,348,900$2,960,827$272,831$22,365,819
76$46,491,797$2,929,216$105,280$24,409,200
77$51,051,702$2,890,490$0$26,658,809
78$56,070,977$2,844,125$0$29,157,783
79$61,596,297$2,789,567$0$31,942,493
80$67,679,090$2,726,226$0$35,007,361
81$74,376,027$2,653,482$0$38,380,943
82$81,749,553$2,570,673$0$42,094,714
83$89,868,473$2,477,102$0$46,183,359
84$98,808,609$2,372,032$0$50,685,112
85$108,653,505$2,254,679$0$55,642,109
86$119,495,223$2,124,219$0$61,100,789
87$131,435,207$1,979,776$0$67,112,338
88$144,585,240$1,820,427$0$73,733,167
89$159,068,501$1,645,195$0$81,025,450
90$175,020,725$1,453,047$0$89,057,709
91$192,591,484$1,242,891$0$97,905,467
92$211,945,598$1,013,575$0$107,651,958
93$233,264,689$763,881$0$118,388,916
94$256,748,898$492,522$0$130,217,443
95$282,618,770$198,139$0$143,248,965
96$311,117,335$0$0$157,606,287
97$342,512,404$0$0$173,459,284
98$377,099,095$0$0$190,986,705
99$415,202,617$0$0$210,296,713
100$457,181,340$0$0$231,570,967