Can I retire at age 40 with 1,980,000?

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 $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.8%
1 years$163,507$162,050$160,629$159,242$157,888$156,696
2 years$80,944$79,436$77,975$76,559$75,185$73,983
3 years$53,427$51,913$50,455$49,052$47,700$46,526
4 years$39,671$38,161$36,718$35,339$34,020$32,882
5 years$31,419$29,919$28,495$27,144$25,862$24,764
6 years$25,920$24,431$23,028$21,707$20,463$19,407
7 years$21,994$20,517$19,137$17,847$16,642$15,627
8 years$19,050$17,587$16,229$14,971$13,806$12,833
9 years$16,762$15,313$13,978$12,752$11,627$10,695
10 years$14,932$13,497$12,187$10,992$9,907$9,016
11 years$13,437$12,016$10,729$9,567$8,520$7,670
12 years$12,191$10,785$9,522$8,391$7,383$6,572
13 years$11,138$9,746$8,507$7,408$6,438$5,666
14 years$10,236$8,859$7,644$6,576$5,644$4,909
15 years$9,455$8,093$6,901$5,865$4,969$4,271
16 years$8,772$7,425$6,257$5,251$4,392$3,730
17 years$8,170$6,838$5,693$4,718$3,894$3,266
18 years$7,636$6,319$5,197$4,252$3,463$2,868
19 years$7,159$5,856$4,758$3,842$3,086$2,524
20 years$6,729$5,442$4,367$3,480$2,757$2,226
21 years$6,342$5,069$4,016$3,158$2,467$1,966
22 years$5,989$4,732$3,702$2,871$2,211$1,739
23 years$5,668$4,425$3,418$2,615$1,985$1,540
24 years$5,375$4,146$3,161$2,385$1,784$1,365
25 years$5,105$3,891$2,928$2,178$1,605$1,212
26 years$4,856$3,657$2,715$1,992$1,446$1,077
27 years$4,626$3,442$2,521$1,823$1,304$957
28 years$4,413$3,243$2,344$1,670$1,176$851
29 years$4,215$3,059$2,181$1,532$1,062$758
30 years$4,030$2,889$2,032$1,406$960$675
31 years$3,858$2,731$1,894$1,291$868$601
32 years$3,697$2,584$1,767$1,186$785$536
33 years$3,546$2,448$1,650$1,091$710$478
34 years$3,404$2,320$1,542$1,004$643$426
35 years$3,270$2,200$1,441$924$583$380
36 years$3,145$2,088$1,348$851$528$340
37 years$3,026$1,983$1,262$784$478$303
38 years$2,914$1,885$1,182$723$434$271
39 years$2,808$1,792$1,107$666$393$242
40 years$2,707$1,705$1,038$615$357$216
41 years$2,612$1,623$973$567$324$193
42 years$2,521$1,546$913$523$294$172
43 years$2,435$1,473$857$483$267$154
44 years$2,353$1,404$804$446$242$138
45 years$2,274$1,339$755$412$220$123
46 years$2,200$1,277$709$381$199$110
47 years$2,129$1,219$666$352$181$98
48 years$2,060$1,164$626$325$164$88
49 years$1,995$1,111$588$300$149$79
50 years$1,933$1,061$553$278$136$70

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,980,000, adding $2,537 every year, while hoping to spend $48,766 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: 50/38/12 Blend
39$1,980,000$1,980,000$1,980,000$1,980,000
40$2,184,577$2,079,637$2,048,947$2,286,604
41$2,355,517$2,129,652$2,065,700$2,406,821
42$2,542,259$2,180,484$2,081,380$2,532,043
43$2,746,362$2,232,121$2,095,899$2,667,013
44$2,969,545$2,284,549$2,109,166$2,812,659
45$3,213,699$2,337,752$2,121,083$2,970,005
46$3,480,906$2,391,712$2,131,549$3,140,180
47$3,773,460$2,446,407$2,140,457$3,324,425
48$4,093,885$2,501,814$2,147,695$3,524,108
49$4,444,963$2,557,904$2,153,145$3,740,737
50$4,829,757$2,614,649$2,156,682$3,975,970
51$5,251,639$2,672,013$2,158,178$4,231,638
52$5,714,324$2,729,960$2,157,494$4,509,756
53$6,221,903$2,788,446$2,154,489$4,812,543
54$6,778,885$2,847,428$2,149,012$5,142,446
55$7,390,233$2,906,853$2,140,906$5,502,162
56$8,061,415$2,966,667$2,130,004$5,894,660
57$8,798,455$3,026,810$2,116,135$6,323,214
58$9,607,988$3,087,214$2,099,117$6,791,433
59$10,497,325$3,147,810$2,078,759$7,303,291
60$11,474,518$3,208,518$2,054,863$7,863,171
61$12,548,438$3,269,255$2,027,221$8,475,901
62$13,728,859$3,329,929$1,995,613$9,146,802
63$15,026,548$3,390,441$1,959,811$9,881,741
64$16,453,368$3,450,684$1,919,576$10,687,181
65$18,022,387$3,510,544$1,874,658$11,570,247
66$19,748,006$3,569,896$1,824,795$12,538,791
67$21,646,090$3,628,608$1,769,713$13,601,469
68$23,734,117$3,686,535$1,709,124$14,767,818
69$26,031,347$3,743,526$1,642,730$16,048,353
70$28,558,999$3,799,413$1,570,216$17,454,661
71$31,340,455$3,854,022$1,491,256$18,999,515
72$34,401,474$3,907,162$1,405,506$20,696,990
73$37,770,443$3,958,632$1,312,609$22,562,602
74$41,478,637$4,008,214$1,212,190$24,613,452
75$45,560,519$4,055,677$1,103,859$26,868,388
76$50,054,061$4,100,774$987,207$29,348,185
77$55,001,105$4,143,241$861,809$32,075,739
78$60,447,755$4,182,798$727,217$35,076,287
79$66,444,815$4,219,144$582,968$38,377,644
80$73,048,264$4,251,960$428,575$42,010,469
81$80,319,785$4,280,905$263,531$46,008,550
82$88,327,351$4,305,617$87,307$50,409,131
83$97,145,860$4,325,711$0$55,253,258
84$106,857,844$4,340,777$0$60,599,073
85$117,554,248$4,350,378$0$66,496,306
86$129,335,287$4,354,053$0$72,988,802
87$142,311,394$4,351,309$0$80,137,210
88$156,604,256$4,341,623$0$88,008,373
89$172,347,969$4,324,442$0$96,675,956
90$189,690,298$4,299,176$0$106,221,144
91$208,794,074$4,265,201$0$116,733,405
92$229,838,730$4,221,856$0$128,311,343
93$253,021,991$4,168,438$0$141,063,627
94$278,561,746$4,104,203$0$155,110,013
95$306,698,099$4,028,364$0$170,582,487
96$337,695,636$3,940,085$0$187,626,500
97$371,845,923$3,838,481$0$206,402,354
98$409,470,258$3,722,617$0$227,086,709
99$450,922,700$3,591,501$0$249,874,256
100$496,593,415$3,444,084$0$274,979,560