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

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 $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$163,507$162,050$160,629$159,242$157,888$156,762
2 years$80,944$79,436$77,975$76,559$75,185$74,049
3 years$53,427$51,913$50,455$49,052$47,700$46,590
4 years$39,671$38,161$36,718$35,339$34,020$32,944
5 years$31,419$29,919$28,495$27,144$25,862$24,823
6 years$25,920$24,431$23,028$21,707$20,463$19,464
7 years$21,994$20,517$19,137$17,847$16,642$15,682
8 years$19,050$17,587$16,229$14,971$13,806$12,885
9 years$16,762$15,313$13,978$12,752$11,627$10,745
10 years$14,932$13,497$12,187$10,992$9,907$9,063
11 years$13,437$12,016$10,729$9,567$8,520$7,715
12 years$12,191$10,785$9,522$8,391$7,383$6,615
13 years$11,138$9,746$8,507$7,408$6,438$5,707
14 years$10,236$8,859$7,644$6,576$5,644$4,948
15 years$9,455$8,093$6,901$5,865$4,969$4,308
16 years$8,772$7,425$6,257$5,251$4,392$3,764
17 years$8,170$6,838$5,693$4,718$3,894$3,299
18 years$7,636$6,319$5,197$4,252$3,463$2,899
19 years$7,159$5,856$4,758$3,842$3,086$2,553
20 years$6,729$5,442$4,367$3,480$2,757$2,253
21 years$6,342$5,069$4,016$3,158$2,467$1,991
22 years$5,989$4,732$3,702$2,871$2,211$1,762
23 years$5,668$4,425$3,418$2,615$1,985$1,562
24 years$5,375$4,146$3,161$2,385$1,784$1,386
25 years$5,105$3,891$2,928$2,178$1,605$1,231
26 years$4,856$3,657$2,715$1,992$1,446$1,094
27 years$4,626$3,442$2,521$1,823$1,304$974
28 years$4,413$3,243$2,344$1,670$1,176$867
29 years$4,215$3,059$2,181$1,532$1,062$772
30 years$4,030$2,889$2,032$1,406$960$688
31 years$3,858$2,731$1,894$1,291$868$614
32 years$3,697$2,584$1,767$1,186$785$548
33 years$3,546$2,448$1,650$1,091$710$489
34 years$3,404$2,320$1,542$1,004$643$436
35 years$3,270$2,200$1,441$924$583$390
36 years$3,145$2,088$1,348$851$528$348
37 years$3,026$1,983$1,262$784$478$311
38 years$2,914$1,885$1,182$723$434$278
39 years$2,808$1,792$1,107$666$393$248
40 years$2,707$1,705$1,038$615$357$222
41 years$2,612$1,623$973$567$324$199
42 years$2,521$1,546$913$523$294$178
43 years$2,435$1,473$857$483$267$159
44 years$2,353$1,404$804$446$242$142
45 years$2,274$1,339$755$412$220$127
46 years$2,200$1,277$709$381$199$114
47 years$2,129$1,219$666$352$181$102
48 years$2,060$1,164$626$325$164$91
49 years$1,995$1,111$588$300$149$81
50 years$1,933$1,061$553$278$136$73

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 $6,249 every year, while hoping to spend $55,882 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: 38/43/19 Blend
39$1,980,000$1,980,000$1,980,000$1,980,000
40$2,188,406$2,083,466$2,052,776$2,258,872
41$2,352,165$2,126,098$2,062,086$2,352,869
42$2,530,755$2,168,945$2,069,835$2,448,628
43$2,725,629$2,211,961$2,075,911$2,550,958
44$2,938,388$2,255,091$2,080,199$2,660,481
45$3,170,792$2,298,280$2,082,574$2,777,886
46$3,424,781$2,341,464$2,082,909$2,903,932
47$3,702,491$2,384,577$2,081,068$3,039,456
48$4,006,270$2,427,547$2,076,909$3,185,382
49$4,338,708$2,470,295$2,070,284$3,342,729
50$4,702,654$2,512,737$2,061,036$3,512,622
51$5,101,247$2,554,784$2,049,003$3,696,304
52$5,537,942$2,596,336$2,034,013$3,895,143
53$6,016,546$2,637,290$2,015,886$4,110,651
54$6,541,250$2,677,534$1,994,434$4,344,496
55$7,116,671$2,716,946$1,969,461$4,598,519
56$7,747,893$2,755,399$1,940,760$4,874,750
57$8,440,518$2,792,753$1,908,115$5,175,430
58$9,200,714$2,828,861$1,871,301$5,503,032
59$10,035,278$2,863,565$1,830,079$5,860,283
60$10,951,693$2,896,697$1,784,204$6,250,194
61$11,958,206$2,928,076$1,733,416$6,676,086
62$13,063,901$2,957,510$1,677,443$7,141,624
63$14,278,785$2,984,794$1,616,003$7,650,848
64$15,613,882$3,009,709$1,548,800$8,208,221
65$17,081,336$3,032,023$1,475,523$8,818,661
66$18,694,528$3,051,488$1,395,848$9,487,597
67$20,468,198$3,067,839$1,309,438$10,221,016
68$22,418,588$3,080,797$1,215,938$11,025,524
69$24,563,591$3,090,063$1,114,979$11,908,406
70$26,922,921$3,095,320$1,006,174$12,877,700
71$29,518,298$3,096,230$889,121$13,942,271
72$32,373,655$3,092,436$763,397$15,111,895
73$35,515,360$3,083,557$628,563$16,397,358
74$38,972,466$3,069,191$484,159$17,810,554
75$42,776,985$3,048,908$329,705$19,364,602
76$46,964,189$3,022,256$164,701$21,073,968
77$51,572,941$2,988,752$0$22,954,608
78$56,646,067$2,947,886$0$25,026,427
79$62,230,750$2,899,117$0$27,342,303
80$68,378,985$2,841,872$0$29,890,324
81$75,148,062$2,775,545$0$32,694,207
82$82,601,109$2,699,491$0$35,780,097
83$90,807,688$2,613,031$0$39,176,815
84$99,844,447$2,515,445$0$42,916,133
85$109,795,848$2,405,969$0$47,033,075
86$120,754,961$2,283,798$0$51,566,251
87$132,824,342$2,148,079$0$56,558,222
88$146,116,999$1,997,910$0$62,055,903
89$160,757,462$1,832,336$0$68,111,010
90$176,882,952$1,650,349$0$74,780,552
91$194,644,681$1,450,885$0$82,127,367
92$214,209,277$1,232,816$0$90,220,723
93$235,760,352$994,954$0$99,136,973
94$259,500,242$736,040$0$108,960,278
95$285,651,909$454,748$0$119,783,406
96$314,461,050$149,677$0$131,708,612
97$346,198,411$0$0$144,848,604
98$381,162,346$0$0$159,413,097
99$419,681,631$0$0$175,537,055
100$462,118,566$0$0$193,301,368