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%14.2%
1 years$163,507$162,050$160,629$159,242$157,888$155,145
2 years$80,944$79,436$77,975$76,559$75,185$72,430
3 years$53,427$51,913$50,455$49,052$47,700$45,020
4 years$39,671$38,161$36,718$35,339$34,020$31,434
5 years$31,419$29,919$28,495$27,144$25,862$23,378
6 years$25,920$24,431$23,028$21,707$20,463$18,085
7 years$21,994$20,517$19,137$17,847$16,642$14,369
8 years$19,050$17,587$16,229$14,971$13,806$11,639
9 years$16,762$15,313$13,978$12,752$11,627$9,563
10 years$14,932$13,497$12,187$10,992$9,907$7,945
11 years$13,437$12,016$10,729$9,567$8,520$6,659
12 years$12,191$10,785$9,522$8,391$7,383$5,620
13 years$11,138$9,746$8,507$7,408$6,438$4,770
14 years$10,236$8,859$7,644$6,576$5,644$4,067
15 years$9,455$8,093$6,901$5,865$4,969$3,481
16 years$8,772$7,425$6,257$5,251$4,392$2,990
17 years$8,170$6,838$5,693$4,718$3,894$2,575
18 years$7,636$6,319$5,197$4,252$3,463$2,222
19 years$7,159$5,856$4,758$3,842$3,086$1,922
20 years$6,729$5,442$4,367$3,480$2,757$1,665
21 years$6,342$5,069$4,016$3,158$2,467$1,444
22 years$5,989$4,732$3,702$2,871$2,211$1,254
23 years$5,668$4,425$3,418$2,615$1,985$1,091
24 years$5,375$4,146$3,161$2,385$1,784$949
25 years$5,105$3,891$2,928$2,178$1,605$827
26 years$4,856$3,657$2,715$1,992$1,446$721
27 years$4,626$3,442$2,521$1,823$1,304$628
28 years$4,413$3,243$2,344$1,670$1,176$548
29 years$4,215$3,059$2,181$1,532$1,062$479
30 years$4,030$2,889$2,032$1,406$960$418
31 years$3,858$2,731$1,894$1,291$868$365
32 years$3,697$2,584$1,767$1,186$785$319
33 years$3,546$2,448$1,650$1,091$710$279
34 years$3,404$2,320$1,542$1,004$643$244
35 years$3,270$2,200$1,441$924$583$213
36 years$3,145$2,088$1,348$851$528$187
37 years$3,026$1,983$1,262$784$478$163
38 years$2,914$1,885$1,182$723$434$143
39 years$2,808$1,792$1,107$666$393$125
40 years$2,707$1,705$1,038$615$357$109
41 years$2,612$1,623$973$567$324$96
42 years$2,521$1,546$913$523$294$84
43 years$2,435$1,473$857$483$267$73
44 years$2,353$1,404$804$446$242$64
45 years$2,274$1,339$755$412$220$56
46 years$2,200$1,277$709$381$199$49
47 years$2,129$1,219$666$352$181$43
48 years$2,060$1,164$626$325$164$38
49 years$1,995$1,111$588$300$149$33
50 years$1,933$1,061$553$278$136$29

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 $6,922 every year, while hoping to spend $55,948 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: 62/18/20 Blend
39$1,980,000$1,980,000$1,980,000$1,980,000
40$2,189,100$2,084,160$2,053,470$2,313,102
41$2,352,860$2,126,756$2,062,733$2,440,197
42$2,531,448$2,169,563$2,070,431$2,572,038
43$2,726,318$2,212,534$2,076,453$2,714,692
44$2,939,070$2,255,616$2,080,682$2,869,218
45$3,171,465$2,298,750$2,082,994$3,036,784
46$3,425,441$2,341,876$2,083,260$3,218,676
47$3,703,132$2,384,924$2,081,347$3,416,311
48$4,006,890$2,427,824$2,077,110$3,631,253
49$4,339,301$2,470,495$2,070,401$3,865,224
50$4,703,215$2,512,855$2,061,065$4,120,122
51$5,101,769$2,554,811$2,048,937$4,398,041
52$5,538,419$2,596,266$2,033,846$4,701,287
53$6,016,970$2,637,115$2,015,611$5,032,404
54$6,541,612$2,677,245$1,994,045$5,394,194
55$7,116,961$2,716,535$1,968,951$5,789,748
56$7,748,101$2,754,855$1,940,121$6,222,473
57$8,440,632$2,792,067$1,907,339$6,696,124
58$9,200,721$2,828,023$1,870,380$7,214,839
59$10,035,162$2,862,564$1,829,005$7,783,182
60$10,951,439$2,895,520$1,782,967$8,406,184
61$11,957,796$2,926,710$1,732,007$9,089,390
62$13,063,315$2,955,943$1,675,852$9,838,911
63$14,278,000$2,983,011$1,614,220$10,661,488
64$15,612,873$3,007,695$1,546,814$11,564,546
65$17,080,076$3,029,763$1,473,322$12,556,276
66$18,692,987$3,048,964$1,393,421$13,645,702
67$20,466,343$3,065,035$1,306,773$14,842,775
68$22,416,381$3,077,693$1,213,021$16,158,462
69$24,560,992$3,086,640$1,111,797$17,604,853
70$26,919,884$3,091,556$1,002,713$19,195,275
71$29,514,774$3,092,104$885,365$20,944,418
72$32,369,587$3,087,924$759,332$22,868,475
73$35,510,688$3,078,635$624,172$24,985,295
74$38,967,122$3,063,831$479,426$27,314,553
75$42,770,894$3,043,085$324,612$29,877,936
76$46,957,268$3,015,939$159,230$32,699,348
77$51,565,101$2,981,911$0$35,805,138
78$56,637,205$2,940,489$0$39,228,034
79$62,220,756$2,891,129$0$43,032,863
80$68,367,737$2,833,258$0$47,221,019
81$75,135,424$2,766,265$0$51,831,520
82$82,586,931$2,689,506$0$56,907,365
83$90,791,805$2,602,299$0$62,495,941
84$99,826,677$2,503,920$0$68,649,469
85$109,775,991$2,393,605$0$75,425,498
86$120,732,796$2,270,545$0$82,887,450
87$132,799,623$2,133,884$0$91,105,216
88$146,089,457$1,982,717$0$100,155,820
89$160,726,799$1,816,087$0$110,124,144
90$176,848,841$1,632,984$0$121,103,731
91$194,606,760$1,432,337$0$133,197,669
92$214,167,146$1,213,018$0$146,519,564
93$235,713,572$973,833$0$161,194,614
94$259,448,327$713,522$0$177,360,793
95$285,594,324$430,752$0$195,170,150
96$314,397,204$124,117$0$214,790,250
97$346,127,654$0$0$236,405,757
98$381,083,960$0$0$260,261,347
99$419,594,826$0$0$286,570,031
100$462,022,469$0$0$315,554,705