Can I retire at age 40 with 2,000,000?

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 $2,000,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$165,158$163,687$162,252$160,851$159,483$155,187
2 years$81,761$80,239$78,763$77,332$75,944$71,647
3 years$53,966$52,437$50,965$49,547$48,182$44,018
4 years$40,071$38,547$37,089$35,696$34,364$30,364
5 years$31,737$30,221$28,783$27,418$26,123$22,300
6 years$26,182$24,678$23,261$21,926$20,670$17,027
7 years$22,216$20,724$19,330$18,027$16,810$13,347
8 years$19,243$17,765$16,393$15,122$13,946$10,660
9 years$16,931$15,467$14,120$12,881$11,744$8,634
10 years$15,083$13,634$12,310$11,103$10,007$7,067
11 years$13,572$12,137$10,837$9,663$8,606$5,833
12 years$12,314$10,894$9,618$8,476$7,458$4,847
13 years$11,250$9,845$8,593$7,483$6,503$4,048
14 years$10,339$8,949$7,721$6,643$5,701$3,396
15 years$9,550$8,175$6,971$5,924$5,020$2,859
16 years$8,861$7,500$6,320$5,304$4,436$2,414
17 years$8,253$6,907$5,751$4,766$3,934$2,043
18 years$7,713$6,383$5,250$4,295$3,497$1,732
19 years$7,231$5,915$4,806$3,881$3,117$1,472
20 years$6,797$5,497$4,411$3,515$2,785$1,252
21 years$6,406$5,120$4,057$3,190$2,492$1,066
22 years$6,050$4,779$3,739$2,900$2,234$909
23 years$5,726$4,470$3,452$2,642$2,005$776
24 years$5,429$4,188$3,193$2,409$1,802$663
25 years$5,156$3,930$2,957$2,200$1,622$566
26 years$4,905$3,694$2,743$2,012$1,461$484
27 years$4,673$3,476$2,547$1,841$1,317$414
28 years$4,458$3,276$2,368$1,687$1,188$354
29 years$4,258$3,090$2,203$1,547$1,073$303
30 years$4,071$2,919$2,052$1,420$970$260
31 years$3,897$2,759$1,913$1,304$877$222
32 years$3,734$2,611$1,785$1,198$793$190
33 years$3,582$2,472$1,667$1,102$718$163
34 years$3,438$2,343$1,557$1,014$650$140
35 years$3,304$2,222$1,456$933$588$120
36 years$3,176$2,109$1,362$860$533$103
37 years$3,057$2,003$1,275$792$483$88
38 years$2,943$1,904$1,194$730$438$75
39 years$2,836$1,811$1,119$673$397$65
40 years$2,734$1,723$1,048$621$360$55
41 years$2,638$1,640$983$573$327$48
42 years$2,546$1,562$922$529$297$41
43 years$2,459$1,488$865$488$269$35
44 years$2,376$1,418$812$451$244$30
45 years$2,297$1,352$763$416$222$26
46 years$2,222$1,290$716$384$201$22
47 years$2,150$1,231$673$355$183$19
48 years$2,081$1,175$632$328$166$16
49 years$2,016$1,122$594$303$151$14
50 years$1,953$1,072$559$280$137$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,000,000, adding $4,797 every year, while hoping to spend $33,698 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: 28/49/23 Blend
39$2,000,000$2,000,000$2,000,000$2,000,000
40$2,208,948$2,102,948$2,071,948$2,254,744
41$2,398,406$2,170,138$2,105,504$2,358,175
42$2,606,060$2,239,491$2,139,055$2,465,940
43$2,833,729$2,311,077$2,172,564$2,581,021
44$3,083,419$2,384,970$2,205,994$2,704,066
45$3,357,338$2,461,243$2,239,305$2,835,784
46$3,657,918$2,539,975$2,272,453$2,976,957
47$3,987,838$2,621,247$2,305,393$3,128,441
48$4,350,049$2,705,140$2,338,076$3,291,178
49$4,747,803$2,791,741$2,370,450$3,466,202
50$5,184,681$2,881,137$2,402,462$3,654,653
51$5,664,626$2,973,421$2,434,052$3,857,779
52$6,191,987$3,068,687$2,465,161$4,076,956
53$6,771,549$3,167,032$2,495,724$4,313,697
54$7,408,588$3,268,558$2,525,672$4,569,664
55$8,108,915$3,373,368$2,554,932$4,846,688
56$8,878,931$3,481,570$2,583,430$5,146,780
57$9,725,691$3,593,276$2,611,084$5,472,156
58$10,656,965$3,708,600$2,637,809$5,825,253
59$11,681,316$3,827,662$2,663,515$6,208,751
60$12,808,176$3,950,584$2,688,110$6,625,603
61$14,047,941$4,077,493$2,711,492$7,079,059
62$15,412,061$4,208,521$2,733,557$7,572,693
63$16,913,156$4,343,802$2,754,196$8,110,443
64$18,565,127$4,483,478$2,773,291$8,696,644
65$20,383,295$4,627,694$2,790,721$9,336,068
66$22,384,538$4,776,598$2,806,357$10,033,970
67$24,587,456$4,930,346$2,820,065$10,796,137
68$27,012,542$5,089,099$2,831,703$11,628,940
69$29,682,378$5,253,021$2,841,121$12,539,398
70$32,621,845$5,422,283$2,848,163$13,535,239
71$35,858,361$5,597,063$2,852,665$14,624,975
72$39,422,139$5,777,544$2,854,454$15,817,981
73$43,346,468$5,963,914$2,853,349$17,124,583
74$47,668,031$6,156,370$2,849,160$18,556,157
75$52,427,251$6,355,113$2,841,687$20,125,231
76$57,668,669$6,560,352$2,830,723$21,845,607
77$63,441,368$6,772,304$2,816,047$23,732,490
78$69,799,433$6,991,193$2,797,430$25,802,627
79$76,802,463$7,217,248$2,774,631$28,074,472
80$84,516,131$7,450,710$2,747,398$30,568,351
81$93,012,808$7,691,827$2,715,467$33,306,660
82$102,372,240$7,940,852$2,678,562$36,314,071
83$112,682,307$8,198,053$2,636,392$39,617,768
84$124,039,846$8,463,701$2,588,654$43,247,698
85$136,551,568$8,738,080$2,535,032$47,236,861
86$150,335,065$9,021,482$2,475,192$51,621,611
87$165,519,918$9,314,212$2,408,788$56,442,005
88$182,248,923$9,616,581$2,335,455$61,742,180
89$200,679,434$9,928,915$2,254,814$67,570,765
90$220,984,853$10,251,548$2,166,467$73,981,343
91$243,356,262$10,584,829$2,069,998$81,032,954
92$268,004,231$10,929,114$1,964,973$88,790,653
93$295,160,799$11,284,778$1,850,936$97,326,123
94$325,081,671$11,652,203$1,727,413$106,718,347
95$358,048,628$12,031,787$1,593,908$117,054,359
96$394,372,187$12,423,944$1,449,903$128,430,061
97$434,394,530$12,829,097$1,294,855$140,951,127
98$478,492,739$13,247,689$1,128,199$154,734,003
99$527,082,349$13,680,176$949,344$169,906,999
100$580,621,274$14,127,031$757,673$186,611,508