Can I retire at age 40 with 2,020,000?

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 $2,020,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.7%
1 years$166,810$165,324$163,874$162,459$161,078$158,605
2 years$82,579$81,041$79,551$78,105$76,704$74,219
3 years$54,506$52,961$51,474$50,043$48,664$46,244
4 years$40,472$38,932$37,460$36,053$34,708$32,371
5 years$32,054$30,523$29,071$27,692$26,384$24,137
6 years$26,444$24,925$23,493$22,146$20,877$18,723
7 years$22,438$20,932$19,523$18,207$16,978$14,918
8 years$19,435$17,942$16,557$15,274$14,085$12,118
9 years$17,101$15,622$14,261$13,010$11,862$9,987
10 years$15,234$13,770$12,433$11,214$10,107$8,323
11 years$13,708$12,259$10,946$9,760$8,692$6,997
12 years$12,437$11,003$9,714$8,561$7,533$5,924
13 years$11,363$9,943$8,679$7,558$6,569$5,044
14 years$10,443$9,038$7,798$6,709$5,758$4,316
15 years$9,646$8,256$7,040$5,983$5,070$3,707
16 years$8,949$7,575$6,383$5,357$4,481$3,195
17 years$8,335$6,976$5,808$4,814$3,973$2,761
18 years$7,790$6,447$5,302$4,338$3,532$2,392
19 years$7,303$5,975$4,854$3,920$3,149$2,076
20 years$6,865$5,552$4,455$3,550$2,812$1,805
21 years$6,470$5,171$4,098$3,222$2,517$1,572
22 years$6,110$4,827$3,777$2,929$2,256$1,370
23 years$5,783$4,515$3,487$2,668$2,025$1,196
24 years$5,483$4,230$3,225$2,433$1,820$1,045
25 years$5,208$3,970$2,987$2,222$1,638$914
26 years$4,954$3,731$2,770$2,032$1,475$800
27 years$4,720$3,511$2,572$1,860$1,330$700
28 years$4,502$3,309$2,391$1,704$1,200$614
29 years$4,300$3,121$2,225$1,563$1,084$538
30 years$4,112$2,948$2,073$1,434$979$472
31 years$3,936$2,787$1,932$1,317$885$414
32 years$3,772$2,637$1,803$1,210$801$363
33 years$3,618$2,497$1,683$1,113$725$319
34 years$3,473$2,367$1,573$1,024$656$280
35 years$3,337$2,245$1,471$943$594$246
36 years$3,208$2,131$1,376$868$538$216
37 years$3,087$2,023$1,288$800$488$190
38 years$2,973$1,923$1,206$737$442$167
39 years$2,864$1,829$1,130$680$401$146
40 years$2,762$1,740$1,059$627$364$129
41 years$2,664$1,656$993$579$330$113
42 years$2,572$1,577$931$534$300$99
43 years$2,484$1,503$874$493$272$87
44 years$2,400$1,432$820$455$247$77
45 years$2,320$1,366$770$420$224$67
46 years$2,244$1,303$723$388$203$59
47 years$2,172$1,244$680$359$185$52
48 years$2,102$1,187$639$331$168$46
49 years$2,036$1,134$600$306$152$40
50 years$1,972$1,083$564$283$138$35

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,020,000, adding $5,248 every year, while hoping to spend $56,836 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: 66/21/13 Blend
39$2,020,000$2,020,000$2,020,000$2,020,000
40$2,231,453$2,124,393$2,093,083$2,371,736
41$2,398,588$2,168,016$2,102,729$2,509,602
42$2,580,867$2,211,870$2,110,792$2,653,077
43$2,779,772$2,255,909$2,117,161$2,808,463
44$2,996,939$2,300,079$2,121,716$2,976,921
45$3,234,167$2,344,323$2,124,333$3,159,731
46$3,493,435$2,388,578$2,124,881$3,358,301
47$3,776,924$2,432,777$2,123,224$3,574,185
48$4,087,034$2,476,847$2,119,216$3,809,092
49$4,426,409$2,520,710$2,112,707$4,064,908
50$4,797,959$2,564,281$2,103,539$4,343,711
51$5,204,889$2,607,468$2,091,545$4,647,788
52$5,650,728$2,650,175$2,076,553$4,979,662
53$6,139,363$2,692,294$2,058,378$5,342,112
54$6,675,076$2,733,714$2,036,831$5,738,202
55$7,262,580$2,774,312$2,011,711$6,171,308
56$7,907,069$2,813,959$1,982,809$6,645,149
57$8,614,262$2,852,516$1,949,906$7,163,827
58$9,390,460$2,889,833$1,912,771$7,731,859
59$10,242,604$2,925,751$1,871,165$8,354,227
60$11,178,336$2,960,100$1,824,837$9,036,419
61$12,206,080$2,992,698$1,773,522$9,784,486
62$13,335,111$3,023,351$1,716,946$10,605,095
63$14,575,650$3,051,853$1,654,821$11,505,595
64$15,938,956$3,077,983$1,586,847$12,494,086
65$17,437,431$3,101,506$1,512,708$13,579,497
66$19,084,740$3,122,171$1,432,075$14,771,665
67$20,895,939$3,139,713$1,344,605$16,081,438
68$22,887,613$3,153,847$1,249,938$17,520,767
69$25,078,038$3,164,274$1,147,699$19,102,827
70$27,487,346$3,170,671$1,037,495$20,842,141
71$30,137,721$3,172,700$918,917$22,754,711
72$33,053,604$3,169,998$791,536$24,858,177
73$36,261,926$3,162,182$654,906$27,171,983
74$39,792,357$3,148,843$508,560$29,717,557
75$43,677,591$3,129,550$352,011$32,518,516
76$47,953,650$3,103,844$184,748$35,600,893
77$52,660,228$3,071,237$6,243$38,993,377
78$57,841,059$3,031,215$0$42,727,591
79$63,544,333$2,983,231$0$46,863,945
80$69,823,151$2,926,706$0$51,417,879
81$76,736,024$2,861,025$0$56,430,946
82$84,347,423$2,785,540$0$61,949,895
83$92,728,391$2,699,562$0$68,026,245
84$101,957,210$2,602,364$0$74,716,770
85$112,120,140$2,493,175$0$82,084,040
86$123,312,232$2,371,178$0$90,197,008
87$135,638,227$2,235,514$0$99,131,662
88$149,213,540$2,085,268$0$108,971,745
89$164,165,352$1,919,476$0$119,809,546
90$180,633,808$1,737,120$0$131,746,770
91$198,773,339$1,537,122$0$144,895,500
92$218,754,121$1,318,342$0$159,379,257
93$240,763,678$1,079,579$0$175,334,166
94$265,008,655$819,559$0$192,910,242
95$291,716,762$536,942$0$212,272,808
96$321,138,929$230,310$0$233,604,058
97$353,551,669$0$0$257,104,774
98$389,259,691$0$0$283,019,762
99$428,598,772$0$0$311,628,819
100$471,938,929$0$0$343,147,844