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%19.1%
1 years$166,810$165,324$163,874$162,459$161,078$155,177
2 years$82,579$81,041$79,551$78,105$76,704$70,825
3 years$54,506$52,961$51,474$50,043$48,664$42,992
4 years$40,472$38,932$37,460$36,053$34,708$29,285
5 years$32,054$30,523$29,071$27,692$26,384$21,225
6 years$26,444$24,925$23,493$22,146$20,877$15,986
7 years$22,438$20,932$19,523$18,207$16,978$12,353
8 years$19,435$17,942$16,557$15,274$14,085$9,722
9 years$17,101$15,622$14,261$13,010$11,862$7,755
10 years$15,234$13,770$12,433$11,214$10,107$6,249
11 years$13,708$12,259$10,946$9,760$8,692$5,076
12 years$12,437$11,003$9,714$8,561$7,533$4,148
13 years$11,363$9,943$8,679$7,558$6,569$3,406
14 years$10,443$9,038$7,798$6,709$5,758$2,808
15 years$9,646$8,256$7,040$5,983$5,070$2,322
16 years$8,949$7,575$6,383$5,357$4,481$1,926
17 years$8,335$6,976$5,808$4,814$3,973$1,600
18 years$7,790$6,447$5,302$4,338$3,532$1,332
19 years$7,303$5,975$4,854$3,920$3,149$1,110
20 years$6,865$5,552$4,455$3,550$2,812$927
21 years$6,470$5,171$4,098$3,222$2,517$774
22 years$6,110$4,827$3,777$2,929$2,256$647
23 years$5,783$4,515$3,487$2,668$2,025$542
24 years$5,483$4,230$3,225$2,433$1,820$453
25 years$5,208$3,970$2,987$2,222$1,638$380
26 years$4,954$3,731$2,770$2,032$1,475$318
27 years$4,720$3,511$2,572$1,860$1,330$267
28 years$4,502$3,309$2,391$1,704$1,200$224
29 years$4,300$3,121$2,225$1,563$1,084$188
30 years$4,112$2,948$2,073$1,434$979$157
31 years$3,936$2,787$1,932$1,317$885$132
32 years$3,772$2,637$1,803$1,210$801$111
33 years$3,618$2,497$1,683$1,113$725$93
34 years$3,473$2,367$1,573$1,024$656$78
35 years$3,337$2,245$1,471$943$594$65
36 years$3,208$2,131$1,376$868$538$55
37 years$3,087$2,023$1,288$800$488$46
38 years$2,973$1,923$1,206$737$442$39
39 years$2,864$1,829$1,130$680$401$32
40 years$2,762$1,740$1,059$627$364$27
41 years$2,664$1,656$993$579$330$23
42 years$2,572$1,577$931$534$300$19
43 years$2,484$1,503$874$493$272$16
44 years$2,400$1,432$820$455$247$14
45 years$2,320$1,366$770$420$224$11
46 years$2,244$1,303$723$388$203$10
47 years$2,172$1,244$680$359$185$8
48 years$2,102$1,187$639$331$168$7
49 years$2,036$1,134$600$306$152$6
50 years$1,972$1,083$564$283$138$5

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 $6,950 every year, while hoping to spend $29,199 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: 50/42/8 Blend
39$2,020,000$2,020,000$2,020,000$2,020,000
40$2,233,209$2,126,149$2,094,839$2,339,906
41$2,429,929$2,199,263$2,133,949$2,486,584
42$2,645,735$2,274,980$2,173,390$2,642,187
43$2,882,545$2,353,399$2,213,143$2,810,580
44$3,142,467$2,434,619$2,253,186$2,992,969
45$3,427,828$2,518,744$2,293,497$3,190,680
46$3,741,188$2,605,884$2,334,050$3,405,168
47$4,085,368$2,696,150$2,374,819$3,638,036
48$4,463,475$2,789,661$2,415,776$3,891,046
49$4,878,933$2,886,539$2,456,888$4,166,135
50$5,335,514$2,986,909$2,498,123$4,465,435
51$5,837,372$3,090,903$2,539,446$4,791,289
52$6,389,085$3,198,659$2,580,819$5,146,278
53$6,995,697$3,310,318$2,622,201$5,533,239
54$7,662,763$3,426,028$2,663,550$5,955,297
55$8,396,405$3,545,944$2,704,819$6,415,887
56$9,203,368$3,670,225$2,745,960$6,918,793
57$10,091,083$3,799,037$2,786,921$7,468,178
58$11,067,737$3,932,554$2,827,647$8,068,626
59$12,142,352$4,070,955$2,868,079$8,725,182
60$13,324,868$4,214,427$2,908,155$9,443,400
61$14,626,236$4,363,166$2,947,810$10,229,394
62$16,058,523$4,517,373$2,986,973$11,089,899
63$17,635,028$4,677,259$3,025,572$12,032,326
64$19,370,399$4,843,043$3,063,527$13,064,838
65$21,280,781$5,014,954$3,100,757$14,196,426
66$23,383,962$5,193,228$3,137,173$15,436,987
67$25,699,543$5,378,113$3,172,685$16,797,422
68$28,249,121$5,569,865$3,207,195$18,289,737
69$31,056,495$5,768,752$3,240,599$19,927,156
70$34,147,889$5,975,052$3,272,791$21,724,241
71$37,552,199$6,189,055$3,303,655$23,697,032
72$41,301,268$6,411,064$3,333,072$25,863,198
73$45,430,183$6,641,391$3,360,915$28,242,199
74$49,977,606$6,880,364$3,387,051$30,855,473
75$54,986,143$7,128,323$3,411,338$33,726,633
76$60,502,742$7,385,623$3,433,631$36,881,692
77$66,579,137$7,652,633$3,453,772$40,349,306
78$73,272,334$7,929,738$3,471,599$44,161,040
79$80,645,155$8,217,338$3,486,941$48,351,673
80$88,766,824$8,515,851$3,499,616$52,959,515
81$97,713,622$8,825,710$3,509,435$58,026,774
82$107,569,610$9,147,368$3,516,200$63,599,950
83$118,427,419$9,481,297$3,519,701$69,730,274
84$130,389,124$9,827,989$3,519,719$76,474,188
85$143,567,209$10,187,955$3,516,025$83,893,877
86$158,085,629$10,561,729$3,508,376$92,057,855
87$174,080,976$10,949,867$3,496,519$101,041,610
88$191,703,772$11,352,948$3,480,190$110,928,313
89$211,119,890$11,771,575$3,459,109$121,809,602
90$232,512,116$12,206,379$3,432,986$133,786,446
91$256,081,875$12,658,015$3,401,514$146,970,096
92$282,051,135$13,127,167$3,364,374$161,483,129
93$310,664,501$13,614,548$3,321,231$177,460,611
94$342,191,521$14,120,902$3,271,733$195,051,360
95$376,929,233$14,647,003$3,215,513$214,419,357
96$415,204,969$15,193,660$3,152,186$235,745,285
97$457,379,441$15,761,715$3,081,350$259,228,236
98$503,850,152$16,352,047$3,002,583$285,087,587
99$555,055,142$16,965,572$2,915,445$313,565,065
100$611,477,129$17,603,247$2,819,474$344,927,030