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%14.3%
1 years$166,810$165,324$163,874$162,459$161,078$158,214
2 years$82,579$81,041$79,551$78,105$76,704$73,828
3 years$54,506$52,961$51,474$50,043$48,664$45,866
4 years$40,472$38,932$37,460$36,053$34,708$32,009
5 years$32,054$30,523$29,071$27,692$26,384$23,793
6 years$26,444$24,925$23,493$22,146$20,877$18,396
7 years$22,438$20,932$19,523$18,207$16,978$14,608
8 years$19,435$17,942$16,557$15,274$14,085$11,826
9 years$17,101$15,622$14,261$13,010$11,862$9,711
10 years$15,234$13,770$12,433$11,214$10,107$8,063
11 years$13,708$12,259$10,946$9,760$8,692$6,753
12 years$12,437$11,003$9,714$8,561$7,533$5,696
13 years$11,363$9,943$8,679$7,558$6,569$4,831
14 years$10,443$9,038$7,798$6,709$5,758$4,117
15 years$9,646$8,256$7,040$5,983$5,070$3,521
16 years$8,949$7,575$6,383$5,357$4,481$3,022
17 years$8,335$6,976$5,808$4,814$3,973$2,600
18 years$7,790$6,447$5,302$4,338$3,532$2,243
19 years$7,303$5,975$4,854$3,920$3,149$1,938
20 years$6,865$5,552$4,455$3,550$2,812$1,678
21 years$6,470$5,171$4,098$3,222$2,517$1,454
22 years$6,110$4,827$3,777$2,929$2,256$1,262
23 years$5,783$4,515$3,487$2,668$2,025$1,097
24 years$5,483$4,230$3,225$2,433$1,820$954
25 years$5,208$3,970$2,987$2,222$1,638$830
26 years$4,954$3,731$2,770$2,032$1,475$723
27 years$4,720$3,511$2,572$1,860$1,330$630
28 years$4,502$3,309$2,391$1,704$1,200$549
29 years$4,300$3,121$2,225$1,563$1,084$479
30 years$4,112$2,948$2,073$1,434$979$418
31 years$3,936$2,787$1,932$1,317$885$365
32 years$3,772$2,637$1,803$1,210$801$319
33 years$3,618$2,497$1,683$1,113$725$278
34 years$3,473$2,367$1,573$1,024$656$243
35 years$3,337$2,245$1,471$943$594$212
36 years$3,208$2,131$1,376$868$538$186
37 years$3,087$2,023$1,288$800$488$162
38 years$2,973$1,923$1,206$737$442$142
39 years$2,864$1,829$1,130$680$401$124
40 years$2,762$1,740$1,059$627$364$108
41 years$2,664$1,656$993$579$330$95
42 years$2,572$1,577$931$534$300$83
43 years$2,484$1,503$874$493$272$72
44 years$2,400$1,432$820$455$247$63
45 years$2,320$1,366$770$420$224$55
46 years$2,244$1,303$723$388$203$48
47 years$2,172$1,244$680$359$185$42
48 years$2,102$1,187$639$331$168$37
49 years$2,036$1,134$600$306$152$32
50 years$1,972$1,083$564$283$138$28

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 $5,361 every year, while hoping to spend $29,231 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: 41/38/21 Blend
39$2,020,000$2,020,000$2,020,000$2,020,000
40$2,231,570$2,124,510$2,093,200$2,309,065
41$2,428,088$2,197,509$2,132,221$2,437,895
42$2,643,672$2,273,106$2,171,569$2,574,041
43$2,880,235$2,351,396$2,211,224$2,720,807
44$3,139,885$2,432,481$2,251,166$2,879,183
45$3,424,944$2,516,463$2,291,371$3,050,254
46$3,737,969$2,603,451$2,331,813$3,235,212
47$4,081,780$2,693,557$2,372,466$3,435,371
48$4,459,478$2,786,899$2,413,301$3,652,173
49$4,874,485$2,883,597$2,454,287$3,887,205
50$5,330,567$2,983,778$2,495,390$4,142,212
51$5,831,875$3,087,573$2,536,575$4,419,113
52$6,382,979$3,195,117$2,577,804$4,720,021
53$6,988,919$3,306,553$2,619,036$5,047,259
54$7,655,242$3,422,028$2,660,228$5,403,384
55$8,388,065$3,541,696$2,701,333$5,791,210
56$9,194,123$3,665,714$2,742,303$6,213,833
57$10,080,839$3,794,249$2,783,086$6,674,662
58$11,056,391$3,927,474$2,823,625$7,177,449
59$12,129,789$4,065,567$2,863,863$7,726,323
60$13,310,962$4,208,714$2,903,737$8,325,832
61$14,610,848$4,357,109$2,943,180$8,980,979
62$16,041,501$4,510,954$2,982,123$9,697,277
63$17,616,201$4,670,458$3,020,492$10,480,794
64$19,349,583$4,835,839$3,058,207$11,338,212
65$21,257,770$5,007,325$3,095,187$12,276,887
66$23,358,530$5,185,152$3,131,343$13,304,924
67$25,671,441$5,369,564$3,166,583$14,431,246
68$28,218,074$5,560,819$3,200,810$15,665,680
69$31,022,200$5,759,181$3,233,920$17,019,050
70$34,110,012$5,964,929$3,265,804$18,503,278
71$37,510,373$6,178,350$3,296,348$20,131,494
72$41,255,086$6,399,745$3,325,431$21,918,163
73$45,379,198$6,629,426$3,352,926$23,879,215
74$49,921,326$6,867,717$3,378,699$26,032,199
75$54,924,025$7,114,959$3,402,609$28,396,447
76$60,434,187$7,371,504$3,424,508$30,993,255
77$66,503,485$7,637,718$3,444,240$33,846,082
78$73,188,859$7,913,985$3,461,640$36,980,772
79$80,553,055$8,200,703$3,476,538$40,425,795
80$88,665,215$8,498,285$3,488,750$44,212,519
81$97,601,532$8,807,166$3,498,088$48,375,500
82$107,445,965$9,127,794$3,504,351$52,952,809
83$118,291,037$9,460,640$3,507,330$57,986,390
84$130,238,702$9,806,190$3,506,805$63,522,456
85$143,401,311$10,164,955$3,502,544$69,611,923
86$157,902,671$10,537,464$3,494,306$76,310,888
87$173,879,215$10,924,271$3,481,836$83,681,160
88$191,481,285$11,325,951$3,464,868$91,790,838
89$210,874,559$11,743,105$3,443,124$100,714,957
90$232,241,605$12,176,358$3,416,309$110,536,192
91$255,783,611$12,626,362$3,384,119$121,345,638
92$281,722,283$13,093,798$3,346,230$133,243,667
93$310,301,936$13,579,373$3,302,308$146,340,874
94$341,791,798$14,083,827$3,252,000$160,759,122
95$376,488,556$14,607,930$3,194,938$176,632,687
96$414,719,155$15,152,485$3,130,734$194,109,525
97$456,843,881$15,718,328$3,058,986$213,352,667
98$503,259,765$16,306,335$2,979,270$234,541,758
99$554,404,331$16,917,415$2,891,145$257,874,745
100$610,759,722$17,552,518$2,794,148$283,569,750