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%13.5%
1 years$166,810$165,324$163,874$162,459$161,078$158,736
2 years$82,579$81,041$79,551$78,105$76,704$74,349
3 years$54,506$52,961$51,474$50,043$48,664$46,370
4 years$40,472$38,932$37,460$36,053$34,708$32,492
5 years$32,054$30,523$29,071$27,692$26,384$24,253
6 years$26,444$24,925$23,493$22,146$20,877$18,833
7 years$22,438$20,932$19,523$18,207$16,978$15,023
8 years$19,435$17,942$16,557$15,274$14,085$12,217
9 years$17,101$15,622$14,261$13,010$11,862$10,081
10 years$15,234$13,770$12,433$11,214$10,107$8,411
11 years$13,708$12,259$10,946$9,760$8,692$7,080
12 years$12,437$11,003$9,714$8,561$7,533$6,002
13 years$11,363$9,943$8,679$7,558$6,569$5,118
14 years$10,443$9,038$7,798$6,709$5,758$4,384
15 years$9,646$8,256$7,040$5,983$5,070$3,771
16 years$8,949$7,575$6,383$5,357$4,481$3,254
17 years$8,335$6,976$5,808$4,814$3,973$2,816
18 years$7,790$6,447$5,302$4,338$3,532$2,443
19 years$7,303$5,975$4,854$3,920$3,149$2,124
20 years$6,865$5,552$4,455$3,550$2,812$1,849
21 years$6,470$5,171$4,098$3,222$2,517$1,613
22 years$6,110$4,827$3,777$2,929$2,256$1,408
23 years$5,783$4,515$3,487$2,668$2,025$1,231
24 years$5,483$4,230$3,225$2,433$1,820$1,077
25 years$5,208$3,970$2,987$2,222$1,638$944
26 years$4,954$3,731$2,770$2,032$1,475$827
27 years$4,720$3,511$2,572$1,860$1,330$725
28 years$4,502$3,309$2,391$1,704$1,200$637
29 years$4,300$3,121$2,225$1,563$1,084$559
30 years$4,112$2,948$2,073$1,434$979$491
31 years$3,936$2,787$1,932$1,317$885$431
32 years$3,772$2,637$1,803$1,210$801$379
33 years$3,618$2,497$1,683$1,113$725$333
34 years$3,473$2,367$1,573$1,024$656$293
35 years$3,337$2,245$1,471$943$594$258
36 years$3,208$2,131$1,376$868$538$227
37 years$3,087$2,023$1,288$800$488$200
38 years$2,973$1,923$1,206$737$442$176
39 years$2,864$1,829$1,130$680$401$155
40 years$2,762$1,740$1,059$627$364$136
41 years$2,664$1,656$993$579$330$120
42 years$2,572$1,577$931$534$300$106
43 years$2,484$1,503$874$493$272$93
44 years$2,400$1,432$820$455$247$82
45 years$2,320$1,366$770$420$224$72
46 years$2,244$1,303$723$388$203$63
47 years$2,172$1,244$680$359$185$56
48 years$2,102$1,187$639$331$168$49
49 years$2,036$1,134$600$306$152$43
50 years$1,972$1,083$564$283$138$38

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 $4,691 every year, while hoping to spend $53,756 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: 67/7/26 Blend
39$2,020,000$2,020,000$2,020,000$2,020,000
40$2,230,879$2,123,819$2,092,509$2,364,988
41$2,401,232$2,170,690$2,105,412$2,502,668
42$2,587,161$2,218,056$2,116,945$2,646,668
43$2,790,195$2,265,885$2,127,007$2,802,942
44$3,012,022$2,314,140$2,135,489$2,972,703
45$3,254,497$2,362,783$2,142,277$3,157,287
46$3,519,666$2,411,769$2,147,254$3,358,170
47$3,809,778$2,461,052$2,150,293$3,576,976
48$4,127,312$2,510,579$2,151,263$3,815,496
49$4,474,995$2,560,295$2,150,028$4,075,704
50$4,855,833$2,610,138$2,146,442$4,359,774
51$5,273,134$2,660,041$2,140,355$4,670,104
52$5,730,544$2,709,933$2,131,607$5,009,339
53$6,232,075$2,759,735$2,120,031$5,380,390
54$6,782,148$2,809,364$2,105,454$5,786,468
55$7,385,632$2,858,728$2,087,692$6,231,114
56$8,047,891$2,907,730$2,066,553$6,718,228
57$8,774,831$2,956,264$2,041,838$7,252,110
58$9,572,960$3,004,217$2,013,336$7,837,501
59$10,449,445$3,051,466$1,980,826$8,479,624
60$11,412,183$3,097,883$1,944,078$9,184,240
61$12,469,872$3,143,326$1,902,852$9,957,695
62$13,632,096$3,187,646$1,856,894$10,806,986
63$14,909,411$3,230,682$1,805,941$11,739,825
64$16,313,448$3,272,262$1,749,717$12,764,714
65$17,857,019$3,312,203$1,687,932$13,891,021
66$19,554,243$3,350,308$1,620,285$15,129,074
67$21,420,671$3,386,368$1,546,460$16,490,258
68$23,473,439$3,420,160$1,466,126$17,987,119
69$25,731,427$3,451,445$1,378,939$19,633,486
70$28,215,437$3,479,970$1,284,537$21,444,603
71$30,948,386$3,505,464$1,182,544$23,437,271
72$33,955,529$3,527,638$1,072,566$25,630,008
73$37,264,687$3,546,187$954,192$28,043,225
74$40,906,519$3,560,785$826,992$30,699,419
75$44,914,805$3,571,083$690,516$33,623,383
76$49,326,763$3,576,715$544,297$36,842,448
77$54,183,407$3,577,288$387,845$40,386,734
78$59,529,927$3,572,387$220,650$44,289,439
79$65,416,115$3,561,570$42,177$48,587,152
80$71,896,839$3,544,367$0$53,320,201
81$79,032,559$3,520,283$0$58,574,170
82$86,889,892$3,488,789$0$64,372,068
83$95,542,248$3,449,327$0$70,756,341
84$105,070,515$3,401,302$0$77,786,668
85$115,563,830$3,344,088$0$85,528,814
86$127,120,410$3,277,018$0$94,055,247
87$139,848,488$3,199,387$0$103,445,826
88$153,867,325$3,110,449$0$113,788,552
89$169,308,345$3,009,414$0$125,180,398
90$186,316,364$2,895,443$0$137,728,228
91$205,050,967$2,767,654$0$151,549,801
92$225,688,005$2,625,108$0$166,774,885
93$248,421,258$2,466,815$0$183,546,482
94$273,464,265$2,291,728$0$202,022,178
95$301,052,336$2,098,738$0$222,375,629
96$331,444,774$1,886,676$0$244,798,200
97$364,927,322$1,654,304$0$269,500,773
98$401,814,857$1,400,313$0$296,715,740
99$442,454,366$1,123,323$0$326,699,189
100$487,228,220$821,873$0$359,733,331