Can I retire at age 40 with 2,040,000?

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 $2,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.9%
1 years$168,461$166,961$165,497$164,068$162,672$156,838
2 years$83,397$81,843$80,338$78,879$77,463$71,648
3 years$55,046$53,486$51,984$50,538$49,146$43,533
4 years$40,873$39,318$37,831$36,410$35,051$29,684
5 years$32,371$30,825$29,359$27,966$26,645$21,537
6 years$26,705$25,171$23,726$22,365$21,084$16,238
7 years$22,660$21,139$19,716$18,387$17,147$12,563
8 years$19,627$18,120$16,721$15,425$14,225$9,899
9 years$17,270$15,777$14,402$13,138$11,979$7,906
10 years$15,385$13,906$12,556$11,326$10,207$6,379
11 years$13,844$12,380$11,054$9,857$8,778$5,187
12 years$12,560$11,112$9,810$8,646$7,607$4,245
13 years$11,475$10,042$8,765$7,633$6,634$3,491
14 years$10,546$9,128$7,875$6,775$5,815$2,882
15 years$9,741$8,338$7,110$6,043$5,120$2,387
16 years$9,038$7,650$6,446$5,410$4,525$1,982
17 years$8,418$7,045$5,866$4,861$4,012$1,649
18 years$7,867$6,510$5,355$4,381$3,567$1,375
19 years$7,376$6,034$4,902$3,959$3,180$1,148
20 years$6,933$5,607$4,499$3,585$2,840$960
21 years$6,534$5,223$4,138$3,254$2,542$803
22 years$6,171$4,875$3,814$2,958$2,278$672
23 years$5,840$4,560$3,522$2,694$2,045$564
24 years$5,538$4,272$3,257$2,457$1,838$473
25 years$5,259$4,009$3,016$2,244$1,654$396
26 years$5,003$3,768$2,798$2,052$1,490$333
27 years$4,766$3,546$2,598$1,878$1,343$279
28 years$4,547$3,341$2,415$1,721$1,212$235
29 years$4,343$3,152$2,247$1,578$1,094$197
30 years$4,153$2,977$2,093$1,448$989$166
31 years$3,975$2,814$1,952$1,330$894$139
32 years$3,809$2,663$1,821$1,222$809$117
33 years$3,653$2,522$1,700$1,124$732$98
34 years$3,507$2,390$1,589$1,034$663$83
35 years$3,370$2,267$1,485$952$600$69
36 years$3,240$2,152$1,389$877$544$58
37 years$3,118$2,044$1,300$808$493$49
38 years$3,002$1,942$1,218$745$447$41
39 years$2,893$1,847$1,141$687$405$35
40 years$2,789$1,757$1,069$633$368$29
41 years$2,691$1,673$1,003$584$333$25
42 years$2,597$1,593$941$539$303$21
43 years$2,508$1,518$883$498$275$17
44 years$2,424$1,447$828$460$249$15
45 years$2,343$1,380$778$424$226$12
46 years$2,266$1,316$731$392$205$10
47 years$2,193$1,256$686$362$187$9
48 years$2,123$1,199$645$335$169$7
49 years$2,056$1,145$606$309$154$6
50 years$1,992$1,094$570$286$140$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,040,000, adding $5,193 every year, while hoping to spend $59,915 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: 46/37/17 Blend
39$2,040,000$2,040,000$2,040,000$2,040,000
40$2,253,437$2,145,317$2,113,697$2,345,961
41$2,419,538$2,186,688$2,120,756$2,452,348
42$2,600,574$2,228,079$2,126,044$2,561,254
43$2,798,004$2,269,426$2,129,438$2,678,126
44$3,013,435$2,310,663$2,130,809$2,803,730
45$3,248,636$2,351,716$2,130,023$2,938,910
46$3,505,555$2,392,508$2,126,936$3,084,598
47$3,786,334$2,432,953$2,121,401$3,241,822
48$4,093,334$2,472,962$2,113,262$3,411,717
49$4,429,153$2,512,436$2,102,355$3,595,531
50$4,796,652$2,551,271$2,088,509$3,794,646
51$5,198,981$2,589,353$2,071,545$4,010,583
52$5,639,610$2,626,564$2,051,274$4,245,021
53$6,122,358$2,662,774$2,027,500$4,499,813
54$6,651,432$2,697,844$2,000,015$4,777,000
55$7,231,468$2,731,627$1,968,605$5,078,838
56$7,867,566$2,763,966$1,933,042$5,407,812
57$8,565,350$2,794,692$1,893,091$5,766,665
58$9,331,009$2,823,625$1,848,502$6,158,422
59$10,171,362$2,850,574$1,799,018$6,586,420
60$11,093,923$2,875,334$1,744,367$7,054,341
61$12,106,965$2,897,687$1,684,265$7,566,245
62$13,219,603$2,917,401$1,618,416$8,126,610
63$14,441,879$2,934,230$1,546,509$8,740,376
64$15,784,854$2,947,911$1,468,220$9,412,993
65$17,260,714$2,958,163$1,383,211$10,150,470
66$18,882,885$2,964,692$1,291,126$10,959,435
67$20,666,157$2,967,179$1,191,597$11,847,198
68$22,626,825$2,965,291$1,084,235$12,821,823
69$24,782,842$2,958,671$968,638$13,892,200
70$27,153,988$2,946,942$844,383$15,068,136
71$29,762,053$2,929,701$711,029$16,360,444
72$32,631,050$2,906,524$568,116$17,781,052
73$35,787,433$2,876,959$415,163$19,343,109
74$39,260,349$2,840,528$251,669$21,061,118
75$43,081,914$2,796,723$77,110$22,951,070
76$47,287,515$2,745,008$0$25,030,599
77$51,916,142$2,684,814$0$27,338,953
78$57,010,755$2,615,536$0$29,893,982
79$62,618,692$2,536,538$0$32,705,433
80$68,792,114$2,447,143$0$35,799,482
81$75,588,493$2,346,637$0$39,204,987
82$83,071,161$2,234,263$0$42,953,756
83$91,309,898$2,109,221$0$47,080,852
84$100,381,599$1,970,665$0$51,624,926
85$110,370,994$1,817,699$0$56,628,579
86$121,371,446$1,649,377$0$62,138,773
87$133,485,837$1,464,700$0$68,207,271
88$146,827,533$1,262,611$0$74,891,129
89$161,521,455$1,041,993$0$82,253,238
90$177,705,259$801,666$0$90,362,920
91$195,530,633$540,384$0$99,296,584
92$215,164,726$256,832$0$109,138,450
93$236,791,732$0$0$119,981,348
94$260,614,618$0$0$131,948,110
95$286,857,048$0$0$145,245,798
96$315,765,487$0$0$159,894,780
97$347,611,531$0$0$176,032,725
98$382,694,468$0$0$193,811,344
99$421,344,101$0$0$213,397,816
100$463,923,862$0$0$234,976,365