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%17.7%
1 years$168,461$166,961$165,497$164,068$162,672$157,591
2 years$83,397$81,843$80,338$78,879$77,463$72,389
3 years$55,046$53,486$51,984$50,538$49,146$44,238
4 years$40,873$39,318$37,831$36,410$35,051$30,348
5 years$32,371$30,825$29,359$27,966$26,645$22,159
6 years$26,705$25,171$23,726$22,365$21,084$16,817
7 years$22,660$21,139$19,716$18,387$17,147$13,100
8 years$19,627$18,120$16,721$15,425$14,225$10,396
9 years$17,270$15,777$14,402$13,138$11,979$8,364
10 years$15,385$13,906$12,556$11,326$10,207$6,800
11 years$13,844$12,380$11,054$9,857$8,778$5,573
12 years$12,560$11,112$9,810$8,646$7,607$4,597
13 years$11,475$10,042$8,765$7,633$6,634$3,811
14 years$10,546$9,128$7,875$6,775$5,815$3,173
15 years$9,741$8,338$7,110$6,043$5,120$2,650
16 years$9,038$7,650$6,446$5,410$4,525$2,220
17 years$8,418$7,045$5,866$4,861$4,012$1,864
18 years$7,867$6,510$5,355$4,381$3,567$1,568
19 years$7,376$6,034$4,902$3,959$3,180$1,321
20 years$6,933$5,607$4,499$3,585$2,840$1,114
21 years$6,534$5,223$4,138$3,254$2,542$941
22 years$6,171$4,875$3,814$2,958$2,278$795
23 years$5,840$4,560$3,522$2,694$2,045$673
24 years$5,538$4,272$3,257$2,457$1,838$570
25 years$5,259$4,009$3,016$2,244$1,654$483
26 years$5,003$3,768$2,798$2,052$1,490$409
27 years$4,766$3,546$2,598$1,878$1,343$347
28 years$4,547$3,341$2,415$1,721$1,212$294
29 years$4,343$3,152$2,247$1,578$1,094$249
30 years$4,153$2,977$2,093$1,448$989$212
31 years$3,975$2,814$1,952$1,330$894$180
32 years$3,809$2,663$1,821$1,222$809$152
33 years$3,653$2,522$1,700$1,124$732$129
34 years$3,507$2,390$1,589$1,034$663$110
35 years$3,370$2,267$1,485$952$600$93
36 years$3,240$2,152$1,389$877$544$79
37 years$3,118$2,044$1,300$808$493$67
38 years$3,002$1,942$1,218$745$447$57
39 years$2,893$1,847$1,141$687$405$49
40 years$2,789$1,757$1,069$633$368$41
41 years$2,691$1,673$1,003$584$333$35
42 years$2,597$1,593$941$539$303$30
43 years$2,508$1,518$883$498$275$25
44 years$2,424$1,447$828$460$249$21
45 years$2,343$1,380$778$424$226$18
46 years$2,266$1,316$731$392$205$15
47 years$2,193$1,256$686$362$187$13
48 years$2,123$1,199$645$335$169$11
49 years$2,056$1,145$606$309$154$9
50 years$1,992$1,094$570$286$140$8

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 $4,417 every year, while hoping to spend $58,461 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: 59/12/29 Blend
39$2,040,000$2,040,000$2,040,000$2,040,000
40$2,252,636$2,144,516$2,112,896$2,367,492
41$2,420,203$2,187,395$2,121,476$2,489,468
42$2,602,902$2,230,416$2,128,384$2,615,890
43$2,802,216$2,273,524$2,133,503$2,752,594
44$3,019,775$2,316,660$2,136,708$2,900,594
45$3,257,374$2,359,758$2,137,870$3,061,013
46$3,516,990$2,402,751$2,136,852$3,235,086
47$3,800,799$2,445,562$2,133,513$3,424,174
48$4,111,197$2,488,110$2,127,702$3,629,782
49$4,450,821$2,530,309$2,119,261$3,853,565
50$4,822,575$2,572,065$2,108,027$4,097,352
51$5,229,658$2,613,276$2,093,826$4,363,156
52$5,675,591$2,653,835$2,076,478$4,653,202
53$6,164,254$2,693,626$2,055,792$4,969,939
54$6,699,917$2,732,523$2,031,571$5,316,069
55$7,287,286$2,770,394$2,003,606$5,694,572
56$7,931,542$2,807,096$1,971,679$6,108,734
57$8,638,392$2,842,476$1,935,563$6,562,180
58$9,414,122$2,876,371$1,895,019$7,058,903
59$10,265,657$2,908,608$1,849,797$7,603,310
60$11,200,625$2,939,001$1,799,635$8,200,258
61$12,227,427$2,967,350$1,744,262$8,855,104
62$13,355,320$2,993,445$1,683,389$9,573,754
63$14,594,499$3,017,061$1,616,720$10,362,719
64$15,956,198$3,037,957$1,543,940$11,229,180
65$17,452,792$3,055,879$1,464,724$12,181,052
66$19,097,914$3,070,554$1,378,730$13,227,064
67$20,906,585$3,081,694$1,285,600$14,376,837
68$22,895,350$3,088,992$1,184,962$15,640,981
69$25,082,444$3,092,120$1,076,426$17,031,193
70$27,487,951$3,090,732$959,584$18,560,365
71$30,134,004$3,084,460$834,012$20,242,716
72$33,044,986$3,072,912$699,265$22,093,915
73$36,247,764$3,055,674$554,880$24,131,241
74$39,771,939$3,032,305$400,371$26,373,740
75$43,650,127$3,002,338$235,234$28,842,407
76$47,918,267$2,965,279$58,941$31,560,389
77$52,615,955$2,920,602$0$34,553,201
78$57,786,822$2,867,752$0$37,888,946
79$63,478,946$2,806,140$0$41,580,713
80$69,745,299$2,735,141$0$45,644,607
81$76,644,253$2,654,096$0$50,118,496
82$84,240,125$2,562,305$0$55,044,108
83$92,603,788$2,459,029$0$60,467,429
84$101,813,336$2,343,483$0$66,439,134
85$111,954,823$2,214,841$0$73,015,068
86$123,123,073$2,072,225$0$80,256,770
87$135,422,573$1,914,711$0$88,232,060
88$148,968,462$1,741,318$0$97,015,672
89$163,887,614$1,551,012$0$106,689,965
90$180,319,837$1,342,698$0$117,345,702
91$198,419,192$1,115,221$0$129,082,899
92$218,355,442$867,360$0$142,011,781
93$240,315,661$597,825$0$156,253,813
94$264,505,993$305,253$0$171,942,853
95$291,153,601$0$0$189,226,415
96$320,508,806$0$0$208,268,615
97$352,847,454$0$0$229,290,784
98$388,473,518$0$0$252,450,245
99$427,721,962$0$0$277,964,784
100$470,961,908$0$0$306,074,390