Can I retire at age 40 with 2,050,000?

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 $2,050,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$169,287$167,779$166,308$164,872$163,470$162,168
2 years$83,805$82,245$80,732$79,265$77,843$76,530
3 years$55,315$53,748$52,239$50,786$49,387$48,104
4 years$41,073$39,510$38,017$36,589$35,223$33,981
5 years$32,530$30,977$29,502$28,104$26,776$25,578
6 years$26,836$25,295$23,842$22,475$21,187$20,034
7 years$22,771$21,242$19,813$18,478$17,231$16,123
8 years$19,724$18,209$16,803$15,500$14,294$13,233
9 years$17,355$15,854$14,472$13,203$12,038$11,022
10 years$15,460$13,974$12,617$11,381$10,257$9,286
11 years$13,912$12,441$11,108$9,905$8,821$7,894
12 years$12,622$11,166$9,858$8,688$7,644$6,761
13 years$11,532$10,091$8,808$7,670$6,666$5,825
14 years$10,598$9,172$7,914$6,809$5,843$5,043
15 years$9,789$8,379$7,145$6,072$5,145$4,385
16 years$9,082$7,688$6,478$5,437$4,547$3,826
17 years$8,459$7,080$5,895$4,885$4,032$3,349
18 years$7,906$6,542$5,381$4,402$3,585$2,938
19 years$7,412$6,063$4,926$3,978$3,195$2,584
20 years$6,967$5,634$4,521$3,603$2,854$2,277
21 years$6,566$5,248$4,158$3,270$2,554$2,010
22 years$6,201$4,899$3,833$2,973$2,289$1,776
23 years$5,869$4,582$3,539$2,708$2,055$1,572
24 years$5,565$4,293$3,273$2,469$1,847$1,393
25 years$5,285$4,029$3,031$2,255$1,662$1,235
26 years$5,028$3,786$2,811$2,062$1,497$1,096
27 years$4,790$3,563$2,611$1,887$1,350$974
28 years$4,569$3,358$2,427$1,729$1,218$866
29 years$4,364$3,168$2,258$1,586$1,100$770
30 years$4,173$2,992$2,104$1,455$994$685
31 years$3,995$2,828$1,961$1,337$898$610
32 years$3,828$2,676$1,830$1,228$813$543
33 years$3,671$2,534$1,708$1,130$736$484
34 years$3,524$2,402$1,596$1,039$666$431
35 years$3,386$2,278$1,492$957$603$385
36 years$3,256$2,162$1,396$881$546$343
37 years$3,133$2,054$1,307$812$495$306
38 years$3,017$1,952$1,224$748$449$273
39 years$2,907$1,856$1,146$690$407$244
40 years$2,803$1,766$1,075$636$369$217
41 years$2,704$1,681$1,008$587$335$194
42 years$2,610$1,601$945$542$304$173
43 years$2,521$1,525$887$500$276$155
44 years$2,436$1,454$833$462$250$138
45 years$2,355$1,386$782$427$227$123
46 years$2,277$1,322$734$394$206$110
47 years$2,204$1,262$690$364$187$98
48 years$2,133$1,205$648$336$170$88
49 years$2,066$1,150$609$311$155$78
50 years$2,002$1,099$573$287$140$70

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,050,000, adding $6,819 every year, while hoping to spend $32,541 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: 38/32/30 Blend
39$2,050,000$2,050,000$2,050,000$2,050,000
40$2,266,134$2,157,484$2,125,709$2,331,813
41$2,462,656$2,228,577$2,162,297$2,452,004
42$2,678,133$2,302,063$2,199,020$2,578,361
43$2,914,464$2,378,026$2,235,848$2,714,317
44$3,173,739$2,456,549$2,272,749$2,860,766
45$3,458,264$2,537,724$2,309,690$3,018,693
46$3,770,576$2,621,641$2,346,633$3,189,180
47$4,113,470$2,708,397$2,383,541$3,373,418
48$4,490,026$2,798,090$2,420,371$3,572,717
49$4,903,635$2,890,823$2,457,080$3,788,517
50$5,358,035$2,986,702$2,493,621$4,022,406
51$5,857,341$3,085,837$2,529,944$4,276,128
52$6,406,090$3,188,343$2,565,997$4,551,605
53$7,009,277$3,294,338$2,601,724$4,850,952
54$7,672,406$3,403,944$2,637,065$5,176,496
55$8,401,543$3,517,288$2,671,958$5,530,801
56$9,203,368$3,634,503$2,706,336$5,916,687
57$10,085,242$3,755,724$2,740,129$6,337,262
58$11,055,276$3,881,094$2,773,263$6,795,946
59$12,122,406$4,010,759$2,805,659$7,296,507
60$13,296,477$4,144,872$2,837,234$7,843,093
61$14,588,337$4,283,590$2,867,901$8,440,272
62$16,009,939$4,427,078$2,897,567$9,093,077
63$17,574,453$4,575,504$2,926,135$9,807,049
64$19,296,389$4,729,046$2,953,503$10,588,292
65$21,191,737$4,887,886$2,979,561$11,443,530
66$23,278,114$5,052,212$3,004,197$12,380,169
67$25,574,934$5,222,223$3,027,290$13,406,367
68$28,103,587$5,398,121$3,048,713$14,531,112
69$30,887,643$5,580,119$3,068,335$15,764,302
70$33,953,073$5,768,436$3,086,015$17,116,845
71$37,328,496$5,963,299$3,101,606$18,600,756
72$41,045,447$6,164,945$3,114,954$20,229,271
73$45,138,674$6,373,619$3,125,897$22,016,976
74$49,646,469$6,589,576$3,134,264$23,979,936
75$54,611,023$6,813,079$3,139,877$26,135,854
76$60,078,831$7,044,404$3,142,546$28,504,234
77$66,101,126$7,283,834$3,142,076$31,106,565
78$72,734,365$7,531,666$3,138,259$33,966,524
79$80,040,757$7,788,205$3,130,879$37,110,197
80$88,088,858$8,053,770$3,119,706$40,566,329
81$96,954,209$8,328,693$3,104,504$44,366,592
82$106,720,056$8,613,316$3,085,022$48,545,883
83$117,478,128$8,907,995$3,060,997$53,142,653
84$129,329,512$9,213,102$3,032,156$58,199,273
85$142,385,599$9,529,020$2,998,209$63,762,429
86$156,769,137$9,856,149$2,958,856$69,883,565
87$172,615,393$10,194,904$2,913,782$76,619,365
88$190,073,424$10,545,716$2,862,655$84,032,291
89$209,307,490$10,909,032$2,805,130$92,191,173
90$230,498,597$11,285,318$2,740,845$101,171,853
91$253,846,213$11,675,057$2,669,422$111,057,905
92$279,570,143$12,078,751$2,590,464$121,941,421
93$307,912,609$12,496,922$2,503,557$133,923,880
94$339,140,536$12,930,113$2,408,267$147,117,108
95$373,548,069$13,378,886$2,304,141$161,644,330
96$411,459,348$13,843,827$2,190,706$177,641,334
97$453,231,573$14,325,546$2,067,466$195,257,751
98$499,258,371$14,824,676$1,933,904$214,658,470
99$549,973,514$15,341,874$1,789,479$236,025,189
100$605,855,011$15,877,824$1,633,625$259,558,135