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%18.6%
1 years$169,287$167,779$166,308$164,872$163,470$157,795
2 years$83,805$82,245$80,732$79,265$77,843$72,185
3 years$55,315$53,748$52,239$50,786$49,387$43,922
4 years$41,073$39,510$38,017$36,589$35,223$29,994
5 years$32,530$30,977$29,502$28,104$26,776$21,797
6 years$26,836$25,295$23,842$22,475$21,187$16,461
7 years$22,771$21,242$19,813$18,478$17,231$12,758
8 years$19,724$18,209$16,803$15,500$14,294$10,070
9 years$17,355$15,854$14,472$13,203$12,038$8,057
10 years$15,460$13,974$12,617$11,381$10,257$6,513
11 years$13,912$12,441$11,108$9,905$8,821$5,307
12 years$12,622$11,166$9,858$8,688$7,644$4,351
13 years$11,532$10,091$8,808$7,670$6,666$3,586
14 years$10,598$9,172$7,914$6,809$5,843$2,966
15 years$9,789$8,379$7,145$6,072$5,145$2,462
16 years$9,082$7,688$6,478$5,437$4,547$2,049
17 years$8,459$7,080$5,895$4,885$4,032$1,709
18 years$7,906$6,542$5,381$4,402$3,585$1,428
19 years$7,412$6,063$4,926$3,978$3,195$1,195
20 years$6,967$5,634$4,521$3,603$2,854$1,001
21 years$6,566$5,248$4,158$3,270$2,554$840
22 years$6,201$4,899$3,833$2,973$2,289$705
23 years$5,869$4,582$3,539$2,708$2,055$592
24 years$5,565$4,293$3,273$2,469$1,847$498
25 years$5,285$4,029$3,031$2,255$1,662$418
26 years$5,028$3,786$2,811$2,062$1,497$352
27 years$4,790$3,563$2,611$1,887$1,350$296
28 years$4,569$3,358$2,427$1,729$1,218$249
29 years$4,364$3,168$2,258$1,586$1,100$210
30 years$4,173$2,992$2,104$1,455$994$177
31 years$3,995$2,828$1,961$1,337$898$149
32 years$3,828$2,676$1,830$1,228$813$126
33 years$3,671$2,534$1,708$1,130$736$106
34 years$3,524$2,402$1,596$1,039$666$89
35 years$3,386$2,278$1,492$957$603$75
36 years$3,256$2,162$1,396$881$546$63
37 years$3,133$2,054$1,307$812$495$53
38 years$3,017$1,952$1,224$748$449$45
39 years$2,907$1,856$1,146$690$407$38
40 years$2,803$1,766$1,075$636$369$32
41 years$2,704$1,681$1,008$587$335$27
42 years$2,610$1,601$945$542$304$23
43 years$2,521$1,525$887$500$276$19
44 years$2,436$1,454$833$462$250$16
45 years$2,355$1,386$782$427$227$14
46 years$2,277$1,322$734$394$206$11
47 years$2,204$1,262$690$364$187$10
48 years$2,133$1,205$648$336$170$8
49 years$2,066$1,150$609$311$155$7
50 years$2,002$1,099$573$287$140$6

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 $4,172 every year, while hoping to spend $37,325 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: 57/24/19 Blend
39$2,050,000$2,050,000$2,050,000$2,050,000
40$2,263,403$2,154,753$2,122,978$2,380,765
41$2,454,557$2,220,623$2,154,385$2,526,944
42$2,663,957$2,288,469$2,185,592$2,681,781
43$2,893,426$2,358,349$2,216,555$2,849,691
44$3,144,970$2,430,322$2,247,223$3,031,939
45$3,420,798$2,504,449$2,277,546$3,229,919
46$3,723,344$2,580,792$2,307,469$3,445,165
47$4,055,289$2,659,415$2,336,933$3,679,364
48$4,419,586$2,740,384$2,365,878$3,934,377
49$4,819,487$2,823,765$2,394,238$4,212,250
50$5,258,574$2,909,630$2,421,945$4,515,238
51$5,740,795$2,998,048$2,448,926$4,845,825
52$6,270,496$3,089,092$2,475,105$5,206,743
53$6,852,467$3,182,838$2,500,402$5,601,006
54$7,491,985$3,279,363$2,524,731$6,031,929
55$8,194,860$3,378,745$2,548,002$6,503,166
56$8,967,498$3,481,065$2,570,123$7,018,742
57$9,816,953$3,586,408$2,590,992$7,583,090
58$10,750,998$3,694,857$2,610,506$8,201,093
59$11,778,196$3,806,501$2,628,554$8,878,130
60$12,907,982$3,921,430$2,645,020$9,620,128
61$14,150,750$4,039,734$2,659,783$10,433,616
62$15,517,956$4,161,510$2,672,714$11,325,787
63$17,022,216$4,286,853$2,683,679$12,304,566
64$18,677,436$4,415,863$2,692,537$13,378,684
65$20,498,936$4,548,642$2,699,138$14,557,760
66$22,503,596$4,685,293$2,703,327$15,852,393
67$24,710,014$4,825,924$2,704,940$17,274,262
68$27,138,685$4,970,644$2,703,805$18,836,233
69$29,812,190$5,119,565$2,699,742$20,552,484
70$32,755,412$5,272,802$2,692,562$22,438,635
71$35,995,768$5,430,473$2,682,066$24,511,901
72$39,563,467$5,592,697$2,668,046$26,791,246
73$43,491,800$5,759,599$2,650,285$29,297,570
74$47,817,449$5,931,304$2,628,555$32,053,902
75$52,580,832$6,107,941$2,602,614$35,085,615
76$57,826,489$6,289,642$2,572,214$38,420,672
77$63,603,499$6,476,543$2,537,092$42,089,883
78$69,965,944$6,668,782$2,496,972$46,127,200
79$76,973,417$6,866,499$2,451,568$50,570,036
80$84,691,587$7,069,839$2,400,577$55,459,617
81$93,192,817$7,278,949$2,343,684$60,841,374
82$102,556,847$7,493,981$2,280,561$66,765,367
83$112,871,547$7,715,087$2,210,861$73,286,762
84$124,233,744$7,942,426$2,134,224$80,466,349
85$136,750,138$8,176,157$2,050,273$88,371,118
86$150,538,308$8,416,444$1,958,613$97,074,888
87$165,727,820$8,663,455$1,858,831$106,659,007
88$182,461,453$8,917,359$1,750,496$117,213,119
89$200,896,542$9,178,330$1,633,159$128,836,006
90$221,206,466$9,446,546$1,506,347$141,636,530
91$243,582,285$9,722,186$1,369,569$155,734,649
92$268,234,540$10,005,434$1,222,311$171,262,561
93$295,395,240$10,296,478$1,064,036$188,365,941
94$325,320,057$10,595,507$894,183$207,205,324
95$358,290,731$10,902,716$712,167$227,957,619
96$394,617,738$11,218,301$517,377$250,817,775
97$434,643,211$11,542,462$309,173$276,000,628
98$478,744,179$11,875,402$86,890$303,742,924
99$527,336,117$12,217,329$0$334,305,557
100$580,876,873$12,568,451$0$368,006,504