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%16.9%
1 years$169,287$167,779$166,308$164,872$163,470$158,874
2 years$83,805$82,245$80,732$79,265$77,843$73,248
3 years$55,315$53,748$52,239$50,786$49,387$44,936
4 years$41,073$39,510$38,017$36,589$35,223$30,951
5 years$32,530$30,977$29,502$28,104$26,776$22,694
6 years$26,836$25,295$23,842$22,475$21,187$17,300
7 years$22,771$21,242$19,813$18,478$17,231$13,538
8 years$19,724$18,209$16,803$15,500$14,294$10,794
9 years$17,355$15,854$14,472$13,203$12,038$8,726
10 years$15,460$13,974$12,617$11,381$10,257$7,130
11 years$13,912$12,441$11,108$9,905$8,821$5,873
12 years$12,622$11,166$9,858$8,688$7,644$4,870
13 years$11,532$10,091$8,808$7,670$6,666$4,060
14 years$10,598$9,172$7,914$6,809$5,843$3,399
15 years$9,789$8,379$7,145$6,072$5,145$2,855
16 years$9,082$7,688$6,478$5,437$4,547$2,405
17 years$8,459$7,080$5,895$4,885$4,032$2,031
18 years$7,906$6,542$5,381$4,402$3,585$1,719
19 years$7,412$6,063$4,926$3,978$3,195$1,457
20 years$6,967$5,634$4,521$3,603$2,854$1,237
21 years$6,566$5,248$4,158$3,270$2,554$1,051
22 years$6,201$4,899$3,833$2,973$2,289$894
23 years$5,869$4,582$3,539$2,708$2,055$761
24 years$5,565$4,293$3,273$2,469$1,847$648
25 years$5,285$4,029$3,031$2,255$1,662$553
26 years$5,028$3,786$2,811$2,062$1,497$471
27 years$4,790$3,563$2,611$1,887$1,350$402
28 years$4,569$3,358$2,427$1,729$1,218$343
29 years$4,364$3,168$2,258$1,586$1,100$293
30 years$4,173$2,992$2,104$1,455$994$250
31 years$3,995$2,828$1,961$1,337$898$214
32 years$3,828$2,676$1,830$1,228$813$183
33 years$3,671$2,534$1,708$1,130$736$156
34 years$3,524$2,402$1,596$1,039$666$133
35 years$3,386$2,278$1,492$957$603$114
36 years$3,256$2,162$1,396$881$546$98
37 years$3,133$2,054$1,307$812$495$83
38 years$3,017$1,952$1,224$748$449$71
39 years$2,907$1,856$1,146$690$407$61
40 years$2,803$1,766$1,075$636$369$52
41 years$2,704$1,681$1,008$587$335$45
42 years$2,610$1,601$945$542$304$38
43 years$2,521$1,525$887$500$276$33
44 years$2,436$1,454$833$462$250$28
45 years$2,355$1,386$782$427$227$24
46 years$2,277$1,322$734$394$206$20
47 years$2,204$1,262$690$364$187$17
48 years$2,133$1,205$648$336$170$15
49 years$2,066$1,150$609$311$155$13
50 years$2,002$1,099$573$287$140$11

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 $3,526 every year, while hoping to spend $51,990 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: 41/36/23 Blend
39$2,050,000$2,050,000$2,050,000$2,050,000
40$2,262,737$2,154,087$2,122,312$2,340,059
41$2,438,219$2,204,320$2,138,093$2,446,026
42$2,629,858$2,255,273$2,152,659$2,555,434
43$2,839,247$2,306,924$2,165,916$2,672,818
44$3,068,139$2,359,253$2,177,764$2,798,938
45$3,318,466$2,412,233$2,188,096$2,934,632
46$3,592,354$2,465,836$2,196,801$3,080,825
47$3,892,144$2,520,032$2,203,763$3,238,534
48$4,220,413$2,574,784$2,208,860$3,408,882
49$4,580,000$2,630,054$2,211,962$3,593,106
50$4,974,033$2,685,799$2,212,936$3,792,570
51$5,405,953$2,741,972$2,211,638$4,008,780
52$5,879,553$2,798,521$2,207,920$4,243,393
53$6,399,009$2,855,391$2,201,628$4,498,239
54$6,968,922$2,912,519$2,192,596$4,775,333
55$7,594,358$2,969,838$2,180,654$5,076,900
56$8,280,899$3,027,276$2,165,622$5,405,392
57$9,034,692$3,084,754$2,147,311$5,763,510
58$9,862,510$3,142,186$2,125,526$6,154,237
59$10,771,813$3,199,481$2,100,058$6,580,860
60$11,770,820$3,256,537$2,070,692$7,047,002
61$12,868,584$3,313,248$2,037,201$7,556,660
62$14,075,081$3,369,498$1,999,348$8,114,241
63$15,401,298$3,425,162$1,956,885$8,724,605
64$16,859,341$3,480,107$1,909,552$9,393,107
65$18,462,549$3,534,187$1,857,077$10,125,657
66$20,225,617$3,587,250$1,799,176$10,928,768
67$22,164,733$3,639,129$1,735,552$11,809,621
68$24,297,737$3,689,647$1,665,894$12,776,137
69$26,644,281$3,738,615$1,589,877$13,837,045
70$29,226,021$3,785,830$1,507,161$15,001,974
71$32,066,814$3,831,075$1,417,390$16,281,537
72$35,192,951$3,874,119$1,320,194$17,687,435
73$38,633,396$3,914,715$1,215,185$19,232,573
74$42,420,065$3,952,599$1,101,956$20,931,173
75$46,588,126$3,987,490$980,086$22,798,919
76$51,176,327$4,019,089$849,131$24,853,101
77$56,227,365$4,047,078$708,630$27,112,779
78$61,788,288$4,071,116$558,100$29,598,968
79$67,910,935$4,090,842$397,038$32,334,835
80$74,652,429$4,105,872$224,918$35,345,920
81$82,075,716$4,115,799$41,191$38,660,378
82$90,250,152$4,120,187$0$42,309,245
83$99,252,167$4,118,575$0$46,364,748
84$109,165,977$4,110,474$0$50,839,853
85$120,084,383$4,095,364$0$55,766,174
86$132,109,647$4,072,693$0$61,189,703
87$145,354,452$4,041,876$0$67,161,134
88$159,942,970$4,002,292$0$73,736,332
89$176,012,031$3,953,283$0$80,976,871
90$193,712,416$3,894,151$0$88,950,611
91$213,210,275$3,824,157$0$97,732,343
92$234,688,700$3,742,518$0$107,404,494
93$258,349,450$3,648,404$0$118,057,908
94$284,414,856$3,540,938$0$129,792,705
95$313,129,917$3,419,189$0$142,719,229
96$344,764,613$3,282,174$0$156,959,089
97$379,616,455$3,128,852$0$172,646,311
98$418,013,289$2,958,121$0$189,928,606
99$460,316,392$2,768,817$0$208,968,765
100$506,923,883$2,559,709$0$229,946,198