Can I retire at age 40 with 2,060,000?

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 $2,060,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.5%
1 years$170,113$168,598$167,119$165,676$164,267$158,628
2 years$84,214$82,646$81,126$79,652$78,223$72,599
3 years$55,585$54,010$52,494$51,034$49,628$44,196
4 years$41,273$39,703$38,202$36,767$35,395$30,196
5 years$32,689$31,128$29,646$28,241$26,907$21,955
6 years$26,967$25,418$23,959$22,584$21,290$16,590
7 years$22,882$21,346$19,910$18,568$17,315$12,865
8 years$19,820$18,298$16,885$15,576$14,364$10,161
9 years$17,439$15,931$14,543$13,267$12,097$8,135
10 years$15,536$14,043$12,679$11,437$10,307$6,580
11 years$13,980$12,501$11,162$9,953$8,864$5,365
12 years$12,684$11,221$9,906$8,730$7,682$4,402
13 years$11,588$10,140$8,851$7,708$6,699$3,630
14 years$10,649$9,217$7,952$6,842$5,872$3,005
15 years$9,837$8,420$7,180$6,102$5,170$2,496
16 years$9,127$7,725$6,510$5,463$4,569$2,079
17 years$8,501$7,115$5,924$4,909$4,052$1,735
18 years$7,945$6,574$5,407$4,424$3,602$1,451
19 years$7,448$6,093$4,950$3,997$3,211$1,215
20 years$7,001$5,662$4,543$3,620$2,868$1,019
21 years$6,598$5,274$4,179$3,286$2,567$855
22 years$6,231$4,923$3,851$2,987$2,301$718
23 years$5,897$4,604$3,556$2,721$2,065$604
24 years$5,592$4,314$3,289$2,481$1,856$508
25 years$5,311$4,048$3,046$2,266$1,670$427
26 years$5,052$3,805$2,825$2,072$1,505$360
27 years$4,813$3,581$2,623$1,897$1,356$303
28 years$4,591$3,374$2,439$1,738$1,224$255
29 years$4,385$3,183$2,269$1,594$1,105$215
30 years$4,193$3,006$2,114$1,462$999$181
31 years$4,014$2,842$1,971$1,343$903$153
32 years$3,846$2,689$1,839$1,234$817$129
33 years$3,689$2,546$1,717$1,135$739$109
34 years$3,542$2,413$1,604$1,044$669$92
35 years$3,403$2,289$1,500$961$606$77
36 years$3,272$2,173$1,403$885$549$65
37 years$3,148$2,064$1,313$816$498$55
38 years$3,032$1,961$1,230$752$451$46
39 years$2,921$1,865$1,152$693$409$39
40 years$2,816$1,774$1,080$640$371$33
41 years$2,717$1,689$1,013$590$337$28
42 years$2,623$1,608$950$545$306$24
43 years$2,533$1,533$891$503$277$20
44 years$2,448$1,461$837$464$252$17
45 years$2,366$1,393$786$429$228$14
46 years$2,289$1,329$738$396$207$12
47 years$2,215$1,268$693$366$188$10
48 years$2,144$1,211$651$338$171$8
49 years$2,076$1,156$612$312$155$7
50 years$2,011$1,104$576$289$141$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,060,000, adding $2,196 every year, while hoping to spend $49,592 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: 60/21/19 Blend
39$2,060,000$2,060,000$2,060,000$2,060,000
40$2,272,385$2,163,205$2,131,275$2,397,365
41$2,451,403$2,216,437$2,149,907$2,535,401
42$2,647,018$2,270,615$2,167,502$2,680,261
43$2,860,872$2,325,733$2,183,971$2,837,171
44$3,094,771$2,381,783$2,199,223$3,007,304
45$3,350,703$2,438,755$2,213,163$3,191,956
46$3,630,858$2,496,638$2,225,687$3,392,552
47$3,937,648$2,555,416$2,236,690$3,610,661
48$4,273,729$2,615,072$2,246,060$3,848,015
49$4,642,025$2,675,586$2,253,679$4,106,520
50$5,045,756$2,736,935$2,259,422$4,388,276
51$5,488,472$2,799,093$2,263,161$4,695,597
52$5,974,077$2,862,030$2,264,758$5,031,034
53$6,506,877$2,925,713$2,264,072$5,397,397
54$7,091,611$2,990,106$2,260,950$5,797,783
55$7,733,499$3,055,165$2,255,237$6,235,604
56$8,438,295$3,120,847$2,246,766$6,714,620
57$9,212,334$3,187,101$2,235,365$7,238,976
58$10,062,594$3,253,871$2,220,852$7,813,240
59$10,996,765$3,321,097$2,203,036$8,442,444
60$12,023,316$3,388,712$2,181,719$9,132,135
61$13,151,579$3,456,644$2,156,692$9,888,426
62$14,391,835$3,524,814$2,127,736$10,718,055
63$15,755,409$3,593,137$2,094,622$11,628,446
64$17,254,778$3,661,519$2,057,110$12,627,783
65$18,903,692$3,729,859$2,014,949$13,725,085
66$20,717,296$3,798,050$1,967,877$14,930,291
67$22,712,278$3,865,973$1,915,619$16,254,355
68$24,907,026$3,933,501$1,857,888$17,709,352
69$27,321,799$4,000,498$1,794,383$19,308,587
70$29,978,917$4,066,817$1,724,790$21,066,726
71$32,902,975$4,132,300$1,648,779$22,999,931
72$36,121,073$4,196,777$1,566,008$25,126,015
73$39,663,070$4,260,067$1,476,116$27,464,613
74$43,561,867$4,321,973$1,378,729$30,037,360
75$47,853,715$4,382,288$1,273,455$32,868,105
76$52,578,561$4,440,787$1,159,882$35,983,129
77$57,780,420$4,497,231$1,037,584$39,411,400
78$63,507,791$4,551,364$906,112$43,184,842
79$69,814,119$4,602,914$765,000$47,338,640
80$76,758,291$4,651,588$613,759$51,911,571
81$84,405,197$4,697,077$451,880$56,946,372
82$92,826,340$4,739,047$278,831$62,490,145
83$102,100,513$4,777,146$94,058$68,594,799
84$112,314,536$4,810,997$0$75,317,545
85$123,564,082$4,840,199$0$82,742,342
86$135,954,576$4,864,327$0$90,939,481
87$149,602,190$4,882,926$0$99,966,585
88$164,634,938$4,895,514$0$109,908,191
89$181,193,887$4,901,579$0$120,857,457
90$199,434,482$4,900,576$0$132,917,045
91$219,528,022$4,891,926$0$146,200,088
92$241,663,266$4,875,016$0$160,831,257
93$266,048,221$4,849,194$0$176,947,943
94$292,912,104$4,813,769$0$194,701,551
95$322,507,502$4,768,007$0$214,258,928
96$355,112,760$4,711,132$0$235,803,944
97$391,034,602$4,642,318$0$259,539,223
98$430,611,034$4,560,694$0$285,688,059
99$474,214,524$4,465,333$0$314,496,527
100$522,255,528$4,355,256$0$346,235,799