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%11.6%
1 years$170,113$168,598$167,119$165,676$164,267$163,164
2 years$84,214$82,646$81,126$79,652$78,223$77,109
3 years$55,585$54,010$52,494$51,034$49,628$48,540
4 years$41,273$39,703$38,202$36,767$35,395$34,340
5 years$32,689$31,128$29,646$28,241$26,907$25,889
6 years$26,967$25,418$23,959$22,584$21,290$20,310
7 years$22,882$21,346$19,910$18,568$17,315$16,373
8 years$19,820$18,298$16,885$15,576$14,364$13,461
9 years$17,439$15,931$14,543$13,267$12,097$11,231
10 years$15,536$14,043$12,679$11,437$10,307$9,479
11 years$13,980$12,501$11,162$9,953$8,864$8,074
12 years$12,684$11,221$9,906$8,730$7,682$6,927
13 years$11,588$10,140$8,851$7,708$6,699$5,980
14 years$10,649$9,217$7,952$6,842$5,872$5,188
15 years$9,837$8,420$7,180$6,102$5,170$4,520
16 years$9,127$7,725$6,510$5,463$4,569$3,952
17 years$8,501$7,115$5,924$4,909$4,052$3,466
18 years$7,945$6,574$5,407$4,424$3,602$3,048
19 years$7,448$6,093$4,950$3,997$3,211$2,686
20 years$7,001$5,662$4,543$3,620$2,868$2,372
21 years$6,598$5,274$4,179$3,286$2,567$2,098
22 years$6,231$4,923$3,851$2,987$2,301$1,858
23 years$5,897$4,604$3,556$2,721$2,065$1,648
24 years$5,592$4,314$3,289$2,481$1,856$1,464
25 years$5,311$4,048$3,046$2,266$1,670$1,301
26 years$5,052$3,805$2,825$2,072$1,505$1,158
27 years$4,813$3,581$2,623$1,897$1,356$1,031
28 years$4,591$3,374$2,439$1,738$1,224$918
29 years$4,385$3,183$2,269$1,594$1,105$819
30 years$4,193$3,006$2,114$1,462$999$730
31 years$4,014$2,842$1,971$1,343$903$652
32 years$3,846$2,689$1,839$1,234$817$582
33 years$3,689$2,546$1,717$1,135$739$520
34 years$3,542$2,413$1,604$1,044$669$465
35 years$3,403$2,289$1,500$961$606$415
36 years$3,272$2,173$1,403$885$549$371
37 years$3,148$2,064$1,313$816$498$332
38 years$3,032$1,961$1,230$752$451$297
39 years$2,921$1,865$1,152$693$409$266
40 years$2,816$1,774$1,080$640$371$238
41 years$2,717$1,689$1,013$590$337$213
42 years$2,623$1,608$950$545$306$190
43 years$2,533$1,533$891$503$277$170
44 years$2,448$1,461$837$464$252$153
45 years$2,366$1,393$786$429$228$137
46 years$2,289$1,329$738$396$207$122
47 years$2,215$1,268$693$366$188$109
48 years$2,144$1,211$651$338$171$98
49 years$2,076$1,156$612$312$155$88
50 years$2,011$1,104$576$289$141$79

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 $4,574 every year, while hoping to spend $51,756 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: 30/44/26 Blend
39$2,060,000$2,060,000$2,060,000$2,060,000
40$2,274,838$2,165,658$2,133,728$2,324,709
41$2,451,804$2,216,707$2,150,140$2,414,826
42$2,645,085$2,268,523$2,165,367$2,506,838
43$2,856,292$2,321,089$2,179,315$2,604,782
44$3,087,196$2,374,385$2,191,884$2,709,208
45$3,339,749$2,428,388$2,202,971$2,820,723
46$3,616,098$2,483,074$2,212,466$2,939,996
47$3,918,609$2,538,414$2,220,253$3,067,764
48$4,249,887$2,594,377$2,226,211$3,204,843
49$4,612,800$2,650,926$2,230,214$3,352,130
50$5,010,507$2,708,023$2,232,127$3,510,615
51$5,446,487$2,765,624$2,231,812$3,681,391
52$5,924,572$2,823,683$2,229,121$3,865,664
53$6,448,982$2,882,146$2,223,899$4,064,764
54$7,024,364$2,940,958$2,215,986$4,280,157
55$7,655,840$3,000,055$2,205,212$4,513,463
56$8,349,048$3,059,370$2,191,399$4,766,466
57$9,110,201$3,118,830$2,174,361$5,041,138
58$9,946,143$3,178,353$2,153,904$5,339,650
59$10,864,411$3,237,855$2,129,822$5,664,401
60$11,873,312$3,297,241$2,101,902$6,018,036
61$12,981,994$3,356,409$2,069,919$6,403,472
62$14,200,536$3,415,252$2,033,640$6,823,929
63$15,540,041$3,473,650$1,992,818$7,282,957
64$17,012,745$3,531,478$1,947,197$7,784,475
65$18,632,124$3,588,600$1,896,507$8,332,801
66$20,413,029$3,644,869$1,840,468$8,932,704
67$22,371,819$3,700,129$1,778,785$9,589,440
68$24,526,521$3,754,212$1,711,151$10,308,809
69$26,896,995$3,806,937$1,637,243$11,097,208
70$29,505,123$3,858,112$1,556,725$11,961,691
71$32,375,016$3,907,530$1,469,246$12,910,040
72$35,533,241$3,954,972$1,374,439$13,950,838
73$39,009,067$4,000,201$1,271,918$15,093,550
74$42,834,747$4,042,966$1,161,283$16,348,615
75$47,045,820$4,083,001$1,042,115$17,727,546
76$51,681,443$4,120,017$913,975$19,243,039
77$56,784,764$4,153,711$776,406$20,909,096
78$62,403,325$4,183,758$628,932$22,741,155
79$68,589,515$4,209,813$471,051$24,756,244
80$75,401,060$4,231,508$302,245$26,973,137
81$82,901,567$4,248,451$121,970$29,412,538
82$91,161,129$4,260,227$0$32,097,273
83$100,256,979$4,266,393$0$35,072,049
84$110,274,225$4,266,480$0$38,382,464
85$121,306,647$4,259,989$0$42,025,418
86$133,457,586$4,246,390$0$46,034,831
87$146,840,918$4,225,121$0$50,448,088
88$161,582,125$4,195,586$0$55,306,397
89$177,819,484$4,157,151$0$60,655,179
90$195,705,366$4,109,147$0$66,544,498
91$215,407,680$4,050,861$0$73,029,532
92$237,111,451$3,981,542$0$80,171,104
93$261,020,571$3,900,389$0$88,036,249
94$287,359,720$3,806,558$0$96,698,854
95$316,376,485$3,699,154$0$106,240,358
96$348,343,703$3,577,228$0$116,750,520
97$383,562,025$3,439,777$0$128,328,270
98$422,362,766$3,285,740$0$141,082,651
99$465,111,021$3,113,994$0$155,133,841
100$512,209,116$2,923,351$0$170,614,299