Can I retire at age 40 with 2,080,000?

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 $2,080,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$171,764$170,234$168,742$167,285$165,862$165,163
2 years$85,032$83,448$81,913$80,425$78,982$78,276
3 years$56,125$54,534$53,003$51,529$50,109$49,419
4 years$41,674$40,089$38,573$37,124$35,738$35,069
5 years$33,006$31,430$29,934$28,515$27,168$26,520
6 years$27,229$25,665$24,191$22,803$21,497$20,873
7 years$23,104$21,553$20,103$18,748$17,483$16,882
8 years$20,012$18,475$17,049$15,727$14,504$13,927
9 years$17,609$16,086$14,684$13,396$12,214$11,661
10 years$15,687$14,179$12,802$11,548$10,407$9,877
11 years$14,115$12,623$11,271$10,050$8,950$8,443
12 years$12,807$11,329$10,003$8,815$7,756$7,272
13 years$11,700$10,239$8,937$7,782$6,764$6,301
14 years$10,753$9,307$8,030$6,908$5,929$5,488
15 years$9,932$8,502$7,250$6,161$5,220$4,801
16 years$9,215$7,800$6,573$5,517$4,614$4,214
17 years$8,583$7,184$5,981$4,957$4,091$3,711
18 years$8,022$6,638$5,460$4,467$3,637$3,277
19 years$7,520$6,152$4,998$4,036$3,242$2,901
20 years$7,069$5,717$4,587$3,656$2,896$2,573
21 years$6,662$5,325$4,219$3,318$2,591$2,286
22 years$6,292$4,971$3,889$3,016$2,323$2,034
23 years$5,955$4,649$3,591$2,747$2,085$1,812
24 years$5,646$4,356$3,321$2,506$1,874$1,616
25 years$5,363$4,088$3,076$2,288$1,686$1,444
26 years$5,101$3,842$2,852$2,092$1,519$1,290
27 years$4,860$3,616$2,649$1,915$1,370$1,154
28 years$4,636$3,407$2,462$1,755$1,236$1,033
29 years$4,428$3,214$2,291$1,609$1,116$926
30 years$4,234$3,035$2,134$1,477$1,008$830
31 years$4,053$2,869$1,990$1,356$912$744
32 years$3,884$2,715$1,857$1,246$825$668
33 years$3,725$2,571$1,733$1,146$746$599
34 years$3,576$2,437$1,620$1,055$676$538
35 years$3,436$2,311$1,514$971$612$484
36 years$3,304$2,194$1,417$894$554$434
37 years$3,179$2,084$1,326$824$503$390
38 years$3,061$1,980$1,242$759$456$351
39 years$2,949$1,883$1,163$700$413$316
40 years$2,844$1,791$1,090$646$375$284
41 years$2,743$1,705$1,022$596$340$255
42 years$2,648$1,624$959$550$309$230
43 years$2,558$1,547$900$508$280$207
44 years$2,471$1,475$845$469$254$186
45 years$2,389$1,407$793$433$231$167
46 years$2,311$1,342$745$400$209$151
47 years$2,236$1,280$700$369$190$136
48 years$2,165$1,222$658$341$173$122
49 years$2,096$1,167$618$315$157$110
50 years$2,031$1,115$581$292$143$99

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,080,000, adding $4,722 every year, while hoping to spend $27,934 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: 51/36/13 Blend
39$2,080,000$2,080,000$2,080,000$2,080,000
40$2,297,031$2,186,791$2,154,551$2,405,911
41$2,501,606$2,264,222$2,197,007$2,558,392
42$2,726,112$2,344,511$2,239,949$2,720,728
43$2,972,552$2,427,769$2,283,363$2,896,578
44$3,243,133$2,514,110$2,327,236$3,087,224
45$3,540,285$2,603,654$2,371,552$3,294,075
46$3,866,687$2,696,526$2,416,292$3,518,681
47$4,225,289$2,792,855$2,461,437$3,762,747
48$4,619,341$2,892,777$2,506,967$4,028,147
49$5,052,422$2,996,432$2,552,859$4,316,944
50$5,528,478$3,103,966$2,599,089$4,631,406
51$6,051,854$3,215,531$2,645,629$4,974,030
52$6,627,338$3,331,287$2,692,453$5,347,562
53$7,260,204$3,451,398$2,739,527$5,755,026
54$7,956,264$3,576,035$2,786,821$6,199,749
55$8,721,921$3,705,379$2,834,298$6,685,391
56$9,564,230$3,839,616$2,881,919$7,215,984
57$10,490,963$3,978,939$2,929,646$7,795,964
58$11,510,686$4,123,551$2,977,433$8,430,214
59$12,632,834$4,273,663$3,025,235$9,124,112
60$13,867,805$4,429,495$3,073,003$9,883,577
61$15,227,055$4,591,274$3,120,682$10,715,128
62$16,723,208$4,759,240$3,168,219$11,625,942
63$18,370,173$4,933,641$3,215,552$12,623,923
64$20,183,276$5,114,734$3,262,618$13,717,772
65$22,179,405$5,302,791$3,309,350$14,917,074
66$24,377,169$5,498,092$3,355,678$16,232,384
67$26,797,071$5,700,929$3,401,524$17,675,328
68$29,461,706$5,911,609$3,446,809$19,258,706
69$32,395,971$6,130,449$3,491,448$20,996,623
70$35,627,300$6,357,781$3,535,352$22,904,608
71$39,185,924$6,593,951$3,578,425$24,999,770
72$43,105,153$6,839,320$3,620,567$27,300,953
73$47,421,694$7,094,262$3,661,672$29,828,917
74$52,175,998$7,359,171$3,701,628$32,606,526
75$57,412,634$7,634,456$3,740,318$35,658,970
76$63,180,721$7,920,542$3,777,616$39,013,997
77$69,534,380$8,217,874$3,813,392$42,702,177
78$76,533,252$8,526,916$3,847,507$46,757,185
79$84,243,061$8,848,151$3,879,815$51,216,122
80$92,736,227$9,182,085$3,910,163$56,119,861
81$102,092,559$9,529,243$3,938,389$61,513,431
82$112,399,998$9,890,175$3,964,324$67,446,445
83$123,755,458$10,265,453$3,987,789$73,973,561
84$136,265,731$10,655,676$4,008,596$81,154,998
85$150,048,498$11,061,467$4,026,546$89,057,107
86$165,233,443$11,483,478$4,041,434$97,752,989
87$181,963,473$11,922,386$4,053,041$107,323,189
88$200,396,066$12,378,903$4,061,137$117,856,450
89$220,704,763$12,853,766$4,065,482$129,450,553
90$243,080,797$13,347,749$4,065,824$142,213,232
91$267,734,908$13,861,658$4,061,899$156,263,198
92$294,899,323$14,396,335$4,053,428$171,731,246
93$324,829,956$14,952,657$4,040,119$188,761,499
94$357,808,817$15,531,543$4,021,669$207,512,758
95$394,146,678$16,133,950$3,997,756$228,160,001
96$434,186,003$16,760,877$3,968,044$250,896,033
97$478,304,184$17,413,369$3,932,183$275,933,304
98$526,917,103$18,092,517$3,889,804$303,505,909
99$580,483,056$18,799,458$3,840,520$333,871,800
100$639,507,078$19,535,382$3,783,928$367,315,211