Can I retire at age 40 with 2,120,000?

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 $2,120,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$175,068$173,508$171,987$170,502$169,052$164,965
2 years$86,667$85,053$83,489$81,972$80,501$76,408
3 years$57,204$55,583$54,023$52,520$51,073$47,102
4 years$42,476$40,859$39,315$37,838$36,426$32,607
5 years$33,641$32,034$30,510$29,063$27,690$24,035
6 years$27,753$26,158$24,656$23,242$21,910$18,422
7 years$23,549$21,968$20,490$19,109$17,819$14,498
8 years$20,397$18,830$17,377$16,030$14,783$11,627
9 years$17,947$16,395$14,967$13,654$12,449$9,457
10 years$15,988$14,452$13,048$11,770$10,607$7,775
11 years$14,387$12,865$11,488$10,243$9,123$6,446
12 years$13,053$11,547$10,195$8,985$7,905$5,380
13 years$11,925$10,435$9,108$7,932$6,894$4,515
14 years$10,960$9,486$8,184$7,041$6,043$3,806
15 years$10,123$8,665$7,389$6,280$5,321$3,220
16 years$9,392$7,950$6,699$5,623$4,702$2,732
17 years$8,748$7,322$6,096$5,052$4,170$2,324
18 years$8,176$6,766$5,565$4,553$3,707$1,981
19 years$7,665$6,270$5,094$4,114$3,304$1,692
20 years$7,205$5,827$4,675$3,726$2,952$1,447
21 years$6,790$5,427$4,300$3,381$2,641$1,239
22 years$6,413$5,066$3,964$3,075$2,368$1,062
23 years$6,069$4,738$3,660$2,800$2,125$911
24 years$5,755$4,440$3,385$2,554$1,910$783
25 years$5,466$4,166$3,135$2,332$1,719$673
26 years$5,199$3,916$2,907$2,132$1,548$578
27 years$4,953$3,685$2,700$1,952$1,396$497
28 years$4,725$3,472$2,510$1,788$1,260$428
29 years$4,513$3,276$2,336$1,640$1,137$368
30 years$4,315$3,094$2,175$1,505$1,028$317
31 years$4,131$2,925$2,028$1,382$929$273
32 years$3,958$2,767$1,892$1,270$840$236
33 years$3,797$2,621$1,767$1,168$761$203
34 years$3,645$2,484$1,651$1,075$689$175
35 years$3,502$2,356$1,543$989$624$151
36 years$3,367$2,236$1,444$911$565$130
37 years$3,240$2,124$1,351$840$512$112
38 years$3,120$2,018$1,266$774$464$97
39 years$3,006$1,919$1,186$714$421$83
40 years$2,898$1,826$1,111$658$382$72
41 years$2,796$1,738$1,042$607$347$62
42 years$2,699$1,655$977$560$314$53
43 years$2,607$1,577$917$517$285$46
44 years$2,519$1,503$861$478$259$40
45 years$2,435$1,434$808$441$235$34
46 years$2,355$1,368$759$407$214$30
47 years$2,279$1,305$713$376$194$26
48 years$2,206$1,246$670$348$176$22
49 years$2,137$1,190$630$321$160$19
50 years$2,070$1,137$592$297$145$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,120,000, adding $4,835 every year, while hoping to spend $44,746 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: 61/26/13 Blend
39$2,120,000$2,120,000$2,120,000$2,120,000
40$2,341,227$2,228,867$2,196,007$2,476,370
41$2,532,423$2,290,472$2,221,964$2,629,357
42$2,741,621$2,353,596$2,247,291$2,790,722
43$2,970,610$2,418,267$2,271,919$2,965,723
44$3,221,361$2,484,510$2,295,777$3,155,682
45$3,496,042$2,552,353$2,318,788$3,362,054
46$3,797,043$2,621,823$2,340,872$3,586,442
47$4,126,995$2,692,946$2,361,944$3,830,610
48$4,488,795$2,765,747$2,381,916$4,096,502
49$4,885,636$2,840,253$2,400,694$4,386,257
50$5,321,033$2,916,486$2,418,179$4,702,233
51$5,798,857$2,994,473$2,434,267$5,047,025
52$6,323,374$3,074,237$2,448,849$5,423,492
53$6,899,283$3,155,799$2,461,810$5,834,784
54$7,531,759$3,239,182$2,473,029$6,284,368
55$8,226,502$3,324,406$2,482,380$6,776,067
56$8,989,795$3,411,491$2,489,729$7,314,090
57$9,828,555$3,500,455$2,494,936$7,903,075
58$10,750,405$3,591,315$2,497,854$8,548,130
59$11,763,744$3,684,087$2,498,329$9,254,884
60$12,877,822$3,778,783$2,496,199$10,029,539
61$14,102,832$3,875,416$2,491,295$10,878,926
62$15,450,005$3,973,996$2,483,437$11,810,575
63$16,931,713$4,074,529$2,472,440$12,832,779
64$18,561,589$4,177,021$2,458,107$13,954,677
65$20,354,651$4,281,476$2,440,234$15,186,340
66$22,327,448$4,387,891$2,418,605$16,538,862
67$24,498,215$4,496,264$2,392,995$18,024,470
68$26,887,041$4,606,589$2,363,168$19,656,635
69$29,516,062$4,718,855$2,328,877$21,450,203
70$32,409,669$4,833,048$2,289,864$23,421,530
71$35,594,738$4,949,150$2,245,857$25,588,643
72$39,100,881$5,067,138$2,196,573$27,971,403
73$42,960,729$5,186,986$2,141,716$30,591,697
74$47,210,235$5,308,660$2,080,975$33,473,646
75$51,889,017$5,432,123$2,014,026$36,643,826
76$57,040,731$5,557,330$1,940,529$40,131,527
77$62,713,478$5,684,232$1,860,130$43,969,023
78$68,960,266$5,812,773$1,772,457$48,191,880
79$75,839,501$5,942,887$1,677,123$52,839,293
80$83,415,545$6,074,503$1,573,721$57,954,452
81$91,759,318$6,207,541$1,461,829$63,584,954
82$100,948,971$6,341,913$1,341,003$69,783,249
83$111,070,620$6,477,521$1,210,780$76,607,138
84$122,219,161$6,614,256$1,070,678$84,120,317
85$134,499,161$6,752,001$920,192$92,392,980
86$148,025,851$6,890,625$758,794$101,502,481
87$162,926,209$7,029,986$585,934$111,534,064
88$179,340,157$7,169,930$401,038$122,581,670
89$197,421,885$7,310,289$203,505$134,748,823
90$217,341,304$7,450,880$0$148,149,605
91$239,285,649$7,591,505$0$162,910,752
92$263,461,247$7,731,950$0$179,199,988
93$290,095,462$7,871,984$0$197,141,831
94$319,438,844$8,011,356$0$216,904,637
95$351,767,490$8,149,797$0$238,673,931
96$387,385,654$8,287,016$0$262,654,158
97$426,628,614$8,422,703$0$289,070,613
98$469,865,839$8,556,522$0$318,171,569
99$517,504,475$8,688,113$0$350,230,620
100$569,993,191$8,817,089$0$385,549,263