Can I retire at age 40 with 2,480,000?

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 $2,480,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$204,796$202,972$201,192$199,455$197,759$194,483
2 years$101,384$99,496$97,666$95,892$94,171$90,880
3 years$66,918$65,022$63,196$61,439$59,746$56,542
4 years$49,688$47,798$45,991$44,263$42,611$39,520
5 years$39,353$37,474$35,691$33,998$32,392$29,422
6 years$32,465$30,600$28,843$27,189$25,631$22,785
7 years$27,548$25,698$23,969$22,353$20,845$18,124
8 years$23,861$22,028$20,328$18,752$17,293$14,697
9 years$20,995$19,179$17,508$15,972$14,563$12,091
10 years$18,703$16,906$15,264$13,768$12,408$10,057
11 years$16,830$15,050$13,438$11,983$10,672$8,439
12 years$15,270$13,508$11,926$10,510$9,248$7,132
13 years$13,950$12,207$10,655$9,279$8,064$6,061
14 years$12,821$11,096$9,574$8,237$7,069$5,175
15 years$11,842$10,137$8,644$7,346$6,224$4,436
16 years$10,987$9,300$7,837$6,577$5,501$3,815
17 years$10,234$8,565$7,131$5,910$4,878$3,290
18 years$9,564$7,915$6,510$5,326$4,337$2,844
19 years$8,966$7,335$5,959$4,812$3,866$2,463
20 years$8,429$6,816$5,469$4,359$3,453$2,137
21 years$7,943$6,349$5,031$3,956$3,090$1,856
22 years$7,502$5,927$4,637$3,597$2,770$1,615
23 years$7,100$5,543$4,281$3,275$2,486$1,406
24 years$6,732$5,193$3,959$2,987$2,235$1,226
25 years$6,394$4,874$3,667$2,728$2,011$1,069
26 years$6,082$4,581$3,401$2,495$1,811$934
27 years$5,794$4,311$3,158$2,283$1,633$815
28 years$5,527$4,062$2,936$2,092$1,474$713
29 years$5,279$3,832$2,732$1,918$1,331$623
30 years$5,048$3,619$2,545$1,761$1,202$545
31 years$4,832$3,421$2,373$1,617$1,087$477
32 years$4,631$3,237$2,214$1,486$983$418
33 years$4,441$3,066$2,067$1,367$890$366
34 years$4,264$2,905$1,931$1,257$806$320
35 years$4,096$2,756$1,805$1,157$730$280
36 years$3,939$2,616$1,689$1,066$661$246
37 years$3,790$2,484$1,581$982$599$215
38 years$3,650$2,361$1,480$905$543$189
39 years$3,517$2,245$1,387$835$493$165
40 years$3,391$2,136$1,300$770$447$145
41 years$3,271$2,033$1,219$710$405$127
42 years$3,157$1,936$1,143$656$368$111
43 years$3,049$1,845$1,073$605$334$98
44 years$2,947$1,759$1,007$559$303$86
45 years$2,849$1,677$946$516$275$75
46 years$2,755$1,600$888$477$250$66
47 years$2,666$1,527$834$440$227$58
48 years$2,581$1,457$784$407$206$51
49 years$2,499$1,392$737$376$187$44
50 years$2,421$1,330$693$348$170$39

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,480,000, adding $5,172 every year, while hoping to spend $46,919 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: 68/10/22 Blend
39$2,480,000$2,480,000$2,480,000$2,480,000
40$2,738,295$2,606,855$2,568,415$2,908,973
41$2,967,680$2,684,669$2,604,535$3,101,750
42$3,218,889$2,764,724$2,640,293$3,306,653
43$3,494,100$2,847,080$2,675,627$3,529,690
44$3,795,708$2,931,797$2,710,471$3,772,650
45$4,126,356$3,018,940$2,744,757$4,037,501
46$4,488,949$3,108,573$2,778,411$4,326,414
47$4,886,690$3,200,762$2,811,356$4,641,776
48$5,323,107$3,295,573$2,843,511$4,986,221
49$5,802,084$3,393,077$2,874,789$5,362,647
50$6,327,902$3,493,343$2,905,100$5,774,248
51$6,905,274$3,596,443$2,934,347$6,224,542
52$7,539,394$3,702,450$2,962,429$6,717,407
53$8,235,982$3,811,441$2,989,241$7,257,112
54$9,001,341$3,923,490$3,014,669$7,848,363
55$9,842,412$4,038,676$3,038,596$8,496,344
56$10,766,846$4,157,078$3,060,896$9,206,766
57$11,783,068$4,278,779$3,081,440$9,985,924
58$12,900,361$4,403,860$3,100,089$10,840,751
59$14,128,955$4,532,405$3,116,698$11,778,888
60$15,480,116$4,664,501$3,131,116$12,808,754
61$16,966,262$4,800,236$3,143,182$13,939,625
62$18,601,070$4,939,697$3,152,728$15,181,724
63$20,399,613$5,082,975$3,159,577$16,546,313
64$22,378,495$5,230,163$3,163,545$18,045,805
65$24,556,015$5,381,354$3,164,437$19,693,876
66$26,952,331$5,536,643$3,162,049$21,505,596
67$29,589,657$5,696,127$3,156,166$23,497,574
68$32,492,468$5,859,904$3,146,563$25,688,109
69$35,687,733$6,028,072$3,133,007$28,097,368
70$39,205,168$6,200,733$3,115,248$30,747,573
71$43,077,515$6,377,989$3,093,029$33,663,213
72$47,340,855$6,559,944$3,066,079$36,871,274
73$52,034,942$6,746,701$3,034,112$40,401,493
74$57,203,584$6,938,367$2,996,833$44,286,643
75$62,895,051$7,135,049$2,953,928$48,562,835
76$69,162,535$7,336,854$2,905,073$53,269,865
77$76,064,645$7,543,892$2,849,924$58,451,590
78$83,665,967$7,756,272$2,788,126$64,156,336
79$92,037,671$7,974,104$2,719,303$70,437,363
80$101,258,178$8,197,500$2,643,064$77,353,359
81$111,413,906$8,426,571$2,559,001$84,969,002
82$122,600,081$8,661,430$2,466,684$93,355,565
83$134,921,638$8,902,188$2,365,666$102,591,591
84$148,494,208$9,148,958$2,255,479$112,763,638
85$163,445,213$9,401,853$2,135,634$123,967,089
86$179,915,066$9,660,985$2,005,618$136,307,062
87$198,058,494$9,926,465$1,864,898$149,899,393
88$218,046,003$10,198,404$1,712,915$164,871,737
89$240,065,483$10,476,913$1,549,085$181,364,771
90$264,323,981$10,762,101$1,372,798$199,533,522
91$291,049,658$11,054,075$1,183,418$219,548,831
92$320,493,941$11,352,942$980,280$241,598,968
93$352,933,892$11,658,805$762,688$265,891,405
94$388,674,830$11,971,768$529,919$292,654,783
95$428,053,206$12,291,928$281,216$322,141,065
96$471,439,784$12,619,383$15,787$354,627,915
97$519,243,135$12,954,226$0$390,421,325
98$571,913,497$13,296,545$0$429,921,286
99$629,947,024$13,646,426$0$473,444,649
100$693,890,469$14,003,949$0$521,397,429