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%17.1%
1 years$204,796$202,972$201,192$199,455$197,759$192,044
2 years$101,384$99,496$97,666$95,892$94,171$88,459
3 years$66,918$65,022$63,196$61,439$59,746$54,215
4 years$49,688$47,798$45,991$44,263$42,611$37,305
5 years$39,353$37,474$35,691$33,998$32,392$27,325
6 years$32,465$30,600$28,843$27,189$25,631$20,806
7 years$27,548$25,698$23,969$22,353$20,845$16,263
8 years$23,861$22,028$20,328$18,752$17,293$12,952
9 years$20,995$19,179$17,508$15,972$14,563$10,458
10 years$18,703$16,906$15,264$13,768$12,408$8,534
11 years$16,830$15,050$13,438$11,983$10,672$7,021
12 years$15,270$13,508$11,926$10,510$9,248$5,814
13 years$13,950$12,207$10,655$9,279$8,064$4,840
14 years$12,821$11,096$9,574$8,237$7,069$4,046
15 years$11,842$10,137$8,644$7,346$6,224$3,394
16 years$10,987$9,300$7,837$6,577$5,501$2,856
17 years$10,234$8,565$7,131$5,910$4,878$2,408
18 years$9,564$7,915$6,510$5,326$4,337$2,035
19 years$8,966$7,335$5,959$4,812$3,866$1,722
20 years$8,429$6,816$5,469$4,359$3,453$1,459
21 years$7,943$6,349$5,031$3,956$3,090$1,238
22 years$7,502$5,927$4,637$3,597$2,770$1,052
23 years$7,100$5,543$4,281$3,275$2,486$894
24 years$6,732$5,193$3,959$2,987$2,235$760
25 years$6,394$4,874$3,667$2,728$2,011$647
26 years$6,082$4,581$3,401$2,495$1,811$551
27 years$5,794$4,311$3,158$2,283$1,633$469
28 years$5,527$4,062$2,936$2,092$1,474$400
29 years$5,279$3,832$2,732$1,918$1,331$341
30 years$5,048$3,619$2,545$1,761$1,202$291
31 years$4,832$3,421$2,373$1,617$1,087$248
32 years$4,631$3,237$2,214$1,486$983$212
33 years$4,441$3,066$2,067$1,367$890$180
34 years$4,264$2,905$1,931$1,257$806$154
35 years$4,096$2,756$1,805$1,157$730$131
36 years$3,939$2,616$1,689$1,066$661$112
37 years$3,790$2,484$1,581$982$599$96
38 years$3,650$2,361$1,480$905$543$82
39 years$3,517$2,245$1,387$835$493$70
40 years$3,391$2,136$1,300$770$447$60
41 years$3,271$2,033$1,219$710$405$51
42 years$3,157$1,936$1,143$656$368$43
43 years$3,049$1,845$1,073$605$334$37
44 years$2,947$1,759$1,007$559$303$32
45 years$2,849$1,677$946$516$275$27
46 years$2,755$1,600$888$477$250$23
47 years$2,666$1,527$834$440$227$20
48 years$2,581$1,457$784$407$206$17
49 years$2,499$1,392$737$376$187$14
50 years$2,421$1,330$693$348$170$12

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 $3,719 every year, while hoping to spend $34,427 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: 56/39/5 Blend
39$2,480,000$2,480,000$2,480,000$2,480,000
40$2,736,796$2,605,356$2,566,916$2,887,155
41$2,979,319$2,696,389$2,616,278$3,079,767
42$3,245,426$2,790,728$2,666,139$3,285,248
43$3,537,485$2,888,499$2,716,481$3,508,177
44$3,858,107$2,989,834$2,767,281$3,750,217
45$4,210,166$3,094,868$2,818,517$4,013,196
46$4,596,828$3,203,742$2,870,163$4,299,125
47$5,021,583$3,316,603$2,922,191$4,610,216
48$5,488,273$3,433,605$2,974,573$4,948,902
49$6,001,131$3,554,907$3,027,276$5,317,858
50$6,564,823$3,680,673$3,080,266$5,720,029
51$7,184,485$3,811,077$3,133,505$6,158,654
52$7,865,780$3,946,297$3,186,955$6,637,299
53$8,614,944$4,086,520$3,240,572$7,159,887
54$9,438,848$4,231,939$3,294,312$7,730,735
55$10,345,064$4,382,757$3,348,125$8,354,596
56$11,341,933$4,539,185$3,401,959$9,036,700
57$12,438,645$4,701,440$3,455,759$9,782,806
58$13,645,326$4,869,750$3,509,467$10,599,254
59$14,973,134$5,044,352$3,563,019$11,493,022
60$16,434,362$5,225,494$3,616,348$12,471,794
61$18,042,556$5,413,431$3,669,384$13,544,032
62$19,812,639$5,608,432$3,722,051$14,719,052
63$21,761,058$5,810,775$3,774,269$16,007,111
64$23,905,932$6,020,749$3,825,954$17,419,507
65$26,267,229$6,238,658$3,877,015$18,968,682
66$28,866,950$6,464,815$3,927,359$20,668,335
67$31,729,337$6,699,549$3,976,883$22,533,558
68$34,881,102$6,943,200$4,025,482$24,580,968
69$38,351,682$7,196,125$4,073,043$26,828,872
70$42,173,512$7,458,693$4,119,448$29,297,431
71$46,382,332$7,731,291$4,164,571$32,008,853
72$51,017,526$8,014,320$4,208,280$34,987,600
73$56,122,491$8,308,200$4,250,436$38,260,619
74$61,745,051$8,613,367$4,290,891$41,857,593
75$67,937,900$8,930,276$4,329,490$45,811,220
76$74,759,108$9,259,402$4,366,070$50,157,521
77$82,272,663$9,601,238$4,400,459$54,936,178
78$90,549,076$9,956,300$4,432,476$60,190,906
79$99,666,049$10,325,126$4,461,931$65,969,868
80$109,709,203$10,708,274$4,488,623$72,326,120
81$120,772,891$11,106,329$4,512,341$79,318,119
82$132,961,086$11,519,899$4,532,864$87,010,265
83$146,388,362$11,949,619$4,549,960$95,473,512
84$161,180,975$12,396,150$4,563,384$104,786,034
85$177,478,056$12,860,183$4,572,879$115,033,961
86$195,432,922$13,342,438$4,578,175$126,312,189
87$215,214,527$13,843,663$4,578,991$138,725,274
88$237,009,050$14,364,644$4,575,028$152,388,418
89$261,021,657$14,906,196$4,565,975$167,428,551
90$287,478,437$15,469,171$4,551,507$183,985,528
91$316,628,535$16,054,457$4,531,280$202,213,449
92$348,746,503$16,662,983$4,504,935$222,282,105
93$384,134,892$17,295,714$4,472,096$244,378,585
94$423,127,108$17,953,662$4,432,368$268,709,032
95$466,090,560$18,637,878$4,385,339$295,500,592
96$513,430,125$19,349,462$4,330,576$325,003,551
97$565,591,973$20,089,561$4,267,626$357,493,694
98$623,067,777$20,859,372$4,196,014$393,274,910
99$686,399,353$21,660,145$4,115,244$432,682,049
100$756,183,779$22,493,183$4,024,796$476,084,088