Can I retire at age 40 with 2,500,000?

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 $2,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$206,448$204,609$202,815$201,063$199,354$194,298
2 years$102,202$100,298$98,454$96,665$94,930$89,869
3 years$67,458$65,546$63,706$61,934$60,228$55,320
4 years$50,089$48,183$46,362$44,620$42,955$38,238
5 years$39,671$37,776$35,979$34,273$32,654$28,141
6 years$32,727$30,847$29,076$27,408$25,838$21,534
7 years$27,770$25,905$24,162$22,534$21,013$16,918
8 years$24,053$22,206$20,492$18,903$17,432$13,545
9 years$21,164$19,334$17,649$16,101$14,680$10,997
10 years$18,854$17,042$15,387$13,879$12,509$9,024
11 years$16,965$15,172$13,547$12,079$10,758$7,467
12 years$15,393$13,617$12,022$10,595$9,322$6,221
13 years$14,063$12,306$10,741$9,354$8,129$5,210
14 years$12,924$11,186$9,651$8,303$7,126$4,382
15 years$11,938$10,218$8,713$7,405$6,274$3,700
16 years$11,076$9,375$7,900$6,630$5,545$3,132
17 years$10,316$8,634$7,189$5,957$4,917$2,659
18 years$9,642$7,978$6,562$5,369$4,372$2,262
19 years$9,039$7,394$6,008$4,851$3,897$1,927
20 years$8,497$6,871$5,513$4,394$3,481$1,644
21 years$8,007$6,400$5,071$3,988$3,115$1,405
22 years$7,562$5,974$4,674$3,626$2,792$1,201
23 years$7,157$5,588$4,316$3,302$2,506$1,029
24 years$6,786$5,235$3,991$3,012$2,253$881
25 years$6,445$4,913$3,697$2,750$2,027$755
26 years$6,131$4,617$3,428$2,515$1,826$648
27 years$5,841$4,346$3,184$2,302$1,646$556
28 years$5,572$4,095$2,960$2,109$1,485$477
29 years$5,322$3,863$2,754$1,934$1,341$410
30 years$5,089$3,648$2,565$1,775$1,212$352
31 years$4,871$3,449$2,392$1,630$1,096$303
32 years$4,668$3,263$2,231$1,498$991$260
33 years$4,477$3,090$2,084$1,378$897$223
34 years$4,298$2,929$1,947$1,268$812$192
35 years$4,129$2,778$1,820$1,167$736$165
36 years$3,971$2,637$1,703$1,075$666$142
37 years$3,821$2,504$1,594$990$604$122
38 years$3,679$2,380$1,492$913$548$105
39 years$3,545$2,263$1,398$841$497$90
40 years$3,418$2,153$1,310$776$450$78
41 years$3,297$2,050$1,229$716$409$67
42 years$3,183$1,952$1,153$661$371$58
43 years$3,074$1,860$1,082$610$337$50
44 years$2,970$1,773$1,015$563$305$43
45 years$2,872$1,691$953$520$277$37
46 years$2,777$1,613$895$481$252$32
47 years$2,688$1,539$841$444$229$27
48 years$2,602$1,469$791$410$208$23
49 years$2,519$1,403$743$379$189$20
50 years$2,441$1,340$699$350$171$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,500,000, adding $4,049 every year, while hoping to spend $58,370 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: 41/50/9 Blend
39$2,500,000$2,500,000$2,500,000$2,500,000
40$2,759,177$2,626,677$2,587,927$2,864,769
41$2,978,507$2,693,278$2,612,517$3,005,683
42$3,218,254$2,761,188$2,635,975$3,151,941
43$3,480,436$2,830,406$2,658,200$3,308,913
44$3,767,279$2,900,935$2,679,089$3,477,594
45$4,081,234$2,972,773$2,698,530$3,659,081
46$4,424,997$3,045,916$2,716,408$3,854,580
47$4,801,539$3,120,359$2,732,601$4,065,419
48$5,214,133$3,196,093$2,746,979$4,293,060
49$5,666,380$3,273,107$2,759,409$4,539,113
50$6,162,249$3,351,388$2,769,748$4,805,351
51$6,706,111$3,430,918$2,777,846$5,093,725
52$7,302,779$3,511,677$2,783,549$5,406,385
53$7,957,555$3,593,643$2,786,691$5,745,700
54$8,676,280$3,676,786$2,787,099$6,114,277
55$9,465,388$3,761,075$2,784,594$6,514,992
56$10,331,964$3,846,474$2,778,985$6,951,008
57$11,283,816$3,932,943$2,770,072$7,425,813
58$12,329,543$4,020,436$2,757,648$7,943,251
59$13,478,621$4,108,901$2,741,493$8,507,554
60$14,741,485$4,198,282$2,721,378$9,123,388
61$16,129,635$4,288,516$2,697,063$9,795,893
62$17,655,738$4,379,534$2,668,295$10,530,732
63$19,333,752$4,471,260$2,634,811$11,334,148
64$21,179,053$4,563,610$2,596,335$12,213,019
65$23,208,582$4,656,492$2,552,578$13,174,924
66$25,441,005$4,749,808$2,503,237$14,228,218
67$27,896,887$4,843,448$2,447,995$15,382,105
68$30,598,888$4,937,295$2,386,521$16,646,731
69$33,571,972$5,031,221$2,318,468$18,033,278
70$36,843,650$5,125,087$2,243,473$19,554,068
71$40,444,229$5,218,743$2,161,157$21,222,681
72$44,407,108$5,312,029$2,071,122$23,054,086
73$48,769,083$5,404,769$1,972,955$25,064,780
74$53,570,702$5,496,775$1,866,222$27,272,943
75$58,856,642$5,587,845$1,750,469$29,698,613
76$64,676,133$5,677,762$1,625,222$32,363,877
77$71,083,419$5,766,293$1,489,987$35,293,074
78$78,138,273$5,853,187$1,344,248$38,513,032
79$85,906,559$5,938,176$1,187,462$42,053,320
80$94,460,853$6,020,972$1,019,067$45,946,525
81$103,881,128$6,101,267$838,474$50,228,565
82$114,255,507$6,178,733$645,066$54,939,027
83$125,681,095$6,253,017$438,203$60,121,540
84$138,264,896$6,323,744$217,212$65,824,193
85$152,124,821$6,390,514$0$72,099,986
86$167,390,802$6,452,897$0$79,009,119
87$184,206,013$6,510,439$0$86,636,561
88$202,728,229$6,562,653$0$95,032,462
89$223,131,306$6,609,021$0$104,275,102
90$245,606,829$6,648,992$0$114,450,752
91$270,365,913$6,681,980$0$125,654,492
92$297,641,200$6,707,361$0$137,991,106
93$327,689,052$6,724,472$0$151,576,075
94$360,791,971$6,732,606$0$166,536,670
95$397,261,265$6,731,017$0$183,013,153
96$437,439,985$6,718,908$0$201,160,104
97$481,706,163$6,695,435$0$221,147,882
98$530,476,382$6,659,701$0$243,164,237
99$584,209,703$6,610,757$0$267,416,084
100$643,412,002$6,547,593$0$294,131,457