Can I retire at age 40 with 2,520,000?

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 $2,520,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.4%
1 years$208,099$206,246$204,437$202,672$200,948$194,906
2 years$103,019$101,101$99,241$97,438$95,690$89,653
3 years$67,997$66,070$64,216$62,430$60,709$54,868
4 years$50,490$48,569$46,733$44,977$43,299$37,697
5 years$39,988$38,079$36,266$34,547$32,915$27,568
6 years$32,989$31,094$29,309$27,627$26,044$20,957
7 years$27,992$26,113$24,356$22,714$21,181$16,353
8 years$24,246$22,383$20,655$19,054$17,572$13,000
9 years$21,333$19,489$17,791$16,230$14,798$10,478
10 years$19,005$17,178$15,510$13,990$12,609$8,535
11 years$17,101$15,293$13,655$12,176$10,844$7,008
12 years$15,516$13,726$12,118$10,680$9,397$5,792
13 years$14,175$12,404$10,827$9,429$8,194$4,812
14 years$13,027$11,275$9,728$8,370$7,183$4,014
15 years$12,033$10,300$8,783$7,464$6,325$3,360
16 years$11,165$9,450$7,963$6,683$5,590$2,821
17 years$10,399$8,703$7,246$6,005$4,956$2,374
18 years$9,719$8,042$6,615$5,412$4,407$2,001
19 years$9,111$7,453$6,056$4,890$3,928$1,690
20 years$8,565$6,926$5,558$4,429$3,508$1,429
21 years$8,071$6,451$5,112$4,019$3,140$1,209
22 years$7,623$6,022$4,711$3,655$2,814$1,025
23 years$7,214$5,632$4,350$3,328$2,526$869
24 years$6,840$5,277$4,023$3,036$2,271$737
25 years$6,497$4,952$3,726$2,772$2,043$626
26 years$6,180$4,654$3,456$2,535$1,840$532
27 years$5,888$4,380$3,209$2,320$1,659$452
28 years$5,617$4,128$2,983$2,126$1,497$384
29 years$5,364$3,894$2,776$1,949$1,352$327
30 years$5,130$3,677$2,586$1,789$1,222$278
31 years$4,910$3,476$2,411$1,643$1,104$236
32 years$4,705$3,289$2,249$1,510$999$201
33 years$4,513$3,115$2,100$1,389$904$171
34 years$4,332$2,952$1,962$1,278$819$146
35 years$4,162$2,800$1,835$1,176$741$124
36 years$4,002$2,658$1,716$1,083$672$106
37 years$3,851$2,524$1,606$998$609$90
38 years$3,708$2,399$1,504$920$552$77
39 years$3,573$2,281$1,409$848$501$65
40 years$3,445$2,170$1,321$782$454$56
41 years$3,324$2,066$1,239$722$412$47
42 years$3,208$1,968$1,162$666$374$40
43 years$3,099$1,875$1,090$615$339$34
44 years$2,994$1,787$1,023$568$308$29
45 years$2,895$1,704$961$524$280$25
46 years$2,800$1,626$903$484$254$21
47 years$2,709$1,551$848$447$230$18
48 years$2,622$1,481$797$414$209$15
49 years$2,540$1,414$749$382$190$13
50 years$2,460$1,351$704$353$173$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,520,000, adding $2,717 every year, while hoping to spend $38,897 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: 59/29/12 Blend
39$2,520,000$2,520,000$2,520,000$2,520,000
40$2,779,843$2,646,283$2,607,223$2,935,552
41$3,022,000$2,734,564$2,653,178$3,129,018
42$3,287,555$2,825,868$2,699,370$3,335,283
43$3,578,851$2,920,301$2,745,765$3,559,265
44$3,898,472$3,017,974$2,792,326$3,802,672
45$4,249,264$3,119,003$2,839,017$4,067,387
46$4,634,360$3,223,506$2,885,795$4,355,477
47$5,057,215$3,331,607$2,932,619$4,669,220
48$5,521,630$3,443,435$2,979,441$5,011,123
49$6,031,795$3,559,123$3,026,212$5,383,943
50$6,592,327$3,678,808$3,072,878$5,790,718
51$7,208,310$3,802,635$3,119,385$6,234,790
52$7,885,345$3,930,752$3,165,672$6,719,838
53$8,629,604$4,063,312$3,211,676$7,249,916
54$9,447,886$4,200,477$3,257,329$7,829,484
55$10,347,681$4,342,412$3,302,561$8,463,454
56$11,337,244$4,489,289$3,347,296$9,157,235
57$12,425,666$4,641,287$3,391,453$9,916,783
58$13,622,965$4,798,592$3,434,948$10,748,659
59$14,940,180$4,961,395$3,477,692$11,660,087
60$16,389,474$5,129,898$3,519,590$12,659,024
61$17,984,244$5,304,308$3,560,540$13,754,232
62$19,739,258$5,484,840$3,600,439$14,955,364
63$21,670,782$5,671,717$3,639,174$16,273,053
64$23,796,743$5,865,172$3,676,627$17,719,008
65$26,136,891$6,065,446$3,712,674$19,306,130
66$28,712,990$6,272,788$3,747,185$21,048,629
67$31,549,020$6,487,460$3,780,021$22,962,159
68$34,671,406$6,709,731$3,811,037$25,063,964
69$38,109,263$6,939,882$3,840,080$27,373,042
70$41,894,674$7,178,203$3,866,990$29,910,322
71$46,062,993$7,424,997$3,891,596$32,698,859
72$50,653,176$7,680,579$3,913,722$35,764,058
73$55,708,147$7,945,274$3,933,178$39,133,902
74$61,275,208$8,219,423$3,949,770$42,839,226
75$67,406,481$8,503,377$3,963,289$46,914,000
76$74,159,402$8,797,502$3,973,520$51,395,652
77$81,597,261$9,102,180$3,980,233$56,325,421
78$89,789,800$9,417,805$3,983,189$61,748,741
79$98,813,871$9,744,789$3,982,137$67,715,675
80$108,754,161$10,083,559$3,976,814$74,281,382
81$119,703,991$10,434,558$3,966,942$81,506,638
82$131,766,195$10,798,249$3,952,233$89,458,410
83$145,054,095$11,175,112$3,932,381$98,210,484
84$159,692,566$11,565,645$3,907,068$107,844,166
85$175,819,213$11,970,367$3,875,960$118,449,039
86$193,585,675$12,389,817$3,838,707$130,123,819
87$213,159,052$12,824,557$3,794,942$142,977,275
88$234,723,485$13,275,170$3,744,282$157,129,261
89$258,481,890$13,742,262$3,686,325$172,711,846
90$284,657,875$14,226,465$3,620,649$189,870,556
91$313,497,852$14,728,436$3,546,815$208,765,746
92$345,273,360$15,248,856$3,464,360$229,574,119
93$380,283,629$15,788,437$3,372,803$252,490,384
94$418,858,407$16,347,918$3,271,639$277,729,099
95$461,361,065$16,928,067$3,160,340$305,526,691
96$508,192,037$17,529,685$3,038,355$336,143,687
97$559,792,590$18,153,605$2,905,105$369,867,175
98$616,648,997$18,800,694$2,759,988$407,013,507
99$679,297,119$19,471,853$2,602,373$447,931,288
100$748,327,473$20,168,022$2,431,600$493,004,663