Can I retire at age 40 with 2,530,000?

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 $2,530,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.6%
1 years$208,925$207,064$205,248$203,476$201,746$200,390
2 years$103,428$101,502$99,635$97,825$96,069$94,702
3 years$68,267$66,333$64,471$62,677$60,950$59,614
4 years$50,690$48,762$46,918$45,156$43,470$42,175
5 years$40,147$38,230$36,410$34,684$33,045$31,795
6 years$33,120$31,217$29,425$27,737$26,148$24,944
7 years$28,103$26,216$24,452$22,804$21,265$20,108
8 years$24,342$22,472$20,737$19,130$17,641$16,532
9 years$21,418$19,566$17,861$16,294$14,857$13,794
10 years$19,080$17,247$15,572$14,046$12,659$11,642
11 years$17,169$15,354$13,709$12,224$10,887$9,916
12 years$15,577$13,781$12,167$10,722$9,434$8,508
13 years$14,232$12,454$10,870$9,466$8,227$7,344
14 years$13,079$11,320$9,767$8,403$7,212$6,371
15 years$12,081$10,341$8,818$7,494$6,350$5,551
16 years$11,209$9,488$7,995$6,710$5,612$4,854
17 years$10,440$8,738$7,275$6,029$4,976$4,257
18 years$9,757$8,074$6,641$5,433$4,424$3,743
19 years$9,147$7,483$6,080$4,909$3,943$3,299
20 years$8,599$6,954$5,580$4,446$3,522$2,913
21 years$8,103$6,477$5,132$4,035$3,152$2,577
22 years$7,653$6,046$4,730$3,669$2,825$2,282
23 years$7,243$5,655$4,367$3,342$2,536$2,025
24 years$6,868$5,298$4,039$3,048$2,280$1,798
25 years$6,523$4,972$3,741$2,783$2,051$1,598
26 years$6,205$4,673$3,470$2,545$1,848$1,422
27 years$5,911$4,398$3,222$2,329$1,666$1,266
28 years$5,639$4,144$2,995$2,134$1,503$1,128
29 years$5,386$3,909$2,787$1,957$1,357$1,006
30 years$5,150$3,692$2,596$1,796$1,226$897
31 years$4,930$3,490$2,420$1,650$1,109$801
32 years$4,724$3,302$2,258$1,516$1,003$715
33 years$4,531$3,127$2,109$1,394$908$639
34 years$4,350$2,964$1,970$1,283$822$571
35 years$4,179$2,811$1,842$1,181$744$510
36 years$4,018$2,668$1,723$1,088$674$456
37 years$3,867$2,534$1,613$1,002$611$408
38 years$3,723$2,409$1,510$924$554$365
39 years$3,587$2,290$1,415$852$503$326
40 years$3,459$2,179$1,326$785$456$292
41 years$3,337$2,074$1,244$725$414$261
42 years$3,221$1,975$1,167$669$375$234
43 years$3,111$1,882$1,095$617$341$209
44 years$3,006$1,794$1,027$570$309$187
45 years$2,906$1,711$965$526$281$168
46 years$2,811$1,632$906$486$255$150
47 years$2,720$1,558$851$449$231$134
48 years$2,633$1,487$800$415$210$120
49 years$2,550$1,420$752$384$191$108
50 years$2,470$1,356$707$355$173$97

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,530,000, adding $4,835 every year, while hoping to spend $23,299 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: 67/24/9 Blend
39$2,530,000$2,530,000$2,530,000$2,530,000
40$2,793,047$2,658,957$2,619,742$2,974,898
41$3,053,148$2,764,456$2,682,714$3,201,834
42$3,338,998$2,874,344$2,747,014$3,446,600
43$3,653,200$2,988,810$2,812,662$3,713,579
44$3,998,619$3,108,055$2,879,679$4,004,939
45$4,378,414$3,232,285$2,948,085$4,323,067
46$4,796,064$3,361,719$3,017,897$4,670,588
47$5,255,403$3,496,583$3,089,137$5,050,392
48$5,760,653$3,637,115$3,161,822$5,465,658
49$6,316,469$3,783,563$3,235,972$5,919,886
50$6,927,977$3,936,186$3,311,605$6,416,929
51$7,600,826$4,095,255$3,388,740$6,961,029
52$8,341,242$4,261,053$3,467,394$7,556,853
53$9,156,081$4,433,878$3,547,585$8,209,542
54$10,052,902$4,614,038$3,629,329$8,924,755
55$11,040,029$4,801,857$3,712,642$9,708,722
56$12,126,637$4,997,674$3,797,542$10,568,305
57$13,322,837$5,201,842$3,884,042$11,511,057
58$14,639,766$5,414,732$3,972,157$12,545,298
59$16,089,698$5,636,730$4,061,900$13,680,190
60$17,686,160$5,868,242$4,153,286$14,925,820
61$19,444,052$6,109,690$4,246,326$16,293,300
62$21,379,798$6,361,517$4,341,030$17,794,868
63$23,511,492$6,624,186$4,437,409$19,444,002
64$25,859,073$6,898,181$4,535,472$21,255,546
65$28,444,515$7,184,008$4,635,226$23,245,852
66$31,292,028$7,482,196$4,736,678$25,432,930
67$34,428,291$7,793,301$4,839,833$27,836,618
68$37,882,705$8,117,900$4,944,696$30,478,770
69$41,687,664$8,456,601$5,051,266$33,383,457
70$45,878,868$8,810,037$5,159,547$36,577,199
71$50,495,656$9,178,872$5,269,534$40,089,206
72$55,581,376$9,563,799$5,381,227$43,951,659
73$61,183,797$9,965,546$5,494,619$48,200,012
74$67,355,559$10,384,872$5,609,703$52,873,319
75$74,154,667$10,822,572$5,726,469$58,014,609
76$81,645,042$11,279,478$5,844,905$63,671,286
77$89,897,124$11,756,459$5,964,997$69,895,576
78$98,988,533$12,254,428$6,086,727$76,745,016
79$109,004,806$12,774,338$6,210,074$84,283,001
80$120,040,201$13,317,185$6,335,017$92,579,374
81$132,198,589$13,884,015$6,461,527$101,711,088
82$145,594,432$14,475,919$6,589,576$111,762,928
83$160,353,867$15,094,041$6,719,129$122,828,309
84$176,615,891$15,739,579$6,850,149$135,010,158
85$194,533,678$16,413,785$6,982,596$148,421,881
86$214,276,023$17,117,970$7,116,422$163,188,432
87$236,028,934$17,853,507$7,251,580$179,447,489
88$259,997,390$18,621,834$7,388,012$197,350,754
89$286,407,275$19,424,454$7,525,661$217,065,377
90$315,507,507$20,262,943$7,664,461$238,775,538
91$347,572,393$21,138,948$7,804,341$262,684,177
92$382,904,216$22,054,195$7,945,226$289,014,909
93$421,836,088$23,010,492$8,087,032$318,014,130
94$464,735,093$24,009,730$8,229,672$349,953,343
95$512,005,756$25,053,891$8,373,049$385,131,714
96$564,093,858$26,145,047$8,517,062$423,878,894
97$621,490,648$27,285,370$8,661,599$466,558,130
98$684,737,475$28,477,135$8,806,544$513,569,682
99$754,430,905$29,722,721$8,951,771$565,354,606
100$831,228,346$31,024,623$9,097,144$622,398,909