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%17.2%
1 years$208,925$207,064$205,248$203,476$201,746$195,837
2 years$103,428$101,502$99,635$97,825$96,069$90,164
3 years$68,267$66,333$64,471$62,677$60,950$55,234
4 years$50,690$48,762$46,918$45,156$43,470$37,987
5 years$40,147$38,230$36,410$34,684$33,045$27,809
6 years$33,120$31,217$29,425$27,737$26,148$21,164
7 years$28,103$26,216$24,452$22,804$21,265$16,533
8 years$24,342$22,472$20,737$19,130$17,641$13,159
9 years$21,418$19,566$17,861$16,294$14,857$10,619
10 years$19,080$17,247$15,572$14,046$12,659$8,660
11 years$17,169$15,354$13,709$12,224$10,887$7,120
12 years$15,577$13,781$12,167$10,722$9,434$5,893
13 years$14,232$12,454$10,870$9,466$8,227$4,902
14 years$13,079$11,320$9,767$8,403$7,212$4,095
15 years$12,081$10,341$8,818$7,494$6,350$3,433
16 years$11,209$9,488$7,995$6,710$5,612$2,886
17 years$10,440$8,738$7,275$6,029$4,976$2,432
18 years$9,757$8,074$6,641$5,433$4,424$2,053
19 years$9,147$7,483$6,080$4,909$3,943$1,736
20 years$8,599$6,954$5,580$4,446$3,522$1,470
21 years$8,103$6,477$5,132$4,035$3,152$1,247
22 years$7,653$6,046$4,730$3,669$2,825$1,058
23 years$7,243$5,655$4,367$3,342$2,536$899
24 years$6,868$5,298$4,039$3,048$2,280$764
25 years$6,523$4,972$3,741$2,783$2,051$649
26 years$6,205$4,673$3,470$2,545$1,848$553
27 years$5,911$4,398$3,222$2,329$1,666$470
28 years$5,639$4,144$2,995$2,134$1,503$400
29 years$5,386$3,909$2,787$1,957$1,357$341
30 years$5,150$3,692$2,596$1,796$1,226$291
31 years$4,930$3,490$2,420$1,650$1,109$248
32 years$4,724$3,302$2,258$1,516$1,003$211
33 years$4,531$3,127$2,109$1,394$908$180
34 years$4,350$2,964$1,970$1,283$822$153
35 years$4,179$2,811$1,842$1,181$744$131
36 years$4,018$2,668$1,723$1,088$674$112
37 years$3,867$2,534$1,613$1,002$611$95
38 years$3,723$2,409$1,510$924$554$81
39 years$3,587$2,290$1,415$852$503$69
40 years$3,459$2,179$1,326$785$456$59
41 years$3,337$2,074$1,244$725$414$50
42 years$3,221$1,975$1,167$669$375$43
43 years$3,111$1,882$1,095$617$341$37
44 years$3,006$1,794$1,027$570$309$31
45 years$2,906$1,711$965$526$281$27
46 years$2,811$1,632$906$486$255$23
47 years$2,720$1,558$851$449$231$19
48 years$2,633$1,487$800$415$210$17
49 years$2,550$1,420$752$384$191$14
50 years$2,470$1,356$707$355$173$12

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 $5,868 every year, while hoping to spend $56,999 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: 44/49/7 Blend
39$2,530,000$2,530,000$2,530,000$2,530,000
40$2,794,113$2,660,023$2,620,808$2,911,259
41$3,018,466$2,729,717$2,647,958$3,062,583
42$3,263,793$2,800,917$2,674,108$3,220,162
43$3,532,172$2,873,634$2,699,163$3,389,624
44$3,825,893$2,947,882$2,723,025$3,572,079
45$4,147,478$3,023,672$2,745,590$3,768,747
46$4,499,701$3,101,013$2,766,748$3,980,972
47$4,885,621$3,179,912$2,786,384$4,210,231
48$5,308,603$3,260,376$2,804,377$4,458,152
49$5,772,356$3,342,410$2,820,598$4,726,525
50$6,280,963$3,426,015$2,834,915$5,017,322
51$6,838,922$3,511,191$2,847,186$5,332,715
52$7,451,189$3,597,936$2,857,264$5,675,093
53$8,123,219$3,686,244$2,864,991$6,047,089
54$8,861,025$3,776,108$2,870,206$6,451,602
55$9,671,229$3,867,516$2,872,737$6,891,824
56$10,561,124$3,960,454$2,872,403$7,371,274
57$11,538,746$4,054,903$2,869,016$7,893,823
58$12,612,948$4,150,844$2,862,378$8,463,739
59$13,793,482$4,248,248$2,852,281$9,085,724
60$15,091,091$4,347,087$2,838,507$9,764,954
61$16,517,613$4,447,325$2,820,827$10,507,136
62$18,086,089$4,548,922$2,799,004$11,318,554
63$19,810,884$4,651,834$2,772,785$12,206,135
64$21,707,829$4,756,009$2,741,908$13,177,508
65$23,794,364$4,861,390$2,706,098$14,241,081
66$26,089,704$4,967,913$2,665,068$15,406,117
67$28,615,021$5,075,507$2,618,514$16,682,825
68$31,393,641$5,184,095$2,566,123$18,082,453
69$34,451,267$5,293,591$2,507,562$19,617,394
70$37,816,218$5,403,899$2,442,488$21,301,307
71$41,519,699$5,514,916$2,370,537$23,149,244
72$45,596,090$5,626,529$2,291,332$25,177,790
73$50,083,277$5,738,614$2,204,478$27,405,223
74$55,023,003$5,851,038$2,109,559$29,851,684
75$60,461,265$5,963,655$2,006,145$32,539,372
76$66,448,747$6,076,306$1,893,783$35,492,748
77$73,041,294$6,188,821$1,772,001$38,738,768
78$80,300,447$6,301,014$1,640,304$42,307,143
79$88,294,016$6,412,686$1,498,177$46,230,612
80$97,096,720$6,523,623$1,345,080$50,545,256
81$106,790,897$6,633,592$1,180,452$55,290,840
82$117,467,275$6,742,344$1,003,703$60,511,185
83$129,225,830$6,849,612$814,220$66,254,587
84$142,176,729$6,955,108$611,362$72,574,270
85$156,441,371$7,058,524$394,458$79,528,891
86$172,153,529$7,159,529$162,810$87,183,094
87$189,460,614$7,257,771$0$95,608,122
88$208,525,066$7,352,871$0$104,888,794
89$229,525,885$7,444,424$0$115,118,721
90$252,660,322$7,531,997$0$126,381,151
91$278,145,740$7,615,130$0$138,781,242
92$306,221,663$7,693,330$0$152,434,881
93$337,152,040$7,766,070$0$167,469,781
94$371,227,732$7,832,792$0$184,026,688
95$408,769,260$7,892,897$0$202,260,708
96$450,129,827$7,945,752$0$222,342,776
97$495,698,653$7,990,678$0$244,461,269
98$545,904,651$8,026,957$0$268,823,789
99$601,220,470$8,053,822$0$295,659,120
100$662,166,960$8,070,460$0$325,219,393