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%18.9%
1 years$208,925$207,064$205,248$203,476$201,746$194,510
2 years$103,428$101,502$99,635$97,825$96,069$88,858
3 years$68,267$66,333$64,471$62,677$60,950$53,990
4 years$50,690$48,762$46,918$45,156$43,470$36,814
5 years$40,147$38,230$36,410$34,684$33,045$26,710
6 years$33,120$31,217$29,425$27,737$26,148$20,139
7 years$28,103$26,216$24,452$22,804$21,265$15,581
8 years$24,342$22,472$20,737$19,130$17,641$12,277
9 years$21,418$19,566$17,861$16,294$14,857$9,805
10 years$19,080$17,247$15,572$14,046$12,659$7,911
11 years$17,169$15,354$13,709$12,224$10,887$6,433
12 years$15,577$13,781$12,167$10,722$9,434$5,264
13 years$14,232$12,454$10,870$9,466$8,227$4,329
14 years$13,079$11,320$9,767$8,403$7,212$3,574
15 years$12,081$10,341$8,818$7,494$6,350$2,960
16 years$11,209$9,488$7,995$6,710$5,612$2,458
17 years$10,440$8,738$7,275$6,029$4,976$2,046
18 years$9,757$8,074$6,641$5,433$4,424$1,705
19 years$9,147$7,483$6,080$4,909$3,943$1,424
20 years$8,599$6,954$5,580$4,446$3,522$1,190
21 years$8,103$6,477$5,132$4,035$3,152$996
22 years$7,653$6,046$4,730$3,669$2,825$834
23 years$7,243$5,655$4,367$3,342$2,536$699
24 years$6,868$5,298$4,039$3,048$2,280$586
25 years$6,523$4,972$3,741$2,783$2,051$492
26 years$6,205$4,673$3,470$2,545$1,848$413
27 years$5,911$4,398$3,222$2,329$1,666$346
28 years$5,639$4,144$2,995$2,134$1,503$291
29 years$5,386$3,909$2,787$1,957$1,357$244
30 years$5,150$3,692$2,596$1,796$1,226$205
31 years$4,930$3,490$2,420$1,650$1,109$173
32 years$4,724$3,302$2,258$1,516$1,003$145
33 years$4,531$3,127$2,109$1,394$908$122
34 years$4,350$2,964$1,970$1,283$822$102
35 years$4,179$2,811$1,842$1,181$744$86
36 years$4,018$2,668$1,723$1,088$674$72
37 years$3,867$2,534$1,613$1,002$611$61
38 years$3,723$2,409$1,510$924$554$51
39 years$3,587$2,290$1,415$852$503$43
40 years$3,459$2,179$1,326$785$456$36
41 years$3,337$2,074$1,244$725$414$30
42 years$3,221$1,975$1,167$669$375$26
43 years$3,111$1,882$1,095$617$341$22
44 years$3,006$1,794$1,027$570$309$18
45 years$2,906$1,711$965$526$281$15
46 years$2,811$1,632$906$486$255$13
47 years$2,720$1,558$851$449$231$11
48 years$2,633$1,487$800$415$210$9
49 years$2,550$1,420$752$384$191$8
50 years$2,470$1,356$707$355$173$6

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 $5,978 every year, while hoping to spend $40,262 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: 60/14/26 Blend
39$2,530,000$2,530,000$2,530,000$2,530,000
40$2,794,226$2,660,136$2,620,921$2,942,004
41$3,036,399$2,747,645$2,665,884$3,130,824
42$3,301,924$2,838,091$2,711,003$3,331,900
43$3,593,140$2,931,578$2,756,242$3,550,445
44$3,912,625$3,028,210$2,801,560$3,788,167
45$4,263,216$3,128,095$2,846,916$4,046,949
46$4,648,040$3,231,348$2,892,264$4,328,860
47$5,070,540$3,338,084$2,937,554$4,636,184
48$5,534,510$3,448,425$2,982,737$4,971,431
49$6,044,128$3,562,496$3,027,757$5,337,369
50$6,603,998$3,680,427$3,072,555$5,737,045
51$7,219,190$3,802,352$3,117,071$6,173,815
52$7,895,292$3,928,412$3,161,237$6,651,376
53$8,638,459$4,058,751$3,204,985$7,173,800
54$9,455,470$4,193,519$3,248,241$7,745,574
55$10,353,798$4,332,870$3,290,927$8,371,638
56$11,341,671$4,476,967$3,332,959$9,057,437
57$12,428,159$4,625,976$3,374,251$9,808,966
58$13,623,252$4,780,070$3,414,709$10,632,834
59$14,937,959$4,939,428$3,454,236$11,536,318
60$16,384,407$5,104,237$3,492,730$12,527,438
61$17,975,961$5,274,688$3,530,080$13,615,029
62$19,727,344$5,450,983$3,566,173$14,808,825
63$21,654,779$5,633,328$3,600,886$16,119,551
64$23,776,144$5,821,938$3,634,093$17,559,025
65$26,111,134$6,017,036$3,665,658$19,140,265
66$28,681,452$6,218,853$3,695,440$20,877,619
67$31,511,012$6,427,629$3,723,290$22,786,894
68$34,626,166$6,643,613$3,749,050$24,885,507
69$38,055,947$6,867,063$3,772,556$27,192,650
70$41,832,351$7,098,246$3,793,633$29,729,470
71$45,990,630$7,337,440$3,812,100$32,519,269
72$50,569,633$7,584,932$3,827,763$35,587,724
73$55,612,164$7,841,023$3,840,422$38,963,128
74$61,165,393$8,106,021$3,849,865$42,676,657
75$67,281,296$8,380,250$3,855,869$46,762,667
76$74,017,148$8,664,042$3,858,200$51,259,014
77$81,436,062$8,957,744$3,856,614$56,207,413
78$89,607,583$9,261,717$3,850,854$61,653,833
79$98,608,349$9,576,333$3,840,649$67,648,928
80$108,522,807$9,901,980$3,825,718$74,248,517
81$119,444,017$10,239,060$3,805,763$81,514,110
82$131,474,525$10,587,992$3,780,474$89,513,488
83$144,727,331$10,949,209$3,749,525$98,321,346
84$159,326,960$11,323,161$3,712,575$108,019,991
85$175,410,631$11,710,317$3,669,267$118,700,128
86$193,129,554$12,111,161$3,619,226$130,461,706
87$212,650,358$12,526,198$3,562,060$143,414,872
88$234,156,665$12,955,952$3,497,360$157,681,002
89$257,850,819$13,400,967$3,424,695$173,393,850
90$283,955,796$13,861,809$3,343,616$190,700,813
91$312,717,313$14,339,063$3,253,653$209,764,317
92$344,406,143$14,833,341$3,154,314$230,763,356
93$379,320,671$15,345,276$3,045,085$253,895,177
94$417,789,711$15,875,527$2,925,428$279,377,146
95$460,175,611$16,424,777$2,794,779$307,448,795
96$506,877,670$16,993,738$2,652,551$338,374,089
97$558,335,910$17,583,148$2,498,129$372,443,914
98$615,035,227$18,193,777$2,330,870$409,978,823
99$677,509,970$18,826,421$2,150,104$451,332,066
100$746,348,982$19,481,911$1,955,128$496,892,921