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

Use the below retirement simulation to view the chances of a successful retirement.
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%
1 years$208,925$207,064$205,248$203,476$201,746$200,896
2 years$103,428$101,502$99,635$97,825$96,069$95,211
3 years$68,267$66,333$64,471$62,677$60,950$60,111
4 years$50,690$48,762$46,918$45,156$43,470$42,655
5 years$40,147$38,230$36,410$34,684$33,045$32,258
6 years$33,120$31,217$29,425$27,737$26,148$25,389
7 years$28,103$26,216$24,452$22,804$21,265$20,535
8 years$24,342$22,472$20,737$19,130$17,641$16,940
9 years$21,418$19,566$17,861$16,294$14,857$14,184
10 years$19,080$17,247$15,572$14,046$12,659$12,014
11 years$17,169$15,354$13,709$12,224$10,887$10,270
12 years$15,577$13,781$12,167$10,722$9,434$8,845
13 years$14,232$12,454$10,870$9,466$8,227$7,664
14 years$13,079$11,320$9,767$8,403$7,212$6,675
15 years$12,081$10,341$8,818$7,494$6,350$5,839
16 years$11,209$9,488$7,995$6,710$5,612$5,126
17 years$10,440$8,738$7,275$6,029$4,976$4,514
18 years$9,757$8,074$6,641$5,433$4,424$3,986
19 years$9,147$7,483$6,080$4,909$3,943$3,528
20 years$8,599$6,954$5,580$4,446$3,522$3,129
21 years$8,103$6,477$5,132$4,035$3,152$2,780
22 years$7,653$6,046$4,730$3,669$2,825$2,474
23 years$7,243$5,655$4,367$3,342$2,536$2,204
24 years$6,868$5,298$4,039$3,048$2,280$1,966
25 years$6,523$4,972$3,741$2,783$2,051$1,756
26 years$6,205$4,673$3,470$2,545$1,848$1,570
27 years$5,911$4,398$3,222$2,329$1,666$1,404
28 years$5,639$4,144$2,995$2,134$1,503$1,257
29 years$5,386$3,909$2,787$1,957$1,357$1,126
30 years$5,150$3,692$2,596$1,796$1,226$1,009
31 years$4,930$3,490$2,420$1,650$1,109$905
32 years$4,724$3,302$2,258$1,516$1,003$812
33 years$4,531$3,127$2,109$1,394$908$729
34 years$4,350$2,964$1,970$1,283$822$655
35 years$4,179$2,811$1,842$1,181$744$588
36 years$4,018$2,668$1,723$1,088$674$528
37 years$3,867$2,534$1,613$1,002$611$475
38 years$3,723$2,409$1,510$924$554$427
39 years$3,587$2,290$1,415$852$503$384
40 years$3,459$2,179$1,326$785$456$345
41 years$3,337$2,074$1,244$725$414$311
42 years$3,221$1,975$1,167$669$375$279
43 years$3,111$1,882$1,095$617$341$251
44 years$3,006$1,794$1,027$570$309$226
45 years$2,906$1,711$965$526$281$204
46 years$2,811$1,632$906$486$255$183
47 years$2,720$1,558$851$449$231$165
48 years$2,633$1,487$800$415$210$149
49 years$2,550$1,420$752$384$191$134
50 years$2,470$1,356$707$355$173$120

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 $6,663 every year, while hoping to spend $24,346 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: 54/25/21 Blend
39$2,530,000$2,530,000$2,530,000$2,530,000
40$2,794,933$2,660,843$2,621,628$2,929,489
41$3,054,112$2,765,320$2,683,548$3,126,997
42$3,338,912$2,874,101$2,746,727$3,338,776
43$3,651,919$2,987,370$2,811,181$3,568,796
44$3,995,985$3,105,322$2,876,926$3,818,809
45$4,374,250$3,228,157$2,943,978$4,090,740
46$4,790,174$3,356,088$3,012,352$4,386,706
47$5,247,570$3,489,334$3,082,064$4,709,038
48$5,750,638$3,628,127$3,153,128$5,060,298
49$6,304,004$3,772,706$3,225,559$5,443,307
50$6,912,768$3,923,324$3,299,371$5,861,167
51$7,582,547$4,080,244$3,374,577$6,317,294
52$8,319,532$4,243,741$3,451,189$6,815,446
53$9,130,540$4,414,100$3,529,221$7,359,759
54$10,023,088$4,591,624$3,608,682$7,954,786
55$11,005,454$4,776,625$3,689,585$8,605,539
56$12,086,763$4,969,431$3,771,938$9,317,534
57$13,277,065$5,170,386$3,855,750$10,096,846
58$14,587,438$5,379,847$3,941,030$10,950,163
59$16,030,086$5,598,190$4,027,784$11,884,846
60$17,618,459$5,825,805$4,116,019$12,909,003
61$19,367,375$6,063,102$4,205,738$14,031,560
62$21,293,163$6,310,510$4,296,946$15,262,349
63$23,413,816$6,568,475$4,389,645$16,612,194
64$25,749,161$6,837,467$4,483,834$18,093,017
65$28,321,047$7,117,974$4,579,513$19,717,947
66$31,153,547$7,410,508$4,676,680$21,501,444
67$34,273,190$7,715,604$4,775,331$23,459,435
68$37,709,209$8,033,823$4,875,458$25,609,462
69$41,493,817$8,365,749$4,977,055$27,970,844
70$45,662,511$8,711,995$5,080,110$30,564,865
71$50,254,406$9,073,201$5,184,613$33,414,965
72$55,312,605$9,450,037$5,290,547$36,546,969
73$60,884,606$9,843,204$5,397,895$39,989,321
74$67,022,749$10,253,436$5,506,639$43,773,355
75$73,784,713$10,681,497$5,616,755$47,933,592
76$81,234,055$11,128,192$5,728,217$52,508,057
77$89,440,814$11,594,358$5,840,997$57,538,644
78$98,482,170$12,080,875$5,955,064$63,071,505
79$108,443,173$12,588,660$6,070,381$69,157,484
80$119,417,548$13,118,675$6,186,909$75,852,600
81$131,508,573$13,671,926$6,304,606$83,218,565
82$144,830,062$14,249,464$6,423,425$91,323,373
83$159,507,432$14,852,392$6,543,314$100,241,937
84$175,678,893$15,481,862$6,664,217$110,056,792
85$193,496,746$16,139,079$6,786,074$120,858,873
86$213,128,826$16,825,306$6,908,820$132,748,372
87$234,760,084$17,541,863$7,032,383$145,835,680
88$258,594,332$18,290,134$7,156,687$160,242,430
89$284,856,168$19,071,564$7,281,650$176,102,635
90$313,793,095$19,887,669$7,407,183$193,563,959
91$345,677,859$20,740,034$7,533,193$212,789,103
92$380,811,022$21,630,317$7,659,576$233,957,338
93$419,523,799$22,560,255$7,786,225$257,266,196
94$462,181,186$23,531,667$7,913,023$282,933,331
95$509,185,405$24,546,456$8,039,847$311,198,569
96$560,979,698$25,606,615$8,166,564$342,326,170
97$618,052,517$26,714,229$8,293,033$376,607,317
98$680,942,130$27,871,482$8,419,106$414,362,864
99$750,241,703$29,080,660$8,544,621$455,946,357
100$826,604,902$30,344,158$8,669,411$501,747,372