Can I retire at age 40 with 2,540,000?

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 $2,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.3%
1 years$209,751$207,882$206,060$204,280$202,543$198,942
2 years$103,837$101,903$100,029$98,212$96,449$92,834
3 years$68,537$66,595$64,725$62,925$61,191$57,674
4 years$50,891$48,954$47,103$45,334$43,642$40,250
5 years$40,305$38,381$36,554$34,821$33,176$29,918
6 years$33,251$31,341$29,541$27,847$26,251$23,132
7 years$28,214$26,320$24,549$22,894$21,349$18,369
8 years$24,438$22,561$20,819$19,205$17,711$14,870
9 years$21,503$19,643$17,932$16,359$14,915$12,211
10 years$19,156$17,315$15,633$14,101$12,709$10,139
11 years$17,237$15,414$13,763$12,272$10,930$8,492
12 years$15,639$13,835$12,215$10,765$9,472$7,162
13 years$14,288$12,503$10,913$9,503$8,259$6,075
14 years$13,131$11,365$9,805$8,436$7,240$5,176
15 years$12,129$10,382$8,853$7,524$6,375$4,428
16 years$11,253$9,525$8,026$6,737$5,634$3,800
17 years$10,481$8,772$7,304$6,053$4,996$3,270
18 years$9,796$8,106$6,667$5,455$4,442$2,820
19 years$9,183$7,513$6,104$4,929$3,959$2,437
20 years$8,633$6,981$5,602$4,464$3,536$2,110
21 years$8,135$6,503$5,152$4,051$3,165$1,829
22 years$7,683$6,070$4,749$3,684$2,837$1,587
23 years$7,272$5,677$4,385$3,355$2,546$1,379
24 years$6,895$5,319$4,055$3,060$2,289$1,199
25 years$6,549$4,992$3,756$2,794$2,059$1,044
26 years$6,229$4,691$3,483$2,555$1,855$909
27 years$5,934$4,415$3,235$2,339$1,673$792
28 years$5,661$4,160$3,007$2,143$1,509$691
29 years$5,407$3,925$2,798$1,965$1,363$602
30 years$5,170$3,707$2,606$1,803$1,231$526
31 years$4,949$3,504$2,430$1,656$1,113$459
32 years$4,743$3,315$2,267$1,522$1,007$401
33 years$4,549$3,140$2,117$1,400$911$350
34 years$4,367$2,976$1,978$1,288$825$306
35 years$4,195$2,822$1,849$1,185$747$267
36 years$4,034$2,679$1,730$1,092$677$233
37 years$3,882$2,544$1,619$1,006$614$204
38 years$3,738$2,418$1,516$927$556$178
39 years$3,602$2,299$1,421$855$505$156
40 years$3,473$2,188$1,331$789$458$136
41 years$3,350$2,082$1,248$728$415$119
42 years$3,234$1,983$1,171$671$377$104
43 years$3,123$1,890$1,099$620$342$91
44 years$3,018$1,801$1,032$572$310$80
45 years$2,918$1,718$969$529$282$70
46 years$2,822$1,639$910$488$256$61
47 years$2,731$1,564$855$451$232$53
48 years$2,643$1,493$803$417$211$47
49 years$2,560$1,425$755$385$192$41
50 years$2,480$1,362$710$356$174$36

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,540,000, adding $3,344 every year, while hoping to spend $55,982 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: 41/49/10 Blend
39$2,540,000$2,540,000$2,540,000$2,540,000
40$2,802,529$2,667,909$2,628,539$2,908,992
41$3,028,823$2,739,072$2,657,031$3,055,118
42$3,276,322$2,811,846$2,684,601$3,207,329
43$3,547,131$2,886,251$2,711,159$3,370,809
44$3,843,566$2,962,305$2,736,610$3,546,605
45$4,168,178$3,040,026$2,760,855$3,735,869
46$4,523,776$3,119,431$2,783,788$3,939,868
47$4,913,455$3,200,537$2,805,298$4,159,996
48$5,340,620$3,283,356$2,825,269$4,397,788
49$5,809,026$3,367,903$2,843,577$4,654,934
50$6,322,804$3,454,187$2,860,095$4,933,294
51$6,886,507$3,542,220$2,874,685$5,234,915
52$7,505,149$3,632,007$2,887,205$5,562,053
53$8,184,253$3,723,554$2,897,506$5,917,189
54$8,929,904$3,816,866$2,905,429$6,303,059
55$9,748,803$3,911,941$2,910,810$6,722,675
56$10,648,334$4,008,779$2,913,475$7,179,352
57$11,636,629$4,107,374$2,913,241$7,676,745
58$12,722,648$4,207,718$2,909,918$8,218,878
59$13,916,263$4,309,801$2,903,304$8,810,184
60$15,228,347$4,413,606$2,893,190$9,455,549
61$16,670,881$4,519,116$2,879,355$10,160,352
62$18,257,065$4,626,307$2,861,568$10,930,521
63$20,001,441$4,735,151$2,839,586$11,772,589
64$21,920,031$4,845,617$2,813,155$12,693,753
65$24,030,488$4,957,666$2,782,010$13,701,940
66$26,352,262$5,071,256$2,745,872$14,805,889
67$28,906,784$5,186,338$2,704,449$16,015,227
68$31,717,664$5,302,857$2,657,436$17,340,562
69$34,810,919$5,420,750$2,604,513$18,793,585
70$38,215,214$5,539,949$2,545,346$20,387,178
71$41,962,136$5,660,376$2,479,585$22,135,535
72$46,086,486$5,781,947$2,406,864$24,054,301
73$50,626,613$5,904,567$2,326,799$26,160,714
74$55,624,770$6,028,134$2,238,989$28,473,771
75$61,127,519$6,152,534$2,143,017$31,014,409
76$67,186,162$6,277,644$2,038,444$33,805,698
77$73,857,231$6,403,330$1,924,813$36,873,064
78$81,203,018$6,529,443$1,801,644$40,244,528
79$89,292,165$6,655,824$1,668,438$43,950,970
80$98,200,308$6,782,302$1,524,673$48,026,421
81$108,010,792$6,908,687$1,369,802$52,508,387
82$118,815,458$7,034,778$1,203,256$57,438,199
83$130,715,508$7,160,356$1,024,438$62,861,410
84$143,822,461$7,285,185$832,728$68,828,221
85$158,259,203$7,409,010$627,476$75,393,957
86$174,161,149$7,531,558$408,003$82,619,591
87$191,677,518$7,652,536$173,603$90,572,320
88$210,972,742$7,771,628$0$99,326,198
89$232,228,019$7,888,495$0$108,971,010
90$255,643,020$8,002,774$0$119,608,832
91$281,437,775$8,114,077$0$131,320,336
92$309,854,748$8,221,987$0$144,214,858
93$341,161,128$8,326,060$0$158,412,889
94$375,651,346$8,425,820$0$174,047,215
95$413,649,858$8,520,760$0$191,264,171
96$455,514,204$8,610,337$0$210,225,021
97$501,638,382$8,693,973$0$231,107,484
98$552,456,571$8,771,052$0$254,107,414
99$608,447,224$8,840,916$0$279,440,646
100$670,137,587$8,902,867$0$307,345,041