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%14.8%
1 years$209,751$207,882$206,060$204,280$202,543$198,535
2 years$103,837$101,903$100,029$98,212$96,449$92,428
3 years$68,537$66,595$64,725$62,925$61,191$57,282
4 years$50,891$48,954$47,103$45,334$43,642$39,876
5 years$40,305$38,381$36,554$34,821$33,176$29,563
6 years$33,251$31,341$29,541$27,847$26,251$22,795
7 years$28,214$26,320$24,549$22,894$21,349$18,051
8 years$24,438$22,561$20,819$19,205$17,711$14,570
9 years$21,503$19,643$17,932$16,359$14,915$11,929
10 years$19,156$17,315$15,633$14,101$12,709$9,874
11 years$17,237$15,414$13,763$12,272$10,930$8,244
12 years$15,639$13,835$12,215$10,765$9,472$6,931
13 years$14,288$12,503$10,913$9,503$8,259$5,859
14 years$13,131$11,365$9,805$8,436$7,240$4,976
15 years$12,129$10,382$8,853$7,524$6,375$4,242
16 years$11,253$9,525$8,026$6,737$5,634$3,627
17 years$10,481$8,772$7,304$6,053$4,996$3,110
18 years$9,796$8,106$6,667$5,455$4,442$2,673
19 years$9,183$7,513$6,104$4,929$3,959$2,301
20 years$8,633$6,981$5,602$4,464$3,536$1,984
21 years$8,135$6,503$5,152$4,051$3,165$1,714
22 years$7,683$6,070$4,749$3,684$2,837$1,482
23 years$7,272$5,677$4,385$3,355$2,546$1,282
24 years$6,895$5,319$4,055$3,060$2,289$1,111
25 years$6,549$4,992$3,756$2,794$2,059$963
26 years$6,229$4,691$3,483$2,555$1,855$835
27 years$5,934$4,415$3,235$2,339$1,673$725
28 years$5,661$4,160$3,007$2,143$1,509$629
29 years$5,407$3,925$2,798$1,965$1,363$547
30 years$5,170$3,707$2,606$1,803$1,231$475
31 years$4,949$3,504$2,430$1,656$1,113$413
32 years$4,743$3,315$2,267$1,522$1,007$359
33 years$4,549$3,140$2,117$1,400$911$312
34 years$4,367$2,976$1,978$1,288$825$272
35 years$4,195$2,822$1,849$1,185$747$236
36 years$4,034$2,679$1,730$1,092$677$206
37 years$3,882$2,544$1,619$1,006$614$179
38 years$3,738$2,418$1,516$927$556$156
39 years$3,602$2,299$1,421$855$505$136
40 years$3,473$2,188$1,331$789$458$118
41 years$3,350$2,082$1,248$728$415$103
42 years$3,234$1,983$1,171$671$377$90
43 years$3,123$1,890$1,099$620$342$78
44 years$3,018$1,801$1,032$572$310$68
45 years$2,918$1,718$969$529$282$59
46 years$2,822$1,639$910$488$256$51
47 years$2,731$1,564$855$451$232$45
48 years$2,643$1,493$803$417$211$39
49 years$2,560$1,425$755$385$192$34
50 years$2,480$1,362$710$356$174$30

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 $2,716 every year, while hoping to spend $54,745 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: 82/11/7 Blend
39$2,540,000$2,540,000$2,540,000$2,540,000
40$2,801,882$2,667,262$2,627,892$3,029,526
41$3,029,425$2,739,709$2,657,678$3,251,237
42$3,278,344$2,813,872$2,686,627$3,486,989
43$3,550,759$2,889,776$2,714,653$3,744,114
44$3,849,008$2,967,447$2,741,666$4,024,719
45$4,175,666$3,046,910$2,767,570$4,331,127
46$4,533,565$3,128,190$2,792,265$4,665,894
47$4,925,827$3,211,310$2,815,644$5,031,836
48$5,355,890$3,296,292$2,837,597$5,432,054
49$5,827,539$3,383,160$2,858,005$5,869,964
50$6,344,945$3,471,932$2,876,746$6,349,327
51$6,912,702$3,562,628$2,893,689$6,874,287
52$7,535,867$3,655,267$2,908,697$7,449,408
53$8,220,014$3,749,864$2,921,627$8,079,718
54$8,971,282$3,846,434$2,932,328$8,770,754
55$9,796,434$3,944,990$2,940,642$9,528,619
56$10,702,919$4,045,543$2,946,402$10,360,033
57$11,698,943$4,148,101$2,949,433$11,272,401
58$12,793,548$4,252,671$2,949,552$12,273,881
59$13,996,695$4,359,256$2,946,567$13,373,459
60$15,319,355$4,467,858$2,940,275$14,581,037
61$16,773,620$4,578,473$2,930,464$15,907,525
62$18,372,808$4,691,097$2,916,913$17,364,942
63$20,131,593$4,805,720$2,899,389$18,966,531
64$22,066,145$4,922,329$2,877,648$20,726,884
65$24,194,276$5,040,908$2,851,433$22,662,077
66$26,535,615$5,161,435$2,820,479$24,789,826
67$29,111,786$5,283,883$2,784,503$27,129,648
68$31,946,617$5,408,222$2,743,213$29,703,050
69$35,066,362$5,534,415$2,696,300$32,533,731
70$38,499,948$5,662,419$2,643,444$35,647,803
71$42,279,250$5,792,184$2,584,306$39,074,038
72$46,439,388$5,923,656$2,518,535$42,844,143
73$51,019,061$6,056,771$2,445,762$46,993,053
74$56,060,911$6,191,458$2,365,600$51,559,265
75$61,611,924$6,327,640$2,277,648$56,585,200
76$67,723,873$6,465,227$2,181,482$62,117,602
77$74,453,808$6,604,123$2,076,662$68,207,981
78$81,864,593$6,744,222$1,962,726$74,913,098
79$90,025,498$6,885,405$1,839,194$82,295,500
80$99,012,852$7,027,543$1,705,561$90,424,111
81$108,910,767$7,170,496$1,561,300$99,374,884
82$119,811,924$7,314,110$1,405,863$109,231,512
83$131,818,456$7,458,217$1,238,675$120,086,225
84$145,042,904$7,602,635$1,059,136$132,040,658
85$159,609,283$7,747,167$866,620$145,206,807
86$175,654,251$7,891,599$660,473$159,708,091
87$193,328,398$8,035,701$440,012$175,680,512
88$212,797,666$8,179,221$204,524$193,273,944
89$234,244,917$8,321,892$0$212,653,544
90$257,871,657$8,463,424$0$234,004,805
91$283,899,938$8,603,504$0$257,541,325
92$312,574,454$8,741,797$0$283,468,886
93$344,164,846$8,877,943$0$312,031,108
94$378,968,254$9,011,556$0$343,496,452
95$417,312,115$9,142,222$0$378,160,757
96$459,557,257$9,269,497$0$416,350,030
97$506,101,302$9,392,906$0$458,423,523
98$557,382,419$9,511,943$0$504,777,125
99$613,883,461$9,626,064$0$555,847,100
100$676,136,523$9,734,690$0$612,114,203