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%14.2%
1 years$209,751$207,882$206,060$204,280$202,543$199,024
2 years$103,837$101,903$100,029$98,212$96,449$92,915
3 years$68,537$66,595$64,725$62,925$61,191$57,752
4 years$50,891$48,954$47,103$45,334$43,642$40,325
5 years$40,305$38,381$36,554$34,821$33,176$29,990
6 years$33,251$31,341$29,541$27,847$26,251$23,200
7 years$28,214$26,320$24,549$22,894$21,349$18,433
8 years$24,438$22,561$20,819$19,205$17,711$14,930
9 years$21,503$19,643$17,932$16,359$14,915$12,268
10 years$19,156$17,315$15,633$14,101$12,709$10,192
11 years$17,237$15,414$13,763$12,272$10,930$8,542
12 years$15,639$13,835$12,215$10,765$9,472$7,209
13 years$14,288$12,503$10,913$9,503$8,259$6,119
14 years$13,131$11,365$9,805$8,436$7,240$5,217
15 years$12,129$10,382$8,853$7,524$6,375$4,466
16 years$11,253$9,525$8,026$6,737$5,634$3,835
17 years$10,481$8,772$7,304$6,053$4,996$3,303
18 years$9,796$8,106$6,667$5,455$4,442$2,851
19 years$9,183$7,513$6,104$4,929$3,959$2,465
20 years$8,633$6,981$5,602$4,464$3,536$2,136
21 years$8,135$6,503$5,152$4,051$3,165$1,853
22 years$7,683$6,070$4,749$3,684$2,837$1,609
23 years$7,272$5,677$4,385$3,355$2,546$1,399
24 years$6,895$5,319$4,055$3,060$2,289$1,218
25 years$6,549$4,992$3,756$2,794$2,059$1,061
26 years$6,229$4,691$3,483$2,555$1,855$924
27 years$5,934$4,415$3,235$2,339$1,673$806
28 years$5,661$4,160$3,007$2,143$1,509$703
29 years$5,407$3,925$2,798$1,965$1,363$614
30 years$5,170$3,707$2,606$1,803$1,231$536
31 years$4,949$3,504$2,430$1,656$1,113$468
32 years$4,743$3,315$2,267$1,522$1,007$409
33 years$4,549$3,140$2,117$1,400$911$358
34 years$4,367$2,976$1,978$1,288$825$313
35 years$4,195$2,822$1,849$1,185$747$274
36 years$4,034$2,679$1,730$1,092$677$239
37 years$3,882$2,544$1,619$1,006$614$209
38 years$3,738$2,418$1,516$927$556$183
39 years$3,602$2,299$1,421$855$505$160
40 years$3,473$2,188$1,331$789$458$140
41 years$3,350$2,082$1,248$728$415$123
42 years$3,234$1,983$1,171$671$377$107
43 years$3,123$1,890$1,099$620$342$94
44 years$3,018$1,801$1,032$572$310$82
45 years$2,918$1,718$969$529$282$72
46 years$2,822$1,639$910$488$256$63
47 years$2,731$1,564$855$451$232$55
48 years$2,643$1,493$803$417$211$48
49 years$2,560$1,425$755$385$192$42
50 years$2,480$1,362$710$356$174$37

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 $5,041 every year, while hoping to spend $57,541 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: 74/7/19 Blend
39$2,540,000$2,540,000$2,540,000$2,540,000
40$2,804,280$2,669,660$2,630,290$2,998,921
41$3,029,093$2,739,250$2,657,181$3,198,306
42$3,274,909$2,810,321$2,683,045$3,409,226
43$3,543,809$2,882,886$2,707,786$3,638,865
44$3,838,084$2,956,955$2,731,304$3,889,073
45$4,160,259$3,032,536$2,753,493$4,161,887
46$4,513,113$3,109,638$2,774,243$4,459,555
47$4,899,706$3,188,265$2,793,435$4,784,548
48$5,323,408$3,268,422$2,810,947$5,139,591
49$5,787,932$3,350,111$2,826,650$5,527,687
50$6,297,365$3,433,331$2,840,407$5,952,143
51$6,856,212$3,518,079$2,852,076$6,416,603
52$7,469,430$3,604,350$2,861,506$6,925,082
53$8,142,485$3,692,136$2,868,539$7,482,003
54$8,881,393$3,781,426$2,873,010$8,092,240
55$9,692,784$3,872,204$2,874,744$8,761,166
56$10,583,959$3,964,453$2,873,559$9,494,696
57$11,562,963$4,058,152$2,869,264$10,299,353
58$12,638,658$4,153,274$2,861,657$11,182,322
59$13,820,806$4,249,790$2,850,528$12,151,521
60$15,120,164$4,347,664$2,835,655$13,215,675
61$16,548,579$4,446,858$2,816,808$14,384,398
62$18,119,107$4,547,327$2,793,744$15,668,286
63$19,846,129$4,649,020$2,766,208$17,079,014
64$21,745,492$4,751,880$2,733,934$18,629,448
65$23,834,655$4,855,844$2,696,643$20,333,765
66$26,132,852$4,960,843$2,654,043$22,207,591
67$28,661,279$5,066,800$2,605,829$24,268,141
68$31,443,285$5,173,629$2,551,680$26,534,392
69$34,504,600$5,281,237$2,491,262$29,027,251
70$37,873,574$5,389,522$2,424,224$31,769,761
71$41,581,442$5,498,372$2,350,199$34,787,315
72$45,662,623$5,607,667$2,268,805$38,107,895
73$50,155,041$5,717,272$2,179,639$41,762,342
74$55,100,482$5,827,046$2,082,284$45,784,637
75$60,544,991$5,936,831$1,976,301$50,212,234
76$66,539,305$6,046,460$1,861,232$55,086,403
77$73,139,329$6,155,751$1,736,598$60,452,629
78$80,406,664$6,264,508$1,601,898$66,361,034
79$88,409,193$6,372,517$1,456,610$72,866,855
80$97,221,712$6,479,552$1,300,188$80,030,967
81$106,926,645$6,585,368$1,132,062$87,920,452
82$117,614,812$6,689,700$951,636$96,609,239
83$129,386,294$6,792,267$758,287$106,178,798
84$142,351,372$6,892,765$551,366$116,718,913
85$156,631,571$6,990,868$330,195$128,328,527
86$172,360,801$7,086,231$94,067$141,116,678
87$189,686,626$7,178,479$0$155,203,530
88$208,771,653$7,267,216$0$170,753,522
89$229,795,069$7,352,017$0$187,903,003
90$252,954,326$7,432,426$0$206,793,870
91$278,467,014$7,507,961$0$227,603,523
92$306,572,903$7,578,105$0$250,527,454
93$337,536,213$7,642,307$0$275,781,087
94$371,648,107$7,699,980$0$303,601,814
95$409,229,435$7,750,499$0$334,251,237
96$450,633,764$7,793,201$0$368,017,631
97$496,250,718$7,827,377$0$405,218,675
98$546,509,648$7,852,276$0$446,204,439
99$601,883,692$7,867,098$0$491,360,698
100$662,894,236$7,870,992$0$541,112,567