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

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 $2,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.1%
1 years$209,751$207,882$206,060$204,280$202,543$199,106
2 years$103,837$101,903$100,029$98,212$96,449$92,997
3 years$68,537$66,595$64,725$62,925$61,191$57,831
4 years$50,891$48,954$47,103$45,334$43,642$40,400
5 years$40,305$38,381$36,554$34,821$33,176$30,062
6 years$33,251$31,341$29,541$27,847$26,251$23,268
7 years$28,214$26,320$24,549$22,894$21,349$18,498
8 years$24,438$22,561$20,819$19,205$17,711$14,991
9 years$21,503$19,643$17,932$16,359$14,915$12,325
10 years$19,156$17,315$15,633$14,101$12,709$10,246
11 years$17,237$15,414$13,763$12,272$10,930$8,593
12 years$15,639$13,835$12,215$10,765$9,472$7,256
13 years$14,288$12,503$10,913$9,503$8,259$6,163
14 years$13,131$11,365$9,805$8,436$7,240$5,259
15 years$12,129$10,382$8,853$7,524$6,375$4,504
16 years$11,253$9,525$8,026$6,737$5,634$3,871
17 years$10,481$8,772$7,304$6,053$4,996$3,336
18 years$9,796$8,106$6,667$5,455$4,442$2,881
19 years$9,183$7,513$6,104$4,929$3,959$2,494
20 years$8,633$6,981$5,602$4,464$3,536$2,162
21 years$8,135$6,503$5,152$4,051$3,165$1,877
22 years$7,683$6,070$4,749$3,684$2,837$1,631
23 years$7,272$5,677$4,385$3,355$2,546$1,420
24 years$6,895$5,319$4,055$3,060$2,289$1,236
25 years$6,549$4,992$3,756$2,794$2,059$1,078
26 years$6,229$4,691$3,483$2,555$1,855$940
27 years$5,934$4,415$3,235$2,339$1,673$821
28 years$5,661$4,160$3,007$2,143$1,509$717
29 years$5,407$3,925$2,798$1,965$1,363$626
30 years$5,170$3,707$2,606$1,803$1,231$547
31 years$4,949$3,504$2,430$1,656$1,113$478
32 years$4,743$3,315$2,267$1,522$1,007$418
33 years$4,549$3,140$2,117$1,400$911$366
34 years$4,367$2,976$1,978$1,288$825$320
35 years$4,195$2,822$1,849$1,185$747$280
36 years$4,034$2,679$1,730$1,092$677$245
37 years$3,882$2,544$1,619$1,006$614$215
38 years$3,738$2,418$1,516$927$556$188
39 years$3,602$2,299$1,421$855$505$165
40 years$3,473$2,188$1,331$789$458$144
41 years$3,350$2,082$1,248$728$415$126
42 years$3,234$1,983$1,171$671$377$111
43 years$3,123$1,890$1,099$620$342$97
44 years$3,018$1,801$1,032$572$310$85
45 years$2,918$1,718$969$529$282$74
46 years$2,822$1,639$910$488$256$65
47 years$2,731$1,564$855$451$232$57
48 years$2,643$1,493$803$417$211$50
49 years$2,560$1,425$755$385$192$44
50 years$2,480$1,362$710$356$174$38

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 $5,606 every year, while hoping to spend $27,980 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: 47/25/28 Blend
39$2,540,000$2,540,000$2,540,000$2,540,000
40$2,804,863$2,670,243$2,630,873$2,913,941
41$3,061,188$2,771,314$2,689,236$3,092,571
42$3,342,721$2,876,400$2,748,617$3,283,196
43$3,652,003$2,985,668$2,809,021$3,489,588
44$3,991,834$3,099,292$2,870,449$3,713,244
45$4,365,298$3,217,455$2,932,907$3,955,810
46$4,775,795$3,340,346$2,996,395$4,219,096
47$5,227,066$3,468,164$3,060,915$4,505,095
48$5,723,238$3,601,115$3,126,467$4,815,997
49$6,268,855$3,739,416$3,193,049$5,154,211
50$6,868,922$3,883,291$3,260,661$5,522,391
51$7,528,956$4,032,977$3,329,297$5,923,452
52$8,255,036$4,188,719$3,398,954$6,360,607
53$9,053,856$4,350,773$3,469,626$6,837,390
54$9,932,795$4,519,406$3,541,305$7,357,689
55$10,899,983$4,694,900$3,613,981$7,925,786
56$11,964,376$4,877,545$3,687,644$8,546,394
57$13,135,844$5,067,646$3,762,282$9,224,700
58$14,425,262$5,265,522$3,837,880$9,966,418
59$15,844,611$5,471,506$3,914,421$10,777,835
60$17,407,095$5,685,943$3,991,888$11,665,876
61$19,127,262$5,909,198$4,070,260$12,638,164
62$21,021,142$6,141,648$4,149,513$13,703,096
63$23,106,399$6,383,689$4,229,622$14,869,917
64$25,402,498$6,635,736$4,310,560$16,148,808
65$27,930,884$6,898,218$4,392,296$17,550,982
66$30,715,192$7,171,589$4,474,795$19,088,789
67$33,781,463$7,456,318$4,558,022$20,775,830
68$37,158,393$7,752,899$4,641,937$22,627,085
69$40,877,604$8,061,845$4,726,497$24,659,054
70$44,973,939$8,383,695$4,811,654$26,889,914
71$49,485,796$8,719,011$4,897,359$29,339,683
72$54,455,483$9,068,379$4,983,557$32,030,414
73$59,929,627$9,432,414$5,070,190$34,986,401
74$65,959,603$9,811,756$5,157,196$38,234,403
75$72,602,027$10,207,077$5,244,507$41,803,900
76$79,919,286$10,619,076$5,332,050$45,727,369
77$87,980,129$11,048,487$5,419,750$50,040,587
78$96,860,315$11,496,075$5,507,523$54,782,969
79$106,643,324$11,962,640$5,595,283$59,997,939
80$117,421,153$12,449,020$5,682,935$65,733,338
81$129,295,178$12,956,088$5,770,380$72,041,872
82$142,377,110$13,484,761$5,857,512$78,981,613
83$156,790,056$14,035,994$5,944,219$86,616,538
84$172,669,671$14,610,788$6,030,380$95,017,139
85$190,165,449$15,210,188$6,115,869$104,261,082
86$209,442,126$15,835,288$6,200,552$114,433,937
87$230,681,237$16,487,232$6,284,285$125,629,988
88$254,082,832$17,167,215$6,366,917$137,953,120
89$279,867,362$17,876,489$6,448,289$151,517,794
90$308,277,757$18,616,362$6,528,232$166,450,129
91$339,581,727$19,388,202$6,606,566$182,889,089
92$374,074,281$20,193,441$6,683,104$200,987,792
93$412,080,514$21,033,576$6,757,644$220,914,954
94$453,958,678$21,910,174$6,829,977$242,856,477
95$500,103,563$22,824,872$6,899,881$267,017,205
96$550,950,221$23,779,385$6,967,122$293,622,850
97$606,978,075$24,775,506$7,031,452$322,922,124
98$668,715,444$25,815,111$7,092,611$355,189,083
99$736,744,532$26,900,164$7,150,326$390,725,707
100$811,706,920$28,032,718$7,204,307$429,864,754