Can I retire at age 40 with 2,560,000?

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 $2,560,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$211,402$209,519$207,682$205,889$204,138$200,344
2 years$104,655$102,706$100,817$98,985$97,209$93,401
3 years$69,077$67,119$65,235$63,421$61,673$57,970
4 years$51,291$49,340$47,474$45,691$43,986$40,415
5 years$40,623$38,683$36,842$35,095$33,437$30,010
6 years$33,513$31,588$29,774$28,066$26,458$23,177
7 years$28,436$26,527$24,742$23,074$21,517$18,385
8 years$24,630$22,739$20,983$19,357$17,851$14,865
9 years$21,672$19,798$18,073$16,488$15,033$12,193
10 years$19,307$17,451$15,756$14,212$12,809$10,111
11 years$17,373$15,536$13,872$12,369$11,016$8,458
12 years$15,762$13,944$12,311$10,849$9,546$7,124
13 years$14,400$12,601$10,999$9,578$8,324$6,035
14 years$13,234$11,454$9,883$8,503$7,297$5,135
15 years$12,224$10,464$8,923$7,583$6,425$4,387
16 years$11,342$9,600$8,090$6,790$5,678$3,759
17 years$10,564$8,841$7,361$6,100$5,035$3,230
18 years$9,873$8,170$6,720$5,498$4,477$2,782
19 years$9,256$7,572$6,152$4,968$3,990$2,401
20 years$8,701$7,036$5,646$4,499$3,564$2,075
21 years$8,199$6,554$5,193$4,083$3,190$1,796
22 years$7,744$6,118$4,786$3,713$2,859$1,556
23 years$7,329$5,722$4,419$3,381$2,566$1,350
24 years$6,949$5,361$4,087$3,084$2,307$1,172
25 years$6,600$5,031$3,785$2,816$2,076$1,019
26 years$6,278$4,728$3,511$2,575$1,870$886
27 years$5,981$4,450$3,260$2,357$1,686$770
28 years$5,706$4,193$3,031$2,160$1,521$671
29 years$5,450$3,956$2,820$1,980$1,373$584
30 years$5,211$3,736$2,627$1,817$1,241$509
31 years$4,988$3,532$2,449$1,669$1,122$443
32 years$4,780$3,342$2,285$1,534$1,015$386
33 years$4,585$3,164$2,134$1,411$918$337
34 years$4,401$2,999$1,993$1,298$832$294
35 years$4,229$2,845$1,864$1,195$753$256
36 years$4,066$2,700$1,743$1,100$682$224
37 years$3,912$2,564$1,632$1,014$619$195
38 years$3,767$2,437$1,528$935$561$170
39 years$3,630$2,317$1,432$862$509$149
40 years$3,500$2,205$1,342$795$461$130
41 years$3,376$2,099$1,258$733$418$113
42 years$3,259$1,999$1,180$677$380$99
43 years$3,148$1,905$1,108$625$345$86
44 years$3,042$1,815$1,040$577$313$75
45 years$2,941$1,731$976$533$284$66
46 years$2,844$1,651$917$492$258$57
47 years$2,752$1,576$861$455$234$50
48 years$2,664$1,504$809$420$213$44
49 years$2,580$1,437$761$388$193$38
50 years$2,499$1,372$715$359$175$33

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,560,000, adding $5,294 every year, while hoping to spend $40,704 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: 86/9/5 Blend
39$2,560,000$2,560,000$2,560,000$2,560,000
40$2,826,581$2,690,901$2,651,221$3,069,345
41$3,071,583$2,779,446$2,696,728$3,316,824
42$3,340,212$2,870,966$2,742,395$3,582,537
43$3,634,833$2,965,563$2,788,185$3,873,185
44$3,958,055$3,063,344$2,834,058$4,191,246
45$4,312,747$3,164,419$2,879,970$4,539,451
46$4,702,074$3,268,902$2,925,876$4,920,805
47$5,129,519$3,376,912$2,971,726$5,338,620
48$5,598,920$3,488,571$3,017,469$5,796,540
49$6,114,506$3,604,006$3,063,050$6,298,583
50$6,680,932$3,723,350$3,108,409$6,849,172
51$7,303,331$3,846,737$3,153,484$7,453,179
52$7,987,354$3,974,311$3,198,209$8,115,971
53$8,739,228$4,106,216$3,242,513$8,843,460
54$9,565,814$4,242,606$3,286,322$9,642,159
55$10,474,671$4,383,637$3,329,558$10,519,240
56$11,474,124$4,529,472$3,372,135$11,482,609
57$12,573,350$4,680,281$3,413,967$12,540,970
58$13,782,456$4,836,239$3,454,959$13,703,917
59$15,112,580$4,997,528$3,495,013$14,982,015
60$16,575,992$5,164,336$3,534,024$16,386,908
61$18,186,212$5,336,858$3,571,884$17,931,421
62$19,958,139$5,515,297$3,608,475$19,629,686
63$21,908,185$5,699,862$3,643,675$21,497,274
64$24,054,437$5,890,773$3,677,355$23,551,337
65$26,416,823$6,088,254$3,709,380$25,810,777
66$29,017,300$6,292,540$3,739,605$28,296,420
67$31,880,064$6,503,873$3,767,881$31,031,209
68$35,031,774$6,722,507$3,794,049$34,040,428
69$38,501,807$6,948,701$3,817,941$37,351,933
70$42,322,532$7,182,728$3,839,383$40,996,418
71$46,529,617$7,424,869$3,858,190$45,007,704
72$51,162,366$7,675,416$3,874,167$49,423,057
73$56,264,088$7,934,672$3,887,112$54,283,540
74$61,882,505$8,202,950$3,896,810$59,634,401
75$68,070,203$8,480,578$3,903,036$65,525,495
76$74,885,131$8,767,894$3,905,556$72,011,762
77$82,391,143$9,065,249$3,904,120$79,153,737
78$90,658,601$9,373,007$3,898,469$87,018,127
79$99,765,042$9,691,548$3,888,331$95,678,436
80$109,795,906$10,021,264$3,873,421$105,215,661
81$120,845,346$10,362,564$3,853,438$115,719,054
82$133,017,113$10,715,870$3,828,069$127,286,968
83$146,425,533$11,081,623$3,796,984$140,027,777
84$161,196,594$11,460,279$3,759,840$154,060,907
85$177,469,126$11,852,313$3,716,274$169,517,958
86$195,396,117$12,258,216$3,665,909$186,543,945
87$215,146,153$12,678,500$3,608,349$205,298,670
88$236,905,010$13,113,697$3,543,179$225,958,227
89$260,877,411$13,564,357$3,469,965$248,716,663
90$287,288,951$14,031,055$3,388,253$273,787,814
91$316,388,233$14,514,385$3,297,568$301,407,315
92$348,449,209$15,014,967$3,197,413$331,834,832
93$383,773,771$15,533,443$3,087,269$365,356,505
94$422,694,594$16,070,480$2,966,591$402,287,655
95$465,578,282$16,626,772$2,834,811$442,975,756
96$512,828,824$17,203,042$2,691,335$487,803,714
97$564,891,411$17,800,038$2,535,541$537,193,485
98$622,256,634$18,418,539$2,366,781$591,610,053
99$685,465,118$19,059,355$2,184,376$651,565,821
100$755,112,625$19,723,328$1,987,617$717,625,448