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%11.5%
1 years$211,402$209,519$207,682$205,889$204,138$202,851
2 years$104,655$102,706$100,817$98,985$97,209$95,911
3 years$69,077$67,119$65,235$63,421$61,673$60,404
4 years$51,291$49,340$47,474$45,691$43,986$42,756
5 years$40,623$38,683$36,842$35,095$33,437$32,250
6 years$33,513$31,588$29,774$28,066$26,458$25,314
7 years$28,436$26,527$24,742$23,074$21,517$20,418
8 years$24,630$22,739$20,983$19,357$17,851$16,796
9 years$21,672$19,798$18,073$16,488$15,033$14,022
10 years$19,307$17,451$15,756$14,212$12,809$11,842
11 years$17,373$15,536$13,872$12,369$11,016$10,092
12 years$15,762$13,944$12,311$10,849$9,546$8,665
13 years$14,400$12,601$10,999$9,578$8,324$7,484
14 years$13,234$11,454$9,883$8,503$7,297$6,497
15 years$12,224$10,464$8,923$7,583$6,425$5,664
16 years$11,342$9,600$8,090$6,790$5,678$4,956
17 years$10,564$8,841$7,361$6,100$5,035$4,350
18 years$9,873$8,170$6,720$5,498$4,477$3,827
19 years$9,256$7,572$6,152$4,968$3,990$3,376
20 years$8,701$7,036$5,646$4,499$3,564$2,983
21 years$8,199$6,554$5,193$4,083$3,190$2,640
22 years$7,744$6,118$4,786$3,713$2,859$2,341
23 years$7,329$5,722$4,419$3,381$2,566$2,078
24 years$6,949$5,361$4,087$3,084$2,307$1,847
25 years$6,600$5,031$3,785$2,816$2,076$1,643
26 years$6,278$4,728$3,511$2,575$1,870$1,463
27 years$5,981$4,450$3,260$2,357$1,686$1,303
28 years$5,706$4,193$3,031$2,160$1,521$1,162
29 years$5,450$3,956$2,820$1,980$1,373$1,037
30 years$5,211$3,736$2,627$1,817$1,241$926
31 years$4,988$3,532$2,449$1,669$1,122$827
32 years$4,780$3,342$2,285$1,534$1,015$739
33 years$4,585$3,164$2,134$1,411$918$661
34 years$4,401$2,999$1,993$1,298$832$591
35 years$4,229$2,845$1,864$1,195$753$528
36 years$4,066$2,700$1,743$1,100$682$473
37 years$3,912$2,564$1,632$1,014$619$423
38 years$3,767$2,437$1,528$935$561$379
39 years$3,630$2,317$1,432$862$509$339
40 years$3,500$2,205$1,342$795$461$304
41 years$3,376$2,099$1,258$733$418$272
42 years$3,259$1,999$1,180$677$380$244
43 years$3,148$1,905$1,108$625$345$218
44 years$3,042$1,815$1,040$577$313$196
45 years$2,941$1,731$976$533$284$175
46 years$2,844$1,651$917$492$258$157
47 years$2,752$1,576$861$455$234$141
48 years$2,664$1,504$809$420$213$126
49 years$2,580$1,437$761$388$193$113
50 years$2,499$1,372$715$359$175$101

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 $2,622 every year, while hoping to spend $41,996 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: 79/5/16 Blend
39$2,560,000$2,560,000$2,560,000$2,560,000
40$2,823,825$2,688,145$2,648,465$3,037,069
41$3,067,171$2,775,180$2,692,505$3,264,958
42$3,333,932$2,865,073$2,736,613$3,509,328
43$3,626,450$2,957,919$2,780,746$3,776,284
44$3,947,308$3,053,817$2,824,861$4,068,073
45$4,299,348$3,152,868$2,868,909$4,387,168
46$4,685,703$3,255,180$2,912,838$4,736,292
47$5,109,822$3,360,862$2,956,596$5,118,446
48$5,575,506$3,470,026$3,000,125$5,536,935
49$6,086,941$3,582,791$3,043,362$5,995,399
50$6,648,739$3,699,278$3,086,245$6,497,849
51$7,265,979$3,819,611$3,128,703$7,048,703
52$7,944,259$3,943,922$3,170,664$7,652,828
53$8,689,743$4,072,344$3,212,051$8,315,586
54$9,509,225$4,205,016$3,252,782$9,042,885
55$10,410,187$4,342,083$3,292,772$9,841,232
56$11,400,874$4,483,694$3,331,928$10,717,799
57$12,490,370$4,630,002$3,370,155$11,680,486
58$13,688,683$4,781,167$3,407,350$12,737,997
59$15,006,840$4,937,355$3,443,407$13,899,923
60$16,456,988$5,098,736$3,478,212$15,176,830
61$18,052,514$5,265,488$3,511,645$16,580,362
62$19,808,167$5,437,793$3,543,582$18,123,348
63$21,740,196$5,615,841$3,573,888$19,819,923
64$23,866,508$5,799,829$3,602,425$21,685,663
65$26,206,831$5,989,960$3,629,046$23,737,729
66$28,782,904$6,186,444$3,653,595$25,995,034
67$31,618,681$6,389,500$3,675,911$28,478,415
68$34,740,554$6,599,353$3,695,821$31,210,833
69$38,177,606$6,816,238$3,713,147$34,217,590
70$41,961,884$7,040,395$3,727,699$37,526,566
71$46,128,698$7,272,076$3,739,279$41,168,484
72$50,716,958$7,511,541$3,747,678$45,177,195
73$55,769,539$7,759,058$3,752,676$49,590,005
74$61,333,686$8,014,906$3,754,045$54,448,022
75$67,461,459$8,279,373$3,751,543$59,796,543
76$74,210,225$8,552,760$3,744,917$65,685,484
77$81,643,197$8,835,374$3,733,901$72,169,851
78$89,830,034$9,127,538$3,718,217$79,310,258
79$98,847,494$9,429,584$3,697,574$87,173,499
80$108,780,161$9,741,856$3,671,665$95,833,179
81$119,721,242$10,064,712$3,640,171$105,370,408
82$131,773,447$10,398,521$3,602,754$115,874,567
83$145,049,956$10,743,666$3,559,065$127,444,153
84$159,675,492$11,100,546$3,508,733$140,187,705
85$175,787,491$11,469,572$3,451,375$154,224,832
86$193,537,405$11,851,170$3,386,585$169,687,340
87$213,092,127$12,245,784$3,313,943$186,720,477
88$234,635,568$12,653,872$3,233,004$205,484,305
89$258,370,394$13,075,910$3,143,308$226,155,208
90$284,519,935$13,512,390$3,044,370$248,927,560
91$313,330,296$13,963,825$2,935,683$274,015,558
92$345,072,677$14,430,743$2,816,720$301,655,245
93$380,045,936$14,913,696$2,686,926$332,106,738
94$418,579,407$15,413,252$2,545,723$365,656,683
95$461,036,009$15,930,003$2,392,507$402,620,963
96$507,815,671$16,464,563$2,226,645$443,347,676
97$559,359,109$17,017,566$2,047,478$488,220,425
98$616,151,984$17,589,673$1,854,315$537,661,939
99$678,729,488$18,181,568$1,646,435$592,138,061
100$747,681,392$18,793,962$1,423,087$652,162,148