Can I retire at age 40 with 2,600,000?

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 $2,600,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$214,706$212,793$210,927$209,106$207,328$205,849
2 years$106,290$104,310$102,392$100,532$98,727$97,236
3 years$70,156$68,168$66,254$64,412$62,637$61,179
4 years$52,093$50,111$48,216$46,405$44,673$43,260
5 years$41,257$39,287$37,418$35,643$33,960$32,596
6 years$34,036$32,081$30,239$28,504$26,871$25,559
7 years$28,880$26,942$25,129$23,435$21,853$20,593
8 years$25,015$23,094$21,311$19,659$18,130$16,920
9 years$22,011$20,107$18,355$16,745$15,268$14,110
10 years$19,608$17,724$16,003$14,434$13,009$11,901
11 years$17,644$15,778$14,088$12,562$11,188$10,130
12 years$16,008$14,162$12,503$11,019$9,695$8,687
13 years$14,625$12,798$11,171$9,728$8,455$7,494
14 years$13,441$11,633$10,037$8,635$7,411$6,497
15 years$12,415$10,627$9,062$7,701$6,525$5,657
16 years$11,519$9,750$8,216$6,896$5,767$4,943
17 years$10,729$8,980$7,476$6,196$5,114$4,332
18 years$10,027$8,298$6,825$5,584$4,547$3,806
19 years$9,400$7,690$6,248$5,045$4,053$3,352
20 years$8,837$7,146$5,734$4,569$3,620$2,958
21 years$8,327$6,656$5,274$4,147$3,239$2,614
22 years$7,865$6,213$4,861$3,771$2,904$2,314
23 years$7,443$5,811$4,488$3,434$2,606$2,051
24 years$7,058$5,445$4,151$3,132$2,343$1,820
25 years$6,703$5,110$3,845$2,860$2,108$1,617
26 years$6,377$4,802$3,566$2,615$1,899$1,437
27 years$6,075$4,519$3,311$2,394$1,712$1,279
28 years$5,795$4,259$3,078$2,193$1,545$1,138
29 years$5,535$4,018$2,864$2,011$1,395$1,014
30 years$5,292$3,794$2,668$1,846$1,260$904
31 years$5,066$3,587$2,487$1,695$1,140$806
32 years$4,855$3,394$2,321$1,558$1,031$719
33 years$4,656$3,214$2,167$1,433$933$642
34 years$4,470$3,046$2,025$1,318$845$573
35 years$4,295$2,889$1,893$1,213$765$512
36 years$4,129$2,742$1,771$1,118$693$457
37 years$3,974$2,604$1,657$1,030$628$408
38 years$3,826$2,475$1,552$949$570$365
39 years$3,687$2,354$1,454$875$516$326
40 years$3,555$2,239$1,363$807$468$292
41 years$3,429$2,132$1,278$745$425$261
42 years$3,310$2,030$1,199$687$386$233
43 years$3,197$1,934$1,125$634$350$209
44 years$3,089$1,844$1,056$586$318$187
45 years$2,986$1,758$991$541$288$167
46 years$2,889$1,677$931$500$262$149
47 years$2,795$1,601$875$462$238$134
48 years$2,706$1,528$822$427$216$119
49 years$2,620$1,459$773$394$196$107
50 years$2,539$1,394$726$364$178$96

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,600,000, adding $4,747 every year, while hoping to spend $38,989 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: 64/8/28 Blend
39$2,600,000$2,600,000$2,600,000$2,600,000
40$2,870,097$2,732,297$2,691,997$3,032,141
41$3,121,362$2,824,695$2,740,694$3,234,845
42$3,396,951$2,920,314$2,789,717$3,451,525
43$3,699,301$3,019,271$2,839,034$3,687,448
44$4,031,101$3,121,686$2,888,612$3,944,511
45$4,395,310$3,227,686$2,938,418$4,224,801
46$4,795,189$3,337,400$2,988,412$4,530,619
47$5,234,330$3,450,964$3,038,556$4,864,497
48$5,716,689$3,568,519$3,088,805$5,229,225
49$6,246,625$3,690,210$3,139,114$5,627,877
50$6,828,940$3,816,190$3,189,433$6,063,837
51$7,468,923$3,946,615$3,239,711$6,540,835
52$8,172,403$4,081,649$3,289,891$7,062,979
53$8,945,800$4,221,461$3,339,914$7,634,793
54$9,796,188$4,366,229$3,389,717$8,261,264
55$10,731,359$4,516,134$3,439,233$8,947,885
56$11,759,901$4,671,368$3,488,390$9,700,705
57$12,891,273$4,832,127$3,537,113$10,526,393
58$14,135,899$4,998,617$3,585,323$11,432,294
59$15,505,262$5,171,051$3,632,933$12,426,501
60$17,012,017$5,349,651$3,679,854$13,517,931
61$18,670,105$5,534,646$3,725,992$14,716,409
62$20,494,889$5,726,277$3,771,245$16,032,760
63$22,503,294$5,924,791$3,815,508$17,478,913
64$24,713,971$6,130,446$3,858,669$19,068,011
65$27,147,470$6,343,513$3,900,609$20,814,536
66$29,826,436$6,564,268$3,941,203$22,734,446
67$32,775,818$6,793,003$3,980,319$24,845,324
68$36,023,111$7,030,020$4,017,819$27,166,547
69$39,598,609$7,275,631$4,053,556$29,719,464
70$43,535,693$7,530,164$4,087,377$32,527,603
71$47,871,148$7,793,956$4,119,118$35,616,888
72$52,645,506$8,067,360$4,148,609$39,015,886
73$57,903,431$8,350,744$4,175,671$42,756,076
74$63,694,138$8,644,488$4,200,113$46,872,147
75$70,071,862$8,948,989$4,221,738$51,402,325
76$77,096,362$9,264,660$4,240,337$56,388,733
77$84,833,492$9,591,929$4,255,689$61,877,787
78$93,355,818$9,931,244$4,267,565$67,920,639
79$102,743,305$10,283,068$4,275,721$74,573,654
80$113,084,068$10,647,885$4,279,905$81,898,948
81$124,475,210$11,026,198$4,279,849$89,964,968
82$137,023,730$11,418,531$4,275,272$98,847,144
83$150,847,539$11,825,427$4,265,882$108,628,595
84$166,076,569$12,247,454$4,251,370$119,400,920
85$182,854,001$12,685,201$4,231,413$131,265,058
86$201,337,616$13,139,283$4,205,672$144,332,242
87$221,701,284$13,610,339$4,173,794$158,725,050
88$244,136,604$14,099,035$4,135,405$174,578,562
89$268,854,713$14,606,063$4,090,116$192,041,636
90$296,088,279$15,132,145$4,037,520$211,278,308
91$326,093,695$15,678,032$3,977,189$232,469,350
92$359,153,503$16,244,507$3,908,676$255,813,968
93$395,579,057$16,832,383$3,831,512$281,531,686
94$435,713,461$17,442,511$3,745,208$309,864,422
95$479,934,813$18,075,773$3,649,252$341,078,763
96$528,659,768$18,733,089$3,543,106$375,468,493
97$582,347,474$19,415,420$3,426,209$413,357,357
98$641,503,904$20,123,765$3,297,976$455,102,124
99$706,686,636$20,859,163$3,157,792$501,095,951
100$778,510,111$21,622,699$3,005,016$551,772,097