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%18.4%
1 years$214,706$212,793$210,927$209,106$207,328$200,290
2 years$106,290$104,310$102,392$100,532$98,727$91,708
3 years$70,156$68,168$66,254$64,412$62,637$55,856
4 years$52,093$50,111$48,216$46,405$44,673$38,182
5 years$41,257$39,287$37,418$35,643$33,960$27,776
6 years$34,036$32,081$30,239$28,504$26,871$21,000
7 years$28,880$26,942$25,129$23,435$21,853$16,294
8 years$25,015$23,094$21,311$19,659$18,130$12,877
9 years$22,011$20,107$18,355$16,745$15,268$10,316
10 years$19,608$17,724$16,003$14,434$13,009$8,349
11 years$17,644$15,778$14,088$12,562$11,188$6,812
12 years$16,008$14,162$12,503$11,019$9,695$5,593
13 years$14,625$12,798$11,171$9,728$8,455$4,615
14 years$13,441$11,633$10,037$8,635$7,411$3,823
15 years$12,415$10,627$9,062$7,701$6,525$3,178
16 years$11,519$9,750$8,216$6,896$5,767$2,648
17 years$10,729$8,980$7,476$6,196$5,114$2,212
18 years$10,027$8,298$6,825$5,584$4,547$1,851
19 years$9,400$7,690$6,248$5,045$4,053$1,551
20 years$8,837$7,146$5,734$4,569$3,620$1,302
21 years$8,327$6,656$5,274$4,147$3,239$1,093
22 years$7,865$6,213$4,861$3,771$2,904$919
23 years$7,443$5,811$4,488$3,434$2,606$773
24 years$7,058$5,445$4,151$3,132$2,343$651
25 years$6,703$5,110$3,845$2,860$2,108$548
26 years$6,377$4,802$3,566$2,615$1,899$462
27 years$6,075$4,519$3,311$2,394$1,712$390
28 years$5,795$4,259$3,078$2,193$1,545$328
29 years$5,535$4,018$2,864$2,011$1,395$277
30 years$5,292$3,794$2,668$1,846$1,260$234
31 years$5,066$3,587$2,487$1,695$1,140$197
32 years$4,855$3,394$2,321$1,558$1,031$166
33 years$4,656$3,214$2,167$1,433$933$140
34 years$4,470$3,046$2,025$1,318$845$119
35 years$4,295$2,889$1,893$1,213$765$100
36 years$4,129$2,742$1,771$1,118$693$84
37 years$3,974$2,604$1,657$1,030$628$71
38 years$3,826$2,475$1,552$949$570$60
39 years$3,687$2,354$1,454$875$516$51
40 years$3,555$2,239$1,363$807$468$43
41 years$3,429$2,132$1,278$745$425$36
42 years$3,310$2,030$1,199$687$386$31
43 years$3,197$1,934$1,125$634$350$26
44 years$3,089$1,844$1,056$586$318$22
45 years$2,986$1,758$991$541$288$18
46 years$2,889$1,677$931$500$262$16
47 years$2,795$1,601$875$462$238$13
48 years$2,706$1,528$822$427$216$11
49 years$2,620$1,459$773$394$196$9
50 years$2,539$1,394$726$364$178$8

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 $3,125 every year, while hoping to spend $52,277 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: 54/26/20 Blend
39$2,600,000$2,600,000$2,600,000$2,600,000
40$2,868,423$2,730,623$2,690,323$3,007,541
41$3,105,380$2,808,802$2,724,827$3,181,389
42$3,364,755$2,889,059$2,758,734$3,364,766
43$3,648,778$2,971,441$2,791,970$3,563,256
44$3,959,907$3,055,995$2,824,455$3,778,318
45$4,300,849$3,142,770$2,856,106$4,011,558
46$4,674,583$3,231,814$2,886,833$4,264,744
47$5,084,392$3,323,174$2,916,543$4,539,825
48$5,533,891$3,416,901$2,945,138$4,838,944
49$6,027,063$3,513,043$2,972,515$5,164,463
50$6,568,292$3,611,651$2,998,563$5,518,983
51$7,162,410$3,712,774$3,023,167$5,905,370
52$7,814,739$3,816,463$3,046,206$6,326,778
53$8,531,141$3,922,769$3,067,553$6,786,684
54$9,318,074$4,031,741$3,087,073$7,288,918
55$10,182,652$4,143,431$3,104,624$7,837,697
56$11,132,713$4,257,889$3,120,059$8,437,668
57$12,176,889$4,375,165$3,133,221$9,093,951
58$13,324,694$4,495,311$3,143,946$9,812,186
59$14,586,606$4,618,374$3,152,062$10,598,588
60$15,974,171$4,744,406$3,157,387$11,460,003
61$17,500,110$4,873,455$3,159,733$12,403,976
62$19,178,436$5,005,569$3,158,899$13,438,817
63$21,024,591$5,140,797$3,154,676$14,573,687
64$23,055,588$5,279,184$3,146,846$15,818,676
65$25,290,170$5,420,777$3,135,178$17,184,904
66$27,748,992$5,565,619$3,119,431$18,684,623
67$30,454,809$5,713,754$3,099,351$20,331,336
68$33,432,695$5,865,223$3,074,675$22,139,920
69$36,710,277$6,020,067$3,045,124$24,126,770
70$40,317,997$6,178,322$3,010,408$26,309,950
71$44,289,398$6,340,025$2,970,222$28,709,369
72$48,661,440$6,505,209$2,924,247$31,346,963
73$53,474,847$6,673,905$2,872,150$34,246,908
74$58,774,494$6,846,139$2,813,580$37,435,844
75$64,609,830$7,021,937$2,748,172$40,943,126
76$71,035,341$7,201,320$2,675,544$44,801,107
77$78,111,066$7,384,305$2,595,295$49,045,436
78$85,903,164$7,570,906$2,507,007$53,715,400
79$94,484,536$7,761,129$2,410,241$58,854,294
80$103,935,514$7,954,980$2,304,539$64,509,829
81$114,344,619$8,152,457$2,189,424$70,734,583
82$125,809,395$8,353,552$2,064,394$77,586,496
83$138,437,330$8,558,252$1,928,927$85,129,422
84$152,346,867$8,766,536$1,782,477$93,433,726
85$167,668,529$8,978,378$1,624,471$102,576,954
86$184,546,143$9,193,742$1,454,314$112,644,562
87$203,138,198$9,412,585$1,271,383$123,730,725
88$223,619,347$9,634,854$1,075,027$135,939,225
89$246,182,046$9,860,487$864,565$149,384,434
90$271,038,376$10,089,412$639,290$164,192,390
91$298,422,043$10,321,546$398,459$180,501,992
92$328,590,583$10,556,794$141,299$198,466,309
93$361,827,794$10,795,048$0$218,254,028
94$398,446,410$11,036,187$0$240,079,456
95$438,791,060$11,280,075$0$264,153,069
96$483,241,511$11,526,563$0$290,670,635
97$532,216,263$11,775,481$0$319,881,145
98$586,176,488$12,026,647$0$352,058,984
99$645,630,393$12,279,855$0$387,506,517
100$711,138,009$12,534,884$0$426,556,946