Can I retire at age 40 with 2,620,000?

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 $2,620,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.7%
1 years$216,357$214,430$212,550$210,714$208,922$201,590
2 years$107,108$105,113$103,179$101,305$99,487$92,176
3 years$70,696$68,692$66,764$64,907$63,119$56,060
4 years$52,493$50,496$48,587$46,762$45,017$38,264
5 years$41,575$39,590$37,706$35,918$34,221$27,792
6 years$34,298$32,328$30,472$28,724$27,078$20,977
7 years$29,103$27,149$25,322$23,615$22,022$16,248
8 years$25,208$23,272$21,475$19,810$18,269$12,818
9 years$22,180$20,262$18,497$16,874$15,385$10,250
10 years$19,759$17,860$16,126$14,546$13,109$8,280
11 years$17,780$15,900$14,197$12,659$11,274$6,742
12 years$16,132$14,271$12,599$11,104$9,770$5,525
13 years$14,738$12,897$11,257$9,803$8,520$4,549
14 years$13,544$11,723$10,114$8,702$7,468$3,761
15 years$12,511$10,709$9,132$7,761$6,576$3,119
16 years$11,608$9,825$8,279$6,949$5,812$2,594
17 years$10,811$9,049$7,534$6,243$5,153$2,162
18 years$10,104$8,361$6,877$5,627$4,582$1,805
19 years$9,472$7,749$6,296$5,084$4,084$1,509
20 years$8,905$7,201$5,778$4,605$3,648$1,264
21 years$8,391$6,707$5,315$4,179$3,264$1,059
22 years$7,925$6,261$4,898$3,800$2,926$888
23 years$7,501$5,856$4,523$3,460$2,627$746
24 years$7,112$5,487$4,183$3,156$2,361$626
25 years$6,755$5,149$3,874$2,882$2,124$526
26 years$6,426$4,839$3,593$2,635$1,914$442
27 years$6,121$4,554$3,336$2,412$1,725$372
28 years$5,839$4,291$3,102$2,210$1,557$313
29 years$5,577$4,048$2,886$2,027$1,406$263
30 years$5,333$3,823$2,689$1,860$1,270$221
31 years$5,105$3,614$2,506$1,708$1,148$186
32 years$4,892$3,420$2,339$1,570$1,039$157
33 years$4,692$3,239$2,184$1,444$940$132
34 years$4,504$3,070$2,040$1,328$851$111
35 years$4,328$2,911$1,907$1,223$771$94
36 years$4,161$2,763$1,784$1,126$698$79
37 years$4,004$2,625$1,670$1,038$633$66
38 years$3,856$2,494$1,564$956$574$56
39 years$3,715$2,372$1,465$882$520$47
40 years$3,582$2,257$1,373$813$472$40
41 years$3,456$2,148$1,288$750$428$33
42 years$3,336$2,046$1,208$693$389$28
43 years$3,222$1,949$1,134$639$353$24
44 years$3,113$1,858$1,064$590$320$20
45 years$3,009$1,772$999$545$291$17
46 years$2,911$1,690$938$504$264$14
47 years$2,817$1,613$882$465$240$12
48 years$2,726$1,540$828$430$218$10
49 years$2,640$1,470$779$397$198$8
50 years$2,558$1,405$732$367$180$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,620,000, adding $6,138 every year, while hoping to spend $32,191 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: 66/25/9 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,893,571$2,754,711$2,714,101$3,078,905
41$3,154,465$2,855,441$2,770,773$3,303,697
42$3,440,890$2,960,028$2,828,264$3,544,884
43$3,755,418$3,068,627$2,886,568$3,807,642
44$4,100,880$3,181,399$2,945,677$4,094,070
45$4,480,395$3,298,512$3,005,583$4,406,482
46$4,897,399$3,420,143$3,066,273$4,747,421
47$5,355,678$3,546,474$3,127,737$5,119,688
48$5,859,401$3,677,696$3,189,961$5,526,364
49$6,413,164$3,814,006$3,252,928$5,970,842
50$7,022,028$3,955,614$3,316,623$6,456,856
51$7,691,569$4,102,734$3,381,024$6,988,517
52$8,427,933$4,255,591$3,446,112$7,570,352
53$9,237,888$4,414,421$3,511,863$8,207,343
54$10,128,893$4,579,469$3,578,251$8,904,977
55$11,109,167$4,750,989$3,645,248$9,669,295
56$12,187,762$4,929,247$3,712,825$10,506,951
57$13,374,656$5,114,523$3,780,947$11,425,269
58$14,680,842$5,307,105$3,849,579$12,432,319
59$16,118,430$5,507,296$3,918,682$13,536,984
60$17,700,767$5,715,410$3,988,215$14,749,051
61$19,442,557$5,931,777$4,058,132$16,079,296
62$21,360,003$6,156,740$4,128,385$17,539,590
63$23,470,960$6,390,657$4,198,923$19,143,008
64$25,795,100$6,633,901$4,269,689$20,903,950
65$28,354,100$6,886,862$4,340,623$22,838,281
66$31,171,848$7,149,947$4,411,663$24,963,475
67$34,274,662$7,423,581$4,482,740$27,298,779
68$37,691,548$7,708,206$4,553,782$29,865,399
69$41,454,463$8,004,286$4,624,711$32,686,692
70$45,598,624$8,312,302$4,695,444$35,788,392
71$50,162,838$8,632,758$4,765,896$39,198,848
72$55,189,865$8,966,182$4,835,972$42,949,290
73$60,726,828$9,313,121$4,905,573$47,074,126
74$66,825,651$9,674,150$4,974,596$51,611,262
75$73,543,550$10,049,867$5,042,928$56,602,460
76$80,943,579$10,440,897$5,110,453$62,093,733
77$89,095,216$10,847,893$5,177,045$68,135,774
78$98,075,025$11,271,536$5,242,572$74,784,436
79$107,967,375$11,712,539$5,306,896$82,101,257
80$118,865,239$12,171,645$5,369,869$90,154,039
81$130,871,069$12,649,631$5,431,335$99,017,487
82$144,097,763$13,147,308$5,491,130$108,773,912
83$158,669,731$13,665,523$5,549,080$119,514,006
84$174,724,072$14,205,162$5,605,002$131,337,699
85$192,411,861$14,767,149$5,658,703$144,355,096
86$211,899,582$15,352,450$5,709,981$158,687,518
87$233,370,694$15,962,075$5,758,620$174,468,645
88$257,027,366$16,597,078$5,804,395$191,845,774
89$283,092,383$17,258,561$5,847,068$210,981,209
90$311,811,252$17,947,676$5,886,391$232,053,790
91$343,454,514$18,665,626$5,922,099$255,260,578
92$378,320,302$19,413,669$5,953,917$280,818,717
93$416,737,153$20,193,119$5,981,553$308,967,475
94$459,067,110$21,005,350$6,004,703$339,970,508
95$505,709,141$21,851,797$6,023,046$374,118,337
96$557,102,900$22,733,962$6,036,244$411,731,097
97$613,732,882$23,653,412$6,043,945$453,161,548
98$676,132,995$24,611,789$6,045,776$498,798,409
99$744,891,600$25,610,805$6,041,349$549,070,020
100$820,657,062$26,652,255$6,030,254$604,448,383