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

Use the below retirement simulation to view the chances of a successful retirement.
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%14.9%
1 years$216,357$214,430$212,550$210,714$208,922$204,704
2 years$107,108$105,113$103,179$101,305$99,487$95,256
3 years$70,696$68,692$66,764$64,907$63,119$59,006
4 years$52,493$50,496$48,587$46,762$45,017$41,055
5 years$41,575$39,590$37,706$35,918$34,221$30,421
6 years$34,298$32,328$30,472$28,724$27,078$23,444
7 years$29,103$27,149$25,322$23,615$22,022$18,554
8 years$25,208$23,272$21,475$19,810$18,269$14,968
9 years$22,180$20,262$18,497$16,874$15,385$12,247
10 years$19,759$17,860$16,126$14,546$13,109$10,131
11 years$17,780$15,900$14,197$12,659$11,274$8,453
12 years$16,132$14,271$12,599$11,104$9,770$7,102
13 years$14,738$12,897$11,257$9,803$8,520$6,000
14 years$13,544$11,723$10,114$8,702$7,468$5,092
15 years$12,511$10,709$9,132$7,761$6,576$4,338
16 years$11,608$9,825$8,279$6,949$5,812$3,707
17 years$10,811$9,049$7,534$6,243$5,153$3,176
18 years$10,104$8,361$6,877$5,627$4,582$2,727
19 years$9,472$7,749$6,296$5,084$4,084$2,347
20 years$8,905$7,201$5,778$4,605$3,648$2,022
21 years$8,391$6,707$5,315$4,179$3,264$1,745
22 years$7,925$6,261$4,898$3,800$2,926$1,507
23 years$7,501$5,856$4,523$3,460$2,627$1,304
24 years$7,112$5,487$4,183$3,156$2,361$1,128
25 years$6,755$5,149$3,874$2,882$2,124$977
26 years$6,426$4,839$3,593$2,635$1,914$847
27 years$6,121$4,554$3,336$2,412$1,725$735
28 years$5,839$4,291$3,102$2,210$1,557$637
29 years$5,577$4,048$2,886$2,027$1,406$553
30 years$5,333$3,823$2,689$1,860$1,270$480
31 years$5,105$3,614$2,506$1,708$1,148$417
32 years$4,892$3,420$2,339$1,570$1,039$362
33 years$4,692$3,239$2,184$1,444$940$315
34 years$4,504$3,070$2,040$1,328$851$274
35 years$4,328$2,911$1,907$1,223$771$238
36 years$4,161$2,763$1,784$1,126$698$207
37 years$4,004$2,625$1,670$1,038$633$180
38 years$3,856$2,494$1,564$956$574$156
39 years$3,715$2,372$1,465$882$520$136
40 years$3,582$2,257$1,373$813$472$118
41 years$3,456$2,148$1,288$750$428$103
42 years$3,336$2,046$1,208$693$389$90
43 years$3,222$1,949$1,134$639$353$78
44 years$3,113$1,858$1,064$590$320$68
45 years$3,009$1,772$999$545$291$59
46 years$2,911$1,690$938$504$264$51
47 years$2,817$1,613$882$465$240$45
48 years$2,726$1,540$828$430$218$39
49 years$2,640$1,470$779$397$198$34
50 years$2,558$1,405$732$367$180$29

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 $6,229 every year, while hoping to spend $53,343 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: 52/34/14 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,893,665$2,754,805$2,714,195$3,032,954
41$3,132,063$2,833,034$2,748,364$3,207,110
42$3,392,989$2,913,308$2,781,890$3,390,246
43$3,678,685$2,995,672$2,814,695$3,588,220
44$3,991,620$3,080,169$2,846,696$3,802,453
45$4,334,512$3,166,845$2,877,808$4,034,505
46$4,710,356$3,255,743$2,907,937$4,286,095
47$5,122,447$3,346,910$2,936,989$4,559,115
48$5,574,419$3,440,390$2,964,860$4,855,646
49$6,070,270$3,536,230$2,991,443$5,177,982
50$6,614,407$3,634,475$3,016,626$5,528,649
51$7,211,682$3,735,170$3,040,289$5,910,425
52$7,867,442$3,838,361$3,062,306$6,326,373
53$8,587,574$3,944,094$3,082,547$6,779,863
54$9,378,566$4,052,414$3,100,871$7,274,611
55$10,247,563$4,163,366$3,117,134$7,814,706
56$11,202,439$4,276,994$3,131,182$8,404,652
57$12,251,864$4,393,344$3,142,853$9,049,413
58$13,405,395$4,512,458$3,151,979$9,754,454
59$14,673,556$4,634,380$3,158,382$10,525,798
60$16,067,946$4,759,151$3,161,875$11,370,077
61$17,601,340$4,886,814$3,162,261$12,294,602
62$19,287,817$5,017,407$3,159,337$13,307,422
63$21,142,885$5,150,971$3,152,885$14,417,408
64$23,183,632$5,287,542$3,142,680$15,634,334
65$25,428,888$5,427,156$3,128,485$16,968,968
66$27,899,396$5,569,848$3,110,051$18,433,173
67$30,618,013$5,715,650$3,087,117$20,040,022
68$33,609,926$5,864,592$3,059,410$21,803,918
69$36,902,883$6,016,702$3,026,645$23,740,732
70$40,527,461$6,172,005$2,988,522$25,867,951
71$44,517,352$6,330,522$2,944,727$28,204,845
72$48,909,678$6,492,274$2,894,931$30,772,646
73$53,745,345$6,657,276$2,838,792$33,594,752
74$59,069,427$6,825,539$2,775,948$36,696,943
75$64,931,590$6,997,072$2,706,024$40,107,628
76$71,386,562$7,171,879$2,628,626$43,858,115
77$78,494,648$7,349,957$2,543,341$47,982,900
78$86,322,298$7,531,301$2,449,739$52,519,997
79$94,942,736$7,715,898$2,347,368$57,511,298
80$104,436,649$7,903,731$2,235,759$63,002,966
81$114,892,948$8,094,775$2,114,418$69,045,871
82$126,409,608$8,288,998$1,982,830$75,696,070
83$139,094,592$8,486,362$1,840,459$83,015,339
84$153,066,866$8,686,820$1,686,740$91,071,754
85$168,457,528$8,890,316$1,521,088$99,940,335
86$185,411,040$9,096,786$1,342,888$109,703,751
87$204,086,592$9,306,154$1,151,501$120,453,108
88$224,659,604$9,518,335$946,256$132,288,800
89$247,323,383$9,733,233$726,454$145,321,466
90$272,290,945$9,950,738$491,368$159,673,028
91$299,797,027$10,170,730$240,234$175,477,846
92$330,100,300$10,393,072$0$192,883,988
93$363,485,811$10,617,613$0$212,058,772
94$400,267,677$10,844,189$0$233,216,432
95$440,792,041$11,072,616$0$256,519,334
96$485,440,349$11,302,693$0$282,185,988
97$534,632,940$11,534,201$0$310,457,188
98$588,833,022$11,766,899$0$341,598,284
99$648,551,040$12,000,527$0$375,901,686
100$714,349,493$12,234,799$0$413,689,628