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%18.3%
1 years$216,357$214,430$212,550$210,714$208,922$201,912
2 years$107,108$105,113$103,179$101,305$99,487$92,493
3 years$70,696$68,692$66,764$64,907$63,119$56,361
4 years$52,493$50,496$48,587$46,762$45,017$38,547
5 years$41,575$39,590$37,706$35,918$34,221$28,056
6 years$34,298$32,328$30,472$28,724$27,078$21,223
7 years$29,103$27,149$25,322$23,615$22,022$16,476
8 years$25,208$23,272$21,475$19,810$18,269$13,029
9 years$22,180$20,262$18,497$16,874$15,385$10,444
10 years$19,759$17,860$16,126$14,546$13,109$8,458
11 years$17,780$15,900$14,197$12,659$11,274$6,905
12 years$16,132$14,271$12,599$11,104$9,770$5,673
13 years$14,738$12,897$11,257$9,803$8,520$4,684
14 years$13,544$11,723$10,114$8,702$7,468$3,884
15 years$12,511$10,709$9,132$7,761$6,576$3,230
16 years$11,608$9,825$8,279$6,949$5,812$2,694
17 years$10,811$9,049$7,534$6,243$5,153$2,252
18 years$10,104$8,361$6,877$5,627$4,582$1,886
19 years$9,472$7,749$6,296$5,084$4,084$1,582
20 years$8,905$7,201$5,778$4,605$3,648$1,328
21 years$8,391$6,707$5,315$4,179$3,264$1,117
22 years$7,925$6,261$4,898$3,800$2,926$939
23 years$7,501$5,856$4,523$3,460$2,627$791
24 years$7,112$5,487$4,183$3,156$2,361$666
25 years$6,755$5,149$3,874$2,882$2,124$562
26 years$6,426$4,839$3,593$2,635$1,914$474
27 years$6,121$4,554$3,336$2,412$1,725$400
28 years$5,839$4,291$3,102$2,210$1,557$337
29 years$5,577$4,048$2,886$2,027$1,406$285
30 years$5,333$3,823$2,689$1,860$1,270$240
31 years$5,105$3,614$2,506$1,708$1,148$203
32 years$4,892$3,420$2,339$1,570$1,039$171
33 years$4,692$3,239$2,184$1,444$940$145
34 years$4,504$3,070$2,040$1,328$851$122
35 years$4,328$2,911$1,907$1,223$771$103
36 years$4,161$2,763$1,784$1,126$698$87
37 years$4,004$2,625$1,670$1,038$633$74
38 years$3,856$2,494$1,564$956$574$62
39 years$3,715$2,372$1,465$882$520$53
40 years$3,582$2,257$1,373$813$472$45
41 years$3,456$2,148$1,288$750$428$38
42 years$3,336$2,046$1,208$693$389$32
43 years$3,222$1,949$1,134$639$353$27
44 years$3,113$1,858$1,064$590$320$23
45 years$3,009$1,772$999$545$291$19
46 years$2,911$1,690$938$504$264$16
47 years$2,817$1,613$882$465$240$14
48 years$2,726$1,540$828$430$218$12
49 years$2,640$1,470$779$397$198$10
50 years$2,558$1,405$732$367$180$8

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 $3,551 every year, while hoping to spend $38,273 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: 74/20/6 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,890,903$2,752,043$2,711,433$3,102,668
41$3,145,053$2,846,171$2,761,544$3,336,652
42$3,423,843$2,943,628$2,812,050$3,587,691
43$3,729,747$3,044,538$2,862,926$3,861,590
44$4,065,488$3,149,027$2,914,141$4,160,598
45$4,434,068$3,257,229$2,965,664$4,487,185
46$4,838,790$3,369,280$3,017,461$4,844,075
47$5,283,295$3,485,324$3,069,495$5,234,264
48$5,771,595$3,605,509$3,121,727$5,661,051
49$6,308,108$3,729,989$3,174,115$6,128,071
50$6,897,702$3,858,925$3,226,615$6,639,322
51$7,545,738$3,992,483$3,279,177$7,199,210
52$8,258,125$4,130,836$3,331,751$7,812,587
53$9,041,370$4,274,164$3,384,281$8,484,793
54$9,902,646$4,422,654$3,436,711$9,221,713
55$10,849,852$4,576,501$3,488,977$10,029,826
56$11,891,693$4,735,905$3,541,014$10,916,269
57$13,037,760$4,901,078$3,592,751$11,888,903
58$14,298,618$5,072,237$3,644,115$12,956,386
59$15,685,910$5,249,610$3,695,026$14,128,255
60$17,212,464$5,433,433$3,745,401$15,415,015
61$18,892,415$5,623,950$3,795,151$16,828,238
62$20,741,335$5,821,417$3,844,182$18,380,673
63$22,776,384$6,026,100$3,892,396$20,086,362
64$25,016,471$6,238,275$3,939,687$21,960,776
65$27,482,429$6,458,228$3,985,944$24,020,959
66$30,197,215$6,686,259$4,031,051$26,285,686
67$33,186,123$6,922,679$4,074,884$28,775,643
68$36,477,027$7,167,809$4,117,312$31,513,619
69$40,100,640$7,421,988$4,158,198$34,524,724
70$44,090,804$7,685,564$4,197,396$37,836,619
71$48,484,812$7,958,902$4,234,755$41,479,782
72$53,323,756$8,242,382$4,270,112$45,487,795
73$58,652,917$8,536,397$4,303,299$49,897,654
74$64,522,192$8,841,358$4,334,137$54,750,126
75$70,986,564$9,157,692$4,362,439$60,090,125
76$78,106,619$9,485,845$4,388,006$65,967,142
77$85,949,122$9,826,279$4,410,632$72,435,704
78$94,587,643$10,179,477$4,430,099$79,555,894
79$104,103,252$10,545,940$4,446,176$87,393,916
80$114,585,284$10,926,192$4,458,623$96,022,717
81$126,132,183$11,320,776$4,467,188$105,522,673
82$138,852,432$11,730,260$4,471,604$115,982,351
83$152,865,571$12,155,233$4,471,594$127,499,344
84$168,303,330$12,596,311$4,466,864$140,181,185
85$185,310,874$13,054,135$4,457,108$154,146,368
86$204,048,167$13,529,370$4,442,004$169,525,461
87$224,691,483$14,022,714$4,421,215$186,462,340
88$247,435,077$14,534,888$4,394,388$205,115,542
89$272,493,005$15,066,649$4,361,151$225,659,765
90$300,101,159$15,618,782$4,321,117$248,287,514
91$330,519,481$16,192,106$4,273,878$273,210,913
92$364,034,424$16,787,475$4,219,009$300,663,712
93$400,961,653$17,405,779$4,156,063$330,903,490
94$441,649,024$18,047,945$4,084,574$364,214,083
95$486,479,870$18,714,939$4,004,052$400,908,262
96$535,876,615$19,407,769$3,913,986$441,330,689
97$590,304,765$20,127,486$3,813,841$485,861,160
98$650,277,303$20,875,184$3,703,056$534,918,198
99$716,359,525$21,652,005$3,581,045$588,962,995
100$789,174,382$22,459,139$3,447,196$648,503,769