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%14.6%
1 years$216,357$214,430$212,550$210,714$208,922$204,956
2 years$107,108$105,113$103,179$101,305$99,487$95,506
3 years$70,696$68,692$66,764$64,907$63,119$59,247
4 years$52,493$50,496$48,587$46,762$45,017$41,285
5 years$41,575$39,590$37,706$35,918$34,221$30,640
6 years$34,298$32,328$30,472$28,724$27,078$23,651
7 years$29,103$27,149$25,322$23,615$22,022$18,750
8 years$25,208$23,272$21,475$19,810$18,269$15,152
9 years$22,180$20,262$18,497$16,874$15,385$12,420
10 years$19,759$17,860$16,126$14,546$13,109$10,294
11 years$17,780$15,900$14,197$12,659$11,274$8,605
12 years$16,132$14,271$12,599$11,104$9,770$7,243
13 years$14,738$12,897$11,257$9,803$8,520$6,131
14 years$13,544$11,723$10,114$8,702$7,468$5,214
15 years$12,511$10,709$9,132$7,761$6,576$4,451
16 years$11,608$9,825$8,279$6,949$5,812$3,812
17 years$10,811$9,049$7,534$6,243$5,153$3,273
18 years$10,104$8,361$6,877$5,627$4,582$2,817
19 years$9,472$7,749$6,296$5,084$4,084$2,429
20 years$8,905$7,201$5,778$4,605$3,648$2,098
21 years$8,391$6,707$5,315$4,179$3,264$1,814
22 years$7,925$6,261$4,898$3,800$2,926$1,571
23 years$7,501$5,856$4,523$3,460$2,627$1,362
24 years$7,112$5,487$4,183$3,156$2,361$1,181
25 years$6,755$5,149$3,874$2,882$2,124$1,026
26 years$6,426$4,839$3,593$2,635$1,914$891
27 years$6,121$4,554$3,336$2,412$1,725$775
28 years$5,839$4,291$3,102$2,210$1,557$674
29 years$5,577$4,048$2,886$2,027$1,406$586
30 years$5,333$3,823$2,689$1,860$1,270$510
31 years$5,105$3,614$2,506$1,708$1,148$444
32 years$4,892$3,420$2,339$1,570$1,039$387
33 years$4,692$3,239$2,184$1,444$940$337
34 years$4,504$3,070$2,040$1,328$851$294
35 years$4,328$2,911$1,907$1,223$771$256
36 years$4,161$2,763$1,784$1,126$698$223
37 years$4,004$2,625$1,670$1,038$633$195
38 years$3,856$2,494$1,564$956$574$170
39 years$3,715$2,372$1,465$882$520$148
40 years$3,582$2,257$1,373$813$472$129
41 years$3,456$2,148$1,288$750$428$112
42 years$3,336$2,046$1,208$693$389$98
43 years$3,222$1,949$1,134$639$353$86
44 years$3,113$1,858$1,064$590$320$75
45 years$3,009$1,772$999$545$291$65
46 years$2,911$1,690$938$504$264$57
47 years$2,817$1,613$882$465$240$50
48 years$2,726$1,540$828$430$218$43
49 years$2,640$1,470$779$397$198$38
50 years$2,558$1,405$732$367$180$33

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 $5,738 every year, while hoping to spend $32,647 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: 49/37/14 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,893,159$2,754,299$2,713,689$3,023,487
41$3,153,525$2,854,523$2,769,861$3,214,066
42$3,439,354$2,958,565$2,826,821$3,417,111
43$3,753,209$3,066,575$2,884,561$3,636,945
44$4,097,913$3,178,714$2,943,070$3,875,154
45$4,476,576$3,295,147$3,002,339$4,133,478
46$4,892,624$3,416,046$3,062,355$4,413,834
47$5,349,831$3,541,592$3,123,103$4,718,328
48$5,852,356$3,671,972$3,184,568$5,049,275
49$6,404,778$3,807,380$3,246,733$5,409,221
50$7,012,145$3,948,022$3,309,579$5,800,970
51$7,680,017$4,094,108$3,373,083$6,227,601
52$8,414,520$4,245,860$3,437,222$6,692,507
53$9,222,403$4,403,510$3,501,971$7,199,417
54$10,111,103$4,567,296$3,567,302$7,752,435
55$11,088,812$4,737,471$3,633,183$8,356,080
56$12,164,559$4,914,295$3,699,583$9,015,323
57$13,348,289$5,098,041$3,766,465$9,735,635
58$14,650,963$5,288,993$3,833,789$10,523,039
59$16,084,656$5,487,448$3,901,516$11,384,165
60$17,662,673$5,693,715$3,969,599$12,326,312
61$19,399,676$5,908,117$4,037,990$13,357,513
62$21,311,818$6,130,990$4,106,638$14,486,616
63$23,416,900$6,362,685$4,175,487$15,723,361
64$25,734,535$6,603,569$4,244,478$17,078,472
65$28,286,337$6,854,022$4,313,547$18,563,758
66$31,096,119$7,114,445$4,382,626$20,192,225
67$34,190,122$7,385,252$4,451,644$21,978,192
68$37,597,264$7,666,879$4,520,522$23,937,433
69$41,349,406$7,959,777$4,589,181$26,087,315
70$45,481,659$8,264,419$4,657,532$28,446,969
71$50,032,711$8,581,299$4,725,483$31,037,465
72$55,045,197$8,910,933$4,792,936$33,882,010
73$60,566,095$9,253,856$4,859,787$37,006,164
74$66,647,172$9,610,630$4,925,926$40,438,083
75$73,345,475$9,981,842$4,991,235$44,208,782
76$80,723,863$10,368,102$5,055,591$48,352,424
77$88,851,607$10,770,049$5,118,863$52,906,642
78$97,805,039$11,188,350$5,180,914$57,912,892
79$107,668,274$11,623,700$5,241,595$63,416,846
80$118,534,004$12,076,827$5,300,754$69,468,813
81$130,504,370$12,548,489$5,358,227$76,124,220
82$143,691,930$13,039,480$5,413,842$83,444,130
83$158,220,720$13,550,626$5,467,418$91,495,812
84$174,227,420$14,082,794$5,518,764$100,353,383
85$191,862,651$14,636,886$5,567,677$110,098,494
86$211,292,394$15,213,845$5,613,946$120,821,108
87$232,699,552$15,814,657$5,657,347$132,620,340
88$256,285,683$16,440,352$5,697,645$145,605,393
89$282,272,899$17,092,006$5,734,593$159,896,584
90$310,905,963$17,770,742$5,767,930$175,626,481
91$342,454,598$18,477,735$5,797,382$192,941,143
92$377,216,034$19,214,212$5,822,662$212,001,506
93$415,517,816$19,981,455$5,843,468$232,984,890
94$457,720,891$20,780,804$5,859,481$256,086,674
95$504,223,017$21,613,659$5,870,369$281,522,135
96$555,462,520$22,481,483$5,875,782$309,528,479
97$611,922,428$23,385,807$5,875,352$340,367,072
98$674,135,033$24,328,228$5,868,693$374,325,905
99$742,686,914$25,310,419$5,855,402$411,722,311
100$818,224,475$26,334,125$5,835,053$452,905,951