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%19.4%
1 years$216,357$214,430$212,550$210,714$208,922$201,030
2 years$107,108$105,113$103,179$101,305$99,487$91,627
3 years$70,696$68,692$66,764$64,907$63,119$55,539
4 years$52,493$50,496$48,587$46,762$45,017$37,775
5 years$41,575$39,590$37,706$35,918$34,221$27,335
6 years$34,298$32,328$30,472$28,724$27,078$20,553
7 years$29,103$27,149$25,322$23,615$22,022$15,856
8 years$25,208$23,272$21,475$19,810$18,269$12,457
9 years$22,180$20,262$18,497$16,874$15,385$9,918
10 years$19,759$17,860$16,126$14,546$13,109$7,977
11 years$17,780$15,900$14,197$12,659$11,274$6,466
12 years$16,132$14,271$12,599$11,104$9,770$5,273
13 years$14,738$12,897$11,257$9,803$8,520$4,322
14 years$13,544$11,723$10,114$8,702$7,468$3,555
15 years$12,511$10,709$9,132$7,761$6,576$2,934
16 years$11,608$9,825$8,279$6,949$5,812$2,428
17 years$10,811$9,049$7,534$6,243$5,153$2,013
18 years$10,104$8,361$6,877$5,627$4,582$1,672
19 years$9,472$7,749$6,296$5,084$4,084$1,391
20 years$8,905$7,201$5,778$4,605$3,648$1,158
21 years$8,391$6,707$5,315$4,179$3,264$965
22 years$7,925$6,261$4,898$3,800$2,926$805
23 years$7,501$5,856$4,523$3,460$2,627$672
24 years$7,112$5,487$4,183$3,156$2,361$561
25 years$6,755$5,149$3,874$2,882$2,124$469
26 years$6,426$4,839$3,593$2,635$1,914$392
27 years$6,121$4,554$3,336$2,412$1,725$328
28 years$5,839$4,291$3,102$2,210$1,557$274
29 years$5,577$4,048$2,886$2,027$1,406$229
30 years$5,333$3,823$2,689$1,860$1,270$192
31 years$5,105$3,614$2,506$1,708$1,148$161
32 years$4,892$3,420$2,339$1,570$1,039$134
33 years$4,692$3,239$2,184$1,444$940$113
34 years$4,504$3,070$2,040$1,328$851$94
35 years$4,328$2,911$1,907$1,223$771$79
36 years$4,161$2,763$1,784$1,126$698$66
37 years$4,004$2,625$1,670$1,038$633$55
38 years$3,856$2,494$1,564$956$574$46
39 years$3,715$2,372$1,465$882$520$39
40 years$3,582$2,257$1,373$813$472$32
41 years$3,456$2,148$1,288$750$428$27
42 years$3,336$2,046$1,208$693$389$23
43 years$3,222$1,949$1,134$639$353$19
44 years$3,113$1,858$1,064$590$320$16
45 years$3,009$1,772$999$545$291$13
46 years$2,911$1,690$938$504$264$11
47 years$2,817$1,613$882$465$240$9
48 years$2,726$1,540$828$430$218$8
49 years$2,640$1,470$779$397$198$7
50 years$2,558$1,405$732$367$180$6

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 $3,786 every year, while hoping to spend $52,040 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: 54/23/23 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,891,145$2,752,285$2,711,675$3,028,796
41$3,130,672$2,831,777$2,747,146$3,203,334
42$3,392,886$2,913,420$2,782,061$3,387,499
43$3,680,047$2,997,264$2,816,347$3,586,895
44$3,994,643$3,083,361$2,849,925$3,802,996
45$4,339,413$3,171,762$2,882,714$4,037,426
46$4,717,375$3,262,520$2,914,627$4,291,974
47$5,131,853$3,355,689$2,945,573$4,568,606
48$5,586,506$3,451,322$2,975,454$4,869,493
49$6,085,367$3,549,475$3,004,169$5,197,023
50$6,632,877$3,650,201$3,031,611$5,553,826
51$7,233,926$3,753,557$3,057,666$5,942,799
52$7,893,905$3,859,599$3,082,216$6,367,136
53$8,618,748$3,968,384$3,105,135$6,830,352
54$9,414,994$4,079,969$3,126,291$7,336,320
55$10,289,847$4,194,412$3,145,545$7,889,310
56$11,251,243$4,311,769$3,162,753$8,494,022
57$12,307,924$4,432,100$3,177,759$9,155,636
58$13,469,521$4,555,462$3,190,403$9,879,861
59$14,746,647$4,681,914$3,200,516$10,672,984
60$16,150,991$4,811,514$3,207,919$11,541,936
61$17,695,434$4,944,320$3,212,426$12,494,349
62$19,394,167$5,080,390$3,213,841$13,538,637
63$21,262,825$5,219,783$3,211,958$14,684,070
64$23,318,636$5,362,555$3,206,562$15,940,861
65$25,580,580$5,508,763$3,197,425$17,320,266
66$28,069,571$5,658,464$3,184,310$18,834,688
67$30,808,652$5,811,714$3,166,969$20,497,793
68$33,823,212$5,968,566$3,145,141$22,324,642
69$37,141,228$6,129,074$3,118,551$24,331,831
70$40,793,526$6,293,291$3,086,915$26,537,648
71$44,814,070$6,461,267$3,049,931$28,962,247
72$49,240,287$6,633,051$3,007,286$31,627,838
73$54,113,417$6,808,691$2,958,651$34,558,893
74$59,478,901$6,988,232$2,903,680$37,782,385
75$65,386,810$7,171,716$2,842,015$41,328,034
76$71,892,319$7,359,185$2,773,277$45,228,595
77$79,056,226$7,550,676$2,697,072$49,520,162
78$86,945,525$7,746,222$2,612,988$54,242,512
79$95,634,037$7,945,856$2,520,592$59,439,481
80$105,203,110$8,149,604$2,419,432$65,159,377
81$115,742,381$8,357,489$2,309,038$71,455,435
82$127,350,628$8,569,530$2,188,915$78,386,322
83$140,136,696$8,785,740$2,058,547$86,016,692
84$154,220,526$9,006,129$1,917,395$94,417,794
85$169,734,288$9,230,698$1,764,897$103,668,145
86$186,823,627$9,459,443$1,600,462$113,854,277
87$205,649,036$9,692,355$1,423,477$125,071,548
88$226,387,373$9,929,416$1,233,299$137,425,045
89$249,233,528$10,170,600$1,029,257$151,030,578
90$274,402,262$10,415,874$810,651$166,015,774
91$302,130,235$10,665,193$576,750$182,521,280
92$332,678,237$10,918,506$326,789$200,702,095
93$366,333,653$11,175,749$59,973$220,729,029
94$403,413,173$11,436,847$0$242,790,324
95$444,265,777$11,701,714$0$267,148,587
96$489,276,039$11,970,250$0$293,996,559
97$538,867,744$12,242,342$0$323,571,667
98$593,507,898$12,517,860$0$356,151,783
99$653,711,130$12,796,662$0$392,043,117
100$720,044,553$13,078,586$0$431,583,105