Can I retire at age 40 with 2,700,000?

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 $2,700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$222,963$220,977$219,040$217,149$215,302$210,869
2 years$110,378$108,322$106,330$104,398$102,525$98,078
3 years$72,854$70,790$68,803$66,889$65,046$60,725
4 years$54,096$52,038$50,071$48,190$46,391$42,230
5 years$42,844$40,798$38,857$37,014$35,266$31,275
6 years$35,345$33,315$31,402$29,601$27,905$24,089
7 years$29,991$27,978$26,095$24,336$22,694$19,054
8 years$25,977$23,982$22,131$20,415$18,827$15,362
9 years$22,857$20,881$19,061$17,389$15,855$12,562
10 years$20,362$18,405$16,618$14,990$13,509$10,386
11 years$18,323$16,385$14,630$13,045$11,618$8,660
12 years$16,624$14,707$12,984$11,443$10,068$7,271
13 years$15,188$13,290$11,600$10,102$8,780$6,138
14 years$13,958$12,081$10,423$8,968$7,696$5,206
15 years$12,893$11,036$9,411$7,997$6,776$4,432
16 years$11,962$10,125$8,532$7,161$5,989$3,785
17 years$11,141$9,325$7,764$6,434$5,310$3,240
18 years$10,413$8,617$7,087$5,798$4,722$2,781
19 years$9,762$7,986$6,488$5,239$4,208$2,390
20 years$9,176$7,421$5,954$4,745$3,759$2,058
21 years$8,648$6,912$5,477$4,307$3,364$1,775
22 years$8,167$6,452$5,048$3,916$3,015$1,532
23 years$7,730$6,035$4,661$3,566$2,707$1,324
24 years$7,329$5,654$4,310$3,252$2,433$1,145
25 years$6,961$5,306$3,992$2,970$2,189$991
26 years$6,622$4,987$3,703$2,716$1,972$858
27 years$6,308$4,693$3,438$2,486$1,778$744
28 years$6,018$4,422$3,196$2,278$1,604$645
29 years$5,748$4,172$2,974$2,089$1,449$559
30 years$5,496$3,940$2,771$1,917$1,309$485
31 years$5,261$3,725$2,583$1,760$1,183$421
32 years$5,041$3,524$2,410$1,618$1,070$365
33 years$4,835$3,338$2,250$1,488$969$317
34 years$4,642$3,163$2,102$1,369$877$276
35 years$4,460$3,000$1,966$1,260$794$239
36 years$4,288$2,848$1,839$1,161$720$208
37 years$4,126$2,705$1,721$1,069$652$181
38 years$3,973$2,570$1,612$986$591$157
39 years$3,829$2,444$1,510$909$536$136
40 years$3,691$2,325$1,415$838$486$119
41 years$3,561$2,214$1,327$773$441$103
42 years$3,437$2,108$1,245$714$400$90
43 years$3,320$2,009$1,168$659$363$78
44 years$3,208$1,915$1,097$608$330$68
45 years$3,101$1,826$1,030$562$299$59
46 years$3,000$1,742$967$519$272$51
47 years$2,903$1,662$909$479$247$44
48 years$2,810$1,587$854$443$224$39
49 years$2,721$1,515$802$409$204$34
50 years$2,636$1,447$754$378$185$29

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,700,000, adding $2,463 every year, while hoping to spend $22,439 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: 59/17/24 Blend
39$2,700,000$2,700,000$2,700,000$2,700,000
40$2,977,941$2,834,841$2,792,991$3,134,313
41$3,257,816$2,949,873$2,862,681$3,356,104
42$3,565,486$3,069,790$2,933,954$3,595,266
43$3,903,763$3,194,807$3,006,838$3,855,639
44$4,275,744$3,325,149$3,081,365$4,139,284
45$4,684,841$3,461,053$3,157,562$4,448,470
46$5,134,815$3,602,765$3,235,461$4,785,693
47$5,629,808$3,750,543$3,315,091$5,153,700
48$6,174,385$3,904,655$3,396,482$5,555,513
49$6,773,574$4,065,385$3,479,666$5,994,461
50$7,432,917$4,233,027$3,564,673$6,474,207
51$8,158,518$4,407,889$3,651,533$6,998,783
52$8,957,105$4,590,294$3,740,278$7,572,627
53$9,836,090$4,780,579$3,830,938$8,200,627
54$10,803,640$4,979,097$3,923,543$8,888,164
55$11,868,756$5,186,216$4,018,126$9,641,163
56$13,041,351$5,402,323$4,114,716$10,466,147
57$14,332,354$5,627,823$4,213,344$11,370,300
58$15,753,805$5,863,136$4,314,041$12,361,533
59$17,318,968$6,108,705$4,416,837$13,448,559
60$19,042,465$6,364,993$4,521,763$14,640,972
61$20,940,402$6,632,484$4,628,848$15,949,339
62$23,030,530$6,911,683$4,738,121$17,385,299
63$25,332,409$7,203,120$4,849,613$18,961,672
64$27,867,592$7,507,350$4,963,352$20,692,576
65$30,659,828$7,824,952$5,079,367$22,593,564
66$33,735,290$8,156,534$5,197,685$24,681,768
67$37,122,816$8,502,730$5,318,333$26,976,057
68$40,854,184$8,864,206$5,441,339$29,497,219
69$44,964,415$9,241,656$5,566,728$32,268,155
70$49,492,098$9,635,809$5,694,525$35,314,088
71$54,479,755$10,047,427$5,824,755$38,662,811
72$59,974,246$10,477,307$5,957,441$42,344,937
73$66,027,209$10,926,285$6,092,604$46,394,195
74$72,695,545$11,395,233$6,230,267$50,847,742
75$80,041,958$11,885,067$6,370,449$55,746,516
76$88,135,546$12,396,744$6,513,168$61,135,618
77$97,052,454$12,931,267$6,658,441$67,064,739
78$106,876,589$13,489,684$6,806,284$73,588,625
79$117,700,417$14,073,094$6,956,710$80,767,594
80$129,625,832$14,682,648$7,109,732$88,668,104
81$142,765,118$15,319,549$7,265,359$97,363,378
82$157,242,011$15,985,058$7,423,599$106,934,094
83$173,192,865$16,680,494$7,584,459$117,469,142
84$190,767,939$17,407,240$7,747,940$129,066,466
85$210,132,817$18,166,743$7,914,044$141,833,983
86$231,469,968$18,960,518$8,082,769$155,890,602
87$254,980,473$19,790,151$8,254,109$171,367,342
88$280,885,917$20,657,304$8,428,058$188,408,569
89$309,430,485$21,563,717$8,604,603$207,173,355
90$340,883,267$22,511,212$8,783,729$227,836,977
91$375,540,796$23,501,696$8,965,419$250,592,571
92$413,729,846$24,537,168$9,149,650$275,652,952
93$455,810,522$25,619,721$9,336,395$303,252,618
94$502,179,654$26,751,547$9,525,623$333,649,963
95$553,274,546$27,934,940$9,717,299$367,129,716
96$609,577,103$29,172,305$9,911,382$404,005,619
97$671,618,380$30,466,161$10,107,826$444,623,393
98$739,983,597$31,819,144$10,306,580$489,363,993
99$815,317,660$33,234,019$10,507,586$538,647,204
100$898,331,253$34,713,677$10,710,782$592,935,598