Can I retire at age 40 with 2,720,000?

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 $2,720,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.4%
1 years$224,615$222,614$220,662$218,757$216,897$215,620
2 years$111,196$109,125$107,118$105,172$103,284$101,996
3 years$73,394$71,314$69,312$67,384$65,528$64,268
4 years$54,497$52,423$50,442$48,547$46,735$45,514
5 years$43,162$41,101$39,145$37,289$35,527$34,348
6 years$35,607$33,562$31,635$29,820$28,111$26,976
7 years$30,213$28,185$26,289$24,517$22,862$21,770
8 years$26,170$24,160$22,295$20,566$18,966$17,918
9 years$23,027$21,035$19,203$17,518$15,972$14,968
10 years$20,513$18,542$16,741$15,101$13,609$12,648
11 years$18,458$16,507$14,739$13,142$11,704$10,786
12 years$16,747$14,815$13,080$11,527$10,143$9,266
13 years$15,300$13,389$11,686$10,177$8,845$8,009
14 years$14,061$12,170$10,500$9,034$7,753$6,957
15 years$12,988$11,118$9,480$8,057$6,827$6,070
16 years$12,051$10,200$8,595$7,214$6,033$5,314
17 years$11,224$9,394$7,821$6,482$5,350$4,667
18 years$10,490$8,680$7,140$5,841$4,757$4,110
19 years$9,834$8,045$6,536$5,278$4,240$3,627
20 years$9,244$7,476$5,999$4,780$3,787$3,207
21 years$8,712$6,963$5,518$4,338$3,389$2,841
22 years$8,228$6,500$5,085$3,945$3,038$2,521
23 years$7,787$6,079$4,695$3,592$2,727$2,239
24 years$7,383$5,696$4,342$3,277$2,451$1,992
25 years$7,013$5,345$4,022$2,992$2,205$1,773
26 years$6,671$5,024$3,730$2,736$1,987$1,580
27 years$6,355$4,728$3,464$2,504$1,791$1,409
28 years$6,062$4,455$3,220$2,295$1,616$1,257
29 years$5,790$4,203$2,997$2,104$1,459$1,123
30 years$5,537$3,969$2,791$1,931$1,319$1,003
31 years$5,300$3,752$2,602$1,774$1,192$897
32 years$5,079$3,550$2,428$1,630$1,078$802
33 years$4,871$3,362$2,267$1,499$976$718
34 years$4,676$3,187$2,118$1,379$884$642
35 years$4,493$3,023$1,980$1,270$800$575
36 years$4,320$2,869$1,852$1,169$725$515
37 years$4,157$2,725$1,734$1,077$657$461
38 years$4,003$2,589$1,624$993$596$413
39 years$3,857$2,462$1,521$916$540$370
40 years$3,719$2,343$1,426$844$490$332
41 years$3,588$2,230$1,337$779$445$298
42 years$3,463$2,124$1,254$719$403$267
43 years$3,345$2,024$1,177$664$366$239
44 years$3,232$1,929$1,105$613$332$214
45 years$3,124$1,839$1,037$566$302$192
46 years$3,022$1,755$974$523$274$173
47 years$2,924$1,674$915$483$249$155
48 years$2,831$1,599$860$446$226$139
49 years$2,741$1,526$808$412$205$125
50 years$2,656$1,458$760$381$186$112

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,720,000, adding $3,425 every year, while hoping to spend $59,452 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: 45/27/28 Blend
39$2,720,000$2,720,000$2,720,000$2,720,000
40$3,000,973$2,856,813$2,814,653$3,111,580
41$3,243,816$2,933,540$2,845,687$3,267,293
42$3,509,436$3,012,035$2,875,769$3,430,088
43$3,800,094$3,092,320$2,904,803$3,605,507
44$4,118,279$3,174,419$2,932,689$3,794,763
45$4,466,732$3,258,354$2,959,323$3,999,191
46$4,848,472$3,344,147$2,984,593$4,220,262
47$5,266,822$3,431,816$3,008,383$4,459,596
48$5,725,444$3,521,381$3,030,570$4,718,979
49$6,228,369$3,612,859$3,051,024$5,000,378
50$6,780,039$3,706,265$3,069,610$5,305,960
51$7,385,346$3,801,615$3,086,184$5,638,114
52$8,049,676$3,898,919$3,100,597$5,999,472
53$8,778,966$3,998,189$3,112,689$6,392,934
54$9,579,752$4,099,432$3,122,296$6,821,697
55$10,459,236$4,202,654$3,129,243$7,289,283
56$11,425,352$4,307,857$3,133,346$7,799,575
57$12,486,839$4,415,043$3,134,414$8,356,851
58$13,653,324$4,524,208$3,132,244$8,965,826
59$14,935,415$4,635,346$3,126,626$9,631,698
60$16,344,797$4,748,448$3,117,338$10,360,195
61$17,894,344$4,863,499$3,104,147$11,157,630
62$19,598,240$4,980,483$3,086,808$12,030,962
63$21,472,111$5,099,378$3,065,067$12,987,860
64$23,533,175$5,220,156$3,038,655$14,036,776
65$25,800,401$5,342,786$3,007,293$15,187,029
66$28,294,690$5,467,230$2,970,685$16,448,887
67$31,039,069$5,593,445$2,928,524$17,833,669
68$34,058,913$5,721,383$2,880,488$19,353,850
69$37,382,176$5,850,985$2,826,239$21,023,180
70$41,039,665$5,982,190$2,765,424$22,856,817
71$45,065,319$6,114,925$2,697,674$24,871,463
72$49,496,537$6,249,113$2,622,602$27,085,532
73$54,374,529$6,384,664$2,539,804$29,519,317
74$59,744,699$6,521,481$2,448,856$32,195,185
75$65,657,083$6,659,457$2,349,316$35,137,790
76$72,166,809$6,798,475$2,240,723$38,374,305
77$79,334,628$6,938,405$2,122,591$41,934,678
78$87,227,479$7,079,105$1,994,417$45,851,919
79$95,919,123$7,220,423$1,855,671$50,162,410
80$105,490,840$7,362,190$1,705,802$54,906,252
81$116,032,193$7,504,224$1,544,234$60,127,640
82$127,641,874$7,646,329$1,370,364$65,875,287
83$140,428,637$7,788,290$1,183,562$72,202,880
84$154,512,319$7,929,877$983,172$79,169,593
85$170,024,975$8,070,841$768,508$86,840,643
86$187,112,123$8,210,912$538,854$95,287,909
87$205,934,114$8,349,802$293,460$104,590,612
88$226,667,651$8,487,199$31,548$114,836,064
89$249,507,448$8,622,769$0$126,120,495
90$274,668,075$8,756,152$0$138,624,042
91$302,385,978$8,886,963$0$152,404,388
92$332,921,712$9,014,789$0$167,581,189
93$366,562,402$9,139,188$0$184,296,700
94$403,624,445$9,259,687$0$202,707,688
95$444,456,507$9,375,780$0$222,986,911
96$489,442,803$9,486,926$0$245,324,746
97$539,006,731$9,592,547$0$269,930,990
98$593,614,864$9,692,028$0$297,036,840
99$653,781,354$9,784,712$0$326,897,075
100$720,072,786$9,869,896$0$359,792,464