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

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 $2,720,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.5%
1 years$224,615$222,614$220,662$218,757$216,897$211,139
2 years$111,196$109,125$107,118$105,172$103,284$97,524
3 years$73,394$71,314$69,312$67,384$65,528$59,945
4 years$54,497$52,423$50,442$48,547$46,735$41,372
5 years$43,162$41,101$39,145$37,289$35,527$30,400
6 years$35,607$33,562$31,635$29,820$28,111$23,224
7 years$30,213$28,185$26,289$24,517$22,862$18,215
8 years$26,170$24,160$22,295$20,566$18,966$14,557
9 years$23,027$21,035$19,203$17,518$15,972$11,797
10 years$20,513$18,542$16,741$15,101$13,609$9,663
11 years$18,458$16,507$14,739$13,142$11,704$7,981
12 years$16,747$14,815$13,080$11,527$10,143$6,635
13 years$15,300$13,389$11,686$10,177$8,845$5,546
14 years$14,061$12,170$10,500$9,034$7,753$4,655
15 years$12,988$11,118$9,480$8,057$6,827$3,922
16 years$12,051$10,200$8,595$7,214$6,033$3,314
17 years$11,224$9,394$7,821$6,482$5,350$2,806
18 years$10,490$8,680$7,140$5,841$4,757$2,382
19 years$9,834$8,045$6,536$5,278$4,240$2,025
20 years$9,244$7,476$5,999$4,780$3,787$1,724
21 years$8,712$6,963$5,518$4,338$3,389$1,469
22 years$8,228$6,500$5,085$3,945$3,038$1,254
23 years$7,787$6,079$4,695$3,592$2,727$1,071
24 years$7,383$5,696$4,342$3,277$2,451$915
25 years$7,013$5,345$4,022$2,992$2,205$783
26 years$6,671$5,024$3,730$2,736$1,987$670
27 years$6,355$4,728$3,464$2,504$1,791$573
28 years$6,062$4,455$3,220$2,295$1,616$491
29 years$5,790$4,203$2,997$2,104$1,459$421
30 years$5,537$3,969$2,791$1,931$1,319$360
31 years$5,300$3,752$2,602$1,774$1,192$309
32 years$5,079$3,550$2,428$1,630$1,078$265
33 years$4,871$3,362$2,267$1,499$976$227
34 years$4,676$3,187$2,118$1,379$884$195
35 years$4,493$3,023$1,980$1,270$800$167
36 years$4,320$2,869$1,852$1,169$725$143
37 years$4,157$2,725$1,734$1,077$657$123
38 years$4,003$2,589$1,624$993$596$105
39 years$3,857$2,462$1,521$916$540$90
40 years$3,719$2,343$1,426$844$490$78
41 years$3,588$2,230$1,337$779$445$67
42 years$3,463$2,124$1,254$719$403$57
43 years$3,345$2,024$1,177$664$366$49
44 years$3,232$1,929$1,105$613$332$42
45 years$3,124$1,839$1,037$566$302$36
46 years$3,022$1,755$974$523$274$31
47 years$2,924$1,674$915$483$249$27
48 years$2,831$1,599$860$446$226$23
49 years$2,741$1,526$808$412$205$20
50 years$2,656$1,458$760$381$186$17

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 $3,918 every year, while hoping to spend $59,980 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: 49/22/29 Blend
39$2,720,000$2,720,000$2,720,000$2,720,000
40$3,001,481$2,857,321$2,815,161$3,123,614
41$3,243,814$2,933,512$2,845,651$3,285,973
42$3,508,855$3,011,425$2,875,152$3,456,054
43$3,798,856$3,091,083$2,903,567$3,639,694
44$4,116,298$3,172,505$2,930,796$3,838,209
45$4,463,913$3,255,711$2,956,730$4,053,045
46$4,844,709$3,340,717$2,981,257$4,285,796
47$5,261,999$3,427,542$3,004,259$4,538,221
48$5,719,431$3,516,199$3,025,610$4,812,255
49$6,221,023$3,606,703$3,045,178$5,110,033
50$6,771,201$3,699,066$3,062,825$5,433,904
51$7,374,840$3,793,296$3,078,406$5,786,461
52$8,037,309$3,889,403$3,091,768$6,170,558
53$8,764,522$3,987,391$3,102,750$6,589,343
54$9,562,994$4,087,264$3,111,183$7,046,283
55$10,439,902$4,189,023$3,116,889$7,545,202
56$11,403,151$4,292,664$3,119,684$8,090,312
57$12,461,450$4,398,182$3,119,372$8,686,256
58$13,624,394$4,505,569$3,115,747$9,338,152
59$14,902,552$4,614,812$3,108,594$10,051,639
60$16,307,570$4,725,895$3,097,689$10,832,935
61$17,852,275$4,838,797$3,082,795$11,688,892
62$19,550,802$4,953,493$3,063,664$12,627,062
63$21,418,723$5,069,954$3,040,036$13,655,769
64$23,473,195$5,188,143$3,011,639$14,784,187
65$25,733,121$5,308,022$2,978,189$16,022,431
66$28,219,327$5,429,543$2,939,386$17,381,646
67$30,954,761$5,552,654$2,894,918$18,874,117
68$33,964,707$5,677,294$2,844,458$20,513,386
69$37,277,023$5,803,397$2,787,664$22,314,378
70$40,922,405$5,930,889$2,724,176$24,293,543
71$44,934,674$6,059,687$2,653,620$26,469,013
72$49,351,097$6,189,698$2,575,602$28,860,774
73$54,212,738$6,320,822$2,489,714$31,490,852
74$59,564,843$6,452,948$2,395,525$34,383,526
75$65,457,268$6,585,953$2,292,586$37,565,555
76$71,944,950$6,719,706$2,180,429$41,066,432
77$79,088,424$6,854,060$2,058,562$44,918,665
78$86,954,392$6,988,858$1,926,472$49,158,083
79$95,616,356$7,123,928$1,783,625$53,824,174
80$105,155,307$7,259,083$1,629,459$58,960,463
81$115,660,493$7,394,123$1,463,391$64,614,920
82$127,230,258$7,528,829$1,284,809$70,840,415
83$139,972,969$7,662,967$1,093,074$77,695,220
84$154,008,040$7,796,281$887,521$85,243,558
85$169,467,061$7,928,500$667,454$93,556,214
86$186,495,034$8,059,328$432,146$102,711,200
87$205,251,743$8,188,451$180,838$112,794,498
88$225,913,264$8,315,528$0$123,900,870
89$248,673,624$8,440,196$0$136,161,785
90$273,746,633$8,562,065$0$149,726,791
91$301,367,900$8,680,717$0$164,666,999
92$331,797,059$8,795,705$0$181,122,500
93$365,320,215$8,906,551$0$199,247,674
94$402,252,649$9,012,744$0$219,212,645
95$442,941,789$9,113,738$0$241,204,890
96$487,770,491$9,208,951$0$265,431,006
97$537,160,653$9,297,761$0$292,118,664
98$591,577,195$9,379,507$0$321,518,756
99$651,532,448$9,453,482$0$353,907,766
100$717,590,990$9,518,935$0$389,590,378