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%14.5%
1 years$224,615$222,614$220,662$218,757$216,897$212,866
2 years$111,196$109,125$107,118$105,172$103,284$99,238
3 years$73,394$71,314$69,312$67,384$65,528$61,593
4 years$54,497$52,423$50,442$48,547$46,735$42,941
5 years$43,162$41,101$39,145$37,289$35,527$31,886
6 years$35,607$33,562$31,635$29,820$28,111$24,626
7 years$30,213$28,185$26,289$24,517$22,862$19,534
8 years$26,170$24,160$22,295$20,566$18,966$15,794
9 years$23,027$21,035$19,203$17,518$15,972$12,955
10 years$20,513$18,542$16,741$15,101$13,609$10,743
11 years$18,458$16,507$14,739$13,142$11,704$8,986
12 years$16,747$14,815$13,080$11,527$10,143$7,569
13 years$15,300$13,389$11,686$10,177$8,845$6,412
14 years$14,061$12,170$10,500$9,034$7,753$5,456
15 years$12,988$11,118$9,480$8,057$6,827$4,661
16 years$12,051$10,200$8,595$7,214$6,033$3,994
17 years$11,224$9,394$7,821$6,482$5,350$3,432
18 years$10,490$8,680$7,140$5,841$4,757$2,956
19 years$9,834$8,045$6,536$5,278$4,240$2,551
20 years$9,244$7,476$5,999$4,780$3,787$2,205
21 years$8,712$6,963$5,518$4,338$3,389$1,908
22 years$8,228$6,500$5,085$3,945$3,038$1,654
23 years$7,787$6,079$4,695$3,592$2,727$1,434
24 years$7,383$5,696$4,342$3,277$2,451$1,245
25 years$7,013$5,345$4,022$2,992$2,205$1,082
26 years$6,671$5,024$3,730$2,736$1,987$941
27 years$6,355$4,728$3,464$2,504$1,791$819
28 years$6,062$4,455$3,220$2,295$1,616$713
29 years$5,790$4,203$2,997$2,104$1,459$621
30 years$5,537$3,969$2,791$1,931$1,319$541
31 years$5,300$3,752$2,602$1,774$1,192$471
32 years$5,079$3,550$2,428$1,630$1,078$411
33 years$4,871$3,362$2,267$1,499$976$358
34 years$4,676$3,187$2,118$1,379$884$312
35 years$4,493$3,023$1,980$1,270$800$272
36 years$4,320$2,869$1,852$1,169$725$238
37 years$4,157$2,725$1,734$1,077$657$207
38 years$4,003$2,589$1,624$993$596$181
39 years$3,857$2,462$1,521$916$540$158
40 years$3,719$2,343$1,426$844$490$138
41 years$3,588$2,230$1,337$779$445$120
42 years$3,463$2,124$1,254$719$403$105
43 years$3,345$2,024$1,177$664$366$92
44 years$3,232$1,929$1,105$613$332$80
45 years$3,124$1,839$1,037$566$302$70
46 years$3,022$1,755$974$523$274$61
47 years$2,924$1,674$915$483$249$53
48 years$2,831$1,599$860$446$226$47
49 years$2,741$1,526$808$412$205$41
50 years$2,656$1,458$760$381$186$35

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 $2,935 every year, while hoping to spend $23,443 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: 75/6/19 Blend
39$2,720,000$2,720,000$2,720,000$2,720,000
40$3,000,467$2,856,307$2,814,147$3,212,003
41$3,281,572$2,971,323$2,883,478$3,467,589
42$3,590,563$3,091,189$2,954,346$3,744,498
43$3,930,262$3,216,118$3,026,777$4,047,414
44$4,303,773$3,346,333$3,100,799$4,378,924
45$4,714,520$3,482,065$3,176,438$4,741,876
46$5,166,274$3,623,559$3,253,721$5,139,409
47$5,663,189$3,771,069$3,332,676$5,574,976
48$6,209,844$3,924,861$3,413,330$6,052,384
49$6,811,280$4,085,211$3,495,709$6,575,824
50$7,473,057$4,252,413$3,579,841$7,149,913
51$8,201,296$4,426,768$3,665,753$7,779,736
52$9,002,743$4,608,595$3,753,472$8,470,893
53$9,884,834$4,798,227$3,843,023$9,229,556
54$10,855,757$4,996,010$3,934,435$10,062,521
55$11,924,539$5,202,310$4,027,733$10,977,275
56$13,101,124$5,417,505$4,122,944$11,982,067
57$14,396,469$5,641,993$4,220,094$13,085,983
58$15,822,649$5,876,191$4,319,207$14,299,034
59$17,392,968$6,120,533$4,420,309$15,632,249
60$19,122,087$6,375,475$4,523,425$17,097,778
61$21,026,159$6,641,492$4,628,579$18,709,007
62$23,122,986$6,919,084$4,735,795$20,480,684
63$25,432,182$7,208,771$4,845,096$22,429,060
64$27,975,361$7,511,097$4,956,503$24,572,036
65$30,776,341$7,826,634$5,070,040$26,929,338
66$33,861,368$8,155,979$5,185,726$29,522,700
67$37,259,361$8,499,756$5,303,581$32,376,068
68$41,002,189$8,858,617$5,423,624$35,515,825
69$45,124,971$9,233,248$5,545,874$38,971,045
70$49,666,404$9,624,363$5,670,347$42,773,759
71$54,669,132$10,032,712$5,797,058$46,959,263
72$60,180,146$10,459,077$5,926,022$51,566,446
73$66,251,228$10,904,279$6,057,252$56,638,162
74$72,939,441$11,369,176$6,190,757$62,221,628
75$80,307,665$11,854,667$6,326,549$68,368,874
76$88,425,193$12,361,692$6,464,634$75,137,232
77$97,368,382$12,891,234$6,605,019$82,589,873
78$107,221,377$13,444,324$6,747,707$90,796,410
79$118,076,902$14,022,041$6,892,699$99,833,547
80$130,037,137$14,625,512$7,039,996$109,785,806
81$143,214,683$15,255,920$7,189,593$120,746,327
82$157,733,621$15,914,501$7,341,486$132,817,741
83$173,730,689$16,602,550$7,495,664$146,113,139
84$191,356,568$17,321,423$7,652,117$160,757,143
85$210,777,305$18,072,540$7,810,830$176,887,079
86$232,175,881$18,857,385$7,971,784$194,654,270
87$255,753,940$19,677,516$8,134,958$214,225,469
88$281,733,688$20,534,561$8,300,325$235,784,426
89$310,359,996$21,430,226$8,467,858$259,533,630
90$341,902,705$22,366,297$8,637,521$285,696,210
91$376,659,179$23,344,644$8,809,276$314,518,048
92$414,957,110$24,367,225$8,983,081$346,270,096
93$457,157,608$25,436,092$9,158,887$381,250,932
94$503,658,615$26,553,392$9,336,641$419,789,580
95$554,898,659$27,721,374$9,516,284$462,248,614
96$611,360,994$28,942,393$9,697,751$509,027,578
97$673,578,162$30,218,916$9,880,972$560,566,761
98$742,137,018$31,553,527$10,065,868$617,351,346
99$817,684,276$32,948,931$10,252,356$679,915,996
100$900,932,605$34,407,963$10,440,344$748,849,893