Can I retire at age 40 with 2,740,000?

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 $2,740,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$226,267$224,251$222,285$220,366$218,491$216,751
2 years$112,013$109,927$107,905$105,945$104,044$102,289
3 years$73,934$71,839$69,822$67,880$66,010$64,296
4 years$54,898$52,809$50,812$48,904$47,079$45,418
5 years$43,479$41,403$39,433$37,563$35,788$34,187
6 years$35,869$33,809$31,867$30,039$28,318$26,777
7 years$30,436$28,392$26,482$24,697$23,030$21,550
8 years$26,362$24,337$22,459$20,718$19,106$17,687
9 years$23,196$21,190$19,344$17,647$16,090$14,732
10 years$20,664$18,678$16,864$15,212$13,709$12,411
11 years$18,594$16,628$14,847$13,239$11,790$10,551
12 years$16,870$14,924$13,176$11,612$10,217$9,036
13 years$15,413$13,487$11,772$10,252$8,910$7,785
14 years$14,165$12,260$10,577$9,100$7,810$6,741
15 years$13,084$11,199$9,550$8,116$6,877$5,861
16 years$12,139$10,275$8,658$7,267$6,078$5,114
17 years$11,307$9,463$7,879$6,529$5,389$4,476
18 years$10,567$8,744$7,192$5,884$4,792$3,928
19 years$9,906$8,104$6,584$5,317$4,271$3,454
20 years$9,312$7,531$6,043$4,815$3,815$3,043
21 years$8,776$7,015$5,558$4,370$3,414$2,686
22 years$8,288$6,548$5,123$3,974$3,060$2,374
23 years$7,844$6,124$4,730$3,619$2,747$2,101
24 years$7,438$5,738$4,374$3,301$2,469$1,861
25 years$7,064$5,385$4,052$3,014$2,222$1,651
26 years$6,720$5,061$3,758$2,756$2,001$1,465
27 years$6,402$4,763$3,489$2,523$1,804$1,302
28 years$6,107$4,488$3,244$2,311$1,628$1,157
29 years$5,833$4,234$3,019$2,120$1,470$1,029
30 years$5,577$3,998$2,812$1,945$1,328$916
31 years$5,339$3,780$2,621$1,787$1,201$815
32 years$5,116$3,576$2,446$1,642$1,086$726
33 years$4,907$3,387$2,284$1,510$983$647
34 years$4,711$3,210$2,134$1,389$890$577
35 years$4,526$3,045$1,995$1,279$806$514
36 years$4,352$2,890$1,866$1,178$730$458
37 years$4,187$2,745$1,747$1,085$662$409
38 years$4,032$2,608$1,636$1,000$600$365
39 years$3,885$2,480$1,532$922$544$326
40 years$3,746$2,360$1,436$851$494$291
41 years$3,614$2,246$1,347$785$448$259
42 years$3,488$2,139$1,263$724$406$231
43 years$3,369$2,038$1,185$669$369$207
44 years$3,256$1,943$1,113$617$335$185
45 years$3,147$1,853$1,045$570$304$165
46 years$3,044$1,768$981$527$276$147
47 years$2,946$1,687$922$487$251$131
48 years$2,851$1,610$866$450$228$117
49 years$2,761$1,538$814$416$207$105
50 years$2,675$1,469$766$384$188$94

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,740,000, adding $4,497 every year, while hoping to spend $20,971 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: 45/50/5 Blend
39$2,740,000$2,740,000$2,740,000$2,740,000
40$3,024,119$2,878,899$2,836,429$3,155,881
41$3,310,266$2,997,652$2,909,136$3,365,767
42$3,624,897$3,121,521$2,983,576$3,590,659
43$3,970,896$3,250,734$3,059,785$3,834,003
44$4,351,438$3,385,532$3,137,799$4,097,501
45$4,770,025$3,526,163$3,217,656$4,383,021
46$5,230,512$3,672,889$3,299,391$4,692,615
47$5,737,148$3,825,984$3,383,044$5,028,536
48$6,294,613$3,985,734$3,468,653$5,393,257
49$6,908,068$4,152,439$3,556,257$5,789,495
50$7,583,193$4,326,411$3,645,894$6,220,236
51$8,326,253$4,507,979$3,737,605$6,688,757
52$9,144,146$4,697,485$3,831,430$7,198,664
53$10,044,475$4,895,288$3,927,410$7,753,916
54$11,035,618$5,101,764$4,025,585$8,358,867
55$12,126,806$5,317,306$4,125,997$9,018,304
56$13,328,211$5,542,324$4,228,688$9,737,487
57$14,651,039$5,777,248$4,333,699$10,522,202
58$16,107,641$6,022,530$4,441,075$11,378,813
59$17,711,626$6,278,639$4,550,856$12,314,317
60$19,477,989$6,546,069$4,663,087$13,336,412
61$21,423,254$6,825,337$4,777,810$14,453,565
62$23,565,629$7,116,982$4,895,070$15,675,090
63$25,925,178$7,421,569$5,014,910$17,011,236
64$28,524,011$7,739,690$5,137,374$18,473,280
65$31,386,490$8,071,965$5,262,506$20,073,632
66$34,539,463$8,419,042$5,390,351$21,825,946
67$38,012,512$8,781,600$5,520,952$23,745,251
68$41,838,239$9,160,348$5,654,354$25,848,089
69$46,052,566$9,556,032$5,790,601$28,152,668
70$50,695,079$9,969,429$5,929,738$30,679,027
71$55,809,400$10,401,354$6,071,808$33,449,230
72$61,443,601$10,852,662$6,216,855$36,487,565
73$67,650,651$11,324,246$6,364,923$39,820,771
74$74,488,925$11,817,041$6,516,055$43,478,288
75$82,022,746$12,332,027$6,670,294$47,492,532
76$90,323,000$12,870,230$6,827,682$51,899,194
77$99,467,798$13,432,724$6,988,262$56,737,575
78$109,543,220$14,020,633$7,152,075$62,050,955
79$120,644,120$14,635,136$7,319,161$67,886,991
80$132,875,028$15,277,465$7,489,560$74,298,170
81$146,351,132$15,948,912$7,663,312$81,342,293
82$161,199,369$16,650,831$7,840,455$89,083,019
83$177,559,619$17,384,636$8,021,024$97,590,459
84$195,586,029$18,151,812$8,205,058$106,941,836
85$215,448,466$18,953,913$8,392,589$117,222,204
86$237,334,120$19,792,565$8,583,652$128,525,244
87$261,449,274$20,669,474$8,778,277$140,954,149
88$288,021,245$21,586,424$8,976,495$154,622,584
89$317,300,539$22,545,285$9,178,334$169,655,756
90$349,563,205$23,548,016$9,383,820$186,191,587
91$385,113,451$24,596,668$9,592,977$204,382,012
92$424,286,509$25,693,390$9,805,827$224,394,400
93$467,451,800$26,840,433$10,022,389$246,413,129
94$515,016,425$28,040,155$10,242,680$270,641,319
95$567,429,004$29,295,027$10,466,715$297,302,736
96$625,183,915$30,607,636$10,694,502$326,643,901
97$688,825,958$31,980,694$10,926,051$358,936,403
98$758,955,497$33,417,039$11,161,365$394,479,452
99$836,234,132$34,919,648$11,400,445$433,602,697
100$921,390,941$36,491,638$11,643,287$476,669,322