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

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 $2,740,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.2%
1 years$226,267$224,251$222,285$220,366$218,491$217,388
2 years$112,013$109,927$107,905$105,945$104,044$102,930
3 years$73,934$71,839$69,822$67,880$66,010$64,920
4 years$54,898$52,809$50,812$48,904$47,079$46,022
5 years$43,479$41,403$39,433$37,563$35,788$34,767
6 years$35,869$33,809$31,867$30,039$28,318$27,334
7 years$30,436$28,392$26,482$24,697$23,030$22,084
8 years$26,362$24,337$22,459$20,718$19,106$18,197
9 years$23,196$21,190$19,344$17,647$16,090$15,219
10 years$20,664$18,678$16,864$15,212$13,709$12,875
11 years$18,594$16,628$14,847$13,239$11,790$10,993
12 years$16,870$14,924$13,176$11,612$10,217$9,456
13 years$15,413$13,487$11,772$10,252$8,910$8,183
14 years$14,165$12,260$10,577$9,100$7,810$7,118
15 years$13,084$11,199$9,550$8,116$6,877$6,218
16 years$12,139$10,275$8,658$7,267$6,078$5,452
17 years$11,307$9,463$7,879$6,529$5,389$4,794
18 years$10,567$8,744$7,192$5,884$4,792$4,228
19 years$9,906$8,104$6,584$5,317$4,271$3,737
20 years$9,312$7,531$6,043$4,815$3,815$3,309
21 years$8,776$7,015$5,558$4,370$3,414$2,936
22 years$8,288$6,548$5,123$3,974$3,060$2,608
23 years$7,844$6,124$4,730$3,619$2,747$2,320
24 years$7,438$5,738$4,374$3,301$2,469$2,067
25 years$7,064$5,385$4,052$3,014$2,222$1,843
26 years$6,720$5,061$3,758$2,756$2,001$1,645
27 years$6,402$4,763$3,489$2,523$1,804$1,469
28 years$6,107$4,488$3,244$2,311$1,628$1,313
29 years$5,833$4,234$3,019$2,120$1,470$1,175
30 years$5,577$3,998$2,812$1,945$1,328$1,051
31 years$5,339$3,780$2,621$1,787$1,201$941
32 years$5,116$3,576$2,446$1,642$1,086$843
33 years$4,907$3,387$2,284$1,510$983$756
34 years$4,711$3,210$2,134$1,389$890$677
35 years$4,526$3,045$1,995$1,279$806$607
36 years$4,352$2,890$1,866$1,178$730$545
37 years$4,187$2,745$1,747$1,085$662$489
38 years$4,032$2,608$1,636$1,000$600$439
39 years$3,885$2,480$1,532$922$544$394
40 years$3,746$2,360$1,436$851$494$354
41 years$3,614$2,246$1,347$785$448$318
42 years$3,488$2,139$1,263$724$406$285
43 years$3,369$2,038$1,185$669$369$256
44 years$3,256$1,943$1,113$617$335$230
45 years$3,147$1,853$1,045$570$304$207
46 years$3,044$1,768$981$527$276$186
47 years$2,946$1,687$922$487$251$167
48 years$2,851$1,610$866$450$228$150
49 years$2,761$1,538$814$416$207$135
50 years$2,675$1,469$766$384$188$121

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 $5,148 every year, while hoping to spend $34,371 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: 32/44/24 Blend
39$2,740,000$2,740,000$2,740,000$2,740,000
40$3,024,790$2,879,570$2,837,100$3,099,140
41$3,296,748$2,984,099$2,895,573$3,260,400
42$3,595,294$3,092,597$2,954,852$3,430,533
43$3,923,103$3,205,224$3,014,929$3,613,091
44$4,283,124$3,322,143$3,075,792$3,809,187
45$4,678,602$3,443,527$3,137,431$4,020,042
46$5,113,114$3,569,555$3,199,830$4,246,996
47$5,590,602$3,700,414$3,262,974$4,491,522
48$6,115,405$3,836,296$3,326,846$4,755,236
49$6,692,308$3,977,406$3,391,427$5,039,914
50$7,326,578$4,123,954$3,456,694$5,347,504
51$8,024,021$4,276,159$3,522,625$5,680,151
52$8,791,032$4,434,252$3,589,194$6,040,208
53$9,634,658$4,598,471$3,656,373$6,430,265
54$10,562,663$4,769,066$3,724,131$6,853,167
55$11,583,600$4,946,295$3,792,435$7,312,042
56$12,706,894$5,130,431$3,861,248$7,810,329
57$13,942,930$5,321,754$3,930,533$8,351,812
58$15,303,149$5,520,561$4,000,246$8,940,650
59$16,800,159$5,727,157$4,070,343$9,581,420
60$18,447,851$5,941,864$4,140,775$10,279,158
61$20,261,531$6,165,014$4,211,490$11,039,400
62$22,258,064$6,396,957$4,282,432$11,868,243
63$24,456,034$6,638,055$4,353,541$12,772,392
64$26,875,917$6,888,688$4,424,753$13,759,227
65$29,540,279$7,149,251$4,496,000$14,836,871
66$32,473,979$7,420,157$4,567,208$16,014,264
67$35,704,417$7,701,836$4,638,301$17,301,247
68$39,261,778$7,994,737$4,709,195$18,708,651
69$43,179,329$8,299,329$4,779,803$20,248,403
70$47,493,725$8,616,100$4,850,030$21,933,631
71$52,245,358$8,945,562$4,919,779$23,778,790
72$57,478,736$9,288,246$4,988,943$25,799,795
73$63,242,906$9,644,709$5,057,412$28,014,171
74$69,591,913$10,015,531$5,125,066$30,441,216
75$76,585,314$10,401,317$5,191,781$33,102,180
76$84,288,734$10,802,700$5,257,425$36,020,465
77$92,774,493$11,220,340$5,321,856$39,221,842
78$102,122,281$11,654,926$5,384,928$42,734,697
79$112,419,914$12,107,178$5,446,483$46,590,290
80$123,764,162$12,577,847$5,506,357$50,823,051
81$136,261,662$13,067,717$5,564,376$55,470,905
82$150,029,924$13,577,607$5,620,355$60,575,623
83$165,198,440$14,108,374$5,674,101$66,183,217
84$181,909,907$14,660,911$5,725,409$72,344,367
85$200,321,573$15,236,150$5,774,065$79,114,905
86$220,606,719$15,835,067$5,819,842$86,556,331
87$242,956,299$16,458,680$5,862,501$94,736,392
88$267,580,738$17,108,052$5,901,792$103,729,723
89$294,711,922$17,784,295$5,937,451$113,618,543
90$324,605,381$18,488,569$5,969,199$124,493,429
91$357,542,708$19,222,087$5,996,745$136,454,171
92$393,834,212$19,986,116$6,019,783$149,610,705
93$433,821,846$20,781,980$6,037,990$164,084,148
94$477,882,440$21,611,063$6,051,028$180,007,941
95$526,431,253$22,474,810$6,058,543$197,529,100
96$579,925,897$23,374,732$6,060,160$216,809,603
97$638,870,653$24,312,407$6,055,489$238,027,912
98$703,821,231$25,289,487$6,044,120$261,380,652
99$775,390,020$26,307,695$6,025,621$287,084,465
100$854,251,865$27,368,835$5,999,542$315,378,050