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%16.3%
1 years$226,267$224,251$222,285$220,366$218,491$212,864
2 years$112,013$109,927$107,905$105,945$104,044$98,411
3 years$73,934$71,839$69,822$67,880$66,010$60,549
4 years$54,898$52,809$50,812$48,904$47,079$41,831
5 years$43,479$41,403$39,433$37,563$35,788$30,769
6 years$35,869$33,809$31,867$30,039$28,318$23,532
7 years$30,436$28,392$26,482$24,697$23,030$18,478
8 years$26,362$24,337$22,459$20,718$19,106$14,784
9 years$23,196$21,190$19,344$17,647$16,090$11,996
10 years$20,664$18,678$16,864$15,212$13,709$9,838
11 years$18,594$16,628$14,847$13,239$11,790$8,136
12 years$16,870$14,924$13,176$11,612$10,217$6,773
13 years$15,413$13,487$11,772$10,252$8,910$5,669
14 years$14,165$12,260$10,577$9,100$7,810$4,765
15 years$13,084$11,199$9,550$8,116$6,877$4,020
16 years$12,139$10,275$8,658$7,267$6,078$3,401
17 years$11,307$9,463$7,879$6,529$5,389$2,885
18 years$10,567$8,744$7,192$5,884$4,792$2,452
19 years$9,906$8,104$6,584$5,317$4,271$2,088
20 years$9,312$7,531$6,043$4,815$3,815$1,780
21 years$8,776$7,015$5,558$4,370$3,414$1,520
22 years$8,288$6,548$5,123$3,974$3,060$1,299
23 years$7,844$6,124$4,730$3,619$2,747$1,111
24 years$7,438$5,738$4,374$3,301$2,469$951
25 years$7,064$5,385$4,052$3,014$2,222$814
26 years$6,720$5,061$3,758$2,756$2,001$698
27 years$6,402$4,763$3,489$2,523$1,804$599
28 years$6,107$4,488$3,244$2,311$1,628$513
29 years$5,833$4,234$3,019$2,120$1,470$441
30 years$5,577$3,998$2,812$1,945$1,328$378
31 years$5,339$3,780$2,621$1,787$1,201$325
32 years$5,116$3,576$2,446$1,642$1,086$279
33 years$4,907$3,387$2,284$1,510$983$239
34 years$4,711$3,210$2,134$1,389$890$206
35 years$4,526$3,045$1,995$1,279$806$177
36 years$4,352$2,890$1,866$1,178$730$152
37 years$4,187$2,745$1,747$1,085$662$130
38 years$4,032$2,608$1,636$1,000$600$112
39 years$3,885$2,480$1,532$922$544$96
40 years$3,746$2,360$1,436$851$494$83
41 years$3,614$2,246$1,347$785$448$71
42 years$3,488$2,139$1,263$724$406$61
43 years$3,369$2,038$1,185$669$369$53
44 years$3,256$1,943$1,113$617$335$45
45 years$3,147$1,853$1,045$570$304$39
46 years$3,044$1,768$981$527$276$33
47 years$2,946$1,687$922$487$251$29
48 years$2,851$1,610$866$450$228$25
49 years$2,761$1,538$814$416$207$21
50 years$2,675$1,469$766$384$188$18

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 $6,614 every year, while hoping to spend $35,644 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: 41/40/19 Blend
39$2,740,000$2,740,000$2,740,000$2,740,000
40$3,026,302$2,881,082$2,838,612$3,133,188
41$3,297,060$2,984,330$2,895,781$3,313,104
42$3,594,241$3,091,443$2,953,670$3,503,769
43$3,920,502$3,202,572$3,012,266$3,709,399
44$4,278,770$3,317,875$3,071,554$3,931,381
45$4,672,270$3,437,517$3,131,517$4,171,238
46$5,104,555$3,561,669$3,192,136$4,430,642
47$5,579,538$3,690,509$3,253,392$4,711,433
48$6,101,531$3,824,223$3,315,260$5,015,633
49$6,675,282$3,963,006$3,377,716$5,345,463
50$7,306,025$4,107,057$3,440,734$5,703,368
51$7,999,525$4,256,588$3,504,283$6,092,034
52$8,762,132$4,411,817$3,568,333$6,514,416
53$9,600,845$4,572,971$3,632,847$6,973,767
54$10,523,374$4,740,289$3,697,790$7,473,660
55$11,538,212$4,914,018$3,763,120$8,018,031
56$12,654,720$5,094,415$3,828,795$8,611,207
57$13,883,210$5,281,749$3,894,768$9,257,952
58$15,235,043$5,476,300$3,960,988$9,963,508
59$16,722,739$5,678,361$4,027,403$10,733,642
60$18,360,092$5,888,234$4,093,955$11,574,704
61$20,162,302$6,106,238$4,160,583$12,493,682
62$22,146,116$6,332,703$4,227,222$13,498,269
63$24,329,988$6,567,973$4,293,801$14,596,935
64$26,734,251$6,812,408$4,360,248$15,799,002
65$29,381,310$7,066,383$4,426,482$17,114,736
66$32,295,855$7,330,287$4,492,421$18,555,438
67$35,505,090$7,604,528$4,557,975$20,133,555
68$39,038,991$7,889,532$4,623,049$21,862,789
69$42,930,590$8,185,741$4,687,543$23,758,232
70$47,216,285$8,493,617$4,751,350$25,836,502
71$51,936,185$8,813,643$4,814,359$28,115,902
72$57,134,485$9,146,321$4,876,449$30,616,587
73$62,859,887$9,492,175$4,937,495$33,360,758
74$69,166,058$9,851,754$4,997,363$36,372,865
75$76,112,133$10,225,627$5,055,912$39,679,840
76$83,763,279$10,614,391$5,112,993$43,311,348
77$92,191,304$11,018,667$5,168,450$47,300,062
78$101,475,339$11,439,104$5,222,115$51,681,975
79$111,702,583$11,876,379$5,273,815$56,496,736
80$122,969,123$12,331,198$5,323,364$61,788,019
81$135,380,846$12,804,299$5,370,569$67,603,938
82$149,054,434$13,296,452$5,415,225$73,997,495
83$164,118,468$13,808,459$5,457,117$81,027,080
84$180,714,638$14,341,160$5,496,016$88,757,019
85$198,999,084$14,895,430$5,531,686$97,258,181
86$219,143,868$15,472,183$5,563,875$106,608,640
87$241,338,596$16,072,374$5,592,318$116,894,414
88$265,792,211$16,696,998$5,616,739$128,210,272
89$292,734,963$17,347,098$5,636,846$140,660,624
90$322,420,581$18,023,758$5,652,333$154,360,507
91$355,128,673$18,728,114$5,662,878$169,436,665
92$391,167,357$19,461,352$5,668,144$186,028,746
93$430,876,178$20,224,708$5,667,777$204,290,611
94$474,629,305$21,019,475$5,661,405$224,391,788
95$522,839,069$21,847,005$5,648,637$246,519,067
96$575,959,853$22,708,707$5,629,065$270,878,259
97$634,492,380$23,606,056$5,602,261$297,696,135
98$698,988,440$24,540,590$5,567,774$327,222,564
99$770,056,100$25,513,918$5,525,133$359,732,863
100$848,365,443$26,527,720$5,473,846$395,530,400