Can I retire at age 40 with 2,850,000?

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 $2,850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.1%
1 years$235,350$233,254$231,209$229,212$227,263$225,265
2 years$116,510$114,340$112,237$110,198$108,220$106,207
3 years$76,902$74,723$72,625$70,605$68,660$66,693
4 years$57,102$54,929$52,852$50,867$48,969$47,064
5 years$45,225$43,065$41,016$39,071$37,225$35,388
6 years$37,309$35,166$33,147$31,245$29,455$27,688
7 years$31,657$29,532$27,545$25,688$23,955$22,259
8 years$27,421$25,315$23,360$21,549$19,873$18,248
9 years$24,127$22,041$20,120$18,355$16,736$15,181
10 years$21,494$19,428$17,541$15,822$14,260$12,775
11 years$19,341$17,296$15,443$13,770$12,264$10,847
12 years$17,548$15,524$13,705$12,078$10,628$9,278
13 years$16,032$14,029$12,245$10,663$9,267$7,983
14 years$14,733$12,752$11,002$9,466$8,124$6,903
15 years$13,609$11,649$9,933$8,442$7,153$5,994
16 years$12,627$10,688$9,006$7,559$6,322$5,223
17 years$11,760$9,843$8,195$6,791$5,605$4,565
18 years$10,991$9,095$7,481$6,120$4,984$4,000
19 years$10,304$8,429$6,849$5,530$4,442$3,512
20 years$9,686$7,833$6,285$5,009$3,968$3,090
21 years$9,128$7,296$5,781$4,546$3,551$2,723
22 years$8,621$6,811$5,328$4,133$3,183$2,404
23 years$8,159$6,370$4,920$3,764$2,857$2,124
24 years$7,736$5,968$4,550$3,433$2,568$1,879
25 years$7,348$5,601$4,214$3,135$2,311$1,664
26 years$6,990$5,264$3,908$2,867$2,082$1,474
27 years$6,659$4,954$3,629$2,624$1,877$1,308
28 years$6,352$4,668$3,374$2,404$1,693$1,160
29 years$6,067$4,404$3,140$2,205$1,529$1,030
30 years$5,801$4,159$2,925$2,023$1,382$915
31 years$5,553$3,932$2,726$1,858$1,249$814
32 years$5,321$3,720$2,544$1,708$1,130$724
33 years$5,104$3,523$2,375$1,570$1,023$644
34 years$4,900$3,339$2,219$1,445$926$573
35 years$4,708$3,167$2,075$1,330$839$510
36 years$4,526$3,006$1,941$1,225$760$454
37 years$4,356$2,855$1,817$1,129$689$404
38 years$4,194$2,713$1,701$1,040$624$360
39 years$4,041$2,580$1,594$959$566$321
40 years$3,896$2,455$1,494$885$513$286
41 years$3,759$2,337$1,401$816$466$254
42 years$3,628$2,225$1,314$753$423$227
43 years$3,504$2,120$1,233$695$384$202
44 years$3,386$2,021$1,157$642$348$180
45 years$3,274$1,927$1,087$593$316$161
46 years$3,166$1,839$1,021$548$287$143
47 years$3,064$1,755$959$506$261$128
48 years$2,966$1,675$901$468$237$114
49 years$2,872$1,599$847$432$215$101
50 years$2,783$1,528$796$399$195$90

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,850,000, adding $3,438 every year, while hoping to spend $20,520 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: 61/31/8 Blend
39$2,850,000$2,850,000$2,850,000$2,850,000
40$3,144,246$2,993,196$2,949,021$3,330,524
41$3,443,126$3,118,030$3,025,980$3,580,427
42$3,771,804$3,248,292$3,104,830$3,850,306
43$4,133,298$3,384,228$3,185,611$4,144,250
44$4,530,932$3,526,094$3,268,367$4,464,582
45$4,968,371$3,674,155$3,353,141$4,813,854
46$5,449,649$3,828,694$3,439,976$5,194,875
47$5,979,215$3,990,001$3,528,916$5,610,733
48$6,561,968$4,158,384$3,620,008$6,064,826
49$7,203,307$4,334,164$3,713,297$6,560,890
50$7,909,182$4,517,675$3,808,830$7,103,038
51$8,686,146$4,709,269$3,906,653$7,695,795
52$9,541,423$4,909,313$4,006,816$8,344,138
53$10,482,971$5,118,192$4,109,368$9,053,547
54$11,519,559$5,336,309$4,214,356$9,830,052
55$12,660,850$5,564,084$4,321,833$10,680,289
56$13,917,491$5,801,958$4,431,848$11,611,564
57$15,301,214$6,050,393$4,544,454$12,631,917
58$16,824,947$6,309,871$4,659,703$13,750,200
59$18,502,936$6,580,899$4,777,647$14,976,158
60$20,350,877$6,864,005$4,898,340$16,320,519
61$22,386,069$7,159,744$5,021,837$17,795,097
62$24,627,572$7,468,695$5,148,192$19,412,897
63$27,096,388$7,791,465$5,277,461$21,188,241
64$29,815,664$8,128,691$5,409,700$23,136,897
65$32,810,902$8,481,037$5,544,965$25,276,231
66$36,110,206$8,849,200$5,683,314$27,625,367
67$39,744,546$9,233,910$5,824,804$30,205,366
68$43,748,049$9,635,931$5,969,494$33,039,419
69$48,158,320$10,056,061$6,117,442$36,153,074
70$53,016,800$10,495,139$6,268,707$39,574,462
71$58,369,154$10,954,041$6,423,349$43,334,573
72$64,265,704$11,433,686$6,581,428$47,467,538
73$70,761,903$11,935,035$6,743,004$52,010,950
74$77,918,860$12,459,094$6,908,137$57,006,220
75$85,803,912$13,006,918$7,076,888$62,498,962
76$94,491,266$13,579,611$7,249,318$68,539,423
77$104,062,693$14,178,330$7,425,488$75,182,955
78$114,608,305$14,804,286$7,605,460$82,490,529
79$126,227,403$15,458,747$7,789,294$90,529,316
80$139,029,414$16,143,042$7,977,051$99,373,312
81$153,134,925$16,858,561$8,168,793$109,104,037
82$168,676,821$17,606,764$8,364,580$119,811,296
83$185,801,536$18,389,175$8,564,474$131,594,028
84$204,670,443$19,207,395$8,768,534$144,561,236
85$225,461,368$20,063,097$8,976,820$158,833,008
86$248,370,276$20,958,037$9,189,391$174,541,650
87$273,613,116$21,894,052$9,406,307$191,832,931
88$301,427,861$22,873,068$9,627,626$210,867,453
89$332,076,755$23,897,101$9,853,404$231,822,163
90$365,848,789$24,968,264$10,083,698$254,892,016
91$403,062,427$26,088,771$10,318,563$280,291,815
92$444,068,614$27,260,939$10,558,054$308,258,233
93$489,254,087$28,487,200$10,802,224$339,052,035
94$539,045,028$29,770,097$11,051,122$372,960,542
95$593,911,086$31,112,297$11,304,800$410,300,333
96$654,369,812$32,516,594$11,563,306$451,420,228
97$720,991,541$33,985,916$11,826,685$496,704,574
98$794,404,781$35,523,328$12,094,981$546,576,869
99$875,302,142$37,132,045$12,368,237$601,503,747
100$964,446,879$38,815,433$12,646,491$661,999,382