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

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 $2,850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.5%
1 years$235,350$233,254$231,209$229,212$227,263$222,130
2 years$116,510$114,340$112,237$110,198$108,220$103,077
3 years$76,902$74,723$72,625$70,605$68,660$63,665
4 years$57,102$54,929$52,852$50,867$48,969$44,163
5 years$45,225$43,065$41,016$39,071$37,225$32,621
6 years$37,309$35,166$33,147$31,245$29,455$25,057
7 years$31,657$29,532$27,545$25,688$23,955$19,764
8 years$27,421$25,315$23,360$21,549$19,873$15,888
9 years$24,127$22,041$20,120$18,355$16,736$12,954
10 years$21,494$19,428$17,541$15,822$14,260$10,676
11 years$19,341$17,296$15,443$13,770$12,264$8,874
12 years$17,548$15,524$13,705$12,078$10,628$7,426
13 years$16,032$14,029$12,245$10,663$9,267$6,249
14 years$14,733$12,752$11,002$9,466$8,124$5,282
15 years$13,609$11,649$9,933$8,442$7,153$4,481
16 years$12,627$10,688$9,006$7,559$6,322$3,813
17 years$11,760$9,843$8,195$6,791$5,605$3,253
18 years$10,991$9,095$7,481$6,120$4,984$2,781
19 years$10,304$8,429$6,849$5,530$4,442$2,382
20 years$9,686$7,833$6,285$5,009$3,968$2,043
21 years$9,128$7,296$5,781$4,546$3,551$1,755
22 years$8,621$6,811$5,328$4,133$3,183$1,509
23 years$8,159$6,370$4,920$3,764$2,857$1,299
24 years$7,736$5,968$4,550$3,433$2,568$1,119
25 years$7,348$5,601$4,214$3,135$2,311$965
26 years$6,990$5,264$3,908$2,867$2,082$832
27 years$6,659$4,954$3,629$2,624$1,877$718
28 years$6,352$4,668$3,374$2,404$1,693$620
29 years$6,067$4,404$3,140$2,205$1,529$536
30 years$5,801$4,159$2,925$2,023$1,382$463
31 years$5,553$3,932$2,726$1,858$1,249$400
32 years$5,321$3,720$2,544$1,708$1,130$346
33 years$5,104$3,523$2,375$1,570$1,023$299
34 years$4,900$3,339$2,219$1,445$926$258
35 years$4,708$3,167$2,075$1,330$839$224
36 years$4,526$3,006$1,941$1,225$760$193
37 years$4,356$2,855$1,817$1,129$689$167
38 years$4,194$2,713$1,701$1,040$624$145
39 years$4,041$2,580$1,594$959$566$125
40 years$3,896$2,455$1,494$885$513$108
41 years$3,759$2,337$1,401$816$466$94
42 years$3,628$2,225$1,314$753$423$81
43 years$3,504$2,120$1,233$695$384$70
44 years$3,386$2,021$1,157$642$348$61
45 years$3,274$1,927$1,087$593$316$53
46 years$3,166$1,839$1,021$548$287$46
47 years$3,064$1,755$959$506$261$39
48 years$2,966$1,675$901$468$237$34
49 years$2,872$1,599$847$432$215$30
50 years$2,783$1,528$796$399$195$26

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 $4,624 every year, while hoping to spend $45,391 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: 50/35/15 Blend
39$2,850,000$2,850,000$2,850,000$2,850,000
40$3,145,470$2,994,420$2,950,245$3,289,568
41$3,418,012$3,092,851$3,000,782$3,487,595
42$3,716,832$3,194,583$3,051,491$3,697,569
43$4,044,563$3,299,732$3,102,330$3,924,749
44$4,404,103$3,408,414$3,153,253$4,170,772
45$4,798,647$3,520,751$3,204,213$4,437,432
46$5,231,713$3,636,871$3,255,157$4,726,708
47$5,707,174$3,756,905$3,306,032$5,040,775
48$6,229,300$3,880,987$3,356,778$5,382,024
49$6,802,793$4,009,260$3,407,334$5,753,090
50$7,432,832$4,141,868$3,457,634$6,156,869
51$8,125,124$4,278,963$3,507,608$6,596,550
52$8,885,955$4,420,700$3,557,182$7,075,644
53$9,722,251$4,567,244$3,606,276$7,598,014
54$10,641,643$4,718,760$3,654,808$8,167,914
55$11,652,535$4,875,424$3,702,689$8,790,024
56$12,764,190$5,037,417$3,749,825$9,469,500
57$13,986,812$5,204,924$3,796,118$10,212,019
58$15,331,641$5,378,140$3,841,464$11,023,829
59$16,811,067$5,557,267$3,885,750$11,911,813
60$18,438,734$5,742,512$3,928,862$12,883,548
61$20,229,682$5,934,092$3,970,675$13,947,382
62$22,200,477$6,132,230$4,011,061$15,112,504
63$24,369,376$6,337,159$4,049,881$16,389,039
64$26,756,492$6,549,120$4,086,992$17,788,135
65$29,383,990$6,768,362$4,122,242$19,322,072
66$32,276,290$6,995,145$4,155,470$21,004,378
67$35,460,301$7,229,737$4,186,508$22,849,952
68$38,965,674$7,472,416$4,215,178$24,875,206
69$42,825,080$7,723,472$4,241,294$27,098,220
70$47,074,520$7,983,204$4,264,660$29,538,910
71$51,753,664$8,251,924$4,285,068$32,219,216
72$56,906,223$8,529,953$4,302,303$35,163,309
73$62,580,364$8,817,627$4,316,137$38,397,816
74$68,829,163$9,115,293$4,326,329$41,952,072
75$75,711,106$9,423,311$4,332,630$45,858,398
76$83,290,640$9,742,054$4,334,774$50,152,400
77$91,638,783$10,071,912$4,332,486$54,873,309
78$100,833,789$10,413,287$4,325,475$60,064,346
79$110,961,894$10,766,596$4,313,437$65,773,134
80$122,118,121$11,132,273$4,296,051$72,052,140
81$134,407,185$11,510,770$4,272,984$78,959,176
82$147,944,472$11,902,552$4,243,884$86,557,939
83$162,857,138$12,308,107$4,208,383$94,918,610
84$179,285,298$12,727,936$4,166,097$104,118,521
85$197,383,359$13,162,565$4,116,621$114,242,878
86$217,321,466$13,612,536$4,059,532$125,385,568
87$239,287,118$14,078,412$3,994,389$137,650,040
88$263,486,931$14,560,781$3,920,728$151,150,283
89$290,148,589$15,060,251$3,838,064$166,011,900
90$319,522,995$15,577,453$3,745,889$182,373,292
91$351,886,637$16,113,045$3,643,673$200,386,964
92$387,544,198$16,667,708$3,530,860$220,220,961
93$426,831,432$17,242,151$3,406,869$242,060,453
94$470,118,331$17,837,110$3,271,092$266,109,483
95$517,812,622$18,453,350$3,122,895$292,592,892
96$570,363,611$19,091,665$2,961,614$321,758,436
97$628,266,425$19,752,882$2,786,553$353,879,127
98$692,066,687$20,437,860$2,596,989$389,255,805
99$762,365,663$21,147,489$2,392,162$428,219,980
100$839,825,942$21,882,697$2,171,281$471,136,956