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%15.2%
1 years$235,350$233,254$231,209$229,212$227,263$222,402
2 years$116,510$114,340$112,237$110,198$108,220$103,347
3 years$76,902$74,723$72,625$70,605$68,660$63,925
4 years$57,102$54,929$52,852$50,867$48,969$44,410
5 years$45,225$43,065$41,016$39,071$37,225$32,855
6 years$37,309$35,166$33,147$31,245$29,455$25,279
7 years$31,657$29,532$27,545$25,688$23,955$19,973
8 years$27,421$25,315$23,360$21,549$19,873$16,084
9 years$24,127$22,041$20,120$18,355$16,736$13,137
10 years$21,494$19,428$17,541$15,822$14,260$10,847
11 years$19,341$17,296$15,443$13,770$12,264$9,034
12 years$17,548$15,524$13,705$12,078$10,628$7,575
13 years$16,032$14,029$12,245$10,663$9,267$6,386
14 years$14,733$12,752$11,002$9,466$8,124$5,409
15 years$13,609$11,649$9,933$8,442$7,153$4,598
16 years$12,627$10,688$9,006$7,559$6,322$3,921
17 years$11,760$9,843$8,195$6,791$5,605$3,352
18 years$10,991$9,095$7,481$6,120$4,984$2,872
19 years$10,304$8,429$6,849$5,530$4,442$2,466
20 years$9,686$7,833$6,285$5,009$3,968$2,120
21 years$9,128$7,296$5,781$4,546$3,551$1,825
22 years$8,621$6,811$5,328$4,133$3,183$1,573
23 years$8,159$6,370$4,920$3,764$2,857$1,357
24 years$7,736$5,968$4,550$3,433$2,568$1,172
25 years$7,348$5,601$4,214$3,135$2,311$1,013
26 years$6,990$5,264$3,908$2,867$2,082$876
27 years$6,659$4,954$3,629$2,624$1,877$758
28 years$6,352$4,668$3,374$2,404$1,693$656
29 years$6,067$4,404$3,140$2,205$1,529$568
30 years$5,801$4,159$2,925$2,023$1,382$492
31 years$5,553$3,932$2,726$1,858$1,249$426
32 years$5,321$3,720$2,544$1,708$1,130$369
33 years$5,104$3,523$2,375$1,570$1,023$320
34 years$4,900$3,339$2,219$1,445$926$277
35 years$4,708$3,167$2,075$1,330$839$241
36 years$4,526$3,006$1,941$1,225$760$209
37 years$4,356$2,855$1,817$1,129$689$181
38 years$4,194$2,713$1,701$1,040$624$157
39 years$4,041$2,580$1,594$959$566$136
40 years$3,896$2,455$1,494$885$513$118
41 years$3,759$2,337$1,401$816$466$103
42 years$3,628$2,225$1,314$753$423$89
43 years$3,504$2,120$1,233$695$384$77
44 years$3,386$2,021$1,157$642$348$67
45 years$3,274$1,927$1,087$593$316$58
46 years$3,166$1,839$1,021$548$287$50
47 years$3,064$1,755$959$506$261$44
48 years$2,966$1,675$901$468$237$38
49 years$2,872$1,599$847$432$215$33
50 years$2,783$1,528$796$399$195$29

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 $4,893 every year, while hoping to spend $48,074 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: 47/40/13 Blend
39$2,850,000$2,850,000$2,850,000$2,850,000
40$3,145,747$2,994,697$2,950,522$3,281,938
41$3,415,463$3,090,287$2,998,214$3,472,192
42$3,711,079$3,188,949$3,045,893$3,673,223
43$4,035,185$3,290,784$3,093,507$3,890,338
44$4,390,636$3,395,895$3,141,001$4,125,049
45$4,780,575$3,504,387$3,188,318$4,379,021
46$5,208,463$3,616,372$3,235,397$4,654,087
47$5,678,114$3,731,962$3,282,171$4,952,260
48$6,193,729$3,851,276$3,328,571$5,275,755
49$6,759,935$3,974,434$3,374,523$5,627,010
50$7,381,829$4,101,562$3,419,951$6,008,709
51$8,065,026$4,232,789$3,464,769$6,423,802
52$8,815,712$4,368,249$3,508,893$6,875,537
53$9,640,702$4,508,080$3,552,228$7,367,491
54$10,547,503$4,652,425$3,594,677$7,903,598
55$11,544,386$4,801,432$3,636,136$8,488,190
56$12,640,464$4,955,253$3,676,498$9,126,038
57$13,845,777$5,114,046$3,715,645$9,822,391
58$15,171,385$5,277,973$3,753,458$10,583,031
59$16,629,475$5,447,202$3,789,808$11,414,322
60$18,233,474$5,621,908$3,824,559$12,323,276
61$19,998,177$5,802,270$3,857,570$13,317,610
62$21,939,883$5,988,473$3,888,691$14,405,825
63$24,076,553$6,180,711$3,917,764$15,597,283
64$26,427,976$6,379,180$3,944,624$16,902,294
65$29,015,956$6,584,086$3,969,095$18,332,215
66$31,864,517$6,795,640$3,990,994$19,899,554
67$35,000,134$7,014,062$4,010,128$21,618,087
68$38,451,975$7,239,579$4,026,295$23,502,992
69$42,252,181$7,472,423$4,039,280$25,570,984
70$46,436,168$7,712,836$4,048,861$27,840,479
71$51,042,962$7,961,069$4,054,802$30,331,764
72$56,115,563$8,217,381$4,056,857$33,067,185
73$61,701,355$8,482,037$4,054,766$36,071,362
74$67,852,551$8,755,315$4,048,259$39,371,418
75$74,626,685$9,037,499$4,037,049$42,997,234
76$82,087,156$9,328,886$4,020,840$46,981,731
77$90,303,824$9,629,780$3,999,316$51,361,178
78$99,353,672$9,940,496$3,972,151$56,175,537
79$109,321,528$10,261,362$3,938,999$61,468,834
80$120,300,869$10,592,714$3,899,501$67,289,579
81$132,394,703$10,934,902$3,853,279$73,691,220
82$145,716,536$11,288,286$3,799,938$80,732,644
83$160,391,450$11,653,239$3,739,063$88,478,738
84$176,557,278$12,030,148$3,670,222$97,000,994
85$194,365,906$12,419,411$3,592,960$106,378,189
86$213,984,708$12,821,441$3,506,803$116,697,121
87$235,598,121$13,236,666$3,411,255$128,053,431
88$259,409,393$13,665,525$3,305,795$140,552,504
89$285,642,493$14,108,478$3,189,881$154,310,462
90$314,544,229$14,565,995$3,062,943$169,455,260
91$346,386,577$15,038,566$2,924,389$186,127,891
92$381,469,249$15,526,696$2,773,597$204,483,716
93$420,122,517$16,030,909$2,609,917$224,693,929
94$462,710,335$16,551,745$2,432,671$246,947,174
95$509,633,774$17,089,766$2,241,150$271,451,321
96$561,334,804$17,645,549$2,034,613$298,435,428
97$618,300,467$18,219,694$1,812,286$328,151,902
98$681,067,478$18,812,822$1,573,361$360,878,881
99$750,227,286$19,425,575$1,316,993$396,922,858
100$826,431,658$20,058,618$1,042,302$436,621,568