Can I retire at age 40 with 2,860,000?

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 $2,860,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$236,176$234,072$232,020$230,017$228,060$220,672
2 years$116,919$114,741$112,631$110,585$108,600$101,226
3 years$77,172$74,985$72,880$70,853$68,900$61,771
4 years$57,302$55,122$53,038$51,045$49,140$42,311
5 years$45,383$43,216$41,159$39,208$37,356$30,845
6 years$37,440$35,289$33,263$31,355$29,558$23,371
7 years$31,769$29,636$27,642$25,779$24,039$18,175
8 years$27,517$25,403$23,442$21,625$19,943$14,398
9 years$24,212$22,118$20,191$18,420$16,794$11,562
10 years$21,569$19,496$17,603$15,878$14,310$9,382
11 years$19,408$17,356$15,497$13,819$12,307$7,674
12 years$17,609$15,578$13,753$12,121$10,665$6,317
13 years$16,088$14,078$12,288$10,701$9,300$5,227
14 years$14,785$12,796$11,041$9,499$8,152$4,342
15 years$13,657$11,690$9,968$8,471$7,178$3,620
16 years$12,671$10,725$9,038$7,585$6,344$3,025
17 years$11,802$9,878$8,224$6,815$5,625$2,534
18 years$11,030$9,127$7,507$6,142$5,001$2,127
19 years$10,340$8,459$6,873$5,550$4,458$1,788
20 years$9,720$7,861$6,307$5,026$3,982$1,505
21 years$9,160$7,322$5,802$4,562$3,563$1,268
22 years$8,651$6,835$5,347$4,148$3,194$1,069
23 years$8,188$6,392$4,937$3,777$2,867$903
24 years$7,763$5,989$4,566$3,445$2,577$762
25 years$7,374$5,621$4,229$3,146$2,319$644
26 years$7,014$5,282$3,922$2,877$2,089$545
27 years$6,682$4,971$3,642$2,633$1,883$460
28 years$6,374$4,684$3,386$2,413$1,699$390
29 years$6,088$4,419$3,151$2,212$1,534$330
30 years$5,822$4,174$2,935$2,030$1,386$279
31 years$5,573$3,945$2,736$1,865$1,253$236
32 years$5,340$3,733$2,553$1,714$1,134$200
33 years$5,122$3,535$2,384$1,576$1,026$169
34 years$4,917$3,351$2,227$1,450$929$143
35 years$4,724$3,178$2,082$1,335$841$121
36 years$4,542$3,016$1,948$1,229$762$103
37 years$4,371$2,865$1,823$1,133$691$87
38 years$4,209$2,723$1,707$1,044$626$74
39 years$4,055$2,589$1,599$963$568$63
40 years$3,910$2,463$1,499$888$515$53
41 years$3,772$2,345$1,406$819$467$45
42 years$3,641$2,233$1,319$756$424$38
43 years$3,517$2,128$1,237$698$385$32
44 years$3,398$2,028$1,162$644$349$27
45 years$3,285$1,934$1,091$595$317$23
46 years$3,177$1,845$1,024$550$288$20
47 years$3,075$1,761$962$508$262$17
48 years$2,976$1,681$904$469$238$14
49 years$2,882$1,605$850$434$216$12
50 years$2,792$1,533$799$401$196$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,860,000, adding $2,902 every year, while hoping to spend $54,191 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: 32/42/26 Blend
39$2,860,000$2,860,000$2,860,000$2,860,000
40$3,154,713$3,003,133$2,958,803$3,230,473
41$3,418,835$3,092,628$3,000,265$3,377,940
42$3,708,082$3,184,692$3,041,298$3,531,640
43$4,024,957$3,279,393$3,081,833$3,696,115
44$4,372,222$3,376,803$3,121,794$3,872,348
45$4,752,914$3,476,991$3,161,099$4,061,422
46$5,170,381$3,580,034$3,199,666$4,264,526
47$5,628,308$3,686,004$3,237,403$4,482,970
48$6,130,757$3,794,979$3,274,217$4,718,193
49$6,682,198$3,907,037$3,310,008$4,971,781
50$7,287,559$4,022,258$3,344,669$5,245,478
51$7,952,266$4,140,725$3,378,091$5,541,203
52$8,682,295$4,262,519$3,410,156$5,861,071
53$9,484,234$4,387,726$3,440,741$6,207,407
54$10,365,335$4,516,434$3,469,714$6,582,773
55$11,333,589$4,648,730$3,496,941$6,989,990
56$12,397,803$4,784,705$3,522,275$7,432,163
57$13,567,673$4,924,450$3,545,566$7,912,713
58$14,853,888$5,068,060$3,566,654$8,435,406
59$16,268,219$5,215,630$3,585,372$9,004,392
60$17,823,637$5,367,256$3,601,542$9,624,240
61$19,534,435$5,523,038$3,614,980$10,299,984
62$21,416,356$5,683,076$3,625,491$11,037,168
63$23,486,750$5,847,472$3,632,870$11,841,900
64$25,764,731$6,016,330$3,636,904$12,720,909
65$28,271,359$6,189,756$3,637,366$13,681,608
66$31,029,840$6,367,856$3,634,020$14,732,164
67$34,065,742$6,550,739$3,626,618$15,881,574
68$37,407,238$6,738,516$3,614,900$17,139,753
69$41,085,371$6,931,298$3,598,594$18,517,624
70$45,134,345$7,129,198$3,577,413$20,027,222
71$49,591,850$7,332,330$3,551,058$21,681,807
72$54,499,415$7,540,811$3,519,215$23,495,991
73$59,902,801$7,754,757$3,481,554$25,485,876
74$65,852,433$7,974,286$3,437,732$27,669,203
75$72,403,873$8,199,518$3,387,388$30,065,520
76$79,618,346$8,430,572$3,330,144$32,696,371
77$87,563,318$8,667,571$3,265,604$35,585,493
78$96,313,130$8,910,635$3,193,356$38,759,046
79$105,949,701$9,159,888$3,112,965$42,245,854
80$116,563,299$9,415,452$3,023,978$46,077,684
81$128,253,397$9,677,450$2,925,923$50,289,540
82$141,129,606$9,946,007$2,818,303$54,919,997
83$155,312,709$10,221,245$2,700,600$60,011,565
84$170,935,808$10,503,289$2,572,273$65,611,088
85$188,145,571$10,792,260$2,432,754$71,770,190
86$207,103,620$11,088,282$2,281,452$78,545,762
87$227,988,057$11,391,476$2,117,749$86,000,496
88$250,995,142$11,701,962$1,940,997$94,203,482
89$276,341,148$12,019,859$1,750,522$103,230,858
90$304,264,398$12,345,285$1,545,617$113,166,527
91$335,027,518$12,678,355$1,325,547$124,102,957
92$368,919,913$13,019,183$1,089,541$136,142,046
93$406,260,500$13,367,878$836,795$149,396,090
94$447,400,714$13,724,548$566,472$163,988,843
95$492,727,833$14,089,296$277,694$180,056,684
96$542,668,623$14,462,223$0$197,749,907
97$597,693,375$14,843,424$0$217,242,598
98$658,320,336$15,232,989$0$238,791,591
99$725,120,608$15,631,003$0$262,521,196
100$798,723,533$16,037,545$0$288,653,376