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%13%
1 years$236,176$234,072$232,020$230,017$228,060$225,211
2 years$116,919$114,741$112,631$110,585$108,600$105,733
3 years$77,172$74,985$72,880$70,853$68,900$66,104
4 years$57,302$55,122$53,038$51,045$49,140$46,437
5 years$45,383$43,216$41,159$39,208$37,356$34,753
6 years$37,440$35,289$33,263$31,355$29,558$27,060
7 years$31,769$29,636$27,642$25,779$24,039$21,645
8 years$27,517$25,403$23,442$21,625$19,943$17,654
9 years$24,212$22,118$20,191$18,420$16,794$14,609
10 years$21,569$19,496$17,603$15,878$14,310$12,227
11 years$19,408$17,356$15,497$13,819$12,307$10,324
12 years$17,609$15,578$13,753$12,121$10,665$8,780
13 years$16,088$14,078$12,288$10,701$9,300$7,511
14 years$14,785$12,796$11,041$9,499$8,152$6,456
15 years$13,657$11,690$9,968$8,471$7,178$5,572
16 years$12,671$10,725$9,038$7,585$6,344$4,825
17 years$11,802$9,878$8,224$6,815$5,625$4,191
18 years$11,030$9,127$7,507$6,142$5,001$3,649
19 years$10,340$8,459$6,873$5,550$4,458$3,183
20 years$9,720$7,861$6,307$5,026$3,982$2,782
21 years$9,160$7,322$5,802$4,562$3,563$2,436
22 years$8,651$6,835$5,347$4,148$3,194$2,135
23 years$8,188$6,392$4,937$3,777$2,867$1,874
24 years$7,763$5,989$4,566$3,445$2,577$1,646
25 years$7,374$5,621$4,229$3,146$2,319$1,447
26 years$7,014$5,282$3,922$2,877$2,089$1,273
27 years$6,682$4,971$3,642$2,633$1,883$1,121
28 years$6,374$4,684$3,386$2,413$1,699$988
29 years$6,088$4,419$3,151$2,212$1,534$871
30 years$5,822$4,174$2,935$2,030$1,386$768
31 years$5,573$3,945$2,736$1,865$1,253$678
32 years$5,340$3,733$2,553$1,714$1,134$598
33 years$5,122$3,535$2,384$1,576$1,026$528
34 years$4,917$3,351$2,227$1,450$929$466
35 years$4,724$3,178$2,082$1,335$841$412
36 years$4,542$3,016$1,948$1,229$762$364
37 years$4,371$2,865$1,823$1,133$691$322
38 years$4,209$2,723$1,707$1,044$626$284
39 years$4,055$2,589$1,599$963$568$251
40 years$3,910$2,463$1,499$888$515$222
41 years$3,772$2,345$1,406$819$467$196
42 years$3,641$2,233$1,319$756$424$174
43 years$3,517$2,128$1,237$698$385$154
44 years$3,398$2,028$1,162$644$349$136
45 years$3,285$1,934$1,091$595$317$120
46 years$3,177$1,845$1,024$550$288$106
47 years$3,075$1,761$962$508$262$94
48 years$2,976$1,681$904$469$238$83
49 years$2,882$1,605$850$434$216$74
50 years$2,792$1,533$799$401$196$65

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 $5,962 every year, while hoping to spend $32,278 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: 62/29/9 Blend
39$2,860,000$2,860,000$2,860,000$2,860,000
40$3,157,870$3,006,290$2,961,960$3,347,138
41$3,445,629$3,119,254$3,026,842$3,587,405
42$3,761,658$3,236,673$3,092,816$3,845,272
43$4,108,806$3,358,728$3,159,884$4,125,916
44$4,490,211$3,485,614$3,228,048$4,431,540
45$4,909,333$3,617,529$3,297,308$4,764,569
46$5,369,981$3,754,684$3,367,663$5,127,668
47$5,876,352$3,897,296$3,439,112$5,523,772
48$6,433,069$4,045,592$3,511,652$5,956,109
49$7,045,227$4,199,812$3,585,277$6,428,232
50$7,718,439$4,360,201$3,659,983$6,944,049
51$8,458,888$4,527,019$3,735,761$7,507,865
52$9,273,388$4,700,537$3,812,602$8,124,416
53$10,169,445$4,881,035$3,890,496$8,798,915
54$11,155,331$5,068,808$3,969,430$9,537,103
55$12,240,158$5,264,162$4,049,389$10,345,296
56$13,433,967$5,467,419$4,130,356$11,230,453
57$14,747,822$5,678,913$4,212,314$12,200,231
58$16,193,913$5,898,994$4,295,240$13,263,066
59$17,785,673$6,128,025$4,379,111$14,428,242
60$19,537,902$6,366,388$4,463,901$15,705,986
61$21,466,908$6,614,481$4,549,582$17,107,559
62$23,590,661$6,872,719$4,636,121$18,645,362
63$25,928,961$7,141,536$4,723,484$20,333,052
64$28,503,628$7,421,384$4,811,634$22,185,672
65$31,338,704$7,712,737$4,900,529$24,219,788
66$34,460,680$8,016,089$4,990,125$26,453,646
67$37,898,748$8,331,956$5,080,373$28,907,345
68$41,685,076$8,660,878$5,171,221$31,603,023
69$45,855,110$9,003,418$5,262,614$34,565,063
70$50,447,910$9,360,164$5,354,490$37,820,326
71$55,506,516$9,731,731$5,446,785$41,398,402
72$61,078,357$10,118,762$5,539,428$45,331,883
73$67,215,696$10,521,928$5,632,346$49,656,676
74$73,976,126$10,941,931$5,725,458$54,412,337
75$81,423,108$11,379,503$5,818,678$59,642,440
76$89,626,578$11,835,411$5,911,916$65,394,992
77$98,663,598$12,310,456$6,005,075$71,722,882
78$108,619,090$12,805,473$6,098,050$78,684,376
79$119,586,634$13,321,338$6,190,732$86,343,667
80$131,669,352$13,858,965$6,283,003$94,771,480
81$144,980,881$14,419,310$6,374,738$104,045,737
82$159,646,446$15,003,371$6,465,807$114,252,286
83$175,804,040$15,612,192$6,556,068$125,485,716
84$193,605,729$16,246,867$6,645,373$137,850,243
85$213,219,084$16,908,535$6,733,564$151,460,692
86$234,828,768$17,598,390$6,820,476$166,443,578
87$258,638,272$18,317,680$6,905,931$182,938,298
88$284,871,839$19,067,710$6,989,743$201,098,446
89$313,776,583$19,849,844$7,071,716$221,093,255
90$345,624,817$20,665,509$7,151,641$243,109,195
91$380,716,626$21,516,196$7,229,299$267,351,732
92$419,382,699$22,403,467$7,304,457$294,047,257
93$461,987,450$23,328,953$7,376,872$323,445,229
94$508,932,459$24,294,361$7,446,287$355,820,516
95$560,660,261$25,301,475$7,512,428$391,475,997
96$617,658,524$26,352,165$7,575,011$430,745,406
97$680,464,654$27,448,381$7,633,735$473,996,488
98$749,670,866$28,592,169$7,688,282$521,634,460
99$825,929,774$29,785,665$7,738,319$574,105,834
100$909,960,554$31,031,105$7,783,496$631,902,627