Can I retire at age 40 with 2,870,000?

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 $2,870,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$237,002$234,891$232,831$230,821$228,858$226,751
2 years$117,328$115,143$113,025$110,972$108,980$106,857
3 years$77,441$75,247$73,135$71,101$69,141$67,069
4 years$57,502$55,314$53,223$51,224$49,312$47,305
5 years$45,542$43,367$41,303$39,345$37,486$35,551
6 years$37,571$35,413$33,379$31,464$29,662$27,801
7 years$31,880$29,739$27,738$25,869$24,123$22,337
8 years$27,613$25,492$23,524$21,701$20,012$18,301
9 years$24,296$22,196$20,261$18,484$16,853$15,217
10 years$21,645$19,564$17,664$15,933$14,360$12,797
11 years$19,476$17,417$15,551$13,867$12,350$10,859
12 years$17,671$15,632$13,802$12,163$10,702$9,282
13 years$16,144$14,127$12,331$10,738$9,332$7,982
14 years$14,837$12,841$11,079$9,532$8,181$6,897
15 years$13,705$11,731$10,003$8,501$7,203$5,985
16 years$12,715$10,763$9,069$7,612$6,366$5,212
17 years$11,843$9,912$8,253$6,839$5,645$4,552
18 years$11,068$9,159$7,534$6,163$5,019$3,986
19 years$10,376$8,489$6,897$5,569$4,473$3,497
20 years$9,754$7,888$6,329$5,044$3,996$3,075
21 years$9,192$7,347$5,822$4,578$3,576$2,708
22 years$8,682$6,859$5,366$4,162$3,205$2,388
23 years$8,216$6,415$4,954$3,791$2,877$2,109
24 years$7,791$6,010$4,582$3,457$2,586$1,864
25 years$7,399$5,640$4,244$3,157$2,327$1,649
26 years$7,039$5,301$3,936$2,887$2,096$1,460
27 years$6,706$4,989$3,655$2,642$1,890$1,294
28 years$6,397$4,701$3,398$2,421$1,705$1,148
29 years$6,110$4,435$3,162$2,220$1,540$1,018
30 years$5,842$4,188$2,945$2,038$1,391$904
31 years$5,592$3,959$2,746$1,871$1,258$803
32 years$5,359$3,746$2,562$1,720$1,138$713
33 years$5,140$3,548$2,392$1,581$1,030$634
34 years$4,934$3,362$2,235$1,455$932$564
35 years$4,741$3,189$2,089$1,340$844$501
36 years$4,558$3,027$1,955$1,234$765$446
37 years$4,386$2,875$1,829$1,137$693$397
38 years$4,224$2,732$1,713$1,048$629$353
39 years$4,070$2,598$1,605$966$570$314
40 years$3,924$2,472$1,504$891$517$280
41 years$3,785$2,353$1,411$822$469$249
42 years$3,654$2,241$1,323$759$426$222
43 years$3,529$2,135$1,242$700$386$197
44 years$3,410$2,035$1,166$647$351$176
45 years$3,297$1,941$1,094$597$318$157
46 years$3,188$1,851$1,028$552$289$139
47 years$3,085$1,767$966$510$262$124
48 years$2,987$1,687$907$471$238$111
49 years$2,892$1,611$853$435$216$99
50 years$2,802$1,539$802$402$197$88

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,870,000, adding $6,946 every year, while hoping to spend $36,350 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: 21/50/29 Blend
39$2,870,000$2,870,000$2,870,000$2,870,000
40$3,169,905$3,017,795$2,973,310$3,207,160
41$3,454,559$3,126,991$3,034,240$3,351,119
42$3,767,030$3,240,319$3,095,992$3,501,448
43$4,110,115$3,357,943$3,158,557$3,661,360
44$4,486,900$3,480,035$3,221,921$3,831,656
45$4,900,779$3,606,772$3,286,071$4,013,211
46$5,355,495$3,738,341$3,350,991$4,206,983
47$5,855,169$3,874,933$3,416,663$4,414,023
48$6,404,343$4,016,751$3,483,067$4,635,480
49$7,008,018$4,164,004$3,550,182$4,872,616
50$7,671,707$4,316,912$3,617,985$5,126,815
51$8,401,482$4,475,701$3,686,448$5,399,594
52$9,204,033$4,640,610$3,755,543$5,692,616
53$10,086,730$4,811,885$3,825,239$6,007,708
54$11,057,694$4,989,786$3,895,503$6,346,875
55$12,125,874$5,174,580$3,966,297$6,712,317
56$13,301,127$5,366,548$4,037,582$7,106,452
57$14,594,316$5,565,983$4,109,315$7,531,933
58$16,017,409$5,773,190$4,181,450$7,991,676
59$17,583,594$5,988,485$4,253,938$8,488,885
60$19,307,400$6,212,201$4,326,725$9,027,081
61$21,204,839$6,444,682$4,399,754$9,610,133
62$23,293,551$6,686,290$4,472,964$10,242,294
63$25,592,974$6,937,400$4,546,290$10,928,241
64$28,124,529$7,198,403$4,619,662$11,673,114
65$30,911,816$7,469,710$4,693,005$12,482,569
66$33,980,842$7,751,746$4,766,241$13,362,824
67$37,360,263$8,044,957$4,839,286$14,320,718
68$41,081,656$8,349,806$4,912,048$15,363,776
69$45,179,816$8,666,778$4,984,433$16,500,276
70$49,693,086$8,996,379$5,056,340$17,739,325
71$54,663,715$9,339,135$5,127,661$19,090,946
72$60,138,258$9,695,598$5,198,283$20,566,168
73$66,168,019$10,066,340$5,268,083$22,177,127
74$72,809,528$10,451,962$5,336,936$23,937,183
75$80,125,081$10,853,089$5,404,704$25,861,039
76$88,183,323$11,270,375$5,471,246$27,964,882
77$97,059,899$11,704,500$5,536,409$30,266,529
78$106,838,165$12,156,176$5,600,035$32,785,596
79$117,609,975$12,626,147$5,661,954$35,543,679
80$129,476,552$13,115,187$5,721,988$38,564,557
81$142,549,435$13,624,106$5,779,950$41,874,411
82$156,951,540$14,153,750$5,835,641$45,502,071
83$172,818,315$14,705,002$5,888,853$49,479,281
84$190,299,019$15,278,783$5,939,365$53,841,003
85$209,558,132$15,876,056$5,986,947$58,625,734
86$230,776,906$16,497,827$6,031,353$63,875,876
87$254,155,075$17,145,145$6,072,329$69,638,126
88$279,912,744$17,819,109$6,109,603$75,963,913
89$308,292,462$18,520,863$6,142,893$82,909,886
90$339,561,512$19,251,604$6,171,899$90,538,437
91$374,014,437$20,012,583$6,196,308$98,918,292
92$411,975,816$20,805,107$6,215,791$108,125,152
93$453,803,331$21,630,538$6,230,001$118,242,403
94$499,891,141$22,490,305$6,238,576$129,361,902
95$550,673,603$23,385,896$6,241,135$141,584,834
96$606,629,374$24,318,868$6,237,276$155,022,668
97$668,285,925$25,290,848$6,226,580$169,798,198
98$736,224,527$26,303,536$6,208,608$186,046,703
99$811,085,729$27,358,710$6,182,896$203,917,211
100$893,575,412$28,458,225$6,148,962$223,573,909