Can I retire at age 40 with 2,890,000?

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 $2,890,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.5%
1 years$238,653$236,528$234,454$232,429$230,453$226,170
2 years$118,145$115,945$113,812$111,745$109,739$105,440
3 years$77,981$75,771$73,644$71,596$69,623$65,442
4 years$57,903$55,700$53,594$51,581$49,656$45,625
5 years$45,859$43,669$41,591$39,619$37,748$33,878
6 years$37,833$35,659$33,612$31,684$29,868$26,165
7 years$32,102$29,947$27,932$26,049$24,291$20,755
8 years$27,805$25,670$23,688$21,852$20,152$16,781
9 years$24,466$22,350$20,403$18,613$16,971$13,764
10 years$21,795$19,701$17,788$16,044$14,460$11,415
11 years$19,612$17,538$15,660$13,964$12,436$9,548
12 years$17,794$15,741$13,898$12,248$10,777$8,042
13 years$16,257$14,226$12,417$10,813$9,398$6,812
14 years$14,940$12,931$11,156$9,599$8,238$5,797
15 years$13,800$11,812$10,073$8,560$7,253$4,952
16 years$12,804$10,838$9,132$7,665$6,410$4,244
17 years$11,925$9,981$8,310$6,887$5,684$3,647
18 years$11,146$9,223$7,586$6,206$5,054$3,141
19 years$10,449$8,548$6,945$5,608$4,505$2,710
20 years$9,822$7,943$6,374$5,079$4,024$2,342
21 years$9,256$7,399$5,862$4,610$3,601$2,027
22 years$8,742$6,906$5,403$4,191$3,228$1,757
23 years$8,274$6,459$4,989$3,817$2,897$1,524
24 years$7,845$6,052$4,614$3,481$2,604$1,323
25 years$7,451$5,679$4,273$3,179$2,343$1,150
26 years$7,088$5,338$3,963$2,907$2,111$1,000
27 years$6,752$5,024$3,680$2,661$1,903$870
28 years$6,441$4,734$3,421$2,438$1,717$757
29 years$6,152$4,466$3,184$2,236$1,551$659
30 years$5,883$4,217$2,966$2,052$1,401$574
31 years$5,631$3,987$2,765$1,884$1,267$501
32 years$5,396$3,772$2,580$1,732$1,146$436
33 years$5,176$3,572$2,409$1,593$1,037$380
34 years$4,968$3,386$2,250$1,465$939$332
35 years$4,774$3,211$2,104$1,349$850$289
36 years$4,590$3,048$1,968$1,242$770$252
37 years$4,417$2,895$1,842$1,145$698$220
38 years$4,253$2,751$1,725$1,055$633$192
39 years$4,098$2,616$1,616$973$574$168
40 years$3,951$2,489$1,515$897$521$146
41 years$3,812$2,369$1,421$828$472$128
42 years$3,679$2,257$1,332$764$429$112
43 years$3,554$2,150$1,250$705$389$97
44 years$3,434$2,049$1,174$651$353$85
45 years$3,320$1,954$1,102$601$321$74
46 years$3,211$1,864$1,035$555$291$65
47 years$3,107$1,779$972$513$264$57
48 years$3,007$1,698$914$474$240$49
49 years$2,913$1,622$859$438$218$43
50 years$2,822$1,549$808$405$198$38

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,890,000, adding $6,800 every year, while hoping to spend $42,468 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: 35/42/23 Blend
39$2,890,000$2,890,000$2,890,000$2,890,000
40$3,191,794$3,038,624$2,993,829$3,281,031
41$3,472,172$3,142,331$3,048,937$3,451,304
42$3,779,724$3,249,696$3,104,467$3,630,521
43$4,117,179$3,360,854$3,160,390$3,823,038
44$4,487,539$3,475,945$3,216,671$4,030,068
45$4,894,115$3,595,112$3,273,276$4,252,942
46$5,340,549$3,718,508$3,330,166$4,493,123
47$5,830,858$3,846,287$3,387,299$4,752,220
48$6,369,464$3,978,614$3,444,632$5,031,999
49$6,961,240$4,115,656$3,502,117$5,334,402
50$7,611,552$4,257,589$3,559,704$5,661,565
51$8,326,314$4,404,595$3,617,338$6,015,838
52$9,112,041$4,556,863$3,674,962$6,399,801
53$9,975,911$4,714,591$3,732,514$6,816,295
54$10,925,830$4,877,982$3,789,930$7,268,446
55$11,970,510$5,047,249$3,847,138$7,759,690
56$13,119,551$5,222,613$3,904,066$8,293,809
57$14,383,528$5,404,303$3,960,635$8,874,966
58$15,774,092$5,592,558$4,016,760$9,507,739
59$17,304,082$5,787,626$4,072,355$10,197,168
60$18,987,644$5,989,765$4,127,324$10,948,802
61$20,840,363$6,199,243$4,181,569$11,768,746
62$22,879,413$6,416,339$4,234,984$12,663,723
63$25,123,716$6,641,343$4,287,459$13,641,130
64$27,594,122$6,874,555$4,338,876$14,709,117
65$30,313,604$7,116,291$4,389,110$15,876,652
66$33,307,478$7,366,875$4,438,032$17,153,612
67$36,603,636$7,626,647$4,485,501$18,550,872
68$40,232,814$7,895,960$4,531,373$20,080,408
69$44,228,881$8,175,181$4,575,493$21,755,408
70$48,629,154$8,464,693$4,617,699$23,590,396
71$53,474,756$8,764,891$4,657,820$25,601,367
72$58,811,000$9,076,190$4,695,676$27,805,938
73$64,687,819$9,399,020$4,731,078$30,223,513
74$71,160,233$9,733,828$4,763,826$32,875,463
75$78,288,872$10,081,082$4,793,710$35,785,329
76$86,140,547$10,441,265$4,820,509$38,979,041
77$94,788,879$10,814,882$4,843,992$42,485,163
78$104,314,993$11,202,460$4,863,914$46,335,158
79$114,808,287$11,604,545$4,880,020$50,563,687
80$126,367,271$12,021,707$4,892,040$55,208,934
81$139,100,501$12,454,539$4,899,691$60,312,962
82$153,127,599$12,903,658$4,902,678$65,922,111
83$168,580,385$13,369,708$4,900,688$72,087,434
84$185,604,118$13,853,358$4,893,395$78,865,177
85$204,358,871$14,355,306$4,880,457$86,317,303
86$225,021,038$14,876,277$4,861,514$94,512,084
87$247,784,999$15,417,030$4,836,190$103,524,737
88$272,864,956$15,978,352$4,804,090$113,438,132
89$300,496,954$16,561,064$4,764,799$124,343,577
90$330,941,109$17,166,021$4,717,886$136,341,671
91$364,484,061$17,794,116$4,662,894$149,543,259
92$401,441,685$18,446,276$4,599,350$164,070,468
93$442,162,063$19,123,471$4,526,755$180,057,862
94$487,028,780$19,826,707$4,444,588$197,653,712
95$536,464,537$20,557,037$4,352,303$217,021,387
96$590,935,144$21,315,556$4,249,330$238,340,898
97$650,953,917$22,103,406$4,135,070$261,810,590
98$717,086,521$22,921,778$4,008,899$287,649,020
99$789,956,312$23,771,912$3,870,164$316,097,006
100$870,250,222$24,655,101$3,718,181$347,419,906