Can I retire at age 40 with 2,940,000?

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 $2,940,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$242,782$240,620$238,510$236,451$234,440$232,475
2 years$120,189$117,951$115,782$113,678$111,638$109,658
3 years$79,330$77,082$74,918$72,835$70,828$68,894
4 years$58,905$56,664$54,521$52,473$50,515$48,642
5 years$46,653$44,425$42,311$40,305$38,401$36,594
6 years$38,487$36,276$34,193$32,232$30,385$28,647
7 years$32,657$30,465$28,415$26,500$24,711$23,042
8 years$28,287$26,114$24,098$22,230$20,500$18,901
9 years$24,889$22,737$20,756$18,935$17,264$15,734
10 years$22,172$20,041$18,095$16,322$14,710$13,247
11 years$19,951$17,842$15,931$14,205$12,651$11,255
12 years$18,102$16,014$14,138$12,460$10,963$9,633
13 years$16,538$14,472$12,632$11,000$9,560$8,294
14 years$15,199$13,154$11,349$9,765$8,380$7,177
15 years$14,039$12,017$10,247$8,708$7,379$6,236
16 years$13,025$11,025$9,290$7,797$6,521$5,438
17 years$12,132$10,154$8,454$7,006$5,782$4,756
18 years$11,338$9,383$7,717$6,314$5,141$4,170
19 years$10,629$8,696$7,065$5,705$4,583$3,665
20 years$9,992$8,080$6,484$5,167$4,093$3,226
21 years$9,416$7,527$5,964$4,689$3,663$2,846
22 years$8,893$7,026$5,497$4,264$3,283$2,513
23 years$8,417$6,571$5,075$3,883$2,947$2,222
24 years$7,981$6,157$4,694$3,542$2,649$1,968
25 years$7,580$5,778$4,347$3,234$2,384$1,744
26 years$7,210$5,430$4,032$2,957$2,147$1,546
27 years$6,869$5,110$3,744$2,707$1,936$1,373
28 years$6,553$4,816$3,480$2,480$1,747$1,219
29 years$6,259$4,543$3,239$2,274$1,577$1,083
30 years$5,985$4,290$3,017$2,087$1,425$963
31 years$5,729$4,056$2,813$1,917$1,289$857
32 years$5,489$3,838$2,624$1,762$1,166$763
33 years$5,265$3,634$2,450$1,620$1,055$679
34 years$5,054$3,444$2,289$1,491$955$605
35 years$4,856$3,267$2,140$1,372$865$539
36 years$4,669$3,101$2,002$1,264$784$480
37 years$4,493$2,945$1,874$1,164$710$428
38 years$4,327$2,799$1,755$1,073$644$381
39 years$4,169$2,661$1,644$990$584$340
40 years$4,019$2,532$1,541$913$530$303
41 years$3,878$2,410$1,445$842$481$270
42 years$3,743$2,296$1,356$777$436$241
43 years$3,615$2,187$1,272$717$396$215
44 years$3,493$2,085$1,194$662$359$192
45 years$3,377$1,988$1,121$612$326$171
46 years$3,266$1,897$1,053$565$296$153
47 years$3,161$1,810$989$522$269$136
48 years$3,060$1,728$930$482$244$122
49 years$2,963$1,650$874$446$222$109
50 years$2,870$1,576$821$412$201$97

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,940,000, adding $4,854 every year, while hoping to spend $33,686 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: 89/5/6 Blend
39$2,940,000$2,940,000$2,940,000$2,940,000
40$3,244,887$3,089,067$3,043,497$3,532,792
41$3,540,024$3,204,590$3,109,612$3,836,306
42$3,864,135$3,324,644$3,176,814$4,164,760
43$4,220,142$3,449,416$3,245,102$4,524,814
44$4,611,260$3,579,101$3,314,476$4,919,633
45$5,041,033$3,713,901$3,384,936$5,352,703
46$5,513,365$3,854,029$3,456,477$5,827,864
47$6,032,556$3,999,704$3,529,097$6,349,346
48$6,603,344$4,151,158$3,602,790$6,921,807
49$7,230,951$4,308,629$3,677,548$7,550,379
50$7,921,126$4,472,371$3,753,365$8,240,717
51$8,680,207$4,642,642$3,830,228$8,999,047
52$9,515,174$4,819,718$3,908,127$9,832,231
53$10,433,720$5,003,883$3,987,047$10,747,827
54$11,444,319$5,195,433$4,066,973$11,754,162
55$12,556,310$5,394,680$4,147,888$12,860,409
56$13,779,981$5,601,946$4,229,769$14,076,676
57$15,126,669$5,817,572$4,312,596$15,414,097
58$16,608,865$6,041,908$4,396,344$16,884,941
59$18,240,332$6,275,324$4,480,984$18,502,725
60$20,036,235$6,518,204$4,566,486$20,282,340
61$22,013,285$6,770,951$4,652,818$22,240,195
62$24,189,895$7,033,982$4,739,942$24,394,369
63$26,586,354$7,307,737$4,827,820$26,764,782
64$29,225,018$7,592,671$4,916,407$29,373,381
65$32,130,521$7,889,264$5,005,659$32,244,351
66$35,330,010$8,198,013$5,095,523$35,404,338
67$38,853,394$8,519,439$5,185,947$38,882,703
68$42,733,635$8,854,087$5,276,871$42,711,797
69$47,007,053$9,202,523$5,368,233$46,927,268
70$51,713,668$9,565,343$5,459,964$51,568,397
71$56,897,583$9,943,166$5,551,994$56,678,465
72$62,607,394$10,336,639$5,644,244$62,305,164
73$68,896,654$10,746,439$5,736,631$68,501,048
74$75,824,372$11,173,274$5,829,067$75,324,025
75$83,455,575$11,617,882$5,921,459$82,837,905
76$91,861,920$12,081,035$6,013,704$91,113,001
77$101,122,370$12,563,539$6,105,697$100,226,795
78$111,323,937$13,066,238$6,197,323$110,264,665
79$122,562,507$13,590,012$6,288,462$121,320,692
80$134,943,743$14,135,783$6,378,986$133,498,549
81$148,584,080$14,704,512$6,468,757$146,912,476
82$163,611,828$15,297,205$6,557,633$161,688,361
83$180,168,380$15,914,913$6,645,459$177,964,924
84$198,409,547$16,558,736$6,732,073$195,895,030
85$218,507,028$17,229,821$6,817,305$215,647,130
86$240,650,033$17,929,371$6,900,973$237,406,847
87$265,047,067$18,658,640$6,982,886$261,378,733
88$291,927,896$19,418,941$7,062,841$287,788,196
89$321,545,719$20,211,647$7,140,624$316,883,627
90$354,179,557$21,038,193$7,216,010$348,938,747
91$390,136,886$21,900,079$7,288,760$384,255,185
92$429,756,540$22,798,874$7,358,625$423,165,330
93$473,411,908$23,736,220$7,425,340$466,035,465
94$521,514,460$24,713,832$7,488,626$513,269,225
95$574,517,630$25,733,504$7,548,190$565,311,406
96$632,921,097$26,797,115$7,603,723$622,652,162
97$697,275,501$27,906,626$7,654,901$685,831,635
98$768,187,644$29,064,092$7,701,381$755,445,048
99$846,326,211$30,271,660$7,742,805$832,148,327
100$932,428,090$31,531,577$7,778,794$916,664,292