Can I retire at age 40 with 2,960,000?

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 $2,960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$244,434$242,257$240,132$238,059$236,035$235,040
2 years$121,007$118,753$116,569$114,451$112,397$111,393
3 years$79,870$77,607$75,428$73,330$71,310$70,327
4 years$59,306$57,049$54,892$52,830$50,859$49,905
5 years$46,970$44,727$42,599$40,579$38,662$37,740
6 years$38,749$36,523$34,426$32,451$30,592$29,704
7 years$32,879$30,672$28,608$26,680$24,879$24,025
8 years$28,479$26,292$24,262$22,381$20,640$19,819
9 years$25,058$22,892$20,897$19,064$17,382$16,594
10 years$22,323$20,178$18,218$16,433$14,810$14,056
11 years$20,087$17,963$16,039$14,302$12,737$12,015
12 years$18,225$16,123$14,234$12,545$11,038$10,348
13 years$16,650$14,570$12,717$11,075$9,625$8,967
14 years$15,302$13,244$11,427$9,831$8,437$7,810
15 years$14,135$12,099$10,317$8,768$7,429$6,831
16 years$13,114$11,100$9,354$7,850$6,566$5,997
17 years$12,214$10,223$8,511$7,054$5,822$5,282
18 years$11,416$9,446$7,770$6,357$5,176$4,664
19 years$10,702$8,755$7,113$5,744$4,614$4,128
20 years$10,060$8,135$6,528$5,202$4,121$3,661
21 years$9,480$7,578$6,004$4,721$3,688$3,252
22 years$8,954$7,074$5,534$4,293$3,306$2,894
23 years$8,474$6,616$5,110$3,909$2,967$2,579
24 years$8,035$6,199$4,726$3,566$2,667$2,300
25 years$7,631$5,817$4,377$3,256$2,400$2,054
26 years$7,260$5,467$4,059$2,977$2,162$1,836
27 years$6,916$5,145$3,769$2,725$1,949$1,643
28 years$6,597$4,848$3,504$2,497$1,759$1,471
29 years$6,301$4,574$3,261$2,290$1,588$1,318
30 years$6,025$4,319$3,037$2,101$1,435$1,181
31 years$5,768$4,083$2,832$1,930$1,297$1,059
32 years$5,527$3,864$2,642$1,774$1,173$950
33 years$5,301$3,659$2,467$1,631$1,062$853
34 years$5,089$3,468$2,305$1,501$962$766
35 years$4,889$3,289$2,155$1,382$871$688
36 years$4,701$3,122$2,016$1,272$789$618
37 years$4,524$2,965$1,887$1,172$715$556
38 years$4,356$2,818$1,767$1,081$648$500
39 years$4,197$2,680$1,655$996$588$449
40 years$4,047$2,549$1,552$919$533$404
41 years$3,904$2,427$1,455$848$484$363
42 years$3,769$2,311$1,365$782$439$327
43 years$3,640$2,202$1,281$722$398$294
44 years$3,517$2,099$1,202$667$362$265
45 years$3,400$2,002$1,129$616$328$238
46 years$3,288$1,909$1,060$569$298$214
47 years$3,182$1,822$996$526$271$193
48 years$3,080$1,740$936$486$246$174
49 years$2,983$1,661$880$449$223$156
50 years$2,890$1,587$827$415$203$141

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,960,000, adding $6,152 every year, while hoping to spend $43,142 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: 58/37/5 Blend
39$2,960,000$2,960,000$2,960,000$2,960,000
40$3,268,266$3,111,386$3,065,506$3,454,476
41$3,555,726$3,217,941$3,122,297$3,686,627
42$3,871,062$3,328,271$3,179,546$3,934,072
43$4,217,070$3,442,516$3,237,220$4,202,666
44$4,596,832$3,560,821$3,295,289$4,494,435
45$5,013,743$3,683,336$3,353,715$4,811,604
46$5,471,543$3,810,217$3,412,462$5,156,622
47$5,974,349$3,941,626$3,471,489$5,532,184
48$6,526,700$4,077,734$3,530,751$5,941,251
49$7,133,594$4,218,713$3,590,202$6,387,087
50$7,800,539$4,364,748$3,649,791$6,873,277
51$8,533,600$4,516,027$3,709,466$7,403,771
52$9,339,462$4,672,747$3,769,167$7,982,914
53$10,225,487$4,835,112$3,828,835$8,615,489
54$11,199,790$5,003,335$3,888,404$9,306,760
55$12,271,307$5,177,638$3,947,804$10,062,524
56$13,449,888$5,358,249$4,006,963$10,889,159
57$14,746,380$5,545,407$4,065,800$11,793,689
58$16,172,741$5,739,362$4,124,234$12,783,848
59$17,742,140$5,940,370$4,182,175$13,868,150
60$19,469,091$6,148,701$4,239,531$15,055,971
61$21,369,584$6,364,633$4,296,201$16,357,634
62$23,461,239$6,588,457$4,352,081$17,784,510
63$25,763,469$6,820,476$4,407,060$19,349,117
64$28,297,667$7,061,003$4,461,020$21,065,244
65$31,087,401$7,310,364$4,513,837$22,948,078
66$34,158,645$7,568,901$4,565,379$25,014,344
67$37,540,016$7,836,966$4,615,509$27,282,463
68$41,263,048$8,114,928$4,664,079$29,772,728
69$45,362,489$8,403,170$4,710,936$32,507,487
70$49,876,628$8,702,090$4,755,916$35,511,360
71$54,847,654$9,012,102$4,798,849$38,811,465
72$60,322,058$9,333,639$4,839,555$42,437,676
73$66,351,070$9,667,149$4,877,842$46,422,902
74$72,991,140$10,013,100$4,913,510$50,803,394
75$80,304,474$10,371,980$4,946,350$55,619,091
76$88,359,617$10,744,293$4,976,140$60,913,990
77$97,232,103$11,130,569$5,002,646$66,736,561
78$107,005,167$11,531,356$5,025,624$73,140,206
79$117,770,528$11,947,227$5,044,816$80,183,758
80$129,629,257$12,378,776$5,059,953$87,932,034
81$142,692,730$12,826,625$5,070,750$96,456,447
82$157,083,678$13,291,419$5,076,909$105,835,679
83$172,937,345$13,773,831$5,078,118$116,156,417
84$190,402,768$14,274,561$5,074,048$127,514,175
85$209,644,176$14,794,341$5,064,355$140,014,188
86$230,842,548$15,333,930$5,048,677$153,772,407
87$254,197,317$15,894,121$5,026,636$168,916,590
88$279,928,250$16,475,740$4,997,835$185,587,503
89$308,277,526$17,079,646$4,961,857$203,940,252
90$339,512,021$17,706,736$4,918,267$224,145,738
91$373,925,826$18,357,944$4,866,607$246,392,272
92$411,843,021$19,034,245$4,806,400$270,887,346
93$453,620,739$19,736,652$4,737,144$297,859,593
94$499,652,530$20,466,224$4,658,314$327,560,941
95$550,372,081$21,224,063$4,569,361$360,268,984
96$606,257,310$22,011,318$4,469,710$396,289,603
97$667,834,871$22,829,187$4,358,761$435,959,852
98$735,685,131$23,678,921$4,235,883$479,651,131
99$810,447,648$24,561,822$4,100,419$527,772,690
100$892,827,204$25,479,247$3,951,679$580,775,491