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%11.8%
1 years$244,434$242,257$240,132$238,059$236,035$234,253
2 years$121,007$118,753$116,569$114,451$112,397$110,601
3 years$79,870$77,607$75,428$73,330$71,310$69,554
4 years$59,306$57,049$54,892$52,830$50,859$49,158
5 years$46,970$44,727$42,599$40,579$38,662$37,020
6 years$38,749$36,523$34,426$32,451$30,592$29,012
7 years$32,879$30,672$28,608$26,680$24,879$23,362
8 years$28,479$26,292$24,262$22,381$20,640$19,185
9 years$25,058$22,892$20,897$19,064$17,382$15,989
10 years$22,323$20,178$18,218$16,433$14,810$13,478
11 years$20,087$17,963$16,039$14,302$12,737$11,466
12 years$18,225$16,123$14,234$12,545$11,038$9,825
13 years$16,650$14,570$12,717$11,075$9,625$8,471
14 years$15,302$13,244$11,427$9,831$8,437$7,339
15 years$14,135$12,099$10,317$8,768$7,429$6,386
16 years$13,114$11,100$9,354$7,850$6,566$5,576
17 years$12,214$10,223$8,511$7,054$5,822$4,883
18 years$11,416$9,446$7,770$6,357$5,176$4,288
19 years$10,702$8,755$7,113$5,744$4,614$3,774
20 years$10,060$8,135$6,528$5,202$4,121$3,327
21 years$9,480$7,578$6,004$4,721$3,688$2,939
22 years$8,954$7,074$5,534$4,293$3,306$2,599
23 years$8,474$6,616$5,110$3,909$2,967$2,302
24 years$8,035$6,199$4,726$3,566$2,667$2,041
25 years$7,631$5,817$4,377$3,256$2,400$1,812
26 years$7,260$5,467$4,059$2,977$2,162$1,609
27 years$6,916$5,145$3,769$2,725$1,949$1,431
28 years$6,597$4,848$3,504$2,497$1,759$1,273
29 years$6,301$4,574$3,261$2,290$1,588$1,133
30 years$6,025$4,319$3,037$2,101$1,435$1,009
31 years$5,768$4,083$2,832$1,930$1,297$899
32 years$5,527$3,864$2,642$1,774$1,173$801
33 years$5,301$3,659$2,467$1,631$1,062$715
34 years$5,089$3,468$2,305$1,501$962$637
35 years$4,889$3,289$2,155$1,382$871$569
36 years$4,701$3,122$2,016$1,272$789$508
37 years$4,524$2,965$1,887$1,172$715$453
38 years$4,356$2,818$1,767$1,081$648$405
39 years$4,197$2,680$1,655$996$588$361
40 years$4,047$2,549$1,552$919$533$323
41 years$3,904$2,427$1,455$848$484$288
42 years$3,769$2,311$1,365$782$439$258
43 years$3,640$2,202$1,281$722$398$230
44 years$3,517$2,099$1,202$667$362$206
45 years$3,400$2,002$1,129$616$328$184
46 years$3,288$1,909$1,060$569$298$164
47 years$3,182$1,822$996$526$271$147
48 years$3,080$1,740$936$486$246$131
49 years$2,983$1,661$880$449$223$117
50 years$2,890$1,587$827$415$203$105

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 $2,756 every year, while hoping to spend $22,117 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: 49/33/18 Blend
39$2,960,000$2,960,000$2,960,000$2,960,000
40$3,264,763$3,107,883$3,062,003$3,408,182
41$3,574,236$3,236,637$3,141,048$3,636,470
42$3,914,535$3,370,958$3,221,999$3,881,836
43$4,288,779$3,511,097$3,304,898$4,147,909
44$4,700,408$3,657,314$3,389,785$4,436,644
45$5,153,209$3,809,882$3,476,702$4,750,190
46$5,651,357$3,969,087$3,565,692$5,090,907
47$6,199,450$4,135,227$3,656,798$5,461,390
48$6,802,555$4,308,614$3,750,062$5,864,491
49$7,466,257$4,489,577$3,845,530$6,303,347
50$8,196,706$4,678,458$3,943,246$6,781,407
51$9,000,681$4,875,613$4,043,256$7,302,462
52$9,885,651$5,081,418$4,145,605$7,870,684
53$10,859,844$5,296,265$4,250,341$8,490,662
54$11,932,331$5,520,564$4,357,509$9,167,443
55$13,113,101$5,754,744$4,467,158$9,906,580
56$14,413,166$5,999,255$4,579,336$10,714,182
57$15,844,656$6,254,567$4,694,092$11,596,973
58$17,420,942$6,521,171$4,811,475$12,562,350
59$19,156,752$6,799,583$4,931,534$13,618,456
60$21,068,320$7,090,341$5,054,319$14,774,252
61$23,173,532$7,394,011$5,179,882$16,039,600
62$25,492,096$7,711,182$5,308,272$17,425,358
63$28,045,733$8,042,473$5,439,542$18,943,476
64$30,858,374$8,388,530$5,573,743$20,607,112
65$33,956,391$8,750,031$5,710,926$22,430,750
66$37,368,846$9,127,686$5,851,145$24,430,337
67$41,127,762$9,522,236$5,994,452$26,623,434
68$45,268,427$9,934,459$6,140,900$29,029,372
69$49,829,727$10,365,168$6,290,540$31,669,443
70$54,854,514$10,815,215$6,443,428$34,567,089
71$60,390,006$11,285,493$6,599,614$37,748,127
72$66,488,239$11,776,934$6,759,154$41,240,988
73$73,206,553$12,290,518$6,922,099$45,076,983
74$80,608,135$12,827,267$7,088,503$49,290,597
75$88,762,616$13,388,254$7,258,419$53,919,809
76$97,746,726$13,974,602$7,431,900$59,006,451
77$107,645,021$14,587,486$7,608,997$64,596,597
78$118,550,677$15,228,137$7,789,763$70,740,999
79$130,566,376$15,897,845$7,974,249$77,495,558
80$143,805,266$16,597,960$8,162,507$84,921,848
81$158,392,039$17,329,895$8,354,586$93,087,700
82$174,464,100$18,095,133$8,550,538$102,067,831
83$192,172,867$18,895,223$8,750,410$111,944,552
84$211,685,201$19,731,791$8,954,250$122,808,534
85$233,184,981$20,606,538$9,162,107$134,759,667
86$256,874,837$21,521,246$9,374,025$147,907,992
87$282,978,065$22,477,782$9,590,050$162,374,740
88$311,740,735$23,478,101$9,810,224$178,293,469
89$343,434,013$24,524,251$10,034,589$195,811,320
90$378,356,721$25,618,378$10,263,187$215,090,400
91$416,838,157$26,762,728$10,496,054$236,309,311
92$459,241,204$27,959,658$10,733,227$259,664,823
93$505,965,757$29,211,631$10,974,740$285,373,732
94$557,452,496$30,521,233$11,220,626$313,674,896
95$614,187,047$31,891,169$11,470,913$344,831,488
96$676,704,566$33,324,276$11,725,628$379,133,466
97$745,594,790$34,823,524$11,984,795$416,900,311
98$821,507,607$36,392,025$12,248,434$458,484,031
99$905,159,189$38,033,041$12,516,563$504,272,477
100$997,338,754$39,749,987$12,789,195$554,692,994