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%14%
1 years$244,434$242,257$240,132$238,059$236,035$232,124
2 years$121,007$118,753$116,569$114,451$112,397$108,469
3 years$79,870$77,607$75,428$73,330$71,310$67,486
4 years$59,306$57,049$54,892$52,830$50,859$47,169
5 years$46,970$44,727$42,599$40,579$38,662$35,117
6 years$38,749$36,523$34,426$32,451$30,592$27,195
7 years$32,879$30,672$28,608$26,680$24,879$21,632
8 years$28,479$26,292$24,262$22,381$20,640$17,542
9 years$25,058$22,892$20,897$19,064$17,382$14,431
10 years$22,323$20,178$18,218$16,433$14,810$12,004
11 years$20,087$17,963$16,039$14,302$12,737$10,073
12 years$18,225$16,123$14,234$12,545$11,038$8,512
13 years$16,650$14,570$12,717$11,075$9,625$7,234
14 years$15,302$13,244$11,427$9,831$8,437$6,177
15 years$14,135$12,099$10,317$8,768$7,429$5,295
16 years$13,114$11,100$9,354$7,850$6,566$4,553
17 years$12,214$10,223$8,511$7,054$5,822$3,926
18 years$11,416$9,446$7,770$6,357$5,176$3,394
19 years$10,702$8,755$7,113$5,744$4,614$2,939
20 years$10,060$8,135$6,528$5,202$4,121$2,550
21 years$9,480$7,578$6,004$4,721$3,688$2,216
22 years$8,954$7,074$5,534$4,293$3,306$1,927
23 years$8,474$6,616$5,110$3,909$2,967$1,678
24 years$8,035$6,199$4,726$3,566$2,667$1,463
25 years$7,631$5,817$4,377$3,256$2,400$1,276
26 years$7,260$5,467$4,059$2,977$2,162$1,114
27 years$6,916$5,145$3,769$2,725$1,949$973
28 years$6,597$4,848$3,504$2,497$1,759$851
29 years$6,301$4,574$3,261$2,290$1,588$744
30 years$6,025$4,319$3,037$2,101$1,435$651
31 years$5,768$4,083$2,832$1,930$1,297$569
32 years$5,527$3,864$2,642$1,774$1,173$498
33 years$5,301$3,659$2,467$1,631$1,062$436
34 years$5,089$3,468$2,305$1,501$962$382
35 years$4,889$3,289$2,155$1,382$871$335
36 years$4,701$3,122$2,016$1,272$789$293
37 years$4,524$2,965$1,887$1,172$715$257
38 years$4,356$2,818$1,767$1,081$648$225
39 years$4,197$2,680$1,655$996$588$197
40 years$4,047$2,549$1,552$919$533$173
41 years$3,904$2,427$1,455$848$484$152
42 years$3,769$2,311$1,365$782$439$133
43 years$3,640$2,202$1,281$722$398$117
44 years$3,517$2,099$1,202$667$362$102
45 years$3,400$2,002$1,129$616$328$90
46 years$3,288$1,909$1,060$569$298$79
47 years$3,182$1,822$996$526$271$69
48 years$3,080$1,740$936$486$246$60
49 years$2,983$1,661$880$449$223$53
50 years$2,890$1,587$827$415$203$46

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 $3,321 every year, while hoping to spend $23,550 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: 58/36/6 Blend
39$2,960,000$2,960,000$2,960,000$2,960,000
40$3,265,346$3,108,466$3,062,586$3,450,600
41$3,573,354$3,235,723$3,140,125$3,702,577
42$3,911,990$3,368,428$3,219,473$3,974,117
43$4,284,352$3,506,820$3,300,665$4,269,477
44$4,693,856$3,651,154$3,383,737$4,590,939
45$5,144,262$3,801,694$3,468,726$4,941,010
46$5,639,717$3,958,717$3,555,668$5,322,444
47$6,184,787$4,122,512$3,644,601$5,738,274
48$6,784,502$4,293,383$3,735,563$6,191,831
49$7,444,408$4,471,645$3,828,591$6,686,782
50$8,170,613$4,657,631$3,923,724$7,227,158
51$8,969,848$4,851,687$4,021,000$7,817,394
52$9,849,528$5,054,175$4,120,459$8,462,370
53$10,817,825$5,265,475$4,222,140$9,167,455
54$11,883,743$5,485,984$4,326,082$9,938,556
55$13,057,204$5,716,116$4,432,325$10,782,173
56$14,349,139$5,956,306$4,540,908$11,705,461
57$15,771,595$6,207,008$4,651,872$12,716,293
58$17,337,845$6,468,699$4,765,257$13,823,336
59$19,062,515$6,741,875$4,881,103$15,036,127
60$20,961,722$7,027,058$4,999,451$16,365,168
61$23,053,225$7,324,791$5,120,340$17,822,018
62$25,356,594$7,635,646$5,243,811$19,419,402
63$27,893,393$7,960,219$5,369,905$21,171,333
64$30,687,384$8,299,134$5,498,662$23,093,235
65$33,764,751$8,653,046$5,630,121$25,202,095
66$37,154,348$9,022,637$5,764,322$27,516,615
67$40,887,969$9,408,625$5,901,305$30,057,391
68$45,000,653$9,811,758$6,041,110$32,847,101
69$49,531,007$10,232,821$6,183,774$35,910,723
70$54,521,576$10,672,636$6,329,336$39,275,761
71$60,019,242$11,132,061$6,477,835$42,972,508
72$66,075,670$11,611,997$6,629,307$47,034,328
73$72,747,788$12,113,385$6,783,789$51,497,965
74$80,098,334$12,637,212$6,941,317$56,403,894
75$88,196,438$13,184,509$7,101,926$61,796,692
76$97,118,283$13,756,359$7,265,649$67,725,463
77$106,947,820$14,353,892$7,432,520$74,244,294
78$117,777,559$14,978,294$7,602,571$81,412,764
79$129,709,444$15,630,805$7,775,831$89,296,502
80$142,855,817$16,312,724$7,952,331$97,967,805
81$157,340,475$17,025,412$8,132,098$107,506,314
82$173,299,838$17,770,292$8,315,159$117,999,763
83$190,884,242$18,548,856$8,501,536$129,544,807
84$210,259,350$19,362,666$8,691,254$142,247,922
85$231,607,725$20,213,358$8,884,332$156,226,413
86$255,130,545$21,102,644$9,080,789$171,609,514
87$281,049,505$22,032,319$9,280,640$188,539,603
88$309,608,912$23,004,260$9,483,899$207,173,541
89$341,077,988$24,020,435$9,690,577$227,684,147
90$375,753,412$25,082,906$9,900,680$250,261,827
91$413,962,122$26,193,830$10,114,215$275,116,361
92$456,064,399$27,355,468$10,331,181$302,478,880
93$502,457,269$28,570,188$10,551,577$332,604,043
94$553,578,253$29,840,469$10,775,397$365,772,432
95$609,909,493$31,168,910$11,002,631$402,293,192
96$671,982,306$32,558,232$11,233,264$442,506,948
97$740,382,201$34,011,284$11,467,278$486,789,010
98$815,754,402$35,531,054$11,704,649$535,552,904
99$898,809,945$37,120,670$11,945,348$589,254,277
100$990,332,383$38,783,406$12,189,342$648,395,181