Can I retire at age 40 with 2,970,000?

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 $2,970,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$245,260$243,075$240,944$238,863$236,832$228,429
2 years$121,416$119,154$116,963$114,838$112,777$104,401
3 years$80,140$77,869$75,683$73,578$71,550$63,464
4 years$59,506$57,242$55,078$53,009$51,030$43,296
5 years$47,129$44,878$42,743$40,716$38,792$31,430
6 years$38,880$36,646$34,542$32,561$30,695$23,710
7 years$32,990$30,776$28,705$26,770$24,963$18,354
8 years$28,575$26,380$24,344$22,457$20,710$14,471
9 years$25,143$22,969$20,967$19,128$17,440$11,564
10 years$22,399$20,246$18,280$16,489$14,860$9,336
11 years$20,155$18,024$16,093$14,350$12,780$7,598
12 years$18,286$16,177$14,282$12,587$11,075$6,221
13 years$16,707$14,619$12,760$11,112$9,658$5,119
14 years$15,354$13,289$11,465$9,864$8,466$4,229
15 years$14,182$12,139$10,352$8,797$7,454$3,505
16 years$13,158$11,138$9,385$7,877$6,588$2,913
17 years$12,256$10,257$8,540$7,077$5,841$2,426
18 years$11,454$9,478$7,796$6,378$5,194$2,024
19 years$10,738$8,784$7,137$5,763$4,629$1,691
20 years$10,094$8,163$6,550$5,220$4,135$1,415
21 years$9,512$7,603$6,025$4,737$3,700$1,185
22 years$8,984$7,098$5,553$4,307$3,317$993
23 years$8,503$6,638$5,127$3,923$2,977$833
24 years$8,062$6,220$4,742$3,578$2,676$699
25 years$7,657$5,837$4,392$3,267$2,408$587
26 years$7,284$5,486$4,073$2,987$2,169$493
27 years$6,939$5,163$3,782$2,735$1,956$414
28 years$6,619$4,865$3,516$2,505$1,765$348
29 years$6,322$4,589$3,272$2,298$1,593$293
30 years$6,046$4,334$3,048$2,109$1,440$246
31 years$5,787$4,097$2,841$1,937$1,302$207
32 years$5,545$3,877$2,651$1,780$1,177$174
33 years$5,319$3,671$2,475$1,637$1,066$146
34 years$5,106$3,480$2,313$1,506$965$123
35 years$4,906$3,300$2,162$1,386$874$104
36 years$4,717$3,132$2,023$1,277$792$87
37 years$4,539$2,975$1,893$1,176$718$73
38 years$4,371$2,827$1,773$1,084$651$62
39 years$4,211$2,689$1,661$1,000$590$52
40 years$4,060$2,558$1,557$922$535$44
41 years$3,917$2,435$1,460$851$485$37
42 years$3,781$2,319$1,369$785$441$31
43 years$3,652$2,210$1,285$725$400$26
44 years$3,529$2,106$1,206$669$363$22
45 years$3,411$2,008$1,133$618$329$18
46 years$3,300$1,916$1,064$571$299$16
47 years$3,193$1,828$999$527$272$13
48 years$3,091$1,745$939$487$247$11
49 years$2,993$1,667$883$450$224$9
50 years$2,900$1,592$830$416$203$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,970,000, adding $4,994 every year, while hoping to spend $29,505 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: 61/14/25 Blend
39$2,970,000$2,970,000$2,970,000$2,970,000
40$3,278,091$3,120,681$3,074,646$3,455,915
41$3,581,064$3,242,202$3,146,254$3,698,757
42$3,913,950$3,368,688$3,219,271$3,960,048
43$4,279,771$3,500,351$3,293,715$4,244,610
44$4,681,853$3,637,414$3,369,600$4,554,715
45$5,123,863$3,780,108$3,446,942$4,892,866
46$5,609,838$3,928,674$3,525,756$5,261,817
47$6,144,228$4,083,366$3,606,055$5,664,599
48$6,731,934$4,244,446$3,687,853$6,104,550
49$7,378,358$4,412,190$3,771,163$6,585,344
50$8,089,450$4,586,887$3,855,996$7,111,027
51$8,871,765$4,768,836$3,942,363$7,686,053
52$9,732,529$4,958,352$4,030,276$8,315,327
53$10,679,699$5,155,764$4,119,743$9,004,249
54$11,722,046$5,361,414$4,210,772$9,758,768
55$12,869,233$5,575,661$4,303,370$10,585,434
56$14,131,906$5,798,880$4,397,545$11,491,461
57$15,521,797$6,031,461$4,493,299$12,484,792
58$17,051,832$6,273,815$4,590,637$13,574,181
59$18,736,256$6,526,369$4,689,560$14,769,263
60$20,590,763$6,789,570$4,790,069$16,080,656
61$22,632,647$7,063,885$4,892,162$17,520,054
62$24,880,964$7,349,803$4,995,837$19,100,337
63$27,356,713$7,647,834$5,101,088$20,835,695
64$30,083,032$7,958,512$5,207,909$22,741,758
65$33,085,417$8,282,395$5,316,290$24,835,747
66$36,391,964$8,620,067$5,426,220$27,136,628
67$40,033,632$8,972,137$5,537,686$29,665,302
68$44,044,534$9,339,244$5,650,671$32,444,788
69$48,462,265$9,722,055$5,765,156$35,500,451
70$53,328,247$10,121,267$5,881,120$38,860,235
71$58,688,128$10,537,609$5,998,538$42,554,925
72$64,592,211$10,971,845$6,117,382$46,618,439
73$71,095,923$11,424,772$6,237,621$51,088,148
74$78,260,346$11,897,225$6,359,220$56,005,226
75$86,152,788$12,390,076$6,482,140$61,415,036
76$94,847,420$12,904,238$6,606,340$67,367,562
77$104,425,978$13,440,666$6,731,773$73,917,875
78$114,978,527$14,000,359$6,858,388$81,126,655
79$126,604,322$14,584,361$6,986,128$89,060,759
80$139,412,734$15,193,766$7,114,935$97,793,856
81$153,524,290$15,829,717$7,244,742$107,407,118
82$169,071,805$16,493,411$7,375,478$117,989,982
83$186,201,639$17,186,099$7,507,068$129,641,000
84$205,075,079$17,909,090$7,639,427$142,468,763
85$225,869,858$18,663,756$7,772,468$156,592,924
86$248,781,833$19,451,529$7,906,095$172,145,330
87$274,026,837$20,273,911$8,040,206$189,271,262
88$301,842,712$21,132,471$8,174,692$208,130,805
89$332,491,560$22,028,853$8,309,434$228,900,358
90$366,262,207$22,964,775$8,444,309$251,774,300
91$403,472,941$23,942,037$8,579,182$276,966,818
92$444,474,507$24,962,523$8,713,910$304,713,931
93$489,653,423$26,028,204$8,848,343$335,275,715
94$539,435,628$27,141,142$8,982,319$368,938,755
95$594,290,501$28,303,497$9,115,666$406,018,851
96$654,735,294$29,517,529$9,248,201$446,863,995
97$721,340,010$30,785,605$9,379,733$491,857,653
98$794,732,792$32,110,200$9,510,054$541,422,385
99$875,605,844$33,493,907$9,638,949$596,023,832
100$964,721,973$34,939,441$9,766,186$656,175,105