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

Use the below retirement simulation to view the chances of a successful retirement.
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%16.8%
1 years$245,260$243,075$240,944$238,863$236,832$230,266
2 years$121,416$119,154$116,963$114,838$112,777$106,211
3 years$80,140$77,869$75,683$73,578$71,550$65,190
4 years$59,506$57,242$55,078$53,009$51,030$44,924
5 years$47,129$44,878$42,743$40,716$38,792$32,958
6 years$38,880$36,646$34,542$32,561$30,695$25,137
7 years$32,990$30,776$28,705$26,770$24,963$19,682
8 years$28,575$26,380$24,344$22,457$20,710$15,702
9 years$25,143$22,969$20,967$19,128$17,440$12,702
10 years$22,399$20,246$18,280$16,489$14,860$10,384
11 years$20,155$18,024$16,093$14,350$12,780$8,560
12 years$18,286$16,177$14,282$12,587$11,075$7,103
13 years$16,707$14,619$12,760$11,112$9,658$5,925
14 years$15,354$13,289$11,465$9,864$8,466$4,963
15 years$14,182$12,139$10,352$8,797$7,454$4,172
16 years$13,158$11,138$9,385$7,877$6,588$3,518
17 years$12,256$10,257$8,540$7,077$5,841$2,973
18 years$11,454$9,478$7,796$6,378$5,194$2,517
19 years$10,738$8,784$7,137$5,763$4,629$2,135
20 years$10,094$8,163$6,550$5,220$4,135$1,814
21 years$9,512$7,603$6,025$4,737$3,700$1,542
22 years$8,984$7,098$5,553$4,307$3,317$1,313
23 years$8,503$6,638$5,127$3,923$2,977$1,119
24 years$8,062$6,220$4,742$3,578$2,676$954
25 years$7,657$5,837$4,392$3,267$2,408$814
26 years$7,284$5,486$4,073$2,987$2,169$695
27 years$6,939$5,163$3,782$2,735$1,956$593
28 years$6,619$4,865$3,516$2,505$1,765$507
29 years$6,322$4,589$3,272$2,298$1,593$433
30 years$6,046$4,334$3,048$2,109$1,440$370
31 years$5,787$4,097$2,841$1,937$1,302$316
32 years$5,545$3,877$2,651$1,780$1,177$271
33 years$5,319$3,671$2,475$1,637$1,066$231
34 years$5,106$3,480$2,313$1,506$965$198
35 years$4,906$3,300$2,162$1,386$874$169
36 years$4,717$3,132$2,023$1,277$792$145
37 years$4,539$2,975$1,893$1,176$718$124
38 years$4,371$2,827$1,773$1,084$651$106
39 years$4,211$2,689$1,661$1,000$590$91
40 years$4,060$2,558$1,557$922$535$78
41 years$3,917$2,435$1,460$851$485$67
42 years$3,781$2,319$1,369$785$441$57
43 years$3,652$2,210$1,285$725$400$49
44 years$3,529$2,106$1,206$669$363$42
45 years$3,411$2,008$1,133$618$329$36
46 years$3,300$1,916$1,064$571$299$31
47 years$3,193$1,828$999$527$272$26
48 years$3,091$1,745$939$487$247$22
49 years$2,993$1,667$883$450$224$19
50 years$2,900$1,592$830$416$203$16

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 $2,867 every year, while hoping to spend $25,964 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: 56/17/27 Blend
39$2,970,000$2,970,000$2,970,000$2,970,000
40$3,275,897$3,118,487$3,072,452$3,434,874
41$3,582,413$3,243,668$3,147,754$3,669,645
42$3,919,324$3,374,112$3,224,708$3,922,360
43$4,289,702$3,510,050$3,303,342$4,197,179
44$4,696,932$3,651,723$3,383,685$4,496,241
45$5,144,745$3,799,383$3,465,764$4,821,903
46$5,637,249$3,953,294$3,549,608$5,176,754
47$6,178,973$4,113,730$3,635,244$5,563,645
48$6,774,905$4,280,979$3,722,701$5,985,714
49$7,430,540$4,455,342$3,812,007$6,446,415
50$8,151,935$4,637,133$3,903,189$6,949,548
51$8,945,762$4,826,682$3,996,275$7,499,297
52$9,819,372$5,024,332$4,091,293$8,100,270
53$10,780,867$5,230,443$4,188,270$8,757,535
54$11,839,171$5,445,391$4,287,234$9,476,677
55$13,004,121$5,669,569$4,388,210$10,263,842
56$14,286,552$5,903,389$4,491,225$11,125,799
57$15,698,405$6,147,280$4,596,306$12,070,000
58$17,252,838$6,401,692$4,703,478$13,104,654
59$18,964,348$6,667,096$4,812,766$14,238,797
60$20,848,912$6,943,984$4,924,194$15,482,383
61$22,924,133$7,232,871$5,037,786$16,846,375
62$25,209,408$7,534,295$5,153,566$18,342,845
63$27,726,113$7,848,821$5,271,555$19,985,091
64$30,497,799$8,177,036$5,391,775$21,787,760
65$33,550,422$8,519,558$5,514,246$23,766,984
66$36,912,580$8,877,031$5,638,989$25,940,532
67$40,615,789$9,250,131$5,766,021$28,327,980
68$44,694,776$9,639,564$5,895,359$30,950,889
69$49,187,809$10,046,069$6,027,020$33,833,010
70$54,137,058$10,470,419$6,161,017$37,000,511
71$59,588,991$10,913,423$6,297,365$40,482,216
72$65,594,816$11,375,928$6,436,074$44,309,878
73$72,210,958$11,858,819$6,577,153$48,518,483
74$79,499,599$12,363,025$6,720,611$53,146,570
75$87,529,259$12,889,515$6,866,453$58,236,600
76$96,375,448$13,439,305$7,014,683$63,835,353
77$106,121,371$14,013,458$7,165,302$69,994,367
78$116,858,720$14,613,087$7,318,309$76,770,426
79$128,688,537$15,239,356$7,473,701$84,226,091
80$141,722,168$15,893,485$7,631,470$92,430,291
81$156,082,313$16,576,749$7,791,607$101,458,973
82$171,904,183$17,290,484$7,954,101$111,395,813
83$189,336,781$18,036,088$8,118,934$122,333,009
84$208,544,302$18,815,026$8,286,088$134,372,144
85$229,707,688$19,628,830$8,455,539$147,625,149
86$253,026,334$20,479,104$8,627,261$162,215,353
87$278,719,968$21,367,528$8,801,222$178,278,646
88$307,030,728$22,295,861$8,977,387$195,964,760
89$338,225,448$23,265,943$9,155,715$215,438,680
90$372,598,173$24,279,704$9,336,161$236,882,199
91$410,472,938$25,339,161$9,518,674$260,495,633
92$452,206,827$26,446,429$9,703,199$286,499,706
93$498,193,340$27,603,721$9,889,673$315,137,633
94$548,866,112$28,813,355$10,078,028$346,677,413
95$604,703,005$30,077,758$10,268,191$381,414,356
96$666,230,615$31,399,472$10,460,079$419,673,868
97$734,029,251$32,781,159$10,653,605$461,814,518
98$808,738,405$34,225,607$10,848,672$508,231,420
99$891,062,796$35,735,735$11,045,176$559,359,963
100$981,779,016$37,314,601$11,243,004$615,679,910