Can I retire at age 40 with 2,980,000?

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 $2,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.1%
1 years$246,086$243,894$241,755$239,668$237,629$228,925
2 years$121,825$119,556$117,357$115,225$113,157$104,484
3 years$80,410$78,131$75,938$73,826$71,791$63,423
4 years$59,706$57,435$55,263$53,187$51,202$43,202
5 years$47,287$45,029$42,886$40,853$38,923$31,312
6 years$39,011$36,770$34,659$32,670$30,799$23,583
7 years$33,101$30,879$28,801$26,860$25,047$18,224
8 years$28,671$26,469$24,426$22,532$20,779$14,343
9 years$25,228$23,046$21,038$19,193$17,499$11,441
10 years$22,474$20,314$18,341$16,544$14,910$9,219
11 years$20,223$18,084$16,148$14,398$12,823$7,488
12 years$18,348$16,232$14,331$12,629$11,112$6,119
13 years$16,763$14,669$12,803$11,150$9,690$5,025
14 years$15,405$13,333$11,504$9,898$8,494$4,143
15 years$14,230$12,180$10,386$8,827$7,479$3,426
16 years$13,203$11,175$9,417$7,903$6,610$2,841
17 years$12,297$10,292$8,569$7,101$5,861$2,361
18 years$11,493$9,510$7,822$6,400$5,211$1,965
19 years$10,774$8,814$7,161$5,783$4,645$1,638
20 years$10,128$8,190$6,572$5,237$4,149$1,367
21 years$9,544$7,629$6,045$4,753$3,713$1,142
22 years$9,014$7,121$5,571$4,322$3,328$955
23 years$8,531$6,661$5,144$3,936$2,987$799
24 years$8,089$6,240$4,757$3,590$2,685$669
25 years$7,683$5,856$4,406$3,278$2,416$560
26 years$7,309$5,504$4,087$2,998$2,176$470
27 years$6,963$5,180$3,795$2,744$1,962$394
28 years$6,642$4,881$3,528$2,514$1,771$330
29 years$6,344$4,605$3,283$2,305$1,599$277
30 years$6,066$4,349$3,058$2,116$1,445$232
31 years$5,807$4,111$2,851$1,943$1,306$195
32 years$5,564$3,890$2,660$1,786$1,181$163
33 years$5,337$3,684$2,484$1,642$1,069$137
34 years$5,123$3,491$2,320$1,511$968$115
35 years$4,922$3,311$2,169$1,391$877$97
36 years$4,733$3,143$2,029$1,281$794$81
37 years$4,554$2,985$1,900$1,180$720$68
38 years$4,385$2,837$1,779$1,088$653$57
39 years$4,226$2,698$1,667$1,003$592$48
40 years$4,074$2,567$1,562$925$537$40
41 years$3,930$2,443$1,465$854$487$34
42 years$3,794$2,327$1,374$788$442$28
43 years$3,664$2,217$1,289$727$401$24
44 years$3,541$2,113$1,210$671$364$20
45 years$3,423$2,015$1,136$620$331$17
46 years$3,311$1,922$1,067$573$300$14
47 years$3,204$1,835$1,003$529$273$12
48 years$3,101$1,751$942$489$247$10
49 years$3,003$1,672$886$452$225$8
50 years$2,910$1,598$833$418$204$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,980,000, adding $5,583 every year, while hoping to spend $54,897 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: 49/36/15 Blend
39$2,980,000$2,980,000$2,980,000$2,980,000
40$3,289,719$3,131,779$3,085,589$3,436,992
41$3,566,860$3,226,826$3,130,546$3,634,168
42$3,870,430$3,324,691$3,175,170$3,842,098
43$4,203,066$3,425,453$3,219,390$4,066,760
44$4,567,673$3,529,194$3,263,134$4,309,742
45$4,967,451$3,636,000$3,306,324$4,572,790
46$5,405,924$3,745,957$3,348,878$4,857,829
47$5,886,972$3,859,152$3,390,710$5,166,973
48$6,414,870$3,975,678$3,431,726$5,502,552
49$6,994,329$4,095,628$3,471,830$5,867,129
50$7,630,534$4,219,097$3,510,920$6,263,525
51$8,329,199$4,346,184$3,548,887$6,694,846
52$9,096,620$4,476,989$3,585,617$7,164,512
53$9,939,730$4,611,616$3,620,990$7,676,286
54$10,866,167$4,750,170$3,654,878$8,234,315
55$11,884,347$4,892,760$3,687,147$8,843,162
56$13,003,541$5,039,496$3,717,657$9,507,854
57$14,233,963$5,190,492$3,746,260$10,233,927
58$15,586,867$5,345,865$3,772,799$11,027,476
59$17,074,649$5,505,734$3,797,109$11,895,217
60$18,710,969$5,670,222$3,819,019$12,844,544
61$20,510,878$5,839,452$3,838,345$13,883,604
62$22,490,956$6,013,554$3,854,898$15,021,369
63$24,669,472$6,192,657$3,868,477$16,267,722
64$27,066,558$6,376,896$3,878,870$17,633,552
65$29,704,391$6,566,409$3,885,856$19,130,852
66$32,607,410$6,761,334$3,889,203$20,772,837
67$35,802,542$6,961,815$3,888,668$22,574,061
68$39,319,456$7,167,999$3,883,993$24,550,562
69$43,190,845$7,380,036$3,874,912$26,720,009
70$47,452,731$7,598,077$3,861,141$29,101,867
71$52,144,807$7,822,280$3,842,386$31,717,583
72$57,310,809$8,052,803$3,818,338$34,590,787
73$62,998,931$8,289,810$3,788,671$37,747,513
74$69,262,277$8,533,466$3,753,048$41,216,447
75$76,159,365$8,783,942$3,711,110$45,029,197
76$83,754,674$9,041,409$3,662,487$49,220,587
77$92,119,257$9,306,045$3,606,786$53,828,993
78$101,331,409$9,578,028$3,543,600$58,896,695
79$111,477,403$9,857,542$3,472,502$64,470,283
80$122,652,309$10,144,773$3,393,042$70,601,095
81$134,960,889$10,439,911$3,304,753$77,345,699
82$148,518,582$10,743,149$3,207,145$84,766,428
83$163,452,598$11,054,684$3,099,705$92,931,966
84$179,903,115$11,374,715$2,981,897$101,918,002
85$198,024,603$11,703,446$2,853,160$111,807,934
86$217,987,281$12,041,083$2,712,909$122,693,667
87$239,978,723$12,387,835$2,560,531$134,676,471
88$264,205,629$12,743,916$2,395,385$147,867,941
89$290,895,776$13,109,541$2,216,804$162,391,050
90$320,300,165$13,484,928$2,024,086$178,381,310
91$352,695,391$13,870,299$1,816,503$195,988,046
92$388,386,256$14,265,878$1,593,290$215,375,812
93$427,708,641$14,671,893$1,353,652$236,725,941
94$471,032,679$15,088,573$1,096,757$260,238,256
95$518,766,248$15,516,149$821,734$286,132,955
96$571,358,821$15,954,856$527,678$314,652,693
97$629,305,707$16,404,930$213,641$346,064,870
98$693,152,726$16,866,608$0$380,664,157
99$763,501,363$17,340,131$0$418,794,717
100$841,014,443$17,825,738$0$460,832,699