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

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 $2,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.3%
1 years$246,086$243,894$241,755$239,668$237,629$231,509
2 years$121,825$119,556$117,357$115,225$113,157$107,031
3 years$80,410$78,131$75,938$73,826$71,791$65,853
4 years$59,706$57,435$55,263$53,187$51,202$45,496
5 years$47,287$45,029$42,886$40,853$38,923$33,464
6 years$39,011$36,770$34,659$32,670$30,799$25,593
7 years$33,101$30,879$28,801$26,860$25,047$20,096
8 years$28,671$26,469$24,426$22,532$20,779$16,079
9 years$25,228$23,046$21,038$19,193$17,499$13,047
10 years$22,474$20,314$18,341$16,544$14,910$10,700
11 years$20,223$18,084$16,148$14,398$12,823$8,848
12 years$18,348$16,232$14,331$12,629$11,112$7,366
13 years$16,763$14,669$12,803$11,150$9,690$6,165
14 years$15,405$13,333$11,504$9,898$8,494$5,182
15 years$14,230$12,180$10,386$8,827$7,479$4,372
16 years$13,203$11,175$9,417$7,903$6,610$3,699
17 years$12,297$10,292$8,569$7,101$5,861$3,138
18 years$11,493$9,510$7,822$6,400$5,211$2,667
19 years$10,774$8,814$7,161$5,783$4,645$2,270
20 years$10,128$8,190$6,572$5,237$4,149$1,936
21 years$9,544$7,629$6,045$4,753$3,713$1,653
22 years$9,014$7,121$5,571$4,322$3,328$1,412
23 years$8,531$6,661$5,144$3,936$2,987$1,208
24 years$8,089$6,240$4,757$3,590$2,685$1,034
25 years$7,683$5,856$4,406$3,278$2,416$886
26 years$7,309$5,504$4,087$2,998$2,176$759
27 years$6,963$5,180$3,795$2,744$1,962$651
28 years$6,642$4,881$3,528$2,514$1,771$558
29 years$6,344$4,605$3,283$2,305$1,599$479
30 years$6,066$4,349$3,058$2,116$1,445$411
31 years$5,807$4,111$2,851$1,943$1,306$353
32 years$5,564$3,890$2,660$1,786$1,181$303
33 years$5,337$3,684$2,484$1,642$1,069$260
34 years$5,123$3,491$2,320$1,511$968$224
35 years$4,922$3,311$2,169$1,391$877$192
36 years$4,733$3,143$2,029$1,281$794$165
37 years$4,554$2,985$1,900$1,180$720$142
38 years$4,385$2,837$1,779$1,088$653$122
39 years$4,226$2,698$1,667$1,003$592$105
40 years$4,074$2,567$1,562$925$537$90
41 years$3,930$2,443$1,465$854$487$77
42 years$3,794$2,327$1,374$788$442$67
43 years$3,664$2,217$1,289$727$401$57
44 years$3,541$2,113$1,210$671$364$49
45 years$3,423$2,015$1,136$620$331$42
46 years$3,311$1,922$1,067$573$300$36
47 years$3,204$1,835$1,003$529$273$31
48 years$3,101$1,751$942$489$247$27
49 years$3,003$1,672$886$452$225$23
50 years$2,910$1,598$833$418$204$20

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 $5,242 every year, while hoping to spend $32,232 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: 48/29/23 Blend
39$2,980,000$2,980,000$2,980,000$2,980,000
40$3,289,367$3,131,427$3,085,237$3,425,548
41$3,590,588$3,250,572$3,154,298$3,640,357
42$3,921,453$3,374,476$3,224,592$3,869,850
43$4,284,952$3,503,336$3,296,127$4,118,410
44$4,684,379$3,637,361$3,368,908$4,387,844
45$5,123,361$3,776,767$3,442,943$4,680,140
46$5,605,897$3,921,781$3,518,234$4,997,480
47$6,136,389$4,072,640$3,594,786$5,342,269
48$6,719,691$4,229,590$3,672,602$5,717,147
49$7,361,148$4,392,887$3,751,682$6,125,022
50$8,066,648$4,562,802$3,832,026$6,569,089
51$8,842,682$4,739,615$3,913,635$7,052,868
52$9,696,397$4,923,618$3,996,504$7,580,228
53$10,635,673$5,115,118$4,080,629$8,155,428
54$11,669,187$5,314,434$4,166,006$8,783,155
55$12,806,502$5,521,900$4,252,626$9,468,567
56$14,058,157$5,737,865$4,340,479$10,217,342
57$15,435,759$5,962,691$4,429,556$11,035,729
58$16,952,103$6,196,759$4,519,843$11,930,608
59$18,621,284$6,440,466$4,611,324$12,909,551
60$20,458,833$6,694,227$4,703,981$13,980,897
61$22,481,865$6,958,476$4,797,796$15,153,825
62$24,709,238$7,233,663$4,892,744$16,438,443
63$27,161,730$7,520,263$4,988,801$17,845,880
64$29,862,239$7,818,768$5,085,939$19,388,391
65$32,835,996$8,129,696$5,184,126$21,079,473
66$36,110,802$8,453,586$5,283,329$22,933,986
67$39,717,292$8,791,000$5,383,509$24,968,300
68$43,689,225$9,142,528$5,484,625$27,200,439
69$48,063,799$9,508,785$5,586,633$29,650,258
70$52,882,006$9,890,415$5,689,485$32,339,622
71$58,189,014$10,288,088$5,793,126$35,292,618
72$64,034,597$10,702,509$5,897,500$38,535,773
73$70,473,605$11,134,410$6,002,545$42,098,309
74$77,566,477$11,584,561$6,108,194$46,012,415
75$85,379,816$12,053,763$6,214,377$50,313,548
76$93,987,014$12,542,854$6,321,016$55,040,767
77$103,468,948$13,052,713$6,428,029$60,237,099
78$113,914,740$13,584,255$6,535,327$65,949,945
79$125,422,600$14,138,440$6,642,816$72,231,522
80$138,100,751$14,716,269$6,750,396$79,139,360
81$152,068,452$15,318,790$6,857,959$86,736,833
82$167,457,123$15,947,100$6,965,390$95,093,764
83$184,411,586$16,602,345$7,072,567$104,287,079
84$203,091,431$17,285,722$7,179,361$114,401,526
85$223,672,520$17,998,486$7,285,632$125,530,481
86$246,348,651$18,741,946$7,391,236$137,776,817
87$271,333,387$19,517,475$7,496,015$151,253,882
88$298,862,066$20,326,505$7,599,805$166,086,558
89$329,194,030$21,170,537$7,702,432$182,412,440
90$362,615,067$22,051,139$7,803,710$200,383,134
91$399,440,113$22,969,953$7,903,442$220,165,679
92$440,016,219$23,928,696$8,001,423$241,944,127
93$484,725,835$24,929,164$8,097,432$265,921,272
94$533,990,412$25,973,235$8,191,238$292,320,562
95$588,274,387$27,062,876$8,282,597$321,388,205
96$648,089,560$28,200,143$8,371,250$353,395,490
97$713,999,934$29,387,189$8,456,926$388,641,339
98$786,627,031$30,626,265$8,539,337$427,455,132
99$866,655,764$31,919,727$8,618,180$470,199,805
100$954,840,900$33,270,042$8,693,137$517,275,273