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%18.9%
1 years$246,086$243,894$241,755$239,668$237,629$229,107
2 years$121,825$119,556$117,357$115,225$113,157$104,663
3 years$80,410$78,131$75,938$73,826$71,791$63,593
4 years$59,706$57,435$55,263$53,187$51,202$43,362
5 years$47,287$45,029$42,886$40,853$38,923$31,461
6 years$39,011$36,770$34,659$32,670$30,799$23,721
7 years$33,101$30,879$28,801$26,860$25,047$18,352
8 years$28,671$26,469$24,426$22,532$20,779$14,461
9 years$25,228$23,046$21,038$19,193$17,499$11,549
10 years$22,474$20,314$18,341$16,544$14,910$9,318
11 years$20,223$18,084$16,148$14,398$12,823$7,578
12 years$18,348$16,232$14,331$12,629$11,112$6,201
13 years$16,763$14,669$12,803$11,150$9,690$5,099
14 years$15,405$13,333$11,504$9,898$8,494$4,210
15 years$14,230$12,180$10,386$8,827$7,479$3,487
16 years$13,203$11,175$9,417$7,903$6,610$2,895
17 years$12,297$10,292$8,569$7,101$5,861$2,409
18 years$11,493$9,510$7,822$6,400$5,211$2,009
19 years$10,774$8,814$7,161$5,783$4,645$1,677
20 years$10,128$8,190$6,572$5,237$4,149$1,402
21 years$9,544$7,629$6,045$4,753$3,713$1,173
22 years$9,014$7,121$5,571$4,322$3,328$982
23 years$8,531$6,661$5,144$3,936$2,987$823
24 years$8,089$6,240$4,757$3,590$2,685$690
25 years$7,683$5,856$4,406$3,278$2,416$579
26 years$7,309$5,504$4,087$2,998$2,176$486
27 years$6,963$5,180$3,795$2,744$1,962$408
28 years$6,642$4,881$3,528$2,514$1,771$343
29 years$6,344$4,605$3,283$2,305$1,599$288
30 years$6,066$4,349$3,058$2,116$1,445$242
31 years$5,807$4,111$2,851$1,943$1,306$203
32 years$5,564$3,890$2,660$1,786$1,181$171
33 years$5,337$3,684$2,484$1,642$1,069$144
34 years$5,123$3,491$2,320$1,511$968$121
35 years$4,922$3,311$2,169$1,391$877$101
36 years$4,733$3,143$2,029$1,281$794$85
37 years$4,554$2,985$1,900$1,180$720$72
38 years$4,385$2,837$1,779$1,088$653$60
39 years$4,226$2,698$1,667$1,003$592$51
40 years$4,074$2,567$1,562$925$537$43
41 years$3,930$2,443$1,465$854$487$36
42 years$3,794$2,327$1,374$788$442$30
43 years$3,664$2,217$1,289$727$401$25
44 years$3,541$2,113$1,210$671$364$21
45 years$3,423$2,015$1,136$620$331$18
46 years$3,311$1,922$1,067$573$300$15
47 years$3,204$1,835$1,003$529$273$13
48 years$3,101$1,751$942$489$247$11
49 years$3,003$1,672$886$452$225$9
50 years$2,910$1,598$833$418$204$8

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 $3,981 every year, while hoping to spend $24,928 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: 46/39/15 Blend
39$2,980,000$2,980,000$2,980,000$2,980,000
40$3,288,066$3,130,126$3,083,936$3,425,148
41$3,596,926$3,256,979$3,160,725$3,647,693
42$3,936,454$3,389,213$3,239,251$3,886,137
43$4,309,752$3,527,064$3,319,545$4,144,274
44$4,720,237$3,670,780$3,401,640$4,423,943
45$5,171,675$3,820,622$3,485,569$4,727,164
46$5,668,213$3,976,861$3,571,363$5,056,155
47$6,214,423$4,139,779$3,659,056$5,413,356
48$6,815,340$4,309,674$3,748,680$5,801,444
49$7,476,513$4,486,856$3,840,269$6,223,364
50$8,204,054$4,671,649$3,933,855$6,682,354
51$9,004,700$4,864,392$4,029,472$7,181,972
52$9,885,872$5,065,440$4,127,152$7,726,131
53$10,855,750$5,275,165$4,226,930$8,319,133
54$11,923,342$5,493,954$4,328,838$8,965,711
55$13,098,578$5,722,213$4,432,910$9,671,067
56$14,392,399$5,960,367$4,539,178$10,440,928
57$15,816,859$6,208,861$4,647,676$11,281,591
58$17,385,242$6,468,158$4,758,436$12,199,985
59$19,112,184$6,738,746$4,871,491$13,203,733
60$21,013,815$7,021,132$4,986,874$14,301,225
61$23,107,905$7,315,848$5,104,615$15,501,693
62$25,414,039$7,623,453$5,224,748$16,815,297
63$27,953,797$7,944,528$5,347,302$18,253,218
64$30,750,956$8,279,682$5,472,309$19,827,766
65$33,831,721$8,629,554$5,599,799$21,552,489
66$37,224,966$8,994,811$5,729,801$23,442,301
67$40,962,507$9,376,151$5,862,344$25,513,622
68$45,079,406$9,774,306$5,997,456$27,784,528
69$49,614,298$10,190,040$6,135,164$30,274,922
70$54,609,759$10,624,154$6,275,494$33,006,718
71$60,112,703$11,077,486$6,418,471$36,004,043
72$66,174,828$11,550,912$6,564,120$39,293,469
73$72,853,105$12,045,352$6,712,463$42,904,254
74$80,210,313$12,561,765$6,863,521$46,868,617
75$88,315,631$13,101,157$7,017,315$51,222,043
76$97,245,292$13,664,581$7,173,863$56,003,609
77$107,083,306$14,253,140$7,333,181$61,256,354
78$117,922,245$14,867,986$7,495,284$67,027,680
79$129,864,125$15,510,327$7,660,187$73,369,796
80$143,021,360$16,181,428$7,827,898$80,340,209
81$157,517,834$16,882,613$7,998,427$88,002,258
82$173,490,058$17,615,266$8,171,780$96,425,714
83$191,088,470$18,380,841$8,347,961$105,687,429
84$210,478,847$19,180,854$8,526,970$115,872,061
85$231,843,871$20,016,898$8,708,806$127,072,868
86$255,384,858$20,890,638$8,893,462$139,392,579
87$281,323,652$21,803,818$9,080,932$152,944,366
88$309,904,724$22,758,264$9,271,202$167,852,900
89$341,397,476$23,755,889$9,464,258$184,255,528
90$376,098,786$24,798,695$9,660,078$202,303,558
91$414,335,811$25,888,780$9,858,639$222,163,689
92$456,469,074$27,028,340$10,059,914$244,019,570
93$502,895,866$28,219,675$10,263,867$268,073,534
94$554,053,999$29,465,195$10,470,462$294,548,495
95$610,425,939$30,767,422$10,679,655$323,690,050
96$672,543,358$32,128,998$10,891,396$355,768,788
97$740,992,154$33,552,692$11,105,631$391,082,838
98$816,417,981$35,041,402$11,322,298$429,960,670
99$899,532,350$36,598,165$11,541,329$472,764,196
100$991,119,335$38,226,161$11,762,649$519,892,169