Can I retire at age 40 with 5,400,000?

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 $5,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.6%
1 years$445,927$441,955$438,080$434,297$430,604$425,929
2 years$220,756$216,645$212,660$208,797$205,049$200,343
3 years$145,709$141,580$137,605$133,778$130,092$125,499
4 years$108,192$104,076$100,141$96,380$92,783$88,340
5 years$85,689$81,597$77,714$74,029$70,532$66,251
6 years$70,691$66,630$62,804$59,201$55,809$51,696
7 years$59,983$55,956$52,191$48,673$45,388$41,444
8 years$51,955$47,964$44,262$40,830$37,654$33,879
9 years$45,714$41,762$38,123$34,778$31,710$28,103
10 years$40,725$36,811$33,236$29,979$27,018$23,576
11 years$36,645$32,771$29,261$26,091$23,237$19,957
12 years$33,248$29,413$25,968$22,885$20,136$17,016
13 years$30,376$26,581$23,201$20,204$17,559$14,594
14 years$27,916$24,161$20,846$17,935$15,392$12,578
15 years$25,786$22,072$18,821$15,995$13,553$10,885
16 years$23,924$20,250$17,064$14,322$11,978$9,453
17 years$22,283$18,650$15,528$12,868$10,620$8,233
18 years$20,826$17,233$14,175$11,597$9,443$7,188
19 years$19,523$15,972$12,976$10,479$8,417$6,289
20 years$18,353$14,842$11,909$9,490$7,518$5,513
21 years$17,295$13,824$10,954$8,613$6,728$4,841
22 years$16,335$12,905$10,096$7,831$6,031$4,256
23 years$15,459$12,069$9,322$7,132$5,413$3,747
24 years$14,658$11,308$8,621$6,505$4,866$3,302
25 years$13,922$10,612$7,985$5,941$4,378$2,912
26 years$13,244$9,974$7,405$5,432$3,944$2,571
27 years$12,617$9,386$6,877$4,972$3,556$2,271
28 years$12,035$8,845$6,393$4,555$3,208$2,007
29 years$11,495$8,344$5,949$4,177$2,897$1,775
30 years$10,992$7,880$5,541$3,834$2,618$1,571
31 years$10,522$7,449$5,166$3,521$2,367$1,390
32 years$10,083$7,049$4,820$3,236$2,141$1,231
33 years$9,671$6,675$4,500$2,976$1,937$1,091
34 years$9,284$6,326$4,205$2,738$1,754$966
35 years$8,920$6,001$3,931$2,520$1,589$857
36 years$8,576$5,695$3,678$2,321$1,440$759
37 years$8,253$5,409$3,442$2,139$1,305$673
38 years$7,947$5,141$3,223$1,971$1,183$597
39 years$7,657$4,888$3,020$1,818$1,073$530
40 years$7,383$4,651$2,831$1,676$973$470
41 years$7,122$4,427$2,654$1,547$883$417
42 years$6,875$4,216$2,490$1,427$801$370
43 years$6,640$4,017$2,336$1,318$727$328
44 years$6,416$3,829$2,193$1,217$660$291
45 years$6,203$3,652$2,059$1,124$599$259
46 years$5,999$3,484$1,934$1,038$544$230
47 years$5,805$3,324$1,817$959$494$204
48 years$5,619$3,174$1,707$886$448$181
49 years$5,442$3,031$1,605$819$407$161
50 years$5,272$2,895$1,509$757$370$143

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,400,000, adding $5,125 every year, while hoping to spend $32,203 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: 54/23/23 Blend
39$5,400,000$5,400,000$5,400,000$5,400,000
40$5,956,086$5,669,886$5,586,186$6,239,794
41$6,529,344$5,913,447$5,739,060$6,678,960
42$7,159,993$6,167,863$5,895,975$7,153,009
43$7,853,856$6,433,632$6,057,034$7,668,402
44$8,617,345$6,711,275$6,222,340$8,229,105
45$9,457,525$7,001,338$6,391,999$8,839,480
46$10,382,181$7,304,393$6,566,120$9,504,322
47$11,399,892$7,621,037$6,744,814$10,228,908
48$12,520,110$7,951,896$6,928,193$11,019,040
49$13,753,249$8,297,626$7,116,375$11,881,101
50$15,110,784$8,658,914$7,309,478$12,822,115
51$16,605,362$9,036,478$7,507,623$13,849,809
52$18,250,914$9,431,071$7,710,934$14,972,685
53$20,062,795$9,843,481$7,919,538$16,200,100
54$22,057,921$10,274,533$8,133,564$17,542,351
55$24,254,936$10,725,092$8,353,144$19,010,771
56$26,674,379$11,196,061$8,578,415$20,617,836
57$29,338,887$11,688,390$8,809,513$22,377,276
58$32,273,403$12,203,070$9,046,581$24,304,208
59$35,505,410$12,741,140$9,289,761$26,415,271
60$39,065,196$13,303,690$9,539,202$28,728,788
61$42,986,134$13,891,859$9,795,054$31,264,929
62$47,305,001$14,506,842$10,057,469$34,045,903
63$52,062,322$15,149,888$10,326,606$37,096,166
64$57,302,755$15,822,308$10,602,623$40,442,646
65$63,075,509$16,525,475$10,885,684$44,114,998
66$69,434,812$17,260,824$11,175,956$48,145,877
67$76,440,421$18,029,862$11,473,608$52,571,248
68$84,158,184$18,834,166$11,778,814$57,430,716
69$92,660,665$19,675,387$12,091,751$62,767,906
70$102,027,828$20,555,256$12,412,600$68,630,861
71$112,347,788$21,475,585$12,741,543$75,072,498
72$123,717,647$22,438,273$13,078,770$82,151,105
73$136,244,410$23,445,311$13,424,471$89,930,883
74$150,045,990$24,498,781$13,778,841$98,482,549
75$165,252,327$25,600,868$14,142,079$107,884,003
76$182,006,613$26,753,859$14,514,387$118,221,054
77$200,466,641$27,960,151$14,895,972$129,588,231
78$220,806,295$29,222,255$15,287,043$142,089,664
79$243,217,193$30,542,802$15,687,816$155,840,067
80$267,910,496$31,924,548$16,098,507$170,965,814
81$295,118,897$33,370,383$16,519,338$187,606,128
82$325,098,824$34,883,331$16,950,535$205,914,386
83$358,132,854$36,466,564$17,392,328$226,059,565
84$394,532,385$38,123,405$17,844,950$248,227,828
85$434,640,572$39,857,336$18,308,640$272,624,278
86$478,835,570$41,672,005$18,783,639$299,474,885
87$527,534,099$43,571,234$19,270,192$329,028,612
88$581,195,384$45,559,031$19,768,550$361,559,760
89$640,325,483$47,639,594$20,278,966$397,370,549
90$705,482,070$49,817,321$20,801,699$436,793,961
91$777,279,695$52,096,824$21,337,010$480,196,878
92$856,395,589$54,482,933$21,885,165$527,983,537
93$943,576,055$56,980,713$22,446,434$580,599,334
94$1,039,643,514$59,595,470$23,021,092$638,535,020
95$1,145,504,270$62,332,765$23,609,415$702,331,326
96$1,262,157,062$65,198,427$24,211,687$772,584,058
97$1,390,702,496$68,198,563$24,828,192$849,949,704
98$1,532,353,435$71,339,577$25,459,221$935,151,630
99$1,688,446,447$74,628,179$26,105,067$1,028,986,889
100$1,860,454,425$78,071,400$26,766,027$1,132,333,739