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%11.8%
1 years$445,927$441,955$438,080$434,297$430,604$427,353
2 years$220,756$216,645$212,660$208,797$205,049$201,772
3 years$145,709$141,580$137,605$133,778$130,092$126,889
4 years$108,192$104,076$100,141$96,380$92,783$89,679
5 years$85,689$81,597$77,714$74,029$70,532$67,537
6 years$70,691$66,630$62,804$59,201$55,809$52,927
7 years$59,983$55,956$52,191$48,673$45,388$42,620
8 years$51,955$47,964$44,262$40,830$37,654$34,999
9 years$45,714$41,762$38,123$34,778$31,710$29,169
10 years$40,725$36,811$33,236$29,979$27,018$24,589
11 years$36,645$32,771$29,261$26,091$23,237$20,917
12 years$33,248$29,413$25,968$22,885$20,136$17,925
13 years$30,376$26,581$23,201$20,204$17,559$15,453
14 years$27,916$24,161$20,846$17,935$15,392$13,389
15 years$25,786$22,072$18,821$15,995$13,553$11,649
16 years$23,924$20,250$17,064$14,322$11,978$10,172
17 years$22,283$18,650$15,528$12,868$10,620$8,909
18 years$20,826$17,233$14,175$11,597$9,443$7,822
19 years$19,523$15,972$12,976$10,479$8,417$6,884
20 years$18,353$14,842$11,909$9,490$7,518$6,070
21 years$17,295$13,824$10,954$8,613$6,728$5,361
22 years$16,335$12,905$10,096$7,831$6,031$4,742
23 years$15,459$12,069$9,322$7,132$5,413$4,200
24 years$14,658$11,308$8,621$6,505$4,866$3,724
25 years$13,922$10,612$7,985$5,941$4,378$3,305
26 years$13,244$9,974$7,405$5,432$3,944$2,936
27 years$12,617$9,386$6,877$4,972$3,556$2,610
28 years$12,035$8,845$6,393$4,555$3,208$2,322
29 years$11,495$8,344$5,949$4,177$2,897$2,067
30 years$10,992$7,880$5,541$3,834$2,618$1,841
31 years$10,522$7,449$5,166$3,521$2,367$1,640
32 years$10,083$7,049$4,820$3,236$2,141$1,462
33 years$9,671$6,675$4,500$2,976$1,937$1,304
34 years$9,284$6,326$4,205$2,738$1,754$1,163
35 years$8,920$6,001$3,931$2,520$1,589$1,038
36 years$8,576$5,695$3,678$2,321$1,440$926
37 years$8,253$5,409$3,442$2,139$1,305$827
38 years$7,947$5,141$3,223$1,971$1,183$738
39 years$7,657$4,888$3,020$1,818$1,073$659
40 years$7,383$4,651$2,831$1,676$973$589
41 years$7,122$4,427$2,654$1,547$883$526
42 years$6,875$4,216$2,490$1,427$801$470
43 years$6,640$4,017$2,336$1,318$727$420
44 years$6,416$3,829$2,193$1,217$660$375
45 years$6,203$3,652$2,059$1,124$599$335
46 years$5,999$3,484$1,934$1,038$544$300
47 years$5,805$3,324$1,817$959$494$268
48 years$5,619$3,174$1,707$886$448$240
49 years$5,442$3,031$1,605$819$407$214
50 years$5,272$2,895$1,509$757$370$192

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 $6,334 every year, while hoping to spend $29,312 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: 57/35/8 Blend
39$5,400,000$5,400,000$5,400,000$5,400,000
40$5,957,334$5,671,134$5,587,434$6,285,656
41$6,533,794$5,917,831$5,743,425$6,754,167
42$7,168,071$6,175,635$5,903,659$7,260,559
43$7,866,030$6,445,057$6,068,248$7,811,581
44$8,634,137$6,726,637$6,237,306$8,411,500
45$9,479,512$7,020,935$6,410,949$9,065,007
46$10,410,003$7,328,541$6,589,296$9,777,256
47$11,434,256$7,650,073$6,772,471$10,553,915
48$12,561,801$7,986,177$6,960,599$11,401,218
49$13,803,134$8,337,530$7,153,809$12,326,018
50$15,169,824$8,704,839$7,352,232$13,335,853
51$16,674,618$9,088,848$7,556,004$14,439,012
52$18,331,562$9,490,334$7,765,262$15,644,616
53$20,156,131$9,910,111$7,980,149$16,962,696
54$22,165,382$10,349,031$8,200,809$18,404,292
55$24,378,106$10,807,989$8,427,391$19,981,547
56$26,815,011$11,287,918$8,660,047$21,707,825
57$29,498,916$11,789,800$8,898,932$23,597,832
58$32,454,965$12,314,661$9,144,207$25,667,752
59$35,710,867$12,863,575$9,396,034$27,935,400
60$39,297,155$13,437,669$9,654,580$30,420,379
61$43,247,473$14,038,123$9,920,016$33,144,273
62$47,598,896$14,666,172$10,192,518$36,130,837
63$52,392,280$15,323,111$10,472,264$39,406,225
64$57,672,646$16,010,297$10,759,438$42,999,229
65$63,489,604$16,729,150$11,054,227$46,941,550
66$69,897,824$17,481,158$11,356,824$51,268,089
67$76,957,550$18,267,882$11,667,425$56,017,277
68$84,735,167$19,090,955$11,986,231$61,231,431
69$93,303,831$19,952,089$12,313,447$66,957,148
70$102,744,157$20,853,078$12,649,283$73,245,743
71$113,144,982$21,795,799$12,993,955$80,153,723
72$124,604,201$22,782,224$13,347,683$87,743,322
73$137,229,690$23,814,413$13,710,691$96,083,079
74$151,140,328$24,894,530$14,083,209$105,248,479
75$166,467,118$26,024,838$14,465,473$115,322,660
76$183,354,421$27,207,711$14,857,723$126,397,194
77$201,961,319$28,445,637$15,260,204$138,572,939
78$222,463,121$29,741,220$15,673,168$151,960,992
79$245,053,011$31,097,192$16,096,871$166,683,724
80$269,943,878$32,516,414$16,531,576$182,875,931
81$297,370,320$34,001,885$16,977,550$200,686,096
82$327,590,862$35,556,747$17,435,068$220,277,788
83$360,890,397$37,184,294$17,904,409$241,831,190
84$397,582,869$38,887,976$18,385,859$265,544,794
85$438,014,246$40,671,411$18,879,709$291,637,270
86$482,565,777$42,538,389$19,386,258$320,349,511
87$531,657,599$44,492,882$19,905,809$351,946,906
88$585,752,695$46,539,054$20,438,675$386,721,827
89$645,361,270$48,681,268$20,985,171$424,996,385
90$711,045,566$50,924,097$21,545,621$467,125,451
91$783,425,171$53,272,334$22,120,356$513,500,000
92$863,182,863$55,731,004$22,709,712$564,550,787
93$951,071,062$58,305,370$23,314,035$620,752,396
94$1,047,918,929$61,000,952$23,933,674$682,627,714
95$1,154,640,195$63,823,533$24,568,987$750,752,845
96$1,272,241,786$66,779,178$25,220,339$825,762,537
97$1,401,833,331$69,874,240$25,888,104$908,356,154
98$1,544,637,634$73,115,382$26,572,659$999,304,268
99$1,702,002,222$76,509,584$27,274,391$1,099,455,910
100$1,875,412,061$80,064,166$27,993,696$1,209,746,565