Can I retire at age 40 with 5,500,000?

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 $5,500,000?

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$454,185$450,139$446,192$442,340$438,578$435,267
2 years$224,844$220,656$216,598$212,663$208,847$205,508
3 years$148,407$144,201$140,153$136,255$132,501$129,239
4 years$110,196$106,003$101,996$98,164$94,501$91,340
5 years$87,275$83,108$79,153$75,400$71,838$68,788
6 years$72,000$67,864$63,967$60,298$56,843$53,908
7 years$61,093$56,992$53,157$49,574$46,229$43,409
8 years$52,917$48,853$45,081$41,586$38,351$35,648
9 years$46,561$42,535$38,829$35,422$32,297$29,709
10 years$41,479$37,493$33,852$30,534$27,519$25,044
11 years$37,324$33,377$29,802$26,574$23,667$21,304
12 years$33,864$29,958$26,449$23,309$20,509$18,257
13 years$30,938$27,073$23,630$20,578$17,885$15,739
14 years$28,433$24,609$21,232$18,267$15,677$13,637
15 years$26,263$22,480$19,170$16,291$13,804$11,865
16 years$24,367$20,625$17,380$14,587$12,200$10,360
17 years$22,696$18,995$15,815$13,106$10,817$9,074
18 years$21,211$17,552$14,437$11,811$9,618$7,967
19 years$19,885$16,267$13,217$10,673$8,573$7,012
20 years$18,693$15,116$12,130$9,666$7,657$6,182
21 years$17,615$14,080$11,157$8,773$6,853$5,461
22 years$16,637$13,144$10,283$7,976$6,142$4,830
23 years$15,746$12,293$9,494$7,264$5,514$4,278
24 years$14,930$11,518$8,781$6,625$4,956$3,793
25 years$14,180$10,809$8,133$6,051$4,459$3,366
26 years$13,489$10,158$7,543$5,532$4,017$2,990
27 years$12,850$9,560$7,004$5,064$3,622$2,658
28 years$12,258$9,009$6,511$4,640$3,268$2,365
29 years$11,708$8,499$6,059$4,255$2,951$2,105
30 years$11,196$8,026$5,644$3,905$2,666$1,875
31 years$10,717$7,587$5,262$3,586$2,411$1,670
32 years$10,269$7,179$4,909$3,296$2,180$1,489
33 years$9,850$6,799$4,584$3,031$1,973$1,328
34 years$9,456$6,444$4,283$2,789$1,787$1,184
35 years$9,085$6,112$4,004$2,567$1,618$1,057
36 years$8,735$5,801$3,746$2,364$1,466$943
37 years$8,405$5,510$3,506$2,178$1,329$842
38 years$8,094$5,236$3,283$2,008$1,205$752
39 years$7,799$4,979$3,076$1,851$1,092$672
40 years$7,519$4,737$2,883$1,708$991$600
41 years$7,254$4,509$2,703$1,575$899$536
42 years$7,002$4,294$2,536$1,454$816$479
43 years$6,763$4,092$2,380$1,342$740$428
44 years$6,535$3,900$2,234$1,239$672$382
45 years$6,318$3,719$2,097$1,144$610$342
46 years$6,110$3,548$1,970$1,057$554$305
47 years$5,913$3,386$1,851$977$503$273
48 years$5,724$3,232$1,739$902$457$244
49 years$5,543$3,087$1,635$834$415$218
50 years$5,370$2,949$1,537$771$377$195

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,500,000, adding $2,122 every year, while hoping to spend $54,975 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: 35/35/30 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,063,189$5,771,689$5,686,439$6,220,590
41$6,623,141$5,996,009$5,818,442$6,563,667
42$7,238,366$6,229,478$5,953,024$6,928,521
43$7,914,443$6,472,486$6,090,214$7,321,159
44$8,657,520$6,725,441$6,230,040$7,744,113
45$9,474,368$6,988,769$6,372,527$8,200,158
46$10,372,449$7,262,914$6,517,702$8,692,343
47$11,359,983$7,548,341$6,665,589$9,224,016
48$12,446,026$7,845,534$6,816,211$9,798,857
49$13,640,555$8,155,000$6,969,589$10,420,907
50$14,954,566$8,477,269$7,125,744$11,094,606
51$16,400,170$8,812,893$7,284,695$11,824,836
52$17,990,712$9,162,451$7,446,457$12,616,961
53$19,740,899$9,526,544$7,611,048$13,476,879
54$21,666,931$9,905,806$7,778,478$14,411,075
55$23,786,661$10,300,893$7,948,760$15,426,681
56$26,119,759$10,712,496$8,121,903$16,531,539
57$28,687,900$11,141,333$8,297,911$17,734,274
58$31,514,964$11,588,157$8,476,790$19,044,375
59$34,627,267$12,053,753$8,658,539$20,472,282
60$38,053,805$12,538,943$8,843,156$22,029,479
61$41,826,528$13,044,587$9,030,637$23,728,602
62$45,980,643$13,571,581$9,220,973$25,583,559
63$50,554,944$14,120,863$9,414,151$27,609,653
64$55,592,178$14,693,415$9,610,154$29,823,727
65$61,139,449$15,290,262$9,808,964$32,244,320
66$67,248,664$15,912,476$10,010,555$34,891,837
67$73,977,018$16,561,178$10,214,899$37,788,742
68$81,387,538$17,237,539$10,421,962$40,959,765
69$89,549,673$17,942,785$10,631,704$44,432,130
70$98,539,955$18,678,197$10,844,082$48,235,812
71$108,442,717$19,445,115$11,059,045$52,403,816
72$119,350,889$20,244,940$11,276,538$56,972,481
73$131,366,875$21,079,138$11,496,497$61,981,824
74$144,603,521$21,949,241$11,718,855$67,475,911
75$159,185,178$22,856,851$11,943,534$73,503,270
76$175,248,875$23,803,645$12,170,450$80,117,341
77$192,945,613$24,791,376$12,399,513$87,376,983
78$212,441,791$25,821,879$12,630,623$95,347,017
79$233,920,774$26,897,072$12,863,669$104,098,839
80$257,584,626$28,018,962$13,098,536$113,711,086
81$283,656,015$29,189,648$13,335,094$124,270,371
82$312,380,316$30,411,328$13,573,206$135,872,101
83$344,027,923$31,686,298$13,812,724$148,621,364
84$378,896,808$33,016,964$14,053,487$162,633,922
85$417,315,328$34,405,840$14,295,324$178,037,292
86$459,645,324$35,855,559$14,538,050$194,971,947
87$506,285,541$37,368,875$14,781,469$213,592,633
88$557,675,386$38,948,670$15,025,368$234,069,822
89$614,299,080$40,597,960$15,269,523$256,591,315
90$676,690,227$42,319,900$15,513,692$281,364,009
91$745,436,848$44,117,794$15,757,619$308,615,837
92$821,186,938$45,995,097$16,001,030$338,597,915
93$904,654,576$47,955,427$16,243,635$371,586,901
94$996,626,671$50,002,571$16,485,125$407,887,602
95$1,097,970,384$52,140,490$16,725,170$447,835,835
96$1,209,641,322$54,373,333$16,963,422$491,801,592
97$1,332,692,552$56,705,441$17,199,511$540,192,522
98$1,468,284,543$59,141,358$17,433,045$593,457,766
99$1,617,696,123$61,685,841$17,663,609$652,092,185
100$1,782,336,551$64,343,871$17,890,764$716,641,023