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

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 $5,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.6%
1 years$454,185$450,139$446,192$442,340$438,578$423,354
2 years$224,844$220,656$216,598$212,663$208,847$193,666
3 years$148,407$144,201$140,153$136,255$132,501$117,841
4 years$110,196$106,003$101,996$98,164$94,501$80,473
5 years$87,275$83,108$79,153$75,400$71,838$58,480
6 years$72,000$67,864$63,967$60,298$56,843$44,164
7 years$61,093$56,992$53,157$49,574$46,229$34,227
8 years$52,917$48,853$45,081$41,586$38,351$27,018
9 years$46,561$42,535$38,829$35,422$32,297$21,617
10 years$41,479$37,493$33,852$30,534$27,519$17,475
11 years$37,324$33,377$29,802$26,574$23,667$14,239
12 years$33,864$29,958$26,449$23,309$20,509$11,675
13 years$30,938$27,073$23,630$20,578$17,885$9,620
14 years$28,433$24,609$21,232$18,267$15,677$7,959
15 years$26,263$22,480$19,170$16,291$13,804$6,606
16 years$24,367$20,625$17,380$14,587$12,200$5,498
17 years$22,696$18,995$15,815$13,106$10,817$4,585
18 years$21,211$17,552$14,437$11,811$9,618$3,831
19 years$19,885$16,267$13,217$10,673$8,573$3,206
20 years$18,693$15,116$12,130$9,666$7,657$2,686
21 years$17,615$14,080$11,157$8,773$6,853$2,253
22 years$16,637$13,144$10,283$7,976$6,142$1,891
23 years$15,746$12,293$9,494$7,264$5,514$1,588
24 years$14,930$11,518$8,781$6,625$4,956$1,335
25 years$14,180$10,809$8,133$6,051$4,459$1,123
26 years$13,489$10,158$7,543$5,532$4,017$944
27 years$12,850$9,560$7,004$5,064$3,622$795
28 years$12,258$9,009$6,511$4,640$3,268$669
29 years$11,708$8,499$6,059$4,255$2,951$563
30 years$11,196$8,026$5,644$3,905$2,666$475
31 years$10,717$7,587$5,262$3,586$2,411$400
32 years$10,269$7,179$4,909$3,296$2,180$337
33 years$9,850$6,799$4,584$3,031$1,973$284
34 years$9,456$6,444$4,283$2,789$1,787$239
35 years$9,085$6,112$4,004$2,567$1,618$202
36 years$8,735$5,801$3,746$2,364$1,466$170
37 years$8,405$5,510$3,506$2,178$1,329$143
38 years$8,094$5,236$3,283$2,008$1,205$121
39 years$7,799$4,979$3,076$1,851$1,092$102
40 years$7,519$4,737$2,883$1,708$991$86
41 years$7,254$4,509$2,703$1,575$899$72
42 years$7,002$4,294$2,536$1,454$816$61
43 years$6,763$4,092$2,380$1,342$740$51
44 years$6,535$3,900$2,234$1,239$672$43
45 years$6,318$3,719$2,097$1,144$610$37
46 years$6,110$3,548$1,970$1,057$554$31
47 years$5,913$3,386$1,851$977$503$26
48 years$5,724$3,232$1,739$902$457$22
49 years$5,543$3,087$1,635$834$415$18
50 years$5,370$2,949$1,537$771$377$16

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 $6,820 every year, while hoping to spend $22,485 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: 60/32/8 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,068,035$5,776,535$5,691,285$6,421,248
41$6,663,051$6,035,661$5,858,019$6,917,904
42$7,318,004$6,306,731$6,029,585$7,456,197
43$8,038,986$6,590,306$6,206,121$8,042,759
44$8,832,706$6,886,974$6,387,770$8,682,234
45$9,706,558$7,197,353$6,574,676$9,379,732
46$10,668,690$7,522,086$6,766,991$10,140,869
47$11,728,080$7,861,851$6,964,869$10,971,820
48$12,894,619$8,217,357$7,168,467$11,879,378
49$14,179,209$8,589,347$7,377,950$12,871,013
50$15,593,862$8,978,598$7,593,484$13,954,943
51$17,151,813$9,385,927$7,815,243$15,140,206
52$18,867,647$9,812,186$8,043,403$16,436,749
53$20,757,437$10,258,273$8,278,147$17,855,513
54$22,838,891$10,725,124$8,519,661$19,408,539
55$25,131,526$11,213,724$8,768,137$21,109,076
56$27,656,847$11,725,101$9,023,775$22,971,705
57$30,438,550$12,260,336$9,286,776$25,012,476
58$33,502,749$12,820,559$9,557,350$27,249,050
59$36,878,220$13,406,957$9,835,712$29,700,869
60$40,596,671$14,020,771$10,122,081$32,389,336
61$44,693,047$14,663,303$10,416,686$35,338,011
62$49,205,851$15,335,919$10,719,758$38,572,830
63$54,177,516$16,040,047$11,031,538$42,122,350
64$59,654,799$16,777,186$11,352,272$46,018,009
65$65,689,228$17,548,907$11,682,212$50,294,427
66$72,337,582$18,356,857$12,021,619$54,989,719
67$79,662,432$19,202,759$12,370,760$60,145,860
68$87,732,729$20,088,423$12,729,909$65,809,068
69$96,624,455$21,015,743$13,099,348$72,030,244
70$106,421,341$21,986,706$13,479,368$78,865,441
71$117,215,656$23,003,394$13,870,266$86,376,391
72$129,109,082$24,067,989$14,272,348$94,631,083
73$142,213,665$25,182,778$14,685,929$103,704,398
74$156,652,884$26,350,158$15,111,332$113,678,809
75$172,562,805$27,572,643$15,548,889$124,645,157
76$190,093,375$28,852,866$15,998,940$136,703,498
77$209,409,832$30,193,589$16,461,837$149,964,043
78$230,694,265$31,597,706$16,937,940$164,548,192
79$254,147,337$33,068,250$17,427,618$180,589,670
80$279,990,174$34,608,403$17,931,251$198,235,787
81$308,466,453$36,221,496$18,449,230$217,648,814
82$339,844,708$37,911,026$18,981,955$239,007,510
83$374,420,857$39,680,655$19,529,839$262,508,802
84$412,521,000$41,534,223$20,093,305$288,369,630
85$454,504,499$43,475,756$20,672,787$316,828,993
86$500,767,364$45,509,475$21,268,732$348,150,186
87$551,745,999$47,639,804$21,881,599$382,623,282
88$607,921,317$49,871,379$22,511,858$420,567,857
89$669,823,279$52,209,065$23,159,994$462,335,994
90$738,035,903$54,657,958$23,826,502$508,315,597
91$813,202,769$57,223,402$24,511,894$558,934,040
92$896,033,102$59,911,000$25,216,694$614,662,185
93$987,308,465$62,726,625$25,941,439$676,018,817
94$1,087,890,134$65,676,436$26,686,683$743,575,527
95$1,198,727,234$68,766,887$27,452,993$817,962,089
96$1,320,865,696$72,004,748$28,240,952$899,872,393
97$1,455,458,131$75,397,116$29,051,159$990,070,980
98$1,603,774,716$78,951,429$29,884,227$1,089,400,236
99$1,767,215,177$82,675,490$30,740,790$1,198,788,333
100$1,947,322,012$86,577,476$31,621,493$1,319,257,970