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%11.7%
1 years$454,185$450,139$446,192$442,340$438,578$435,449
2 years$224,844$220,656$216,598$212,663$208,847$205,691
3 years$148,407$144,201$140,153$136,255$132,501$129,417
4 years$110,196$106,003$101,996$98,164$94,501$91,512
5 years$87,275$83,108$79,153$75,400$71,838$68,954
6 years$72,000$67,864$63,967$60,298$56,843$54,066
7 years$61,093$56,992$53,157$49,574$46,229$43,561
8 years$52,917$48,853$45,081$41,586$38,351$35,793
9 years$46,561$42,535$38,829$35,422$32,297$29,847
10 years$41,479$37,493$33,852$30,534$27,519$25,176
11 years$37,324$33,377$29,802$26,574$23,667$21,430
12 years$33,864$29,958$26,449$23,309$20,509$18,376
13 years$30,938$27,073$23,630$20,578$17,885$15,852
14 years$28,433$24,609$21,232$18,267$15,677$13,744
15 years$26,263$22,480$19,170$16,291$13,804$11,966
16 years$24,367$20,625$17,380$14,587$12,200$10,455
17 years$22,696$18,995$15,815$13,106$10,817$9,163
18 years$21,211$17,552$14,437$11,811$9,618$8,052
19 years$19,885$16,267$13,217$10,673$8,573$7,091
20 years$18,693$15,116$12,130$9,666$7,657$6,257
21 years$17,615$14,080$11,157$8,773$6,853$5,530
22 years$16,637$13,144$10,283$7,976$6,142$4,896
23 years$15,746$12,293$9,494$7,264$5,514$4,339
24 years$14,930$11,518$8,781$6,625$4,956$3,850
25 years$14,180$10,809$8,133$6,051$4,459$3,420
26 years$13,489$10,158$7,543$5,532$4,017$3,040
27 years$12,850$9,560$7,004$5,064$3,622$2,705
28 years$12,258$9,009$6,511$4,640$3,268$2,408
29 years$11,708$8,499$6,059$4,255$2,951$2,145
30 years$11,196$8,026$5,644$3,905$2,666$1,912
31 years$10,717$7,587$5,262$3,586$2,411$1,705
32 years$10,269$7,179$4,909$3,296$2,180$1,521
33 years$9,850$6,799$4,584$3,031$1,973$1,358
34 years$9,456$6,444$4,283$2,789$1,787$1,212
35 years$9,085$6,112$4,004$2,567$1,618$1,082
36 years$8,735$5,801$3,746$2,364$1,466$967
37 years$8,405$5,510$3,506$2,178$1,329$864
38 years$8,094$5,236$3,283$2,008$1,205$772
39 years$7,799$4,979$3,076$1,851$1,092$690
40 years$7,519$4,737$2,883$1,708$991$617
41 years$7,254$4,509$2,703$1,575$899$552
42 years$7,002$4,294$2,536$1,454$816$493
43 years$6,763$4,092$2,380$1,342$740$441
44 years$6,535$3,900$2,234$1,239$672$395
45 years$6,318$3,719$2,097$1,144$610$353
46 years$6,110$3,548$1,970$1,057$554$316
47 years$5,913$3,386$1,851$977$503$283
48 years$5,724$3,232$1,739$902$457$253
49 years$5,543$3,087$1,635$834$415$226
50 years$5,370$2,949$1,537$771$377$202

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 $2,394 every year, while hoping to spend $54,389 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: 40/32/28 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,063,469$5,771,969$5,686,719$6,255,772
41$6,624,074$5,996,926$5,819,355$6,620,756
42$7,240,037$6,231,083$5,954,611$7,010,135
43$7,916,948$6,474,834$6,092,518$7,430,371
44$8,660,965$6,728,589$6,233,105$7,884,325
45$9,478,870$6,992,777$6,376,401$8,375,139
46$10,378,138$7,267,846$6,522,434$8,906,267
47$11,367,003$7,554,265$6,671,230$9,481,502
48$12,454,537$7,852,524$6,822,816$10,105,017
49$13,650,734$8,163,131$6,977,214$10,781,394
50$14,966,607$8,486,623$7,134,449$11,515,675
51$16,414,289$8,823,556$7,294,541$12,313,401
52$18,007,149$9,174,512$7,457,511$13,180,667
53$19,759,916$9,540,102$7,623,376$14,124,175
54$21,688,821$9,920,961$7,792,153$15,151,298
55$23,811,747$10,317,753$7,963,856$16,270,146
56$26,148,397$10,731,175$8,138,496$17,489,641
57$28,720,482$11,161,951$8,316,085$18,819,601
58$31,551,926$11,610,842$8,496,628$20,270,828
59$34,669,089$12,078,639$8,680,132$21,855,209
60$38,101,016$12,566,173$8,866,597$23,585,827
61$41,879,715$13,074,310$9,056,022$25,477,081
62$46,040,450$13,603,956$9,248,404$27,544,820
63$50,622,085$14,156,059$9,443,734$29,806,489
64$55,667,440$14,731,608$9,642,002$32,281,294
65$61,223,701$15,331,639$9,843,191$34,990,377
66$67,342,863$15,957,234$10,047,283$37,957,017
67$74,082,222$16,609,525$10,254,253$41,206,841
68$81,504,912$17,289,696$10,464,075$44,768,070
69$89,680,506$17,998,983$10,676,714$48,671,776
70$98,685,666$18,738,682$10,892,132$52,952,176
71$108,604,871$19,510,145$11,110,286$57,646,951
72$119,531,214$20,314,787$11,331,126$62,797,596
73$131,567,275$21,154,089$11,554,596$68,449,811
74$144,826,097$22,029,599$11,780,635$74,653,926
75$159,432,246$22,942,937$12,009,173$81,465,374
76$175,522,989$23,895,795$12,240,135$88,945,209
77$193,249,591$24,889,946$12,473,437$97,160,680
78$212,778,740$25,927,244$12,708,986$106,185,859
79$234,294,118$27,009,625$12,946,684$116,102,335
80$257,998,141$28,139,120$13,186,422$126,999,983
81$284,113,865$29,317,850$13,428,080$138,977,803
82$312,887,089$30,548,035$13,671,531$152,144,854
83$344,588,681$31,831,998$13,916,636$166,621,273
84$379,517,130$33,172,169$14,163,246$182,539,407
85$418,001,362$34,571,091$14,411,201$200,045,056
86$460,403,852$36,031,425$14,660,326$219,298,840
87$507,124,035$37,555,955$14,910,438$240,477,713
88$558,602,085$39,147,595$15,161,336$263,776,624
89$615,323,066$40,809,395$15,412,809$289,410,352
90$677,821,509$42,544,546$15,664,628$317,615,525
91$746,686,461$44,356,386$15,916,551$348,652,844
92$822,567,043$46,248,413$16,168,319$382,809,543
93$906,178,580$48,224,283$16,419,656$420,402,085
94$998,309,349$50,287,827$16,670,268$461,779,142
95$1,099,828,024$52,443,052$16,919,843$507,324,883
96$1,211,691,874$54,694,153$17,168,049$557,462,585
97$1,334,955,800$57,045,522$17,414,534$612,658,620
98$1,470,782,295$59,501,755$17,658,924$673,426,851
99$1,620,452,413$62,067,666$17,900,823$740,333,468
100$1,785,377,869$64,748,291$18,139,810$814,002,325