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%12.9%
1 years$454,185$450,139$446,192$442,340$438,578$433,277
2 years$224,844$220,656$216,598$212,663$208,847$203,512
3 years$148,407$144,201$140,153$136,255$132,501$127,298
4 years$110,196$106,003$101,996$98,164$94,501$89,470
5 years$87,275$83,108$79,153$75,400$71,838$66,994
6 years$72,000$67,864$63,967$60,298$56,843$52,191
7 years$61,093$56,992$53,157$49,574$46,229$41,771
8 years$52,917$48,853$45,081$41,586$38,351$34,088
9 years$46,561$42,535$38,829$35,422$32,297$28,226
10 years$41,479$37,493$33,852$30,534$27,519$23,637
11 years$37,324$33,377$29,802$26,574$23,667$19,971
12 years$33,864$29,958$26,449$23,309$20,509$16,995
13 years$30,938$27,073$23,630$20,578$17,885$14,548
14 years$28,433$24,609$21,232$18,267$15,677$12,514
15 years$26,263$22,480$19,170$16,291$13,804$10,807
16 years$24,367$20,625$17,380$14,587$12,200$9,366
17 years$22,696$18,995$15,815$13,106$10,817$8,140
18 years$21,211$17,552$14,437$11,811$9,618$7,092
19 years$19,885$16,267$13,217$10,673$8,573$6,192
20 years$18,693$15,116$12,130$9,666$7,657$5,416
21 years$17,615$14,080$11,157$8,773$6,853$4,744
22 years$16,637$13,144$10,283$7,976$6,142$4,162
23 years$15,746$12,293$9,494$7,264$5,514$3,655
24 years$14,930$11,518$8,781$6,625$4,956$3,214
25 years$14,180$10,809$8,133$6,051$4,459$2,828
26 years$13,489$10,158$7,543$5,532$4,017$2,490
27 years$12,850$9,560$7,004$5,064$3,622$2,195
28 years$12,258$9,009$6,511$4,640$3,268$1,935
29 years$11,708$8,499$6,059$4,255$2,951$1,707
30 years$11,196$8,026$5,644$3,905$2,666$1,507
31 years$10,717$7,587$5,262$3,586$2,411$1,331
32 years$10,269$7,179$4,909$3,296$2,180$1,175
33 years$9,850$6,799$4,584$3,031$1,973$1,039
34 years$9,456$6,444$4,283$2,789$1,787$918
35 years$9,085$6,112$4,004$2,567$1,618$812
36 years$8,735$5,801$3,746$2,364$1,466$718
37 years$8,405$5,510$3,506$2,178$1,329$635
38 years$8,094$5,236$3,283$2,008$1,205$561
39 years$7,799$4,979$3,076$1,851$1,092$497
40 years$7,519$4,737$2,883$1,708$991$440
41 years$7,254$4,509$2,703$1,575$899$389
42 years$7,002$4,294$2,536$1,454$816$344
43 years$6,763$4,092$2,380$1,342$740$305
44 years$6,535$3,900$2,234$1,239$672$270
45 years$6,318$3,719$2,097$1,144$610$239
46 years$6,110$3,548$1,970$1,057$554$211
47 years$5,913$3,386$1,851$977$503$187
48 years$5,724$3,232$1,739$902$457$166
49 years$5,543$3,087$1,635$834$415$147
50 years$5,370$2,949$1,537$771$377$130

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 $4,014 every year, while hoping to spend $42,083 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: 66/12/22 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,065,140$5,773,640$5,688,390$6,431,120
41$6,639,009$6,011,773$5,834,176$6,915,570
42$7,270,001$6,260,163$5,983,434$7,439,821
43$7,963,900$6,519,270$6,136,238$8,011,984
44$8,727,076$6,789,572$6,292,660$8,636,770
45$9,566,548$7,071,571$6,452,774$9,319,362
46$10,490,049$7,365,792$6,616,655$10,065,470
47$11,506,100$7,672,782$6,784,379$10,881,376
48$12,624,090$7,993,115$6,956,023$11,774,000
49$13,854,362$8,327,393$7,131,665$12,750,957
50$15,208,314$8,676,242$7,311,383$13,820,634
51$16,698,505$9,040,321$7,495,257$14,992,268
52$18,338,771$9,420,316$7,683,368$16,276,026
53$20,144,362$9,816,947$7,875,796$17,683,108
54$22,132,076$10,230,967$8,072,624$19,225,847
55$24,320,426$10,663,162$8,273,935$20,917,825
56$26,729,810$11,114,358$8,479,813$22,774,001
57$29,382,706$11,585,417$8,690,342$24,810,850
58$32,303,880$12,077,241$8,905,607$27,046,521
59$35,520,625$12,590,774$9,125,693$29,501,001
60$39,063,012$13,127,006$9,350,688$32,196,307
61$42,964,181$13,686,970$9,580,677$35,156,690
62$47,260,646$14,271,751$9,815,749$38,408,867
63$51,992,645$14,882,480$10,055,990$41,982,265
64$57,204,517$15,520,344$10,301,488$45,909,302
65$62,945,123$16,186,585$10,552,332$50,225,692
66$69,268,301$16,882,504$10,808,611$54,970,777
67$76,233,380$17,609,459$11,070,412$60,187,901
68$83,905,739$18,368,876$11,337,825$65,924,812
69$92,357,419$19,162,247$11,610,937$72,234,118
70$101,667,810$19,991,131$11,889,838$79,173,776
71$111,924,394$20,857,163$12,174,614$86,807,639
72$123,223,573$21,762,055$12,465,355$95,206,060
73$135,671,579$22,707,597$12,762,146$104,446,547
74$149,385,477$23,695,666$13,065,074$114,614,501
75$164,494,267$24,728,226$13,374,226$125,804,013
76$181,140,105$25,807,332$13,689,686$138,118,754
77$199,479,643$26,935,138$14,011,537$151,672,950
78$219,685,505$28,113,898$14,339,862$166,592,459
79$241,947,923$29,345,975$14,674,743$183,015,954
80$266,476,523$30,633,840$15,016,260$201,096,232
81$293,502,313$31,980,083$15,364,489$221,001,652
82$323,279,857$33,387,415$15,719,507$242,917,724
83$356,089,679$34,858,676$16,081,388$267,048,853
84$392,240,915$36,396,839$16,450,203$293,620,269
85$432,074,225$38,005,021$16,826,022$322,880,151
86$475,965,012$39,686,483$17,208,909$355,101,962
87$524,326,964$41,444,642$17,598,928$390,587,032
88$577,615,962$43,283,076$17,996,140$429,667,395
89$636,334,378$45,205,534$18,400,598$472,708,922
90$701,035,822$47,215,944$18,812,356$520,114,772
91$772,330,367$49,318,416$19,231,461$572,329,191
92$850,890,305$51,517,259$19,657,956$629,841,704
93$937,456,498$53,816,987$20,091,879$693,191,730
94$1,032,845,367$56,222,325$20,533,263$762,973,674
95$1,137,956,602$58,738,227$20,982,135$839,842,528
96$1,253,781,655$61,369,879$21,438,516$924,520,052
97$1,381,413,098$64,122,718$21,902,421$1,017,801,584
98$1,522,054,939$67,002,435$22,373,856$1,120,563,541
99$1,677,033,984$70,014,996$22,852,822$1,233,771,690
100$1,847,812,370$73,166,650$23,339,311$1,358,490,255