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%15.3%
1 years$454,185$450,139$446,192$442,340$438,578$429,021
2 years$224,844$220,656$216,598$212,663$208,847$199,267
3 years$148,407$144,201$140,153$136,255$132,501$123,197
4 years$110,196$106,003$101,996$98,164$94,501$85,544
5 years$87,275$83,108$79,153$75,400$71,838$63,254
6 years$72,000$67,864$63,967$60,298$56,843$48,640
7 years$61,093$56,992$53,157$49,574$46,229$38,409
8 years$52,917$48,853$45,081$41,586$38,351$30,912
9 years$46,561$42,535$38,829$35,422$32,297$25,233
10 years$41,479$37,493$33,852$30,534$27,519$20,823
11 years$37,324$33,377$29,802$26,574$23,667$17,330
12 years$33,864$29,958$26,449$23,309$20,509$14,522
13 years$30,938$27,073$23,630$20,578$17,885$12,235
14 years$28,433$24,609$21,232$18,267$15,677$10,356
15 years$26,263$22,480$19,170$16,291$13,804$8,797
16 years$24,367$20,625$17,380$14,587$12,200$7,497
17 years$22,696$18,995$15,815$13,106$10,817$6,405
18 years$21,211$17,552$14,437$11,811$9,618$5,484
19 years$19,885$16,267$13,217$10,673$8,573$4,704
20 years$18,693$15,116$12,130$9,666$7,657$4,041
21 years$17,615$14,080$11,157$8,773$6,853$3,477
22 years$16,637$13,144$10,283$7,976$6,142$2,994
23 years$15,746$12,293$9,494$7,264$5,514$2,581
24 years$14,930$11,518$8,781$6,625$4,956$2,227
25 years$14,180$10,809$8,133$6,051$4,459$1,923
26 years$13,489$10,158$7,543$5,532$4,017$1,661
27 years$12,850$9,560$7,004$5,064$3,622$1,436
28 years$12,258$9,009$6,511$4,640$3,268$1,242
29 years$11,708$8,499$6,059$4,255$2,951$1,074
30 years$11,196$8,026$5,644$3,905$2,666$930
31 years$10,717$7,587$5,262$3,586$2,411$805
32 years$10,269$7,179$4,909$3,296$2,180$697
33 years$9,850$6,799$4,584$3,031$1,973$604
34 years$9,456$6,444$4,283$2,789$1,787$523
35 years$9,085$6,112$4,004$2,567$1,618$453
36 years$8,735$5,801$3,746$2,364$1,466$393
37 years$8,405$5,510$3,506$2,178$1,329$340
38 years$8,094$5,236$3,283$2,008$1,205$295
39 years$7,799$4,979$3,076$1,851$1,092$256
40 years$7,519$4,737$2,883$1,708$991$222
41 years$7,254$4,509$2,703$1,575$899$192
42 years$7,002$4,294$2,536$1,454$816$167
43 years$6,763$4,092$2,380$1,342$740$144
44 years$6,535$3,900$2,234$1,239$672$125
45 years$6,318$3,719$2,097$1,144$610$109
46 years$6,110$3,548$1,970$1,057$554$94
47 years$5,913$3,386$1,851$977$503$82
48 years$5,724$3,232$1,739$902$457$71
49 years$5,543$3,087$1,635$834$415$61
50 years$5,370$2,949$1,537$771$377$53

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 $4,358 every year, while hoping to spend $22,868 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: 67/14/19 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,065,495$5,773,995$5,688,745$6,443,071
41$6,659,844$6,032,590$5,854,987$6,954,875
42$7,314,051$6,303,089$6,026,031$7,511,277
43$8,034,196$6,586,052$6,202,015$8,119,166
44$8,826,980$6,882,064$6,383,078$8,783,603
45$9,699,786$7,191,740$6,569,366$9,510,160
46$10,660,752$7,515,723$6,761,028$10,304,965
47$11,718,841$7,854,686$6,958,214$11,174,768
48$12,883,932$8,209,334$7,161,083$12,126,997
49$14,166,910$8,580,409$7,369,797$13,169,828
50$15,579,769$8,968,683$7,584,519$14,312,265
51$17,135,727$9,374,970$7,805,422$15,564,218
52$18,849,347$9,800,120$8,032,680$16,936,601
53$20,736,679$10,245,024$8,266,473$18,441,429
54$22,815,406$10,710,616$8,506,986$20,091,932
55$25,105,016$11,197,875$8,754,409$21,902,681
56$27,626,984$11,707,827$9,008,938$23,889,719
57$30,404,972$12,241,546$9,270,772$26,070,715
58$33,465,056$12,800,159$9,540,120$28,465,129
59$36,835,970$13,384,844$9,817,192$31,094,389
60$40,549,377$13,996,840$10,102,207$33,982,100
61$44,640,171$14,637,443$10,395,388$37,154,259
62$49,146,800$15,308,009$10,696,965$40,639,498
63$54,111,635$16,009,963$11,007,175$44,469,358
64$59,581,367$16,744,797$11,326,261$48,678,579
65$65,607,448$17,514,074$11,654,472$53,305,428
66$72,246,576$18,319,431$11,992,065$58,392,060
67$79,561,230$19,162,587$12,339,303$63,984,909
68$87,620,263$20,045,341$12,696,456$70,135,128
69$96,499,546$20,969,579$13,063,804$76,899,071
70$106,282,690$21,937,278$13,441,631$84,338,814
71$117,061,830$22,950,511$13,830,232$92,522,749
72$128,938,499$24,011,448$14,229,907$101,526,219
73$142,024,584$25,122,367$14,640,967$111,432,230
74$156,443,382$26,285,653$15,063,730$122,332,230
75$172,330,764$27,503,808$15,498,522$134,326,970
76$189,836,460$28,779,452$15,945,680$147,527,452
77$209,125,467$30,115,333$16,405,548$162,055,972
78$230,379,611$31,514,331$16,878,481$178,047,272
79$253,799,264$32,979,466$17,364,843$195,649,810
80$279,605,231$34,513,902$17,865,007$215,027,153
81$308,040,838$36,120,956$18,379,358$236,359,520
82$339,374,226$37,804,106$18,908,289$259,845,481
83$373,900,887$39,566,996$19,452,206$285,703,823
84$411,946,447$41,413,449$20,011,525$314,175,613
85$453,869,746$43,347,470$20,586,673$345,526,468
86$500,066,221$45,373,257$21,178,087$380,049,058
87$550,971,643$47,495,213$21,786,220$418,065,866
88$607,066,225$49,717,954$22,411,534$459,932,222
89$668,879,163$52,046,316$23,054,502$506,039,654
90$736,993,623$54,485,372$23,715,614$556,819,581
91$812,052,256$57,040,438$24,395,370$612,747,375
92$894,763,255$59,717,088$25,094,284$674,346,844
93$985,907,049$62,521,168$25,812,885$742,195,172
94$1,086,343,665$65,458,802$26,551,713$816,928,358
95$1,197,020,850$68,536,414$27,311,327$899,247,214
96$1,318,983,017$71,760,739$28,092,297$989,923,973
97$1,453,381,105$75,138,835$28,895,209$1,089,809,573
98$1,601,483,446$78,678,106$29,720,666$1,199,841,678
99$1,764,687,735$82,386,311$30,569,287$1,321,053,526
100$1,944,534,231$86,271,588$31,441,705$1,454,583,669