Can I retire at age 40 with 5,600,000?

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 $5,600,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.2%
1 years$462,443$458,324$454,305$450,382$446,552$435,227
2 years$228,932$224,668$220,536$216,530$212,644$201,307
3 years$151,105$146,823$142,702$138,733$134,910$123,917
4 years$112,200$107,931$103,850$99,949$96,219$85,654
5 years$88,862$84,619$80,592$76,771$73,144$63,036
6 years$73,309$69,098$65,130$61,394$57,876$48,236
7 years$62,204$58,028$54,124$50,475$47,069$37,897
8 years$53,879$49,741$45,901$42,343$39,048$30,340
9 years$47,408$43,308$39,535$36,066$32,884$24,632
10 years$42,233$38,174$34,467$31,090$28,019$20,214
11 years$38,003$33,984$30,344$27,057$24,097$16,727
12 years$34,480$30,502$26,930$23,733$20,882$13,934
13 years$31,501$27,565$24,060$20,953$18,210$11,670
14 years$28,950$25,056$21,618$18,599$15,963$9,816
15 years$26,741$22,889$19,518$16,587$14,055$8,287
16 years$24,810$21,000$17,696$14,852$12,422$7,017
17 years$23,108$19,341$16,103$13,345$11,014$5,956
18 years$21,597$17,872$14,700$12,026$9,793$5,066
19 years$20,247$16,563$13,457$10,867$8,729$4,316
20 years$19,033$15,391$12,350$9,842$7,797$3,683
21 years$17,936$14,336$11,360$8,932$6,977$3,147
22 years$16,940$13,383$10,470$8,121$6,254$2,691
23 years$16,032$12,516$9,667$7,396$5,614$2,304
24 years$15,201$11,727$8,940$6,746$5,046$1,974
25 years$14,438$11,005$8,280$6,161$4,541$1,692
26 years$13,734$10,343$7,680$5,633$4,090$1,451
27 years$13,084$9,734$7,131$5,156$3,687$1,245
28 years$12,481$9,172$6,629$4,724$3,327$1,069
29 years$11,921$8,653$6,169$4,332$3,004$918
30 years$11,399$8,172$5,746$3,976$2,715$789
31 years$10,912$7,725$5,357$3,651$2,454$678
32 years$10,456$7,310$4,998$3,356$2,220$582
33 years$10,029$6,922$4,667$3,086$2,009$501
34 years$9,627$6,561$4,361$2,839$1,819$430
35 years$9,250$6,223$4,077$2,614$1,648$370
36 years$8,894$5,906$3,814$2,407$1,493$318
37 years$8,558$5,610$3,570$2,218$1,353$274
38 years$8,241$5,331$3,343$2,044$1,227$235
39 years$7,941$5,069$3,132$1,885$1,112$203
40 years$7,656$4,823$2,936$1,739$1,009$174
41 years$7,386$4,591$2,753$1,604$915$150
42 years$7,130$4,372$2,582$1,480$831$129
43 years$6,886$4,166$2,423$1,367$754$111
44 years$6,654$3,971$2,274$1,262$684$95
45 years$6,432$3,787$2,135$1,165$621$82
46 years$6,221$3,613$2,006$1,076$564$71
47 years$6,020$3,447$1,884$994$512$61
48 years$5,828$3,291$1,771$919$465$52
49 years$5,644$3,143$1,664$849$422$45
50 years$5,468$3,002$1,565$785$384$39

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,600,000, adding $6,808 every year, while hoping to spend $31,449 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: 60/24/16 Blend
39$5,600,000$5,600,000$5,600,000$5,600,000
40$6,178,222$5,881,422$5,794,622$6,523,396
41$6,774,940$6,136,151$5,955,281$7,011,813
42$7,431,468$6,402,307$6,120,267$7,540,282
43$8,153,875$6,680,417$6,289,693$8,116,056
44$8,948,846$6,971,033$6,463,674$8,743,714
45$9,823,747$7,274,732$6,642,326$9,428,290
46$10,786,695$7,592,120$6,825,769$10,175,324
47$11,846,633$7,923,829$7,014,128$10,990,910
48$13,013,415$8,270,522$7,207,526$11,881,749
49$14,297,898$8,632,893$7,406,094$12,855,218
50$15,712,049$9,011,669$7,609,963$13,919,432
51$17,269,049$9,407,612$7,819,268$15,083,324
52$18,983,426$9,821,519$8,034,147$16,356,720
53$20,871,187$10,254,225$8,254,743$17,750,439
54$22,949,970$10,706,605$8,481,199$19,276,388
55$25,239,212$11,179,573$8,713,664$20,947,673
56$27,760,329$11,674,090$8,952,289$22,778,722
57$30,536,922$12,191,159$9,197,230$24,785,418
58$33,594,996$12,731,834$9,448,645$26,985,246
59$36,963,208$13,297,216$9,706,697$29,397,460
60$40,673,135$13,888,460$9,971,551$32,043,256
61$44,759,575$14,506,774$10,243,378$34,945,975
62$49,260,872$15,153,426$10,522,351$38,131,318
63$54,219,279$15,829,743$10,808,649$41,627,586
64$59,681,359$16,537,113$11,102,451$45,465,947
65$65,698,419$17,276,994$11,403,946$49,680,724
66$72,327,001$18,050,909$11,713,321$54,309,715
67$79,629,410$18,860,459$12,030,772$59,394,553
68$87,674,303$19,707,315$12,356,496$64,981,088
69$96,537,341$20,593,232$12,690,698$71,119,821
70$106,301,896$21,520,047$13,033,583$77,866,376
71$117,059,846$22,489,685$13,385,364$85,282,022
72$128,912,433$23,504,163$13,746,256$93,434,244
73$141,971,228$24,565,593$14,116,482$102,397,381
74$156,359,176$25,676,190$14,496,267$112,253,320
75$172,211,761$26,838,273$14,885,842$123,092,265
76$189,678,285$28,054,272$15,285,442$135,013,586
77$208,923,273$29,326,735$15,695,307$148,126,747
78$230,128,031$30,658,329$16,115,684$162,552,340
79$253,492,353$32,051,850$16,546,822$178,423,216
80$279,236,411$33,510,229$16,988,979$195,885,732
81$307,602,830$35,036,535$17,442,415$215,101,128
82$338,858,979$36,633,986$17,907,396$236,247,043
83$373,299,497$38,305,952$18,384,196$259,519,185
84$411,249,069$40,055,968$18,873,090$285,133,174
85$453,065,498$41,887,734$19,374,362$313,326,566
86$499,143,077$43,805,132$19,888,302$344,361,094
87$549,916,314$45,812,226$20,415,203$378,525,125
88$605,864,031$47,913,278$20,955,365$416,136,381
89$667,513,887$50,112,753$21,509,094$457,544,925
90$735,447,357$52,415,332$22,076,703$503,136,459
91$810,305,224$54,825,920$22,658,509$553,335,955
92$892,793,624$57,349,657$23,254,836$608,611,659
93$983,690,714$59,991,931$23,866,014$669,479,499
94$1,083,854,020$62,758,388$24,492,378$736,507,951
95$1,194,228,529$65,654,948$25,134,272$810,323,385
96$1,315,855,612$68,687,814$25,792,043$891,615,976
97$1,449,882,855$71,863,487$26,466,046$981,146,204
98$1,597,574,890$75,188,782$27,156,643$1,079,752,019
99$1,760,325,338$78,670,841$27,864,200$1,188,356,744
100$1,939,669,963$82,317,153$28,589,091$1,307,977,773