Can I retire at age 40 with 7,200,000?

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 $7,200,000?

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$594,569$589,273$584,106$579,063$574,138$567,199
2 years$294,341$288,859$283,547$278,396$273,399$266,416
3 years$194,278$188,773$183,473$178,371$173,456$166,645
4 years$144,257$138,768$133,522$128,506$123,710$117,124
5 years$114,251$108,796$103,618$98,705$94,042$87,701
6 years$94,255$88,840$83,739$78,935$74,413$68,323
7 years$79,977$74,608$69,587$64,897$60,517$54,682
8 years$69,273$63,953$59,016$54,440$50,205$44,624
9 years$60,953$55,682$50,830$46,371$42,280$36,950
10 years$54,300$49,081$44,315$39,972$36,025$30,943
11 years$48,860$43,694$39,014$34,788$30,982$26,144
12 years$44,331$39,217$34,624$30,514$26,849$22,248
13 years$40,501$35,441$30,934$26,939$23,413$19,045
14 years$37,221$32,215$27,795$23,913$20,523$16,381
15 years$34,381$29,429$25,095$21,327$18,070$14,148
16 years$31,899$27,000$22,752$19,096$15,971$12,260
17 years$29,711$24,866$20,704$17,157$14,161$10,655
18 years$27,768$22,978$18,900$15,462$12,591$9,283
19 years$26,031$21,296$17,302$13,971$11,223$8,105
20 years$24,471$19,789$15,879$12,654$10,024$7,089
21 years$23,060$18,433$14,605$11,484$8,971$6,211
22 years$21,780$17,206$13,461$10,442$8,041$5,448
23 years$20,613$16,092$12,429$9,509$7,218$4,785
24 years$19,544$15,078$11,495$8,673$6,488$4,207
25 years$18,563$14,150$10,646$7,921$5,838$3,702
26 years$17,658$13,298$9,874$7,242$5,259$3,260
27 years$16,822$12,515$9,169$6,629$4,741$2,873
28 years$16,047$11,793$8,524$6,074$4,278$2,533
29 years$15,327$11,125$7,932$5,570$3,863$2,235
30 years$14,656$10,507$7,388$5,112$3,490$1,973
31 years$14,030$9,932$6,888$4,695$3,156$1,742
32 years$13,444$9,398$6,427$4,314$2,854$1,539
33 years$12,894$8,900$6,000$3,968$2,583$1,360
34 years$12,378$8,435$5,606$3,650$2,339$1,202
35 years$11,893$8,001$5,242$3,360$2,118$1,062
36 years$11,435$7,594$4,903$3,095$1,919$939
37 years$11,004$7,212$4,590$2,852$1,740$831
38 years$10,596$6,854$4,298$2,628$1,577$735
39 years$10,209$6,518$4,027$2,423$1,430$650
40 years$9,844$6,201$3,774$2,235$1,297$575
41 years$9,496$5,903$3,539$2,062$1,177$509
42 years$9,167$5,622$3,320$1,903$1,068$451
43 years$8,853$5,356$3,115$1,757$969$399
44 years$8,555$5,106$2,924$1,622$880$353
45 years$8,270$4,869$2,746$1,498$799$313
46 years$7,999$4,645$2,579$1,384$725$277
47 years$7,740$4,432$2,423$1,279$658$245
48 years$7,493$4,231$2,277$1,181$598$217
49 years$7,256$4,041$2,140$1,092$543$192
50 years$7,030$3,860$2,012$1,009$493$170

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $7,200,000, adding $3,727 every year, while hoping to spend $46,845 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: 42/36/22 Blend
39$7,200,000$7,200,000$7,200,000$7,200,000
40$7,938,244$7,556,644$7,445,044$8,220,347
41$8,698,103$7,877,077$7,644,611$8,742,066
42$9,533,896$8,211,641$7,849,292$9,301,895
43$10,453,321$8,560,979$8,059,211$9,907,205
44$11,464,857$8,925,765$8,274,492$10,562,203
45$12,577,847$9,306,701$8,495,262$11,271,510
46$13,802,584$9,704,526$8,721,650$12,040,196
47$15,150,411$10,120,011$8,953,788$12,873,834
48$16,633,825$10,553,964$9,191,812$13,778,543
49$18,266,596$11,007,230$9,435,859$14,761,047
50$20,063,899$11,480,693$9,686,070$15,828,736
51$22,042,450$11,975,281$9,942,587$16,989,730
52$24,220,672$12,491,962$10,205,556$18,252,955
53$26,618,865$13,031,752$10,475,127$19,628,223
54$29,259,396$13,595,715$10,751,450$21,126,323
55$32,166,911$14,184,961$11,034,680$22,759,118
56$35,368,569$14,800,657$11,324,975$24,539,653
57$38,894,296$15,444,023$11,622,494$26,482,278
58$42,777,068$16,116,334$11,927,402$28,602,773
59$47,053,223$16,818,928$12,239,864$30,918,502
60$51,762,802$17,553,206$12,560,049$33,448,563
61$56,949,928$18,320,633$12,888,131$36,213,971
62$62,663,221$19,122,744$13,224,284$39,237,850
63$68,956,258$19,961,148$13,568,687$42,545,646
64$75,888,080$20,837,527$13,921,520$46,165,360
65$83,523,743$21,753,645$14,282,970$50,127,813
66$91,934,938$22,711,347$14,653,223$54,466,926
67$101,200,666$23,712,568$15,032,471$59,220,038
68$111,407,982$24,759,332$15,420,907$64,428,249
69$122,652,818$25,853,760$15,818,728$70,136,807
70$135,040,884$26,998,073$16,226,135$76,395,525
71$148,688,674$28,194,599$16,643,330$83,259,243
72$163,724,558$29,445,773$17,070,521$90,788,346
73$180,289,996$30,754,149$17,507,916$99,049,317
74$198,540,872$32,122,399$17,955,728$108,115,365
75$218,648,969$33,553,324$18,414,173$118,067,104
76$240,803,584$35,049,858$18,883,468$128,993,307
77$265,213,322$36,615,073$19,363,837$140,991,734
78$292,108,058$38,252,188$19,855,502$154,170,049
79$321,741,110$39,964,576$20,358,692$168,646,824
80$354,391,632$41,755,769$20,873,637$184,552,647
81$390,367,245$43,629,468$21,400,570$202,031,348
82$430,006,941$45,589,549$21,939,726$221,241,347
83$473,684,287$47,640,075$22,491,345$242,357,132
84$521,810,947$49,785,301$23,055,667$265,570,900
85$574,840,567$52,029,685$23,632,936$291,094,356
86$633,273,064$54,377,898$24,223,398$319,160,703
87$697,659,336$56,834,835$24,827,302$350,026,822
88$768,606,469$59,405,623$25,444,897$383,975,692
89$846,783,465$62,095,634$26,076,437$421,319,039
90$932,927,557$64,910,499$26,722,177$462,400,270
91$1,027,851,171$67,856,116$27,382,372$507,597,694
92$1,132,449,590$70,938,666$28,057,282$557,328,077
93$1,247,709,413$74,164,625$28,747,165$612,050,561
94$1,374,717,861$77,540,780$29,452,283$672,270,980
95$1,514,673,047$81,074,242$30,172,899$738,546,612
96$1,668,895,282$84,772,464$30,909,275$811,491,426
97$1,838,839,540$88,643,254$31,661,676$891,781,852
98$2,026,109,197$92,694,797$32,430,365$980,163,147
99$2,232,471,161$96,935,669$33,215,609$1,077,456,406
100$2,459,872,559$101,374,855$34,017,671$1,184,566,292