Can I retire at age 40 with 1,940,000?

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 $1,940,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.5%
1 years$160,203$158,776$157,384$156,025$154,698$149,388
2 years$79,309$77,832$76,400$75,012$73,666$68,370
3 years$52,347$50,864$49,436$48,061$46,737$41,621
4 years$38,869$37,390$35,977$34,625$33,333$28,437
5 years$30,784$29,314$27,919$26,596$25,339$20,676
6 years$25,396$23,937$22,563$21,269$20,050$15,624
7 years$21,549$20,103$18,750$17,486$16,306$12,115
8 years$18,665$17,232$15,901$14,669$13,527$9,569
9 years$16,423$15,003$13,696$12,494$11,392$7,661
10 years$14,631$13,225$11,940$10,770$9,707$6,197
11 years$13,165$11,773$10,512$9,373$8,348$5,052
12 years$11,945$10,567$9,329$8,222$7,234$4,145
13 years$10,913$9,549$8,335$7,259$6,308$3,418
14 years$10,029$8,680$7,489$6,443$5,530$2,830
15 years$9,264$7,929$6,762$5,746$4,869$2,351
16 years$8,595$7,275$6,130$5,145$4,303$1,958
17 years$8,005$6,700$5,578$4,623$3,816$1,634
18 years$7,482$6,191$5,092$4,166$3,393$1,366
19 years$7,014$5,738$4,662$3,765$3,024$1,144
20 years$6,593$5,332$4,278$3,409$2,701$959
21 years$6,213$4,967$3,935$3,094$2,417$805
22 years$5,868$4,636$3,627$2,813$2,167$676
23 years$5,554$4,336$3,349$2,562$1,945$569
24 years$5,266$4,063$3,097$2,337$1,748$478
25 years$5,002$3,813$2,869$2,134$1,573$403
26 years$4,758$3,583$2,660$1,951$1,417$339
27 years$4,533$3,372$2,470$1,786$1,277$285
28 years$4,324$3,178$2,297$1,637$1,153$241
29 years$4,130$2,998$2,137$1,501$1,041$203
30 years$3,949$2,831$1,991$1,377$940$171
31 years$3,780$2,676$1,856$1,265$850$144
32 years$3,622$2,532$1,732$1,163$769$121
33 years$3,474$2,398$1,617$1,069$696$102
34 years$3,335$2,273$1,511$984$630$86
35 years$3,204$2,156$1,412$905$571$73
36 years$3,081$2,046$1,321$834$517$61
37 years$2,965$1,943$1,237$768$469$52
38 years$2,855$1,847$1,158$708$425$44
39 years$2,751$1,756$1,085$653$385$37
40 years$2,652$1,671$1,017$602$350$31
41 years$2,559$1,591$954$556$317$26
42 years$2,470$1,515$894$513$288$22
43 years$2,385$1,443$839$473$261$19
44 years$2,305$1,376$788$437$237$16
45 years$2,228$1,312$740$404$215$13
46 years$2,155$1,251$695$373$195$11
47 years$2,086$1,194$653$345$177$9
48 years$2,019$1,140$613$318$161$8
49 years$1,955$1,089$577$294$146$7
50 years$1,894$1,040$542$272$133$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,940,000, adding $5,269 every year, while hoping to spend $45,301 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: 54/18/28 Blend
39$1,940,000$1,940,000$1,940,000$1,940,000
40$2,143,315$2,040,495$2,010,425$2,242,109
41$2,313,733$2,092,279$2,029,574$2,362,771
42$2,500,016$2,145,083$2,047,847$2,488,993
43$2,703,733$2,198,908$2,065,165$2,625,511
44$2,926,614$2,253,754$2,081,449$2,773,329
45$3,170,563$2,309,622$2,096,611$2,933,557
46$3,437,675$2,366,509$2,110,563$3,107,415
47$3,730,260$2,424,409$2,123,208$3,296,249
48$4,050,860$2,483,319$2,134,449$3,501,541
49$4,402,274$2,543,228$2,144,180$3,724,927
50$4,787,587$2,604,127$2,152,291$3,968,208
51$5,210,195$2,666,003$2,158,666$4,233,369
52$5,673,838$2,728,841$2,163,185$4,522,598
53$6,182,637$2,792,622$2,165,720$4,838,307
54$6,741,131$2,857,325$2,166,136$5,183,155
55$7,354,319$2,922,927$2,164,295$5,560,071
56$8,027,709$2,989,399$2,160,047$5,972,286
57$8,767,366$3,056,711$2,153,240$6,423,359
58$9,579,975$3,124,827$2,143,711$6,917,213
59$10,472,897$3,193,709$2,131,290$7,458,173
60$11,454,244$3,263,312$2,115,800$8,051,008
61$12,532,952$3,333,589$2,097,054$8,700,971
62$13,718,865$3,404,487$2,074,857$9,413,854
63$15,022,828$3,475,946$2,049,004$10,196,041
64$16,456,792$3,547,903$2,019,281$11,054,570
65$18,033,922$3,620,287$1,985,464$11,997,197
66$19,768,723$3,693,022$1,947,318$13,032,472
67$21,677,176$3,766,024$1,904,597$14,169,818
68$23,776,892$3,839,203$1,857,045$15,419,623
69$26,087,271$3,912,459$1,804,392$16,793,336
70$28,629,690$3,985,687$1,746,356$18,303,576
71$31,427,704$4,058,771$1,682,644$19,964,255
72$34,507,265$4,131,587$1,612,949$21,790,703
73$37,896,971$4,203,999$1,536,947$23,799,819
74$41,628,330$4,275,864$1,454,303$26,010,231
75$45,736,063$4,347,024$1,364,666$28,442,467
76$50,258,426$4,417,313$1,267,667$31,119,157
77$55,237,576$4,486,551$1,162,923$34,065,241
78$60,719,961$4,554,545$1,050,034$37,308,210
79$66,756,766$4,621,087$928,579$40,878,360
80$73,404,391$4,685,955$798,122$44,809,087
81$80,724,985$4,748,913$658,205$49,137,198
82$88,787,030$4,809,706$508,351$53,903,259
83$97,665,989$4,868,064$348,063$59,151,981
84$107,445,016$4,923,695$176,819$64,932,643
85$118,215,742$4,976,290$0$71,299,558
86$130,079,139$5,025,520$0$78,314,358
87$143,146,473$5,071,032$0$86,097,736
88$157,540,351$5,112,450$0$94,669,699
89$173,395,882$5,149,376$0$104,110,571
90$190,861,950$5,181,383$0$114,508,869
91$210,102,617$5,208,019$0$125,962,134
92$231,298,674$5,228,802$0$138,577,861
93$254,649,344$5,243,218$0$152,474,504
94$280,374,166$5,250,725$0$167,782,603
95$308,715,063$5,250,743$0$184,646,010
96$339,938,628$5,242,658$0$203,223,251
97$374,338,638$5,225,818$0$223,689,022
98$412,238,826$5,199,530$0$246,235,839
99$453,995,939$5,163,060$0$271,075,854
100$500,003,103$5,115,628$0$298,442,859