Can I retire at age 40 with 1,960,000?

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 $1,960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.8%
1 years$161,855$160,413$159,007$157,634$156,293$155,113
2 years$80,126$78,634$77,188$75,785$74,425$73,236
3 years$52,887$51,388$49,946$48,556$47,218$46,056
4 years$39,270$37,776$36,348$34,982$33,677$32,550
5 years$31,102$29,617$28,207$26,870$25,600$24,514
6 years$25,658$24,184$22,796$21,488$20,257$19,211
7 years$21,771$20,310$18,943$17,666$16,474$15,469
8 years$18,858$17,409$16,065$14,820$13,667$12,703
9 years$16,593$15,158$13,837$12,623$11,510$10,587
10 years$14,782$13,361$12,064$10,881$9,807$8,925
11 years$13,301$11,894$10,621$9,470$8,434$7,592
12 years$12,068$10,676$9,425$8,307$7,309$6,506
13 years$11,025$9,648$8,421$7,333$6,373$5,609
14 years$10,132$8,770$7,566$6,510$5,587$4,860
15 years$9,359$8,011$6,831$5,806$4,919$4,228
16 years$8,684$7,350$6,194$5,198$4,348$3,692
17 years$8,088$6,769$5,636$4,671$3,855$3,233
18 years$7,559$6,255$5,145$4,209$3,428$2,839
19 years$7,086$5,797$4,710$3,803$3,055$2,499
20 years$6,661$5,387$4,323$3,445$2,729$2,203
21 years$6,278$5,018$3,976$3,126$2,442$1,946
22 years$5,929$4,684$3,664$2,842$2,189$1,721
23 years$5,611$4,381$3,383$2,589$1,965$1,524
24 years$5,320$4,104$3,129$2,361$1,766$1,352
25 years$5,053$3,852$2,898$2,156$1,589$1,200
26 years$4,807$3,620$2,688$1,972$1,431$1,066
27 years$4,579$3,407$2,496$1,805$1,291$947
28 years$4,368$3,210$2,320$1,653$1,165$843
29 years$4,172$3,029$2,159$1,516$1,052$750
30 years$3,990$2,860$2,011$1,392$950$668
31 years$3,819$2,704$1,875$1,278$859$595
32 years$3,660$2,558$1,749$1,174$777$531
33 years$3,510$2,423$1,633$1,080$703$473
34 years$3,370$2,296$1,526$994$637$422
35 years$3,237$2,178$1,427$915$577$377
36 years$3,113$2,067$1,335$843$522$336
37 years$2,995$1,963$1,249$776$474$300
38 years$2,884$1,866$1,170$715$429$268
39 years$2,779$1,774$1,096$660$389$239
40 years$2,680$1,688$1,027$608$353$214
41 years$2,585$1,607$963$561$320$191
42 years$2,495$1,530$904$518$291$171
43 years$2,410$1,458$848$478$264$152
44 years$2,329$1,390$796$442$239$136
45 years$2,251$1,325$747$408$217$122
46 years$2,178$1,264$702$377$197$109
47 years$2,107$1,207$660$348$179$97
48 years$2,040$1,152$620$322$163$87
49 years$1,975$1,100$583$297$148$78
50 years$1,914$1,051$548$275$134$70

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,960,000, adding $4,409 every year, while hoping to spend $25,513 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: 34/37/29 Blend
39$1,960,000$1,960,000$1,960,000$1,960,000
40$2,164,468$2,060,588$2,030,208$2,218,958
41$2,358,098$2,134,411$2,071,074$2,334,390
42$2,570,623$2,210,996$2,112,454$2,456,200
43$2,803,944$2,290,453$2,154,339$2,587,069
44$3,060,154$2,372,892$2,196,717$2,727,821
45$3,341,558$2,458,433$2,239,576$2,879,363
46$3,650,698$2,547,197$2,282,903$3,042,689
47$3,990,372$2,639,312$2,326,682$3,218,895
48$4,363,663$2,734,911$2,370,898$3,409,181
49$4,773,966$2,834,132$2,415,534$3,614,868
50$5,225,025$2,937,118$2,460,568$3,837,409
51$5,720,961$3,044,021$2,505,981$4,078,400
52$6,266,317$3,154,996$2,551,749$4,339,597
53$6,866,096$3,270,205$2,597,848$4,622,930
54$7,525,812$3,389,820$2,644,250$4,930,524
55$8,251,540$3,514,016$2,690,927$5,264,713
56$9,049,972$3,642,977$2,737,848$5,628,069
57$9,928,482$3,776,896$2,784,979$6,023,418
58$10,895,196$3,915,972$2,832,284$6,453,872
59$11,959,065$4,060,415$2,879,725$6,922,855
60$13,129,956$4,210,441$2,927,262$7,434,134
61$14,418,735$4,366,276$2,974,849$7,991,857
62$15,837,380$4,528,158$3,022,440$8,600,590
63$17,399,087$4,696,332$3,069,986$9,265,356
64$19,118,396$4,871,054$3,117,433$9,991,688
65$21,011,329$5,052,593$3,164,724$10,785,676
66$23,095,542$5,241,227$3,211,800$11,654,025
67$25,390,488$5,437,248$3,258,595$12,604,118
68$27,917,603$5,640,958$3,305,044$13,644,085
69$30,700,508$5,852,675$3,351,072$14,782,877
70$33,765,232$6,072,728$3,396,605$16,030,351
71$37,140,456$6,301,462$3,441,562$17,397,364
72$40,857,785$6,539,236$3,485,856$18,895,871
73$44,952,044$6,786,424$3,529,398$20,539,039
74$49,461,611$7,043,417$3,572,091$22,341,371
75$54,428,775$7,310,624$3,613,835$24,318,838
76$59,900,134$7,588,469$3,654,523$26,489,036
77$65,927,041$7,877,396$3,694,043$28,871,341
78$72,566,080$8,177,870$3,732,274$31,487,101
79$79,879,608$8,490,373$3,769,093$34,359,829
80$87,936,337$8,815,410$3,804,366$37,515,427
81$96,811,985$9,153,508$3,837,955$40,982,427
82$106,589,994$9,505,215$3,869,712$44,792,262
83$117,362,309$9,871,107$3,899,484$48,979,561
84$129,230,256$10,251,782$3,927,107$53,582,470
85$142,305,487$10,647,865$3,952,411$58,643,016
86$156,711,046$11,060,009$3,975,216$64,207,501
87$172,582,519$11,488,896$3,995,332$70,326,933
88$190,069,321$11,935,237$4,012,561$77,057,513
89$209,336,103$12,399,775$4,026,693$84,461,157
90$230,564,309$12,883,287$4,037,510$92,606,086
91$253,953,882$13,386,582$4,044,781$101,567,459
92$279,725,161$13,910,508$4,048,264$111,428,088
93$308,120,952$14,455,947$4,047,705$122,279,217
94$339,408,823$15,023,823$4,042,837$134,221,376
95$373,883,633$15,615,100$4,033,382$147,365,333
96$411,870,310$16,230,786$4,019,047$161,833,136
97$453,726,920$16,871,932$3,999,523$177,759,261
98$499,848,047$17,539,639$3,974,489$195,291,883
99$550,668,521$18,235,054$3,943,607$214,594,267
100$606,667,516$18,959,378$3,906,524$235,846,311