Can I retire at age 40 with 1,970,000?

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 $1,970,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$162,681$161,232$159,818$158,438$157,091$154,488
2 years$80,535$79,035$77,582$76,172$74,805$72,191
3 years$53,157$51,650$50,200$48,804$47,459$44,915
4 years$39,470$37,968$36,533$35,161$33,848$31,393
5 years$31,260$29,768$28,351$27,007$25,731$23,372
6 years$25,789$24,308$22,912$21,598$20,360$18,099
7 years$21,883$20,413$19,040$17,757$16,558$14,397
8 years$18,954$17,498$16,147$14,896$13,737$11,675
9 years$16,677$15,235$13,908$12,688$11,568$9,604
10 years$14,857$13,429$12,125$10,937$9,857$7,989
11 years$13,369$11,955$10,675$9,518$8,477$6,704
12 years$12,129$10,730$9,474$8,349$7,346$5,665
13 years$11,082$9,697$8,464$7,371$6,406$4,814
14 years$10,184$8,814$7,605$6,543$5,615$4,111
15 years$9,407$8,052$6,866$5,835$4,944$3,524
16 years$8,728$7,388$6,225$5,225$4,370$3,030
17 years$8,129$6,804$5,665$4,694$3,875$2,613
18 years$7,598$6,287$5,171$4,231$3,445$2,259
19 years$7,122$5,827$4,734$3,823$3,071$1,956
20 years$6,695$5,414$4,345$3,462$2,743$1,697
21 years$6,310$5,043$3,996$3,142$2,454$1,475
22 years$5,959$4,708$3,683$2,857$2,200$1,283
23 years$5,640$4,403$3,401$2,602$1,975$1,117
24 years$5,347$4,125$3,145$2,373$1,775$974
25 years$5,079$3,871$2,913$2,167$1,597$849
26 years$4,831$3,639$2,702$1,982$1,439$742
27 years$4,603$3,424$2,509$1,814$1,297$648
28 years$4,391$3,227$2,332$1,662$1,170$566
29 years$4,194$3,044$2,170$1,524$1,057$495
30 years$4,010$2,875$2,022$1,399$955$433
31 years$3,839$2,718$1,885$1,285$863$379
32 years$3,678$2,571$1,758$1,180$781$332
33 years$3,528$2,435$1,642$1,086$707$290
34 years$3,387$2,308$1,534$999$640$254
35 years$3,254$2,189$1,434$919$580$223
36 years$3,129$2,078$1,342$847$525$195
37 years$3,011$1,973$1,256$780$476$171
38 years$2,899$1,875$1,176$719$432$150
39 years$2,793$1,783$1,102$663$391$131
40 years$2,693$1,697$1,033$612$355$115
41 years$2,598$1,615$968$564$322$101
42 years$2,508$1,538$908$521$292$88
43 years$2,422$1,466$852$481$265$78
44 years$2,341$1,397$800$444$241$68
45 years$2,263$1,332$751$410$219$60
46 years$2,189$1,271$706$379$198$52
47 years$2,118$1,213$663$350$180$46
48 years$2,050$1,158$623$323$164$40
49 years$1,985$1,106$586$299$149$35
50 years$1,923$1,056$550$276$135$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,970,000, adding $6,458 every year, while hoping to spend $59,395 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: 54/25/21 Blend
39$1,970,000$1,970,000$1,970,000$1,970,000
40$2,177,601$2,073,191$2,042,656$2,282,374
41$2,336,521$2,111,582$2,047,890$2,393,343
42$2,509,660$2,149,863$2,051,307$2,507,303
43$2,698,405$2,187,966$2,052,786$2,630,088
44$2,904,284$2,225,819$2,052,197$2,762,559
45$3,128,979$2,263,341$2,049,403$2,905,666
46$3,374,338$2,300,449$2,044,261$3,060,458
47$3,642,400$2,337,050$2,036,623$3,228,090
48$3,935,406$2,373,047$2,026,331$3,409,837
49$4,255,825$2,408,334$2,013,222$3,607,105
50$4,606,376$2,442,799$1,997,121$3,821,444
51$4,990,052$2,476,321$1,977,850$4,054,566
52$5,410,148$2,508,772$1,955,218$4,308,357
53$5,870,293$2,540,012$1,929,029$4,584,898
54$6,374,486$2,569,895$1,899,074$4,886,483
55$6,927,126$2,598,263$1,865,136$5,215,643
56$7,533,064$2,624,948$1,826,988$5,575,172
57$8,197,636$2,649,771$1,784,393$5,968,147
58$8,926,726$2,672,540$1,737,100$6,397,963
59$9,726,810$2,693,053$1,684,851$6,868,368
60$10,605,023$2,711,091$1,627,373$7,383,490
61$11,569,226$2,726,425$1,564,380$7,947,884
62$12,628,076$2,738,809$1,495,576$8,566,574
63$13,791,111$2,747,981$1,420,648$9,245,101
64$15,068,837$2,753,665$1,339,272$9,989,572
65$16,472,828$2,755,564$1,251,108$10,806,724
66$18,015,836$2,753,366$1,155,800$11,703,987
67$19,711,908$2,746,738$1,052,976$12,689,553
68$21,576,521$2,735,327$942,249$13,772,454
69$23,626,725$2,718,757$823,214$14,962,651
70$25,881,307$2,696,632$695,447$16,271,128
71$28,360,962$2,668,529$558,506$17,709,995
72$31,088,495$2,634,001$411,931$19,292,603
73$34,089,029$2,592,576$255,238$21,033,677
74$37,390,248$2,543,749$87,927$22,949,448
75$41,022,651$2,486,991$0$25,057,815
76$45,019,846$2,421,737$0$27,398,814
77$49,418,859$2,347,392$0$29,996,242
78$54,260,493$2,263,324$0$32,854,487
79$59,589,701$2,168,865$0$36,000,126
80$65,456,021$2,063,309$0$39,462,450
81$71,914,032$1,945,908$0$43,273,743
82$79,023,877$1,815,872$0$47,469,585
83$86,851,827$1,672,364$0$52,089,194
84$95,470,904$1,514,501$0$57,175,790
85$104,961,573$1,341,349$0$62,777,010
86$115,412,499$1,151,920$0$68,945,358
87$126,921,382$945,172$0$75,738,697
88$139,595,880$720,002$0$83,220,804
89$153,554,625$475,248$0$91,461,968
90$168,928,341$209,679$0$100,539,655
91$185,861,078$0$0$110,539,245
92$204,511,567$0$0$121,576,295
93$225,054,726$0$0$133,797,198
94$247,683,301$0$0$147,258,967
95$272,609,689$0$0$162,087,991
96$300,067,944$0$0$178,423,547
97$330,315,981$0$0$196,419,111
98$363,638,012$0$0$216,243,808
99$400,347,230$0$0$238,084,007
100$440,788,759$0$0$262,145,082