Can I retire at age 40 with 1,980,000?

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 $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11%
1 years$163,507$162,050$160,629$159,242$157,888$157,223
2 years$80,944$79,436$77,975$76,559$75,185$74,513
3 years$53,427$51,913$50,455$49,052$47,700$47,043
4 years$39,671$38,161$36,718$35,339$34,020$33,383
5 years$31,419$29,919$28,495$27,144$25,862$25,245
6 years$25,920$24,431$23,028$21,707$20,463$19,869
7 years$21,994$20,517$19,137$17,847$16,642$16,071
8 years$19,050$17,587$16,229$14,971$13,806$13,257
9 years$16,762$15,313$13,978$12,752$11,627$11,100
10 years$14,932$13,497$12,187$10,992$9,907$9,402
11 years$13,437$12,016$10,729$9,567$8,520$8,037
12 years$12,191$10,785$9,522$8,391$7,383$6,922
13 years$11,138$9,746$8,507$7,408$6,438$5,998
14 years$10,236$8,859$7,644$6,576$5,644$5,224
15 years$9,455$8,093$6,901$5,865$4,969$4,570
16 years$8,772$7,425$6,257$5,251$4,392$4,012
17 years$8,170$6,838$5,693$4,718$3,894$3,533
18 years$7,636$6,319$5,197$4,252$3,463$3,120
19 years$7,159$5,856$4,758$3,842$3,086$2,761
20 years$6,729$5,442$4,367$3,480$2,757$2,449
21 years$6,342$5,069$4,016$3,158$2,467$2,176
22 years$5,989$4,732$3,702$2,871$2,211$1,936
23 years$5,668$4,425$3,418$2,615$1,985$1,725
24 years$5,375$4,146$3,161$2,385$1,784$1,539
25 years$5,105$3,891$2,928$2,178$1,605$1,374
26 years$4,856$3,657$2,715$1,992$1,446$1,228
27 years$4,626$3,442$2,521$1,823$1,304$1,099
28 years$4,413$3,243$2,344$1,670$1,176$984
29 years$4,215$3,059$2,181$1,532$1,062$881
30 years$4,030$2,889$2,032$1,406$960$790
31 years$3,858$2,731$1,894$1,291$868$708
32 years$3,697$2,584$1,767$1,186$785$636
33 years$3,546$2,448$1,650$1,091$710$571
34 years$3,404$2,320$1,542$1,004$643$512
35 years$3,270$2,200$1,441$924$583$460
36 years$3,145$2,088$1,348$851$528$414
37 years$3,026$1,983$1,262$784$478$372
38 years$2,914$1,885$1,182$723$434$334
39 years$2,808$1,792$1,107$666$393$300
40 years$2,707$1,705$1,038$615$357$270
41 years$2,612$1,623$973$567$324$243
42 years$2,521$1,546$913$523$294$219
43 years$2,435$1,473$857$483$267$197
44 years$2,353$1,404$804$446$242$177
45 years$2,274$1,339$755$412$220$159
46 years$2,200$1,277$709$381$199$143
47 years$2,129$1,219$666$352$181$129
48 years$2,060$1,164$626$325$164$116
49 years$1,995$1,111$588$300$149$105
50 years$1,933$1,061$553$278$136$94

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $1,980,000, adding $2,646 every year, while hoping to spend $56,073 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: 45/30/25 Blend
39$1,980,000$1,980,000$1,980,000$1,980,000
40$2,184,689$2,079,749$2,049,059$2,267,122
41$2,347,866$2,121,996$2,058,042$2,367,961
42$2,525,808$2,164,433$2,065,445$2,471,600
43$2,719,962$2,207,011$2,071,159$2,582,889
44$2,931,919$2,249,676$2,075,064$2,702,573
45$3,163,433$2,292,369$2,077,037$2,831,468
46$3,416,435$2,335,026$2,076,949$2,970,480
47$3,693,048$2,377,579$2,074,664$3,120,605
48$3,995,612$2,419,953$2,070,038$3,282,942
49$4,326,702$2,462,069$2,062,922$3,458,706
50$4,689,155$2,503,840$2,053,159$3,649,235
51$5,086,094$2,545,173$2,040,585$3,856,007
52$5,520,957$2,585,969$2,025,027$4,080,652
53$5,997,534$2,626,120$2,006,304$4,324,966
54$6,519,995$2,665,512$1,984,227$4,590,935
55$7,092,934$2,704,022$1,958,599$4,880,747
56$7,721,411$2,741,517$1,929,210$5,196,816
57$8,411,001$2,777,857$1,895,845$5,541,805
58$9,167,842$2,812,891$1,858,274$5,918,654
59$9,998,697$2,846,458$1,816,262$6,330,603
60$10,911,015$2,878,385$1,769,557$6,781,228
61$11,913,001$2,908,489$1,717,900$7,274,473
62$13,013,696$2,936,573$1,661,018$7,814,690
63$14,223,057$2,962,429$1,598,626$8,406,677
64$15,552,054$2,985,834$1,530,426$9,055,727
65$17,012,774$3,006,550$1,456,105$9,767,680
66$18,618,531$3,024,325$1,375,339$10,548,973
67$20,383,995$3,038,891$1,287,786$11,406,711
68$22,325,327$3,049,961$1,193,092$12,348,724
69$24,460,333$3,057,231$1,090,883$13,383,653
70$26,808,631$3,060,380$980,771$14,521,024
71$29,391,835$3,059,063$862,351$15,771,342
72$32,233,761$3,052,916$735,199$17,146,195
73$35,360,649$3,041,552$598,872$18,658,358
74$38,801,409$3,024,562$452,908$20,321,920
75$42,587,896$3,001,510$296,824$22,152,417
76$46,755,211$2,971,933$130,117$24,166,980
77$51,342,027$2,935,342$0$26,384,497
78$56,390,959$2,891,219$0$28,838,545
79$61,948,961$2,839,013$0$31,577,207
80$68,067,773$2,778,142$0$34,591,213
81$74,804,403$2,707,989$0$37,908,638
82$82,221,673$2,627,901$0$41,560,427
83$90,388,801$2,537,185$0$45,580,688
84$99,382,062$2,435,111$0$50,007,015
85$109,285,505$2,320,904$0$54,880,840
86$120,191,742$2,193,744$0$60,247,833
87$132,202,828$2,052,766$0$66,158,327
88$145,431,218$1,897,053$0$72,667,801
89$160,000,830$1,725,636$0$79,837,398
90$176,048,215$1,537,493$0$87,734,510
91$193,723,844$1,331,540$0$96,433,414
92$213,193,525$1,106,635$0$106,015,973
93$234,639,975$861,571$0$116,572,414
94$258,264,535$595,070$0$128,202,180
95$284,289,075$305,786$0$141,014,870
96$312,958,087$0$0$155,131,278
97$344,540,992$0$0$170,687,079
98$379,334,680$0$0$187,935,888
99$417,666,315$0$0$206,938,997
100$459,896,422$0$0$227,875,182