Can I retire at age 40 with 2,020,000?

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 $2,020,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$166,810$165,324$163,874$162,459$161,078$159,197
2 years$82,579$81,041$79,551$78,105$76,704$74,811
3 years$54,506$52,961$51,474$50,043$48,664$46,817
4 years$40,472$38,932$37,460$36,053$34,708$32,922
5 years$32,054$30,523$29,071$27,692$26,384$24,664
6 years$26,444$24,925$23,493$22,146$20,877$19,225
7 years$22,438$20,932$19,523$18,207$16,978$15,395
8 years$19,435$17,942$16,557$15,274$14,085$12,570
9 years$17,101$15,622$14,261$13,010$11,862$10,415
10 years$15,234$13,770$12,433$11,214$10,107$8,727
11 years$13,708$12,259$10,946$9,760$8,692$7,378
12 years$12,437$11,003$9,714$8,561$7,533$6,283
13 years$11,363$9,943$8,679$7,558$6,569$5,382
14 years$10,443$9,038$7,798$6,709$5,758$4,632
15 years$9,646$8,256$7,040$5,983$5,070$4,003
16 years$8,949$7,575$6,383$5,357$4,481$3,472
17 years$8,335$6,976$5,808$4,814$3,973$3,019
18 years$7,790$6,447$5,302$4,338$3,532$2,632
19 years$7,303$5,975$4,854$3,920$3,149$2,300
20 years$6,865$5,552$4,455$3,550$2,812$2,013
21 years$6,470$5,171$4,098$3,222$2,517$1,765
22 years$6,110$4,827$3,777$2,929$2,256$1,549
23 years$5,783$4,515$3,487$2,668$2,025$1,362
24 years$5,483$4,230$3,225$2,433$1,820$1,198
25 years$5,208$3,970$2,987$2,222$1,638$1,055
26 years$4,954$3,731$2,770$2,032$1,475$930
27 years$4,720$3,511$2,572$1,860$1,330$820
28 years$4,502$3,309$2,391$1,704$1,200$724
29 years$4,300$3,121$2,225$1,563$1,084$639
30 years$4,112$2,948$2,073$1,434$979$565
31 years$3,936$2,787$1,932$1,317$885$499
32 years$3,772$2,637$1,803$1,210$801$441
33 years$3,618$2,497$1,683$1,113$725$390
34 years$3,473$2,367$1,573$1,024$656$345
35 years$3,337$2,245$1,471$943$594$305
36 years$3,208$2,131$1,376$868$538$270
37 years$3,087$2,023$1,288$800$488$239
38 years$2,973$1,923$1,206$737$442$212
39 years$2,864$1,829$1,130$680$401$188
40 years$2,762$1,740$1,059$627$364$166
41 years$2,664$1,656$993$579$330$147
42 years$2,572$1,577$931$534$300$130
43 years$2,484$1,503$874$493$272$115
44 years$2,400$1,432$820$455$247$102
45 years$2,320$1,366$770$420$224$91
46 years$2,244$1,303$723$388$203$80
47 years$2,172$1,244$680$359$185$71
48 years$2,102$1,187$639$331$168$63
49 years$2,036$1,134$600$306$152$56
50 years$1,972$1,083$564$283$138$50

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,020,000, adding $5,156 every year, while hoping to spend $47,927 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: 74/10/16 Blend
39$2,020,000$2,020,000$2,020,000$2,020,000
40$2,231,358$2,124,298$2,092,988$2,388,108
41$2,407,963$2,177,395$2,112,110$2,545,685
42$2,600,975$2,231,487$2,130,265$2,711,897
43$2,812,017$2,286,573$2,147,372$2,892,747
44$3,042,877$2,342,649$2,163,342$3,089,678
45$3,295,521$2,399,709$2,178,085$3,304,279
46$3,572,116$2,457,747$2,191,503$3,538,300
47$3,875,049$2,516,753$2,203,495$3,793,669
48$4,206,946$2,576,716$2,213,954$4,072,509
49$4,570,700$2,637,621$2,222,767$4,377,161
50$4,969,499$2,699,452$2,229,817$4,710,202
51$5,406,851$2,762,189$2,234,980$5,074,471
52$5,886,623$2,825,809$2,238,125$5,473,097
53$6,413,073$2,890,288$2,239,117$5,909,528
54$6,990,890$2,955,596$2,237,810$6,387,561
55$7,625,240$3,021,699$2,234,056$6,911,380
56$8,321,815$3,088,562$2,227,697$7,485,598
57$9,086,882$3,156,144$2,218,567$8,115,293
58$9,927,347$3,224,399$2,206,493$8,806,066
59$10,850,819$3,293,276$2,191,292$9,564,083
60$11,865,677$3,362,722$2,172,775$10,396,144
61$12,981,155$3,432,674$2,150,743$11,309,737
62$14,207,426$3,503,068$2,124,985$12,313,117
63$15,555,694$3,573,830$2,095,283$13,415,379
64$17,038,309$3,644,881$2,061,409$14,626,545
65$18,668,872$3,716,135$2,023,121$15,957,661
66$20,462,371$3,787,500$1,980,170$17,420,897
67$22,435,319$3,858,873$1,932,292$19,029,666
68$24,605,909$3,930,147$1,879,212$20,798,747
69$26,994,190$4,001,201$1,820,643$22,744,429
70$29,622,246$4,071,910$1,756,284$24,884,659
71$32,514,416$4,142,134$1,685,820$27,239,219
72$35,697,515$4,211,726$1,608,923$29,829,906
73$39,201,088$4,280,528$1,525,249$32,680,741
74$43,057,692$4,348,367$1,434,438$35,818,196
75$47,303,200$4,415,060$1,336,115$39,271,443
76$51,977,138$4,480,410$1,229,887$43,072,631
77$57,123,062$4,544,206$1,115,344$47,257,189
78$62,788,965$4,606,222$992,058$51,864,159
79$69,027,729$4,666,217$859,582$56,936,567
80$75,897,627$4,723,931$717,447$62,521,830
81$83,462,871$4,779,089$565,168$68,672,202
82$91,794,215$4,831,396$402,232$75,445,267
83$100,969,628$4,880,538$228,110$82,904,485
84$111,075,023$4,926,177$42,245$91,119,793
85$122,205,074$4,967,958$0$100,168,260
86$134,464,102$5,005,499$0$110,161,469
87$147,967,065$5,038,393$0$121,175,800
88$162,840,641$5,066,209$0$133,307,289
89$179,224,421$5,088,488$0$146,669,722
90$197,272,228$5,104,741$0$161,388,486
91$217,153,570$5,114,448$0$177,601,756
92$239,055,236$5,117,057$0$195,461,797
93$263,183,059$5,111,982$0$215,136,400
94$289,763,862$5,098,600$0$236,810,468
95$319,047,596$5,076,251$0$260,687,761
96$351,309,696$5,044,233$0$286,992,817
97$386,853,687$5,001,803$0$315,973,076
98$426,014,042$4,948,170$0$347,901,210
99$469,159,345$4,882,501$0$383,077,703
100$516,695,761$4,803,907$0$421,833,683