Can I retire at age 40 with 2,050,000?

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 $2,050,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.7%
1 years$169,287$167,779$166,308$164,872$163,470$157,733
2 years$83,805$82,245$80,732$79,265$77,843$72,123
3 years$55,315$53,748$52,239$50,786$49,387$43,864
4 years$41,073$39,510$38,017$36,589$35,223$29,939
5 years$32,530$30,977$29,502$28,104$26,776$21,745
6 years$26,836$25,295$23,842$22,475$21,187$16,413
7 years$22,771$21,242$19,813$18,478$17,231$12,713
8 years$19,724$18,209$16,803$15,500$14,294$10,029
9 years$17,355$15,854$14,472$13,203$12,038$8,020
10 years$15,460$13,974$12,617$11,381$10,257$6,479
11 years$13,912$12,441$11,108$9,905$8,821$5,276
12 years$12,622$11,166$9,858$8,688$7,644$4,323
13 years$11,532$10,091$8,808$7,670$6,666$3,559
14 years$10,598$9,172$7,914$6,809$5,843$2,943
15 years$9,789$8,379$7,145$6,072$5,145$2,441
16 years$9,082$7,688$6,478$5,437$4,547$2,030
17 years$8,459$7,080$5,895$4,885$4,032$1,692
18 years$7,906$6,542$5,381$4,402$3,585$1,412
19 years$7,412$6,063$4,926$3,978$3,195$1,181
20 years$6,967$5,634$4,521$3,603$2,854$989
21 years$6,566$5,248$4,158$3,270$2,554$829
22 years$6,201$4,899$3,833$2,973$2,289$695
23 years$5,869$4,582$3,539$2,708$2,055$583
24 years$5,565$4,293$3,273$2,469$1,847$490
25 years$5,285$4,029$3,031$2,255$1,662$412
26 years$5,028$3,786$2,811$2,062$1,497$346
27 years$4,790$3,563$2,611$1,887$1,350$291
28 years$4,569$3,358$2,427$1,729$1,218$245
29 years$4,364$3,168$2,258$1,586$1,100$206
30 years$4,173$2,992$2,104$1,455$994$173
31 years$3,995$2,828$1,961$1,337$898$146
32 years$3,828$2,676$1,830$1,228$813$123
33 years$3,671$2,534$1,708$1,130$736$103
34 years$3,524$2,402$1,596$1,039$666$87
35 years$3,386$2,278$1,492$957$603$73
36 years$3,256$2,162$1,396$881$546$62
37 years$3,133$2,054$1,307$812$495$52
38 years$3,017$1,952$1,224$748$449$44
39 years$2,907$1,856$1,146$690$407$37
40 years$2,803$1,766$1,075$636$369$31
41 years$2,704$1,681$1,008$587$335$26
42 years$2,610$1,601$945$542$304$22
43 years$2,521$1,525$887$500$276$19
44 years$2,436$1,454$833$462$250$16
45 years$2,355$1,386$782$427$227$13
46 years$2,277$1,322$734$394$206$11
47 years$2,204$1,262$690$364$187$9
48 years$2,133$1,205$648$336$170$8
49 years$2,066$1,150$609$311$155$7
50 years$2,002$1,099$573$287$140$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,050,000, adding $5,604 every year, while hoping to spend $30,778 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: 37/40/23 Blend
39$2,050,000$2,050,000$2,050,000$2,050,000
40$2,264,881$2,156,231$2,124,456$2,332,854
41$2,463,151$2,229,138$2,162,877$2,455,928
42$2,680,613$2,304,587$2,201,555$2,585,516
43$2,919,192$2,382,669$2,240,463$2,724,875
44$3,181,009$2,463,479$2,279,578$2,874,905
45$3,468,400$2,547,116$2,318,871$3,036,594
46$3,783,936$2,633,684$2,358,313$3,211,026
47$4,130,452$2,723,290$2,397,871$3,399,394
48$4,511,070$2,816,043$2,437,512$3,603,011
49$4,929,230$2,912,060$2,477,199$3,823,317
50$5,388,720$3,011,459$2,516,894$4,061,899
51$5,893,714$3,114,366$2,556,555$4,320,501
52$6,448,811$3,220,908$2,596,138$4,601,042
53$7,059,078$3,331,220$2,635,596$4,905,633
54$7,730,094$3,445,440$2,674,879$5,236,595
55$8,468,011$3,563,713$2,713,934$5,596,485
56$9,279,602$3,686,190$2,752,705$5,988,114
57$10,172,333$3,813,025$2,791,133$6,414,577
58$11,154,429$3,944,381$2,829,153$6,879,282
59$12,234,950$4,080,425$2,866,700$7,385,977
60$13,423,882$4,221,333$2,903,701$7,938,789
61$14,732,226$4,367,286$2,940,083$8,542,264
62$16,172,102$4,518,473$2,975,765$9,201,404
63$17,756,868$4,675,089$3,010,664$9,921,717
64$19,501,238$4,837,338$3,044,691$10,709,267
65$21,421,430$5,005,432$3,077,753$11,570,734
66$23,535,309$5,179,592$3,109,752$12,513,472
67$25,862,564$5,360,046$3,140,582$13,545,580
68$28,424,889$5,547,031$3,170,135$14,675,976
69$31,246,187$5,740,796$3,198,294$15,914,485
70$34,352,800$5,941,596$3,224,939$17,271,925
71$37,773,752$6,149,701$3,249,940$18,760,212
72$41,541,025$6,365,386$3,273,163$20,392,472
73$45,689,862$6,588,943$3,294,467$22,183,162
74$50,259,097$6,820,670$3,313,701$24,148,209
75$55,291,524$7,060,882$3,330,709$26,305,153
76$60,834,297$7,309,903$3,345,326$28,673,319
77$66,939,379$7,568,072$3,357,378$31,273,997
78$73,664,029$7,835,741$3,366,683$34,130,636
79$81,071,344$8,113,275$3,373,050$37,269,073
80$89,230,852$8,401,057$3,376,279$40,717,769
81$98,219,172$8,699,482$3,376,157$44,508,082
82$108,120,735$9,008,964$3,372,466$48,674,558
83$119,028,577$9,329,931$3,364,971$53,255,258
84$131,045,225$9,662,831$3,353,430$58,292,114
85$144,283,657$10,008,128$3,337,589$63,831,328
86$158,868,371$10,366,307$3,317,179$69,923,802
87$174,936,560$10,737,872$3,291,921$76,625,621
88$192,639,409$11,123,348$3,261,520$83,998,580
89$212,143,518$11,523,280$3,225,669$92,110,763
90$233,632,474$11,938,238$3,184,046$101,037,190
91$257,308,589$12,368,814$3,136,314$110,860,519
92$283,394,803$12,815,625$3,082,120$121,671,828
93$312,136,796$13,279,313$3,021,093$133,571,471
94$343,805,296$13,760,547$2,952,847$146,670,025
95$378,698,646$14,260,023$2,876,977$161,089,333
96$417,145,612$14,778,468$2,793,060$176,963,649
97$459,508,489$15,316,638$2,700,652$194,440,907
98$506,186,521$15,875,319$2,599,290$213,684,118
99$557,619,669$16,455,333$2,488,489$234,872,899
100$614,292,766$17,057,535$2,367,744$258,205,175