Can I retire at age 40 with 2,070,000?

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 $2,070,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$170,939$169,416$167,930$166,481$165,065$161,009
2 years$84,623$83,047$81,520$80,039$78,602$74,541
3 years$55,855$54,272$52,749$51,282$49,868$45,929
4 years$41,474$39,896$38,387$36,945$35,567$31,779
5 years$32,847$31,279$29,790$28,378$27,037$23,412
6 years$27,098$25,541$24,075$22,694$21,394$17,935
7 years$22,993$21,450$20,006$18,658$17,399$14,106
8 years$19,916$18,386$16,967$15,652$14,434$11,307
9 years$17,524$16,009$14,614$13,332$12,155$9,191
10 years$15,611$14,111$12,741$11,492$10,357$7,551
11 years$14,047$12,562$11,217$10,002$8,907$6,257
12 years$12,745$11,275$9,954$8,773$7,719$5,219
13 years$11,644$10,189$8,894$7,745$6,731$4,377
14 years$10,701$9,262$7,991$6,875$5,900$3,687
15 years$9,885$8,461$7,215$6,131$5,195$3,117
16 years$9,171$7,763$6,541$5,490$4,592$2,643
17 years$8,542$7,149$5,952$4,933$4,071$2,246
18 years$7,983$6,606$5,434$4,445$3,620$1,914
19 years$7,484$6,122$4,974$4,017$3,226$1,633
20 years$7,035$5,689$4,565$3,638$2,882$1,395
21 years$6,630$5,299$4,199$3,302$2,579$1,194
22 years$6,262$4,947$3,870$3,002$2,312$1,023
23 years$5,926$4,627$3,573$2,734$2,075$877
24 years$5,619$4,335$3,305$2,494$1,865$752
25 years$5,337$4,068$3,061$2,277$1,678$646
26 years$5,077$3,823$2,839$2,082$1,512$555
27 years$4,836$3,598$2,636$1,906$1,363$477
28 years$4,614$3,391$2,451$1,746$1,230$410
29 years$4,407$3,199$2,280$1,601$1,111$353
30 years$4,214$3,021$2,124$1,470$1,003$304
31 years$4,034$2,856$1,980$1,350$907$261
32 years$3,865$2,702$1,848$1,240$821$225
33 years$3,707$2,559$1,725$1,141$743$194
34 years$3,559$2,425$1,612$1,050$672$167
35 years$3,419$2,300$1,507$966$609$144
36 years$3,288$2,183$1,410$890$552$124
37 years$3,164$2,074$1,320$820$500$107
38 years$3,046$1,971$1,236$756$453$92
39 years$2,935$1,874$1,158$697$411$79
40 years$2,830$1,783$1,085$643$373$68
41 years$2,730$1,697$1,017$593$338$59
42 years$2,635$1,616$954$547$307$51
43 years$2,545$1,540$896$505$279$44
44 years$2,459$1,468$841$466$253$38
45 years$2,378$1,400$789$431$230$32
46 years$2,300$1,335$741$398$208$28
47 years$2,225$1,274$697$368$189$24
48 years$2,154$1,217$655$340$172$21
49 years$2,086$1,162$615$314$156$18
50 years$2,021$1,110$578$290$142$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,070,000, adding $5,425 every year, while hoping to spend $31,907 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: 27/49/24 Blend
39$2,070,000$2,070,000$2,070,000$2,070,000
40$2,286,736$2,177,026$2,144,941$2,331,106
41$2,486,034$2,249,751$2,182,848$2,439,546
42$2,704,591$2,324,971$2,220,955$2,552,755
43$2,944,339$2,402,773$2,259,236$2,673,641
44$3,207,402$2,483,250$2,297,661$2,802,878
45$3,496,124$2,566,497$2,336,200$2,941,203
46$3,813,086$2,652,612$2,374,819$3,089,427
47$4,161,128$2,741,697$2,413,483$3,248,439
48$4,543,383$2,833,860$2,452,155$3,419,217
49$4,963,299$2,929,211$2,490,793$3,602,833
50$5,424,676$3,027,862$2,529,355$3,800,465
51$5,931,700$3,129,935$2,567,795$4,013,410
52$6,488,982$3,235,550$2,606,065$4,243,091
53$7,101,603$3,344,836$2,644,113$4,491,071
54$7,775,159$3,457,926$2,681,884$4,759,071
55$8,515,818$3,574,957$2,719,319$5,048,983
56$9,330,373$3,696,072$2,756,358$5,362,885
57$10,226,309$3,821,418$2,792,935$5,703,065
58$11,211,875$3,951,150$2,828,980$6,072,040
59$12,296,157$4,085,427$2,864,422$6,472,575
60$13,489,167$4,224,414$2,899,181$6,907,718
61$14,801,936$4,368,284$2,933,178$7,380,817
62$16,246,618$4,517,216$2,966,325$7,895,560
63$17,836,608$4,671,393$2,998,531$8,456,005
64$19,586,660$4,831,010$3,029,700$9,066,618
65$21,513,036$4,996,266$3,059,731$9,732,314
66$23,633,651$5,167,368$3,088,518$10,458,504
67$25,968,246$5,344,532$3,115,946$11,251,145
68$28,538,575$5,527,982$3,141,898$12,116,796
69$31,368,607$5,717,951$3,166,249$13,062,677
70$34,484,754$5,914,679$3,188,867$14,096,737
71$37,916,119$6,118,419$3,209,614$15,227,733
72$41,694,772$6,329,430$3,228,345$16,465,302
73$45,856,050$6,547,984$3,244,906$17,820,063
74$50,438,894$6,774,362$3,259,138$19,303,704
75$55,486,212$7,008,856$3,270,869$20,929,103
76$61,045,287$7,251,771$3,279,925$22,710,440
77$67,168,221$7,503,423$3,286,117$24,663,334
78$73,912,428$7,764,139$3,289,251$26,804,988
79$81,341,176$8,034,262$3,289,120$29,154,352
80$89,524,180$8,314,145$3,285,510$31,732,297
81$98,538,267$8,604,158$3,278,195$34,561,818
82$108,468,092$8,904,685$3,266,937$37,668,239
83$119,406,947$9,216,123$3,251,488$41,079,464
84$131,457,630$9,538,888$3,231,588$44,826,227
85$144,733,425$9,873,410$3,206,963$48,942,388
86$159,359,165$10,220,138$3,177,327$53,465,251
87$175,472,413$10,579,538$3,142,380$58,435,911
88$193,224,758$10,952,094$3,101,809$63,899,644
89$212,783,249$11,338,312$3,055,286$69,906,331
90$234,331,967$11,738,716$3,002,464$76,510,929
91$258,073,767$12,153,852$2,942,986$83,773,986
92$284,232,188$12,584,288$2,876,473$91,762,214
93$313,053,567$13,030,614$2,802,531$100,549,112
94$344,809,362$13,493,446$2,720,747$110,215,666
95$379,798,715$13,973,423$2,630,690$120,851,103
96$418,351,274$14,471,211$2,531,908$132,553,738
97$460,830,307$14,987,502$2,423,930$145,431,896
98$507,636,127$15,523,019$2,306,261$159,604,936
99$559,209,877$16,078,512$2,178,385$175,204,374
100$616,037,688$16,654,763$2,039,764$192,375,120