Can I retire at age 40 with 2,480,000?

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 $2,480,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.4%
1 years$204,796$202,972$201,192$199,455$197,759$190,288
2 years$101,384$99,496$97,666$95,892$94,171$86,731
3 years$66,918$65,022$63,196$61,439$59,746$52,571
4 years$49,688$47,798$45,991$44,263$42,611$35,756
5 years$39,353$37,474$35,691$33,998$32,392$25,874
6 years$32,465$30,600$28,843$27,189$25,631$19,455
7 years$27,548$25,698$23,969$22,353$20,845$15,009
8 years$23,861$22,028$20,328$18,752$17,293$11,791
9 years$20,995$19,179$17,508$15,972$14,563$9,388
10 years$18,703$16,906$15,264$13,768$12,408$7,551
11 years$16,830$15,050$13,438$11,983$10,672$6,121
12 years$15,270$13,508$11,926$10,510$9,248$4,992
13 years$13,950$12,207$10,655$9,279$8,064$4,091
14 years$12,821$11,096$9,574$8,237$7,069$3,365
15 years$11,842$10,137$8,644$7,346$6,224$2,777
16 years$10,987$9,300$7,837$6,577$5,501$2,298
17 years$10,234$8,565$7,131$5,910$4,878$1,905
18 years$9,564$7,915$6,510$5,326$4,337$1,583
19 years$8,966$7,335$5,959$4,812$3,866$1,316
20 years$8,429$6,816$5,469$4,359$3,453$1,096
21 years$7,943$6,349$5,031$3,956$3,090$914
22 years$7,502$5,927$4,637$3,597$2,770$762
23 years$7,100$5,543$4,281$3,275$2,486$636
24 years$6,732$5,193$3,959$2,987$2,235$531
25 years$6,394$4,874$3,667$2,728$2,011$444
26 years$6,082$4,581$3,401$2,495$1,811$371
27 years$5,794$4,311$3,158$2,283$1,633$310
28 years$5,527$4,062$2,936$2,092$1,474$259
29 years$5,279$3,832$2,732$1,918$1,331$217
30 years$5,048$3,619$2,545$1,761$1,202$182
31 years$4,832$3,421$2,373$1,617$1,087$152
32 years$4,631$3,237$2,214$1,486$983$127
33 years$4,441$3,066$2,067$1,367$890$106
34 years$4,264$2,905$1,931$1,257$806$89
35 years$4,096$2,756$1,805$1,157$730$75
36 years$3,939$2,616$1,689$1,066$661$62
37 years$3,790$2,484$1,581$982$599$52
38 years$3,650$2,361$1,480$905$543$44
39 years$3,517$2,245$1,387$835$493$37
40 years$3,391$2,136$1,300$770$447$31
41 years$3,271$2,033$1,219$710$405$26
42 years$3,157$1,936$1,143$656$368$22
43 years$3,049$1,845$1,073$605$334$18
44 years$2,947$1,759$1,007$559$303$15
45 years$2,849$1,677$946$516$275$13
46 years$2,755$1,600$888$477$250$11
47 years$2,666$1,527$834$440$227$9
48 years$2,581$1,457$784$407$206$7
49 years$2,499$1,392$737$376$187$6
50 years$2,421$1,330$693$348$170$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,480,000, adding $4,166 every year, while hoping to spend $37,811 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: 36/47/17 Blend
39$2,480,000$2,480,000$2,480,000$2,480,000
40$2,737,257$2,605,817$2,567,377$2,821,465
41$2,976,227$2,693,272$2,613,154$2,970,343
42$3,238,304$2,783,744$2,659,197$3,127,093
43$3,525,806$2,877,343$2,705,475$3,295,514
44$3,841,285$2,974,179$2,751,955$3,476,668
45$4,187,552$3,074,369$2,798,601$3,671,723
46$4,567,703$3,178,035$2,845,375$3,881,958
47$4,985,150$3,285,300$2,892,236$4,108,783
48$5,443,650$3,396,294$2,939,141$4,353,743
49$5,947,343$3,511,153$2,986,043$4,618,541
50$6,500,788$3,630,015$3,032,891$4,905,043
51$7,109,009$3,753,027$3,079,634$5,215,308
52$7,777,541$3,880,338$3,126,214$5,551,593
53$8,512,480$4,012,105$3,172,573$5,916,385
54$9,320,545$4,148,490$3,218,646$6,312,417
55$10,209,136$4,289,661$3,264,365$6,742,697
56$11,186,406$4,435,793$3,309,661$7,210,533
57$12,261,341$4,587,068$3,354,455$7,719,567
58$13,443,837$4,743,674$3,398,669$8,273,802
59$14,744,800$4,905,806$3,442,216$8,877,648
60$16,176,248$5,073,668$3,485,008$9,535,956
61$17,751,418$5,247,471$3,526,949$10,254,066
62$19,484,900$5,427,434$3,567,939$11,037,856
63$21,392,765$5,613,784$3,607,871$11,893,796
64$23,492,726$5,806,758$3,646,633$12,829,009
65$25,804,297$6,006,602$3,684,108$13,851,338
66$28,348,981$6,213,571$3,720,171$14,969,417
67$31,150,470$6,427,929$3,754,690$16,192,754
68$34,234,873$6,649,953$3,787,527$17,531,817
69$37,630,957$6,879,928$3,818,537$18,998,136
70$41,370,422$7,118,151$3,847,565$20,604,406
71$45,488,197$7,364,933$3,874,450$22,364,608
72$50,022,772$7,620,594$3,899,023$24,294,141
73$55,016,560$7,885,467$3,921,105$26,409,963
74$60,516,294$8,159,901$3,940,508$28,730,754
75$66,573,475$8,444,255$3,957,034$31,277,089
76$73,244,851$8,738,904$3,970,476$34,071,628
77$80,592,955$9,044,240$3,980,616$37,139,334
78$88,686,695$9,360,666$3,987,225$40,507,705
79$97,602,004$9,688,605$3,990,064$44,207,030
80$107,422,557$10,028,495$3,988,879$48,270,677
81$118,240,558$10,380,792$3,983,407$52,735,404
82$130,157,614$10,745,969$3,973,370$57,641,705
83$143,285,689$11,124,521$3,958,477$63,034,192
84$157,748,167$11,516,960$3,938,423$68,962,011
85$173,681,008$11,923,819$3,912,888$75,479,310
86$191,234,039$12,345,654$3,881,537$82,645,743
87$210,572,362$12,783,042$3,844,020$90,527,031
88$231,877,916$13,236,584$3,799,968$99,195,586
89$255,351,193$13,706,906$3,748,997$108,731,188
90$281,213,128$14,194,659$3,690,702$119,221,737
91$309,707,189$14,700,518$3,624,662$130,764,081
92$341,101,669$15,225,190$3,550,434$143,464,928
93$375,692,222$15,769,408$3,467,558$157,441,850
94$413,804,655$16,333,935$3,375,547$172,824,394
95$455,797,999$16,919,567$3,273,897$189,755,297
96$502,067,900$17,527,131$3,162,077$208,391,835
97$553,050,353$18,157,488$3,039,534$228,907,306
98$609,225,820$18,811,535$2,905,689$251,492,657
99$671,123,761$19,490,208$2,759,937$276,358,292
100$739,327,634$20,194,478$2,601,645$303,736,049