Can I retire at age 40 with 2,520,000?

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 $2,520,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.2%
1 years$208,099$206,246$204,437$202,672$200,948$193,511
2 years$103,019$101,101$99,241$97,438$95,690$88,280
3 years$67,997$66,070$64,216$62,430$60,709$53,562
4 years$50,490$48,569$46,733$44,977$43,299$36,467
5 years$39,988$38,079$36,266$34,547$32,915$26,416
6 years$32,989$31,094$29,309$27,627$26,044$19,884
7 years$27,992$26,113$24,356$22,714$21,181$15,358
8 years$24,246$22,383$20,655$19,054$17,572$12,080
9 years$21,333$19,489$17,791$16,230$14,798$9,630
10 years$19,005$17,178$15,510$13,990$12,609$7,755
11 years$17,101$15,293$13,655$12,176$10,844$6,294
12 years$15,516$13,726$12,118$10,680$9,397$5,140
13 years$14,175$12,404$10,827$9,429$8,194$4,218
14 years$13,027$11,275$9,728$8,370$7,183$3,475
15 years$12,033$10,300$8,783$7,464$6,325$2,872
16 years$11,165$9,450$7,963$6,683$5,590$2,380
17 years$10,399$8,703$7,246$6,005$4,956$1,976
18 years$9,719$8,042$6,615$5,412$4,407$1,644
19 years$9,111$7,453$6,056$4,890$3,928$1,369
20 years$8,565$6,926$5,558$4,429$3,508$1,142
21 years$8,071$6,451$5,112$4,019$3,140$953
22 years$7,623$6,022$4,711$3,655$2,814$796
23 years$7,214$5,632$4,350$3,328$2,526$666
24 years$6,840$5,277$4,023$3,036$2,271$557
25 years$6,497$4,952$3,726$2,772$2,043$466
26 years$6,180$4,654$3,456$2,535$1,840$390
27 years$5,888$4,380$3,209$2,320$1,659$327
28 years$5,617$4,128$2,983$2,126$1,497$274
29 years$5,364$3,894$2,776$1,949$1,352$229
30 years$5,130$3,677$2,586$1,789$1,222$192
31 years$4,910$3,476$2,411$1,643$1,104$161
32 years$4,705$3,289$2,249$1,510$999$135
33 years$4,513$3,115$2,100$1,389$904$113
34 years$4,332$2,952$1,962$1,278$819$95
35 years$4,162$2,800$1,835$1,176$741$80
36 years$4,002$2,658$1,716$1,083$672$67
37 years$3,851$2,524$1,606$998$609$56
38 years$3,708$2,399$1,504$920$552$47
39 years$3,573$2,281$1,409$848$501$39
40 years$3,445$2,170$1,321$782$454$33
41 years$3,324$2,066$1,239$722$412$28
42 years$3,208$1,968$1,162$666$374$23
43 years$3,099$1,875$1,090$615$339$20
44 years$2,994$1,787$1,023$568$308$16
45 years$2,895$1,704$961$524$280$14
46 years$2,800$1,626$903$484$254$12
47 years$2,709$1,551$848$447$230$10
48 years$2,622$1,481$797$414$209$8
49 years$2,540$1,414$749$382$190$7
50 years$2,460$1,351$704$353$173$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,520,000, adding $3,712 every year, while hoping to spend $36,979 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: 63/14/23 Blend
39$2,520,000$2,520,000$2,520,000$2,520,000
40$2,780,869$2,647,309$2,608,249$2,939,122
41$3,025,172$2,737,682$2,656,280$3,136,824
42$3,293,155$2,831,243$2,704,681$3,348,217
43$3,587,194$2,928,111$2,753,424$3,578,270
44$3,909,906$3,028,407$2,802,482$3,828,811
45$4,264,174$3,132,257$2,851,823$4,101,852
46$4,653,174$3,239,792$2,901,414$4,399,611
47$5,080,406$3,351,149$2,951,219$4,724,527
48$5,549,722$3,466,470$3,001,199$5,079,289
49$6,065,368$3,585,902$3,051,314$5,466,856
50$6,632,022$3,709,598$3,101,520$5,890,486
51$7,254,837$3,837,716$3,151,769$6,353,770
52$7,939,488$3,970,422$3,202,011$6,860,661
53$8,692,230$4,107,888$3,252,193$7,415,514
54$9,519,954$4,250,291$3,302,258$8,023,126
55$10,430,251$4,397,816$3,352,145$8,688,779
56$11,431,485$4,550,658$3,401,791$9,418,294
57$12,532,872$4,709,015$3,451,126$10,218,081
58$13,744,564$4,873,096$3,500,077$11,095,204
59$15,077,749$5,043,117$3,548,569$12,057,443
60$16,544,752$5,219,303$3,596,520$13,113,368
61$18,159,156$5,401,888$3,643,843$14,272,424
62$19,935,925$5,591,115$3,690,446$15,545,012
63$21,891,547$5,787,238$3,736,233$16,942,596
64$24,044,190$5,990,518$3,781,103$18,477,803
65$26,413,874$6,201,229$3,824,946$20,164,546
66$29,022,656$6,419,657$3,867,649$22,018,154
67$31,894,843$6,646,096$3,909,091$24,055,516
68$35,057,217$6,880,855$3,949,146$26,295,243
69$38,539,290$7,124,254$3,987,679$28,757,838
70$42,373,581$7,376,625$4,024,550$31,465,893
71$46,595,923$7,638,317$4,059,609$34,444,302
72$51,245,802$7,909,688$4,092,700$37,720,494
73$56,366,726$8,191,116$4,123,658$41,324,692
74$62,006,641$8,482,990$4,152,310$45,290,198
75$68,218,379$8,785,716$4,178,472$49,653,708
76$75,060,156$9,099,719$4,201,953$54,455,657
77$82,596,124$9,425,438$4,222,551$59,740,599
78$90,896,976$9,763,332$4,240,054$65,557,630
79$100,040,611$10,113,878$4,254,239$71,960,851
80$110,112,869$10,477,573$4,264,872$79,009,874
81$121,208,343$10,854,936$4,271,706$86,770,389
82$133,431,270$11,246,503$4,274,484$95,314,782
83$146,896,515$11,652,838$4,272,935$104,722,818
84$161,730,656$12,074,523$4,266,775$115,082,392
85$178,073,176$12,512,168$4,255,705$126,490,362
86$196,077,782$12,966,406$4,239,413$139,053,459
87$215,913,853$13,437,898$4,217,571$152,889,296
88$237,768,043$13,927,332$4,189,836$168,127,478
89$261,846,035$14,435,423$4,155,848$184,910,823
90$288,374,491$14,962,919$4,115,229$203,396,715
91$317,603,184$15,510,597$4,067,584$223,758,580
92$349,807,361$16,079,268$4,012,500$246,187,534
93$385,290,336$16,669,776$3,949,543$270,894,176
94$424,386,357$17,283,002$3,878,260$298,110,584
95$467,463,759$17,919,863$3,798,175$328,092,499
96$514,928,441$18,581,315$3,708,793$361,121,745
97$567,227,697$19,268,355$3,609,592$397,508,883
98$624,854,439$19,982,020$3,500,030$437,596,145
99$688,351,848$20,723,396$3,379,538$481,760,665
100$758,318,503$21,493,609$3,247,519$530,418,038