Can I retire at age 40 with 2,530,000?

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 $2,530,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$208,925$207,064$205,248$203,476$201,746$200,306
2 years$103,428$101,502$99,635$97,825$96,069$94,618
3 years$68,267$66,333$64,471$62,677$60,950$59,532
4 years$50,690$48,762$46,918$45,156$43,470$42,096
5 years$40,147$38,230$36,410$34,684$33,045$31,719
6 years$33,120$31,217$29,425$27,737$26,148$24,871
7 years$28,103$26,216$24,452$22,804$21,265$20,038
8 years$24,342$22,472$20,737$19,130$17,641$16,465
9 years$21,418$19,566$17,861$16,294$14,857$13,730
10 years$19,080$17,247$15,572$14,046$12,659$11,581
11 years$17,169$15,354$13,709$12,224$10,887$9,858
12 years$15,577$13,781$12,167$10,722$9,434$8,453
13 years$14,232$12,454$10,870$9,466$8,227$7,292
14 years$13,079$11,320$9,767$8,403$7,212$6,322
15 years$12,081$10,341$8,818$7,494$6,350$5,504
16 years$11,209$9,488$7,995$6,710$5,612$4,809
17 years$10,440$8,738$7,275$6,029$4,976$4,215
18 years$9,757$8,074$6,641$5,433$4,424$3,704
19 years$9,147$7,483$6,080$4,909$3,943$3,262
20 years$8,599$6,954$5,580$4,446$3,522$2,878
21 years$8,103$6,477$5,132$4,035$3,152$2,544
22 years$7,653$6,046$4,730$3,669$2,825$2,252
23 years$7,243$5,655$4,367$3,342$2,536$1,996
24 years$6,868$5,298$4,039$3,048$2,280$1,771
25 years$6,523$4,972$3,741$2,783$2,051$1,573
26 years$6,205$4,673$3,470$2,545$1,848$1,399
27 years$5,911$4,398$3,222$2,329$1,666$1,244
28 years$5,639$4,144$2,995$2,134$1,503$1,108
29 years$5,386$3,909$2,787$1,957$1,357$987
30 years$5,150$3,692$2,596$1,796$1,226$880
31 years$4,930$3,490$2,420$1,650$1,109$784
32 years$4,724$3,302$2,258$1,516$1,003$700
33 years$4,531$3,127$2,109$1,394$908$625
34 years$4,350$2,964$1,970$1,283$822$558
35 years$4,179$2,811$1,842$1,181$744$498
36 years$4,018$2,668$1,723$1,088$674$445
37 years$3,867$2,534$1,613$1,002$611$397
38 years$3,723$2,409$1,510$924$554$355
39 years$3,587$2,290$1,415$852$503$317
40 years$3,459$2,179$1,326$785$456$284
41 years$3,337$2,074$1,244$725$414$254
42 years$3,221$1,975$1,167$669$375$227
43 years$3,111$1,882$1,095$617$341$203
44 years$3,006$1,794$1,027$570$309$182
45 years$2,906$1,711$965$526$281$162
46 years$2,811$1,632$906$486$255$145
47 years$2,720$1,558$851$449$231$130
48 years$2,633$1,487$800$415$210$116
49 years$2,550$1,420$752$384$191$104
50 years$2,470$1,356$707$355$173$93

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,530,000, adding $5,671 every year, while hoping to spend $24,566 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: 41/46/13 Blend
39$2,530,000$2,530,000$2,530,000$2,530,000
40$2,793,910$2,659,820$2,620,605$2,897,503
41$3,052,750$2,764,013$2,682,257$3,075,211
42$3,337,170$2,872,488$2,745,151$3,264,568
43$3,649,750$2,985,429$2,809,303$3,468,974
44$3,993,338$3,103,029$2,874,728$3,689,811
45$4,371,068$3,225,487$2,941,441$3,928,593
46$4,786,395$3,353,013$3,009,457$4,186,985
47$5,243,123$3,485,827$3,078,790$4,466,813
48$5,745,446$3,624,157$3,149,454$4,770,084
49$6,297,983$3,768,242$3,221,462$5,099,003
50$6,905,823$3,918,332$3,294,827$5,455,992
51$7,574,575$4,074,688$3,369,561$5,843,711
52$8,310,417$4,237,583$3,445,677$6,265,086
53$9,120,156$4,407,301$3,523,184$6,723,331
54$10,011,294$4,584,141$3,602,093$7,221,982
55$10,992,096$4,768,414$3,682,413$7,764,923
56$12,071,669$4,960,446$3,764,153$8,356,428
57$13,260,048$5,160,575$3,847,320$9,001,196
58$14,568,288$5,369,159$3,931,921$9,704,394
59$16,008,574$5,586,569$4,017,961$10,471,709
60$17,594,331$5,813,193$4,105,444$11,309,393
61$19,340,350$6,049,437$4,194,374$12,224,327
62$21,262,933$6,295,726$4,284,753$13,224,080
63$23,380,039$6,552,504$4,376,579$14,316,983
64$25,711,462$6,820,235$4,469,853$15,512,201
65$28,279,009$7,099,405$4,564,572$16,819,822
66$31,106,713$7,390,520$4,660,730$18,250,949
67$34,221,055$7,694,113$4,758,321$19,817,801
68$37,651,216$8,010,738$4,857,338$21,533,831
69$41,429,351$8,340,975$4,957,770$23,413,845
70$45,590,893$8,685,432$5,059,604$25,474,144
71$50,174,889$9,044,743$5,162,826$27,732,674
72$55,224,365$9,419,573$5,267,418$30,209,195
73$60,786,735$9,810,616$5,373,361$32,925,460
74$66,914,244$10,218,598$5,480,631$35,905,424
75$73,664,468$10,644,281$5,589,203$39,175,464
76$81,100,852$11,088,459$5,699,050$42,764,626
77$89,293,309$11,551,963$5,810,138$46,704,894
78$98,318,882$12,035,665$5,922,433$51,031,494
79$108,262,470$12,540,474$6,035,896$55,783,219
80$119,217,628$13,067,344$6,150,485$61,002,794
81$131,287,452$13,617,270$6,266,152$66,737,273
82$144,585,552$14,191,296$6,382,848$73,038,485
83$159,237,121$14,790,512$6,500,516$79,963,514
84$175,380,122$15,416,061$6,619,098$87,575,237
85$193,166,584$16,069,138$6,738,527$95,942,913
86$212,764,042$16,750,993$6,858,735$105,142,831
87$234,357,117$17,462,934$6,979,645$115,259,027
88$258,149,257$18,206,332$7,101,177$126,384,075
89$284,364,658$18,982,619$7,223,243$138,619,950
90$313,250,381$19,793,295$7,345,750$152,078,992
91$345,078,685$20,639,931$7,468,598$166,884,956
92$380,149,594$21,524,171$7,591,679$183,174,178
93$418,793,731$22,447,734$7,714,879$201,096,856
94$461,375,440$23,412,422$7,838,076$220,818,460
95$508,296,223$24,420,118$7,961,139$242,521,289
96$559,998,532$25,472,798$8,083,931$266,406,185
97$616,969,942$26,572,525$8,206,303$292,694,423
98$679,747,761$27,721,463$8,328,098$321,629,791
99$748,924,094$28,921,876$8,449,151$353,480,885
100$825,151,437$30,176,134$8,569,284$388,543,635