Can I retire at age 40 with 2,540,000?

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 $2,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$209,751$207,882$206,060$204,280$202,543$195,746
2 years$103,837$101,903$100,029$98,212$96,449$89,669
3 years$68,537$66,595$64,725$62,925$61,191$54,640
4 years$50,891$48,954$47,103$45,334$43,642$37,370
5 years$40,305$38,381$36,554$34,821$33,176$27,200
6 years$33,251$31,341$29,541$27,847$26,251$20,575
7 years$28,214$26,320$24,549$22,894$21,349$15,973
8 years$24,438$22,561$20,819$19,205$17,711$12,631
9 years$21,503$19,643$17,932$16,359$14,915$10,125
10 years$19,156$17,315$15,633$14,101$12,709$8,200
11 years$17,237$15,414$13,763$12,272$10,930$6,695
12 years$15,639$13,835$12,215$10,765$9,472$5,500
13 years$14,288$12,503$10,913$9,503$8,259$4,541
14 years$13,131$11,365$9,805$8,436$7,240$3,765
15 years$12,129$10,382$8,853$7,524$6,375$3,132
16 years$11,253$9,525$8,026$6,737$5,634$2,612
17 years$10,481$8,772$7,304$6,053$4,996$2,183
18 years$9,796$8,106$6,667$5,455$4,442$1,828
19 years$9,183$7,513$6,104$4,929$3,959$1,533
20 years$8,633$6,981$5,602$4,464$3,536$1,288
21 years$8,135$6,503$5,152$4,051$3,165$1,082
22 years$7,683$6,070$4,749$3,684$2,837$911
23 years$7,272$5,677$4,385$3,355$2,546$767
24 years$6,895$5,319$4,055$3,060$2,289$646
25 years$6,549$4,992$3,756$2,794$2,059$545
26 years$6,229$4,691$3,483$2,555$1,855$459
27 years$5,934$4,415$3,235$2,339$1,673$387
28 years$5,661$4,160$3,007$2,143$1,509$327
29 years$5,407$3,925$2,798$1,965$1,363$276
30 years$5,170$3,707$2,606$1,803$1,231$233
31 years$4,949$3,504$2,430$1,656$1,113$197
32 years$4,743$3,315$2,267$1,522$1,007$166
33 years$4,549$3,140$2,117$1,400$911$140
34 years$4,367$2,976$1,978$1,288$825$119
35 years$4,195$2,822$1,849$1,185$747$100
36 years$4,034$2,679$1,730$1,092$677$85
37 years$3,882$2,544$1,619$1,006$614$72
38 years$3,738$2,418$1,516$927$556$60
39 years$3,602$2,299$1,421$855$505$51
40 years$3,473$2,188$1,331$789$458$43
41 years$3,350$2,082$1,248$728$415$36
42 years$3,234$1,983$1,171$671$377$31
43 years$3,123$1,890$1,099$620$342$26
44 years$3,018$1,801$1,032$572$310$22
45 years$2,918$1,718$969$529$282$19
46 years$2,822$1,639$910$488$256$16
47 years$2,731$1,564$855$451$232$13
48 years$2,643$1,493$803$417$211$11
49 years$2,560$1,425$755$385$192$10
50 years$2,480$1,362$710$356$174$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,540,000, adding $3,602 every year, while hoping to spend $51,298 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: 49/26/25 Blend
39$2,540,000$2,540,000$2,540,000$2,540,000
40$2,802,795$2,668,175$2,628,805$2,920,125
41$3,034,100$2,744,335$2,662,290$3,078,593
42$3,287,278$2,822,508$2,695,177$3,245,244
43$3,564,507$2,902,737$2,727,392$3,425,274
44$3,868,184$2,985,069$2,758,856$3,619,968
45$4,200,949$3,069,547$2,789,488$3,830,744
46$4,565,710$3,156,219$2,819,200$4,059,161
47$4,965,669$3,245,130$2,847,900$4,306,939
48$5,404,352$3,336,327$2,875,490$4,575,968
49$5,885,645$3,429,856$2,901,868$4,868,333
50$6,413,827$3,525,765$2,926,926$5,186,330
51$6,993,610$3,624,100$2,950,551$5,532,487
52$7,630,187$3,724,910$2,972,623$5,909,590
53$8,329,276$3,828,240$2,993,016$6,320,707
54$9,097,178$3,934,140$3,011,598$6,769,220
55$9,940,833$4,042,655$3,028,229$7,258,853
56$10,867,886$4,153,834$3,042,763$7,793,710
57$11,886,761$4,267,722$3,055,046$8,378,313
58$13,006,737$4,384,367$3,064,917$9,017,643
59$14,238,039$4,503,815$3,072,206$9,717,189
60$15,591,928$4,626,112$3,076,734$10,483,001
61$17,080,814$4,751,301$3,078,314$11,321,743
62$18,718,370$4,879,428$3,076,751$12,240,759
63$20,519,660$5,010,535$3,071,837$13,248,142
64$22,501,279$5,144,665$3,063,358$14,352,810
65$24,681,514$5,281,859$3,051,085$15,564,591
66$27,080,515$5,422,156$3,034,783$16,894,313
67$29,720,480$5,565,594$3,014,201$18,353,910
68$32,625,871$5,712,210$2,989,078$19,956,534
69$35,823,640$5,862,039$2,959,142$21,716,677
70$39,343,484$6,015,111$2,924,106$23,650,310
71$43,218,125$6,171,458$2,883,670$25,775,034
72$47,483,621$6,331,107$2,837,520$28,110,245
73$52,179,701$6,494,081$2,785,328$30,677,318
74$57,350,142$6,660,403$2,726,748$33,499,810
75$63,043,184$6,830,090$2,661,422$36,603,681
76$69,311,982$7,003,157$2,588,972$40,017,540
77$76,215,105$7,179,614$2,509,004$43,772,916
78$83,817,097$7,359,465$2,421,106$47,904,555
79$92,189,075$7,542,713$2,324,847$52,450,749
80$101,409,408$7,729,354$2,219,777$57,453,698
81$111,564,452$7,919,376$2,105,424$62,959,909
82$122,749,365$8,112,765$1,981,295$69,020,634
83$135,069,009$8,309,499$1,846,877$75,692,358
84$148,638,930$8,509,547$1,701,630$83,037,327
85$163,586,460$8,712,874$1,544,993$91,124,142
86$180,051,908$8,919,433$1,376,380$100,028,405
87$198,189,890$9,129,173$1,195,176$109,833,432
88$218,170,786$9,342,029$1,000,741$120,631,042
89$240,182,347$9,557,930$792,407$132,522,427
90$264,431,469$9,776,791$569,475$145,619,101
91$291,146,143$9,998,518$331,217$160,043,963
92$320,577,607$10,223,003$76,870$175,932,451
93$353,002,720$10,450,127$0$193,433,825
94$388,726,569$10,679,755$0$212,764,476
95$428,085,354$10,911,738$0$234,079,038
96$471,449,559$11,145,912$0$257,556,991
97$519,227,446$11,382,094$0$283,418,738
98$571,868,915$11,620,085$0$311,907,159
99$629,869,741$11,859,667$0$343,289,903
100$693,776,263$12,100,599$0$377,861,913