Can I retire at age 40 with 2,550,000?

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 $2,550,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$210,577$208,701$206,871$205,085$203,341$198,425
2 years$104,246$102,304$100,423$98,598$96,829$91,906
3 years$68,807$66,857$64,980$63,173$61,432$56,656
4 years$51,091$49,147$47,289$45,513$43,814$39,221
5 years$40,464$38,532$36,698$34,958$33,307$28,910
6 years$33,382$31,464$29,658$27,956$26,354$22,158
7 years$28,325$26,424$24,646$22,984$21,433$17,438
8 years$24,534$22,650$20,901$19,281$17,781$13,986
9 years$21,587$19,721$18,002$16,423$14,974$11,375
10 years$19,231$17,383$15,695$14,157$12,759$9,352
11 years$17,305$15,475$13,818$12,321$10,973$7,754
12 years$15,701$13,889$12,263$10,807$9,509$6,472
13 years$14,344$12,552$10,956$9,541$8,292$5,431
14 years$13,183$11,409$9,844$8,469$7,269$4,578
15 years$12,177$10,423$8,888$7,553$6,400$3,873
16 years$11,297$9,563$8,058$6,763$5,656$3,286
17 years$10,522$8,807$7,332$6,077$5,015$2,795
18 years$9,834$8,138$6,694$5,476$4,459$2,383
19 years$9,219$7,542$6,128$4,948$3,975$2,035
20 years$8,667$7,009$5,624$4,482$3,550$1,740
21 years$8,167$6,528$5,173$4,067$3,177$1,490
22 years$7,714$6,094$4,767$3,698$2,848$1,278
23 years$7,300$5,699$4,402$3,368$2,556$1,096
24 years$6,922$5,340$4,071$3,072$2,298$941
25 years$6,574$5,011$3,771$2,805$2,068$809
26 years$6,254$4,710$3,497$2,565$1,862$695
27 years$5,958$4,433$3,247$2,348$1,679$598
28 years$5,683$4,177$3,019$2,151$1,515$515
29 years$5,428$3,940$2,809$1,973$1,368$443
30 years$5,191$3,721$2,617$1,810$1,236$382
31 years$4,969$3,518$2,439$1,663$1,118$329
32 years$4,761$3,328$2,276$1,528$1,011$283
33 years$4,567$3,152$2,125$1,405$915$244
34 years$4,384$2,988$1,986$1,293$828$210
35 years$4,212$2,834$1,856$1,190$750$181
36 years$4,050$2,690$1,737$1,096$680$156
37 years$3,897$2,554$1,625$1,010$616$135
38 years$3,753$2,428$1,522$931$559$116
39 years$3,616$2,308$1,426$858$507$100
40 years$3,486$2,196$1,337$792$459$86
41 years$3,363$2,091$1,253$730$417$75
42 years$3,247$1,991$1,176$674$378$64
43 years$3,135$1,897$1,103$622$343$55
44 years$3,030$1,808$1,036$575$312$48
45 years$2,929$1,724$972$531$283$41
46 years$2,833$1,645$913$490$257$36
47 years$2,741$1,570$858$453$233$31
48 years$2,654$1,499$806$418$212$27
49 years$2,570$1,431$758$387$192$23
50 years$2,490$1,367$713$357$175$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,550,000, adding $6,260 every year, while hoping to spend $50,455 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: 61/17/22 Blend
39$2,550,000$2,550,000$2,550,000$2,550,000
40$2,816,557$2,681,407$2,641,882$2,971,703
41$3,050,162$2,759,112$2,676,702$3,155,197
42$3,305,904$2,838,934$2,710,996$3,349,276
43$3,585,987$2,920,923$2,744,696$3,559,973
44$3,892,840$3,005,130$2,777,725$3,788,912
45$4,229,135$3,091,607$2,810,004$4,037,882
46$4,597,818$3,180,407$2,841,451$4,308,853
47$5,002,132$3,271,584$2,871,976$4,603,995
48$5,445,650$3,365,191$2,901,487$4,925,697
49$5,932,304$3,461,284$2,929,885$5,276,594
50$6,466,431$3,559,918$2,957,068$5,659,583
51$7,052,803$3,661,150$2,982,926$6,077,860
52$7,696,679$3,765,037$3,007,344$6,534,944
53$8,403,852$3,871,635$3,030,201$7,034,712
54$9,180,702$3,981,003$3,051,371$7,581,435
55$10,034,261$4,093,200$3,070,719$8,179,818
56$10,972,273$4,208,283$3,088,105$8,835,048
57$12,003,269$4,326,313$3,103,380$9,552,835
58$13,136,648$4,447,349$3,116,390$10,339,474
59$14,382,768$4,571,450$3,126,971$11,201,901
60$15,753,036$4,698,677$3,134,950$12,147,756
61$17,260,024$4,829,090$3,140,149$13,185,459
62$18,917,580$4,962,749$3,142,377$14,324,288
63$20,740,963$5,099,714$3,141,437$15,574,466
64$22,746,985$5,240,044$3,137,119$16,947,259
65$24,954,171$5,383,799$3,129,206$18,455,079
66$27,382,930$5,531,039$3,117,468$20,111,605
67$30,055,750$5,681,822$3,101,665$21,931,910
68$32,997,411$5,836,205$3,081,545$23,932,605
69$36,235,215$5,994,247$3,056,844$26,131,993
70$39,799,244$6,156,002$3,027,286$28,550,244
71$43,722,648$6,321,527$2,992,581$31,209,586
72$48,041,951$6,490,875$2,952,425$34,134,511
73$52,797,400$6,664,098$2,906,501$37,352,013
74$58,033,343$6,841,247$2,854,477$40,891,836
75$63,798,646$7,022,370$2,796,004$44,786,760
76$70,147,156$7,207,514$2,730,719$49,072,906
77$77,138,207$7,396,724$2,658,239$53,790,082
78$84,837,180$7,590,040$2,578,166$58,982,157
79$93,316,121$7,787,500$2,490,084$64,697,472
80$102,654,420$7,989,142$2,393,555$70,989,302
81$112,939,556$8,194,995$2,288,125$77,916,356
82$124,267,929$8,405,089$2,173,316$85,543,332
83$136,745,765$8,619,445$2,048,629$93,941,530
84$150,490,120$8,838,085$1,913,545$103,189,520
85$165,629,982$9,061,021$1,767,518$113,373,892
86$182,307,491$9,288,261$1,609,981$124,590,067
87$200,679,277$9,519,809$1,440,338$136,943,202
88$220,917,944$9,755,660$1,257,969$150,549,181
89$243,213,690$9,995,803$1,062,227$165,535,713
90$267,776,109$10,240,219$852,434$182,043,532
91$294,836,165$10,488,883$627,883$200,227,733
92$324,648,373$10,741,758$387,837$220,259,233
93$357,493,204$10,998,800$131,526$242,326,387
94$393,679,723$11,259,955$0$266,636,763
95$433,548,518$11,525,155$0$293,452,442
96$477,474,903$11,794,324$0$323,027,289
97$525,872,470$12,067,373$0$355,608,403
98$579,196,985$12,344,197$0$391,502,139
99$637,950,694$12,624,680$0$431,046,096
100$702,687,064$12,908,688$0$474,612,298