Can I retire at age 40 with 2,560,000?

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 $2,560,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.3%
1 years$211,402$209,519$207,682$205,889$204,138$202,174
2 years$104,655$102,706$100,817$98,985$97,209$95,231
3 years$69,077$67,119$65,235$63,421$61,673$59,742
4 years$51,291$49,340$47,474$45,691$43,986$42,116
5 years$40,623$38,683$36,842$35,095$33,437$31,635
6 years$33,513$31,588$29,774$28,066$26,458$24,725
7 years$28,436$26,527$24,742$23,074$21,517$19,855
8 years$24,630$22,739$20,983$19,357$17,851$16,258
9 years$21,672$19,798$18,073$16,488$15,033$13,510
10 years$19,307$17,451$15,756$14,212$12,809$11,355
11 years$17,373$15,536$13,872$12,369$11,016$9,629
12 years$15,762$13,944$12,311$10,849$9,546$8,226
13 years$14,400$12,601$10,999$9,578$8,324$7,069
14 years$13,234$11,454$9,883$8,503$7,297$6,105
15 years$12,224$10,464$8,923$7,583$6,425$5,294
16 years$11,342$9,600$8,090$6,790$5,678$4,606
17 years$10,564$8,841$7,361$6,100$5,035$4,020
18 years$9,873$8,170$6,720$5,498$4,477$3,518
19 years$9,256$7,572$6,152$4,968$3,990$3,085
20 years$8,701$7,036$5,646$4,499$3,564$2,710
21 years$8,199$6,554$5,193$4,083$3,190$2,385
22 years$7,744$6,118$4,786$3,713$2,859$2,101
23 years$7,329$5,722$4,419$3,381$2,566$1,854
24 years$6,949$5,361$4,087$3,084$2,307$1,638
25 years$6,600$5,031$3,785$2,816$2,076$1,448
26 years$6,278$4,728$3,511$2,575$1,870$1,281
27 years$5,981$4,450$3,260$2,357$1,686$1,134
28 years$5,706$4,193$3,031$2,160$1,521$1,005
29 years$5,450$3,956$2,820$1,980$1,373$891
30 years$5,211$3,736$2,627$1,817$1,241$790
31 years$4,988$3,532$2,449$1,669$1,122$701
32 years$4,780$3,342$2,285$1,534$1,015$623
33 years$4,585$3,164$2,134$1,411$918$553
34 years$4,401$2,999$1,993$1,298$832$491
35 years$4,229$2,845$1,864$1,195$753$436
36 years$4,066$2,700$1,743$1,100$682$388
37 years$3,912$2,564$1,632$1,014$619$345
38 years$3,767$2,437$1,528$935$561$307
39 years$3,630$2,317$1,432$862$509$273
40 years$3,500$2,205$1,342$795$461$242
41 years$3,376$2,099$1,258$733$418$216
42 years$3,259$1,999$1,180$677$380$192
43 years$3,148$1,905$1,108$625$345$171
44 years$3,042$1,815$1,040$577$313$152
45 years$2,941$1,731$976$533$284$135
46 years$2,844$1,651$917$492$258$120
47 years$2,752$1,576$861$455$234$107
48 years$2,664$1,504$809$420$213$95
49 years$2,580$1,437$761$388$193$85
50 years$2,499$1,372$715$359$175$76

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,560,000, adding $4,209 every year, while hoping to spend $59,281 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: 72/16/12 Blend
39$2,560,000$2,560,000$2,560,000$2,560,000
40$2,825,462$2,689,782$2,650,102$3,021,582
41$3,050,584$2,758,506$2,675,805$3,220,677
42$3,296,682$2,828,612$2,700,384$3,430,925
43$3,565,833$2,900,103$2,723,736$3,659,550
44$3,860,323$2,972,983$2,745,756$3,908,354
45$4,182,671$3,047,254$2,766,333$4,179,321
46$4,535,649$3,122,915$2,785,351$4,474,637
47$4,922,310$3,199,963$2,802,685$4,796,709
48$5,346,018$3,278,393$2,818,207$5,148,189
49$5,810,475$3,358,198$2,831,781$5,531,996
50$6,319,761$3,439,367$2,843,263$5,951,348
51$6,878,367$3,521,886$2,852,502$6,409,789
52$7,491,241$3,605,740$2,859,342$6,911,221
53$8,163,834$3,690,908$2,863,617$7,459,947
54$8,902,150$3,777,366$2,865,152$8,060,703
55$9,712,799$3,865,087$2,863,765$8,718,709
56$10,603,068$3,954,040$2,859,264$9,439,718
57$11,580,980$4,044,187$2,851,449$10,230,063
58$12,655,377$4,135,489$2,840,109$11,096,728
59$13,835,995$4,227,897$2,825,023$12,047,404
60$15,133,564$4,321,362$2,805,959$13,090,566
61$16,559,904$4,415,825$2,782,674$14,235,554
62$18,128,035$4,511,222$2,754,915$15,492,656
63$19,852,306$4,607,483$2,722,416$16,873,212
64$21,748,521$4,704,529$2,684,897$18,389,715
65$23,834,095$4,802,276$2,642,066$20,055,933
66$26,128,216$4,900,631$2,593,618$21,887,036
67$28,652,023$4,999,490$2,539,233$23,899,741
68$31,428,807$5,098,744$2,478,576$26,112,469
69$34,484,234$5,198,271$2,411,296$28,545,519
70$37,846,580$5,297,940$2,337,028$31,221,260
71$41,547,000$5,397,608$2,255,389$34,164,342
72$45,619,826$5,497,123$2,165,976$37,401,928
73$50,102,884$5,596,317$2,068,371$40,963,953
74$55,037,853$5,695,012$1,962,137$44,883,402
75$60,470,660$5,793,013$1,846,815$49,196,626
76$66,451,911$5,890,114$1,721,926$53,943,684
77$73,037,365$5,986,090$1,586,970$59,168,721
78$80,288,469$6,080,700$1,441,426$64,920,383
79$88,272,925$6,173,687$1,284,746$71,252,279
80$97,065,340$6,264,774$1,116,361$78,223,488
81$106,747,920$6,353,664$935,676$85,899,114
82$117,411,255$6,440,040$742,067$94,350,902
83$129,155,164$6,523,563$534,887$103,657,917
84$142,089,642$6,603,868$313,457$113,907,290
85$156,335,897$6,680,570$77,070$125,195,039
86$172,027,493$6,753,253$0$137,626,978
87$189,311,611$6,821,475$0$151,342,149
88$208,350,433$6,884,766$0$166,458,615
89$229,322,680$6,942,622$0$183,108,215
90$252,425,293$6,994,509$0$201,447,120
91$277,875,290$7,039,858$0$221,647,425
92$305,911,819$7,078,061$0$243,898,778
93$336,798,412$7,108,473$0$268,410,166
94$370,825,470$7,130,408$0$295,411,891
95$408,313,007$7,143,137$0$325,157,741
96$449,613,668$7,145,885$0$357,927,388
97$495,116,058$7,137,829$0$394,029,029
98$545,248,408$7,118,095$0$433,802,291
99$600,482,619$7,085,755$0$477,621,445
100$661,338,714$7,039,825$0$525,898,931