Can I retire at age 40 with 2,620,000?

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 $2,620,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$216,357$214,430$212,550$210,714$208,922$205,631
2 years$107,108$105,113$103,179$101,305$99,487$96,179
3 years$70,696$68,692$66,764$64,907$63,119$59,897
4 years$52,493$50,496$48,587$46,762$45,017$41,907
5 years$41,575$39,590$37,706$35,918$34,221$31,232
6 years$34,298$32,328$30,472$28,724$27,078$24,213
7 years$29,103$27,149$25,322$23,615$22,022$19,282
8 years$25,208$23,272$21,475$19,810$18,269$15,654
9 years$22,180$20,262$18,497$16,874$15,385$12,893
10 years$19,759$17,860$16,126$14,546$13,109$10,738
11 years$17,780$15,900$14,197$12,659$11,274$9,022
12 years$16,132$14,271$12,599$11,104$9,770$7,633
13 years$14,738$12,897$11,257$9,803$8,520$6,496
14 years$13,544$11,723$10,114$8,702$7,468$5,554
15 years$12,511$10,709$9,132$7,761$6,576$4,767
16 years$11,608$9,825$8,279$6,949$5,812$4,106
17 years$10,811$9,049$7,534$6,243$5,153$3,546
18 years$10,104$8,361$6,877$5,627$4,582$3,069
19 years$9,472$7,749$6,296$5,084$4,084$2,662
20 years$8,905$7,201$5,778$4,605$3,648$2,313
21 years$8,391$6,707$5,315$4,179$3,264$2,013
22 years$7,925$6,261$4,898$3,800$2,926$1,753
23 years$7,501$5,856$4,523$3,460$2,627$1,529
24 years$7,112$5,487$4,183$3,156$2,361$1,335
25 years$6,755$5,149$3,874$2,882$2,124$1,167
26 years$6,426$4,839$3,593$2,635$1,914$1,020
27 years$6,121$4,554$3,336$2,412$1,725$892
28 years$5,839$4,291$3,102$2,210$1,557$781
29 years$5,577$4,048$2,886$2,027$1,406$684
30 years$5,333$3,823$2,689$1,860$1,270$599
31 years$5,105$3,614$2,506$1,708$1,148$525
32 years$4,892$3,420$2,339$1,570$1,039$461
33 years$4,692$3,239$2,184$1,444$940$404
34 years$4,504$3,070$2,040$1,328$851$354
35 years$4,328$2,911$1,907$1,223$771$311
36 years$4,161$2,763$1,784$1,126$698$273
37 years$4,004$2,625$1,670$1,038$633$240
38 years$3,856$2,494$1,564$956$574$210
39 years$3,715$2,372$1,465$882$520$185
40 years$3,582$2,257$1,373$813$472$162
41 years$3,456$2,148$1,288$750$428$142
42 years$3,336$2,046$1,208$693$389$125
43 years$3,222$1,949$1,134$639$353$110
44 years$3,113$1,858$1,064$590$320$96
45 years$3,009$1,772$999$545$291$85
46 years$2,911$1,690$938$504$264$74
47 years$2,817$1,613$882$465$240$65
48 years$2,726$1,540$828$430$218$57
49 years$2,640$1,470$779$397$198$50
50 years$2,558$1,405$732$367$180$44

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,620,000, adding $6,382 every year, while hoping to spend $36,770 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: 56/38/6 Blend
39$2,620,000$2,620,000$2,620,000$2,620,000
40$2,893,823$2,754,963$2,714,353$3,051,825
41$3,149,870$2,850,833$2,766,161$3,254,818
42$3,430,801$2,950,169$2,818,472$3,471,123
43$3,739,117$3,053,100$2,871,264$3,705,794
44$4,077,569$3,159,765$2,924,514$3,960,582
45$4,449,190$3,270,303$2,978,195$4,237,414
46$4,857,322$3,384,862$3,032,279$4,538,408
47$5,305,644$3,503,596$3,086,735$4,865,895
48$5,798,211$3,626,663$3,141,532$5,222,438
49$6,339,489$3,754,229$3,196,633$5,610,858
50$6,934,397$3,886,467$3,252,001$6,034,256
51$7,588,357$4,023,555$3,307,594$6,496,048
52$8,307,340$4,165,680$3,363,369$6,999,990
53$9,097,926$4,313,035$3,419,279$7,550,217
54$9,967,363$4,465,823$3,475,274$8,151,280
55$10,923,639$4,624,254$3,531,301$8,808,188
56$11,975,553$4,788,545$3,587,302$9,526,455
57$13,132,800$4,958,923$3,643,217$10,312,151
58$14,406,061$5,135,627$3,698,981$11,171,959
59$15,807,107$5,318,900$3,754,524$12,113,236
60$17,348,906$5,509,001$3,809,775$13,144,083
61$19,045,748$5,706,195$3,864,656$14,273,418
62$20,913,375$5,910,759$3,919,083$15,511,065
63$22,969,137$6,122,984$3,972,969$16,867,839
64$25,232,148$6,343,169$4,026,223$18,355,651
65$27,723,471$6,571,629$4,078,746$19,987,618
66$30,466,316$6,808,689$4,130,434$21,778,185
67$33,486,254$7,054,689$4,181,178$23,743,265
68$36,811,466$7,309,983$4,230,861$25,900,380
69$40,473,002$7,574,939$4,279,362$28,268,833
70$44,505,078$7,849,940$4,326,550$30,869,884
71$48,945,397$8,135,388$4,372,290$33,726,950
72$53,835,503$8,431,698$4,416,438$36,865,828
73$59,221,177$8,739,304$4,458,841$40,314,933
74$65,152,865$9,058,657$4,499,340$44,105,567
75$71,686,156$9,390,230$4,537,767$48,272,212
76$78,882,305$9,734,512$4,573,943$52,852,856
77$86,808,812$10,092,015$4,607,682$57,889,346
78$95,540,059$10,463,272$4,638,787$63,427,784
79$105,158,010$10,848,838$4,667,052$69,518,964
80$115,752,988$11,249,292$4,692,259$76,218,840
81$127,424,523$11,665,237$4,714,180$83,589,062
82$140,282,293$12,097,303$4,732,574$91,697,551
83$154,447,161$12,546,145$4,747,189$100,619,140
84$170,052,312$13,012,446$4,757,760$110,436,275
85$187,244,511$13,496,919$4,764,009$121,239,797
86$206,185,491$14,000,308$4,765,643$133,129,792
87$227,053,475$14,523,388$4,762,356$146,216,535
88$250,044,861$15,066,965$4,753,826$160,621,530
89$275,376,074$15,631,884$4,739,717$176,478,653
90$303,285,611$16,219,023$4,719,674$193,935,413
91$334,036,286$16,829,299$4,693,327$213,154,343
92$367,917,721$17,463,667$4,660,286$234,314,529
93$405,249,068$18,123,127$4,620,146$257,613,300
94$446,382,031$18,808,718$4,572,478$283,268,089
95$491,704,179$19,521,526$4,516,837$311,518,478
96$541,642,608$20,262,683$4,452,754$342,628,459
97$596,667,972$21,033,373$4,379,739$376,888,924
98$657,298,924$21,834,827$4,297,280$414,620,404
99$724,107,014$22,668,334$4,204,838$456,176,094
100$797,722,083$23,535,235$4,101,854$501,945,182