Can I retire at age 40 with 2,850,000?

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 $2,850,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$235,350$233,254$231,209$229,212$227,263$219,200
2 years$116,510$114,340$112,237$110,198$108,220$100,183
3 years$76,902$74,723$72,625$70,605$68,660$60,900
4 years$57,102$54,929$52,852$50,867$48,969$41,546
5 years$45,225$43,065$41,016$39,071$37,225$30,160
6 years$37,309$35,166$33,147$31,245$29,455$22,752
7 years$31,657$29,532$27,545$25,688$23,955$17,613
8 years$27,421$25,315$23,360$21,549$19,873$13,886
9 years$24,127$22,041$20,120$18,355$16,736$11,097
10 years$21,494$19,428$17,541$15,822$14,260$8,959
11 years$19,341$17,296$15,443$13,770$12,264$7,291
12 years$17,548$15,524$13,705$12,078$10,628$5,970
13 years$16,032$14,029$12,245$10,663$9,267$4,912
14 years$14,733$12,752$11,002$9,466$8,124$4,058
15 years$13,609$11,649$9,933$8,442$7,153$3,364
16 years$12,627$10,688$9,006$7,559$6,322$2,795
17 years$11,760$9,843$8,195$6,791$5,605$2,328
18 years$10,991$9,095$7,481$6,120$4,984$1,942
19 years$10,304$8,429$6,849$5,530$4,442$1,623
20 years$9,686$7,833$6,285$5,009$3,968$1,358
21 years$9,128$7,296$5,781$4,546$3,551$1,137
22 years$8,621$6,811$5,328$4,133$3,183$953
23 years$8,159$6,370$4,920$3,764$2,857$799
24 years$7,736$5,968$4,550$3,433$2,568$671
25 years$7,348$5,601$4,214$3,135$2,311$563
26 years$6,990$5,264$3,908$2,867$2,082$473
27 years$6,659$4,954$3,629$2,624$1,877$397
28 years$6,352$4,668$3,374$2,404$1,693$334
29 years$6,067$4,404$3,140$2,205$1,529$281
30 years$5,801$4,159$2,925$2,023$1,382$236
31 years$5,553$3,932$2,726$1,858$1,249$199
32 years$5,321$3,720$2,544$1,708$1,130$167
33 years$5,104$3,523$2,375$1,570$1,023$140
34 years$4,900$3,339$2,219$1,445$926$118
35 years$4,708$3,167$2,075$1,330$839$99
36 years$4,526$3,006$1,941$1,225$760$84
37 years$4,356$2,855$1,817$1,129$689$70
38 years$4,194$2,713$1,701$1,040$624$59
39 years$4,041$2,580$1,594$959$566$50
40 years$3,896$2,455$1,494$885$513$42
41 years$3,759$2,337$1,401$816$466$35
42 years$3,628$2,225$1,314$753$423$30
43 years$3,504$2,120$1,233$695$384$25
44 years$3,386$2,021$1,157$642$348$21
45 years$3,274$1,927$1,087$593$316$18
46 years$3,166$1,839$1,021$548$287$15
47 years$3,064$1,755$959$506$261$13
48 years$2,966$1,675$901$468$237$11
49 years$2,872$1,599$847$432$215$9
50 years$2,783$1,528$796$399$195$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,850,000, adding $5,351 every year, while hoping to spend $44,327 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: 82/11/7 Blend
39$2,850,000$2,850,000$2,850,000$2,850,000
40$3,146,220$2,995,170$2,950,995$3,401,648
41$3,419,970$3,094,769$3,002,689$3,669,067
42$3,720,158$3,197,764$3,054,630$3,956,106
43$4,049,433$3,304,272$3,106,779$4,269,854
44$4,410,712$3,414,419$3,159,093$4,612,960
45$4,807,212$3,528,333$3,211,530$4,988,340
46$5,242,473$3,646,147$3,264,041$5,399,206
47$5,720,395$3,767,998$3,316,577$5,849,096
48$6,245,277$3,894,031$3,369,083$6,341,905
49$6,821,850$4,024,393$3,421,503$6,881,923
50$7,455,329$4,159,239$3,473,774$7,473,876
51$8,151,460$4,298,729$3,525,832$8,122,968
52$8,916,570$4,443,028$3,577,609$8,834,934
53$9,757,631$4,592,308$3,629,030$9,616,087
54$10,682,326$4,746,747$3,680,018$10,473,384
55$11,699,115$4,906,530$3,730,491$11,414,488
56$12,817,324$5,071,849$3,780,362$12,447,840
57$14,047,225$5,242,903$3,829,538$13,582,739
58$15,400,135$5,419,898$3,877,920$14,829,430
59$16,888,525$5,603,049$3,925,407$16,199,197
60$18,526,134$5,792,579$3,971,888$17,704,476
61$20,328,101$5,988,717$4,017,247$19,358,965
62$22,311,107$6,191,703$4,061,364$21,177,754
63$24,493,529$6,401,786$4,104,110$23,177,473
64$26,895,620$6,619,224$4,145,348$25,376,440
65$29,539,691$6,844,284$4,184,935$27,794,840
66$32,450,331$7,077,245$4,222,722$30,454,911
67$35,654,630$7,318,396$4,258,548$33,381,157
68$39,182,440$7,568,035$4,292,247$36,600,575
69$43,066,654$7,826,474$4,323,643$40,142,912
70$47,343,518$8,094,036$4,352,550$44,040,946
71$52,052,970$8,371,057$4,378,774$48,330,792
72$57,239,019$8,657,885$4,402,109$53,052,242
73$62,950,159$8,954,882$4,422,340$58,249,146
74$69,239,828$9,262,423$4,439,240$63,969,819
75$76,166,908$9,580,900$4,452,573$70,267,497
76$83,796,287$9,910,718$4,462,088$77,200,844
77$92,199,462$10,252,298$4,467,522$84,834,500
78$101,455,225$10,606,077$4,468,602$93,239,692
79$111,650,395$10,972,512$4,465,037$102,494,908
80$122,880,644$11,352,074$4,456,525$112,686,634
81$135,251,399$11,745,255$4,442,747$123,910,170
82$148,878,834$12,152,565$4,423,372$136,270,533
83$163,890,969$12,574,535$4,398,049$149,883,442
84$180,428,877$13,011,715$4,366,412$164,876,414
85$198,648,013$13,464,680$4,328,078$181,389,963
86$218,719,686$13,934,026$4,282,644$199,578,932
87$240,832,672$14,420,370$4,229,690$219,613,947
88$265,194,994$14,924,358$4,168,775$241,683,030
89$292,035,891$15,446,660$4,099,437$265,993,373
90$321,607,977$15,987,971$4,021,192$292,773,296
91$354,189,625$16,549,015$3,933,536$322,274,394
92$390,087,596$17,130,547$3,835,939$354,773,919
93$429,639,935$17,733,348$3,727,847$390,577,392
94$473,219,160$18,358,233$3,608,682$430,021,488
95$521,235,778$19,006,051$3,477,837$473,477,213
96$574,142,162$19,677,681$3,334,678$521,353,405
97$632,436,817$20,374,043$3,178,545$574,100,592
98$696,669,090$21,096,088$3,008,744$632,215,247
99$767,444,352$21,844,811$2,824,552$696,244,470
100$845,429,714$22,621,245$2,625,212$766,791,154