Can I retire at age 40 with 2,860,000?

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 $2,860,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$236,176$234,072$232,020$230,017$228,060$221,917
2 years$116,919$114,741$112,631$110,585$108,600$102,455
3 years$77,172$74,985$72,880$70,853$68,900$62,945
4 years$57,302$55,122$53,038$51,045$49,140$43,421
5 years$45,383$43,216$41,159$39,208$37,356$31,888
6 years$37,440$35,289$33,263$31,355$29,558$24,348
7 years$31,769$29,636$27,642$25,779$24,039$19,086
8 years$27,517$25,403$23,442$21,625$19,943$15,244
9 years$24,212$22,118$20,191$18,420$16,794$12,346
10 years$21,569$19,496$17,603$15,878$14,310$10,107
11 years$19,408$17,356$15,497$13,819$12,307$8,342
12 years$17,609$15,578$13,753$12,121$10,665$6,931
13 years$16,088$14,078$12,288$10,701$9,300$5,789
14 years$14,785$12,796$11,041$9,499$8,152$4,856
15 years$13,657$11,690$9,968$8,471$7,178$4,088
16 years$12,671$10,725$9,038$7,585$6,344$3,452
17 years$11,802$9,878$8,224$6,815$5,625$2,921
18 years$11,030$9,127$7,507$6,142$5,001$2,477
19 years$10,340$8,459$6,873$5,550$4,458$2,105
20 years$9,720$7,861$6,307$5,026$3,982$1,790
21 years$9,160$7,322$5,802$4,562$3,563$1,525
22 years$8,651$6,835$5,347$4,148$3,194$1,300
23 years$8,188$6,392$4,937$3,777$2,867$1,109
24 years$7,763$5,989$4,566$3,445$2,577$947
25 years$7,374$5,621$4,229$3,146$2,319$810
26 years$7,014$5,282$3,922$2,877$2,089$692
27 years$6,682$4,971$3,642$2,633$1,883$592
28 years$6,374$4,684$3,386$2,413$1,699$507
29 years$6,088$4,419$3,151$2,212$1,534$434
30 years$5,822$4,174$2,935$2,030$1,386$371
31 years$5,573$3,945$2,736$1,865$1,253$318
32 years$5,340$3,733$2,553$1,714$1,134$272
33 years$5,122$3,535$2,384$1,576$1,026$233
34 years$4,917$3,351$2,227$1,450$929$200
35 years$4,724$3,178$2,082$1,335$841$171
36 years$4,542$3,016$1,948$1,229$762$147
37 years$4,371$2,865$1,823$1,133$691$126
38 years$4,209$2,723$1,707$1,044$626$108
39 years$4,055$2,589$1,599$963$568$93
40 years$3,910$2,463$1,499$888$515$79
41 years$3,772$2,345$1,406$819$467$68
42 years$3,641$2,233$1,319$756$424$58
43 years$3,517$2,128$1,237$698$385$50
44 years$3,398$2,028$1,162$644$349$43
45 years$3,285$1,934$1,091$595$317$37
46 years$3,177$1,845$1,024$550$288$32
47 years$3,075$1,761$962$508$262$27
48 years$2,976$1,681$904$469$238$23
49 years$2,882$1,605$850$434$216$20
50 years$2,792$1,533$799$401$196$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,860,000, adding $6,426 every year, while hoping to spend $25,810 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: 41/41/18 Blend
39$2,860,000$2,860,000$2,860,000$2,860,000
40$3,158,348$3,006,768$2,962,438$3,270,838
41$3,453,038$3,126,638$3,034,218$3,471,209
42$3,776,922$3,251,517$3,107,538$3,684,953
43$4,132,949$3,381,622$3,182,422$3,915,762
44$4,524,370$3,517,183$3,258,893$4,165,205
45$4,954,767$3,658,436$3,336,978$4,435,010
46$5,428,085$3,805,631$3,416,698$4,727,068
47$5,948,672$3,959,029$3,498,079$5,043,463
48$6,521,316$4,118,901$3,581,145$5,386,478
49$7,151,295$4,285,532$3,665,918$5,758,625
50$7,844,424$4,459,220$3,752,423$6,162,663
51$8,607,108$4,640,274$3,840,682$6,601,625
52$9,446,406$4,829,021$3,930,718$7,078,845
53$10,370,096$5,025,800$4,022,554$7,597,986
54$11,386,747$5,230,965$4,116,211$8,163,077
55$12,505,802$5,444,889$4,211,711$8,778,549
56$13,737,666$5,667,960$4,309,074$9,449,273
57$15,093,801$5,900,584$4,408,322$10,180,608
58$16,586,842$6,143,186$4,509,474$10,978,449
59$18,230,708$6,396,210$4,612,549$11,849,278
60$20,040,736$6,660,120$4,717,566$12,800,228
61$22,033,827$6,935,402$4,824,541$13,839,150
62$24,228,606$7,222,565$4,933,491$14,974,677
63$26,645,592$7,522,139$5,044,431$16,216,315
64$29,307,400$7,834,682$5,157,377$17,574,522
65$32,238,947$8,160,773$5,272,341$19,060,809
66$35,467,690$8,501,022$5,389,336$20,687,846
67$39,023,888$8,856,065$5,508,371$22,469,579
68$42,940,879$9,226,567$5,629,457$24,421,361
69$47,255,406$9,613,226$5,752,600$26,560,092
70$52,007,953$10,016,769$5,877,808$28,904,380
71$57,243,133$10,437,959$6,005,083$31,474,710
72$63,010,108$10,877,595$6,134,429$34,293,639
73$69,363,052$11,336,510$6,265,845$37,386,002
74$76,361,662$11,815,578$6,399,330$40,779,148
75$84,071,724$12,315,714$6,534,880$44,503,191
76$92,565,728$12,837,873$6,672,487$48,591,295
77$101,923,560$13,383,056$6,812,143$53,079,983
78$112,233,249$13,952,312$6,953,836$58,009,476
79$123,591,801$14,546,735$7,097,550$63,424,073
80$136,106,114$15,167,475$7,243,267$69,372,563
81$149,893,988$15,815,731$7,390,966$75,908,682
82$165,085,233$16,492,760$7,540,623$83,091,618
83$181,822,901$17,199,880$7,692,207$90,986,564
84$200,264,628$17,938,465$7,845,688$99,665,332
85$220,584,129$18,709,959$8,001,027$109,207,021
86$242,972,833$19,515,870$8,158,184$119,698,766
87$267,641,692$20,357,777$8,317,114$131,236,549
88$294,823,173$21,237,336$8,477,765$143,926,105
89$324,773,448$22,156,277$8,640,081$157,883,914
90$357,774,818$23,116,413$8,804,002$173,238,293
91$394,138,373$24,119,641$8,969,461$190,130,602
92$434,206,933$25,167,950$9,136,383$208,716,575
93$478,358,279$26,263,418$9,304,691$229,167,783
94$527,008,723$27,408,225$9,474,298$251,673,243
95$580,617,036$28,604,651$9,645,110$276,441,202
96$639,688,780$29,855,086$9,817,027$303,701,092
97$704,781,079$31,162,028$9,989,941$333,705,688
98$776,507,880$32,528,098$10,163,735$366,733,489
99$855,545,747$33,956,039$10,338,284$403,091,337
100$942,640,250$35,448,721$10,513,453$443,117,305