Can I retire at age 40 with 2,890,000?

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 $2,890,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.7%
1 years$238,653$236,528$234,454$232,429$230,453$226,915
2 years$118,145$115,945$113,812$111,745$109,739$106,184
3 years$77,981$75,771$73,644$71,596$69,623$66,160
4 years$57,903$55,700$53,594$51,581$49,656$46,313
5 years$45,859$43,669$41,591$39,619$37,748$34,533
6 years$37,833$35,659$33,612$31,684$29,868$26,787
7 years$32,102$29,947$27,932$26,049$24,291$21,343
8 years$27,805$25,670$23,688$21,852$20,152$17,337
9 years$24,466$22,350$20,403$18,613$16,971$14,288
10 years$21,795$19,701$17,788$16,044$14,460$11,907
11 years$19,612$17,538$15,660$13,964$12,436$10,010
12 years$17,794$15,741$13,898$12,248$10,777$8,475
13 years$16,257$14,226$12,417$10,813$9,398$7,217
14 years$14,940$12,931$11,156$9,599$8,238$6,175
15 years$13,800$11,812$10,073$8,560$7,253$5,304
16 years$12,804$10,838$9,132$7,665$6,410$4,571
17 years$11,925$9,981$8,310$6,887$5,684$3,950
18 years$11,146$9,223$7,586$6,206$5,054$3,422
19 years$10,449$8,548$6,945$5,608$4,505$2,970
20 years$9,822$7,943$6,374$5,079$4,024$2,582
21 years$9,256$7,399$5,862$4,610$3,601$2,249
22 years$8,742$6,906$5,403$4,191$3,228$1,961
23 years$8,274$6,459$4,989$3,817$2,897$1,711
24 years$7,845$6,052$4,614$3,481$2,604$1,495
25 years$7,451$5,679$4,273$3,179$2,343$1,308
26 years$7,088$5,338$3,963$2,907$2,111$1,144
27 years$6,752$5,024$3,680$2,661$1,903$1,002
28 years$6,441$4,734$3,421$2,438$1,717$878
29 years$6,152$4,466$3,184$2,236$1,551$769
30 years$5,883$4,217$2,966$2,052$1,401$675
31 years$5,631$3,987$2,765$1,884$1,267$592
32 years$5,396$3,772$2,580$1,732$1,146$519
33 years$5,176$3,572$2,409$1,593$1,037$456
34 years$4,968$3,386$2,250$1,465$939$400
35 years$4,774$3,211$2,104$1,349$850$351
36 years$4,590$3,048$1,968$1,242$770$309
37 years$4,417$2,895$1,842$1,145$698$271
38 years$4,253$2,751$1,725$1,055$633$238
39 years$4,098$2,616$1,616$973$574$209
40 years$3,951$2,489$1,515$897$521$184
41 years$3,812$2,369$1,421$828$472$162
42 years$3,679$2,257$1,332$764$429$142
43 years$3,554$2,150$1,250$705$389$125
44 years$3,434$2,049$1,174$651$353$110
45 years$3,320$1,954$1,102$601$321$97
46 years$3,211$1,864$1,035$555$291$85
47 years$3,107$1,779$972$513$264$75
48 years$3,007$1,698$914$474$240$66
49 years$2,913$1,622$859$438$218$58
50 years$2,822$1,549$808$405$198$51

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,890,000, adding $5,894 every year, while hoping to spend $34,377 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: 77/8/15 Blend
39$2,890,000$2,890,000$2,890,000$2,890,000
40$3,190,860$3,037,690$2,992,895$3,425,937
41$3,479,750$3,149,960$3,056,580$3,694,098
42$3,796,956$3,266,579$3,121,246$3,983,172
43$4,145,328$3,387,723$3,186,890$4,299,227
44$4,528,008$3,513,578$3,253,508$4,644,942
45$4,948,457$3,644,336$3,321,092$5,023,271
46$5,410,487$3,780,196$3,389,637$5,437,464
47$5,918,299$3,921,368$3,459,132$5,891,101
48$6,476,520$4,068,070$3,529,567$6,388,126
49$7,090,248$4,220,528$3,600,931$6,932,881
50$7,765,100$4,378,980$3,673,208$7,530,151
51$8,507,263$4,543,673$3,746,384$8,185,205
52$9,323,556$4,714,865$3,820,440$8,903,847
53$10,221,491$4,892,825$3,895,356$9,692,470
54$11,209,342$5,077,833$3,971,110$10,558,117
55$12,296,231$5,270,183$4,047,678$11,508,548
56$13,492,203$5,470,179$4,125,032$12,552,310
57$14,808,330$5,678,139$4,203,143$13,698,818
58$16,256,809$5,894,398$4,281,978$14,958,446
59$17,851,082$6,119,301$4,361,502$16,342,623
60$19,605,956$6,353,211$4,441,676$17,863,939
61$21,537,751$6,596,506$4,522,459$19,536,266
62$23,664,446$6,849,579$4,603,806$21,374,888
63$26,005,854$7,112,843$4,685,669$23,396,644
64$28,583,807$7,386,728$4,767,994$25,620,086
65$31,422,359$7,671,682$4,850,726$28,065,656
66$34,548,018$7,968,173$4,933,804$30,755,876
67$37,989,993$8,276,690$5,017,163$33,715,561
68$41,780,469$8,597,744$5,100,734$36,972,056
69$45,954,911$8,931,868$5,184,443$40,555,487
70$50,552,401$9,279,618$5,268,211$44,499,050
71$55,616,002$9,641,576$5,351,953$48,839,324
72$61,193,170$10,018,348$5,435,578$53,616,612
73$67,336,194$10,410,569$5,518,992$58,875,324
74$74,102,700$10,818,900$5,602,091$64,664,396
75$81,556,182$11,244,033$5,684,768$71,037,748
76$89,766,612$11,686,691$5,766,908$78,054,798
77$98,811,095$12,147,627$5,848,387$85,781,015
78$108,774,596$12,627,630$5,929,078$94,288,543
79$119,750,744$13,127,523$6,008,841$103,656,877
80$131,842,716$13,648,167$6,087,533$113,973,618
81$145,164,206$14,190,461$6,164,999$125,335,292
82$159,840,505$14,755,343$6,241,076$137,848,266
83$176,009,677$15,343,796$6,315,593$151,629,749
84$193,823,866$15,956,844$6,388,367$166,808,901
85$213,450,730$16,595,559$6,459,207$183,528,046
86$235,075,024$17,261,061$6,527,910$201,944,019
87$258,900,345$17,954,521$6,594,263$222,229,645
88$285,151,050$18,677,162$6,658,041$244,575,368
89$314,074,377$19,430,263$6,719,005$269,191,053
90$345,942,777$20,215,160$6,776,906$296,307,957
91$381,056,489$21,033,251$6,831,480$326,180,921
92$419,746,367$21,885,996$6,882,451$359,090,769
93$462,377,008$22,774,923$6,929,525$395,346,960
94$509,350,196$23,701,627$6,972,397$435,290,510
95$561,108,687$24,667,777$7,010,743$479,297,205
96$618,140,394$25,675,119$7,044,224$527,781,154
97$680,982,991$26,725,477$7,072,483$581,198,694
98$750,228,991$27,820,760$7,095,146$640,052,696
99$826,531,333$28,962,962$7,111,818$704,897,314
100$910,609,552$30,154,170$7,122,087$776,343,213