Can I retire at age 40 with 2,960,000?

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 $2,960,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.4%
1 years$244,434$242,257$240,132$238,059$236,035$227,118
2 years$121,007$118,753$116,569$114,451$112,397$103,518
3 years$79,870$77,607$75,428$73,330$71,310$62,746
4 years$59,306$57,049$54,892$52,830$50,859$42,677
5 years$46,970$44,727$42,599$40,579$38,662$30,882
6 years$38,749$36,523$34,426$32,451$30,592$23,220
7 years$32,879$30,672$28,608$26,680$24,879$17,914
8 years$28,479$26,292$24,262$22,381$20,640$14,073
9 years$25,058$22,892$20,897$19,064$17,382$11,205
10 years$22,323$20,178$18,218$16,433$14,810$9,012
11 years$20,087$17,963$16,039$14,302$12,737$7,305
12 years$18,225$16,123$14,234$12,545$11,038$5,958
13 years$16,650$14,570$12,717$11,075$9,625$4,882
14 years$15,302$13,244$11,427$9,831$8,437$4,017
15 years$14,135$12,099$10,317$8,768$7,429$3,315
16 years$13,114$11,100$9,354$7,850$6,566$2,743
17 years$12,214$10,223$8,511$7,054$5,822$2,274
18 years$11,416$9,446$7,770$6,357$5,176$1,889
19 years$10,702$8,755$7,113$5,744$4,614$1,571
20 years$10,060$8,135$6,528$5,202$4,121$1,308
21 years$9,480$7,578$6,004$4,721$3,688$1,090
22 years$8,954$7,074$5,534$4,293$3,306$910
23 years$8,474$6,616$5,110$3,909$2,967$759
24 years$8,035$6,199$4,726$3,566$2,667$634
25 years$7,631$5,817$4,377$3,256$2,400$530
26 years$7,260$5,467$4,059$2,977$2,162$443
27 years$6,916$5,145$3,769$2,725$1,949$370
28 years$6,597$4,848$3,504$2,497$1,759$310
29 years$6,301$4,574$3,261$2,290$1,588$259
30 years$6,025$4,319$3,037$2,101$1,435$217
31 years$5,768$4,083$2,832$1,930$1,297$181
32 years$5,527$3,864$2,642$1,774$1,173$152
33 years$5,301$3,659$2,467$1,631$1,062$127
34 years$5,089$3,468$2,305$1,501$962$106
35 years$4,889$3,289$2,155$1,382$871$89
36 years$4,701$3,122$2,016$1,272$789$75
37 years$4,524$2,965$1,887$1,172$715$62
38 years$4,356$2,818$1,767$1,081$648$52
39 years$4,197$2,680$1,655$996$588$44
40 years$4,047$2,549$1,552$919$533$37
41 years$3,904$2,427$1,455$848$484$31
42 years$3,769$2,311$1,365$782$439$26
43 years$3,640$2,202$1,281$722$398$22
44 years$3,517$2,099$1,202$667$362$18
45 years$3,400$2,002$1,129$616$328$15
46 years$3,288$1,909$1,060$569$298$13
47 years$3,182$1,822$996$526$271$11
48 years$3,080$1,740$936$486$246$9
49 years$2,983$1,661$880$449$223$7
50 years$2,890$1,587$827$415$203$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,960,000, adding $5,559 every year, while hoping to spend $43,944 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: 74/21/5 Blend
39$2,960,000$2,960,000$2,960,000$2,960,000
40$3,267,654$3,110,774$3,064,894$3,507,856
41$3,554,199$3,216,446$3,120,812$3,772,285
42$3,868,498$3,325,823$3,177,130$4,055,724
43$4,213,337$3,439,040$3,233,816$4,364,936
44$4,591,782$3,556,238$3,290,834$4,702,451
45$5,007,212$3,677,562$3,348,145$5,071,056
46$5,463,349$3,803,164$3,405,709$5,473,815
47$5,964,292$3,933,200$3,463,481$5,914,105
48$6,514,557$4,067,834$3,521,415$6,395,643
49$7,119,119$4,207,235$3,579,460$6,922,519
50$7,783,458$4,351,579$3,637,561$7,499,240
51$8,513,614$4,501,049$3,695,662$8,130,766
52$9,316,237$4,655,835$3,753,701$8,822,562
53$10,198,655$4,816,133$3,811,613$9,580,643
54$11,168,944$4,982,150$3,869,328$10,411,635
55$12,235,998$5,154,096$3,926,772$11,322,835
56$13,409,618$5,332,195$3,983,867$12,322,281
57$14,700,601$5,516,675$4,040,529$13,418,825
58$16,120,846$5,707,776$4,096,670$14,622,216
59$17,683,461$5,905,746$4,152,197$15,943,196
60$19,402,888$6,110,841$4,207,010$17,393,592
61$21,295,042$6,323,332$4,261,004$18,986,438
62$23,377,457$6,543,496$4,314,069$20,736,087
63$25,669,454$6,771,623$4,366,086$22,658,354
64$28,192,320$7,008,015$4,416,932$24,770,658
65$30,969,513$7,252,984$4,466,475$27,092,190
66$34,026,880$7,506,856$4,514,578$29,644,094
67$37,392,899$7,769,970$4,561,094$32,449,660
68$41,098,954$8,042,678$4,605,870$35,534,551
69$45,179,624$8,325,345$4,648,743$38,927,037
70$49,673,013$8,618,354$4,689,543$42,658,268
71$54,621,106$8,922,100$4,728,089$46,762,560
72$60,070,171$9,236,994$4,764,192$51,277,724
73$66,071,188$9,563,467$4,797,652$56,245,418
74$72,680,336$9,901,963$4,828,260$61,711,542
75$79,959,518$10,252,947$4,855,795$67,726,669
76$87,976,949$10,616,902$4,880,024$74,346,520
77$96,807,797$10,994,329$4,900,704$81,632,494
78$106,534,893$11,385,753$4,917,578$89,652,238
79$117,249,513$11,791,716$4,930,378$98,480,294
80$129,052,239$12,212,785$4,938,821$108,198,792
81$142,053,905$12,649,549$4,942,610$118,898,234
82$156,376,649$13,102,623$4,941,433$130,678,337
83$172,155,061$13,572,645$4,934,964$143,648,982
84$189,537,452$14,060,279$4,922,861$157,931,244
85$208,687,258$14,566,219$4,904,762$173,658,535
86$229,784,579$15,091,185$4,880,293$190,977,863
87$253,027,881$15,635,927$4,849,057$210,051,218
88$278,635,865$16,201,229$4,810,642$231,057,098
89$306,849,537$16,787,902$4,764,612$254,192,196
90$337,934,477$17,396,797$4,710,513$279,673,252
91$372,183,349$18,028,795$4,647,871$307,739,097
92$409,918,662$18,684,817$4,576,186$338,652,908
93$451,495,814$19,365,822$4,494,937$372,704,690
94$497,306,448$20,072,807$4,403,577$410,214,012
95$547,782,144$20,806,814$4,301,536$451,533,021
96$603,398,501$21,568,926$4,188,215$497,049,765
97$664,679,617$22,360,272$4,062,990$547,191,853
98$732,203,043$23,182,031$3,925,205$602,430,493
99$806,605,231$24,035,427$3,774,176$663,284,934
100$888,587,542$24,921,741$3,609,189$730,327,367