Can I retire at age 40 with 5,500,000?

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 $5,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$454,185$450,139$446,192$442,340$438,578$435,085
2 years$224,844$220,656$216,598$212,663$208,847$205,325
3 years$148,407$144,201$140,153$136,255$132,501$129,061
4 years$110,196$106,003$101,996$98,164$94,501$91,168
5 years$87,275$83,108$79,153$75,400$71,838$68,623
6 years$72,000$67,864$63,967$60,298$56,843$53,749
7 years$61,093$56,992$53,157$49,574$46,229$43,258
8 years$52,917$48,853$45,081$41,586$38,351$35,503
9 years$46,561$42,535$38,829$35,422$32,297$29,571
10 years$41,479$37,493$33,852$30,534$27,519$24,913
11 years$37,324$33,377$29,802$26,574$23,667$21,180
12 years$33,864$29,958$26,449$23,309$20,509$18,138
13 years$30,938$27,073$23,630$20,578$17,885$15,627
14 years$28,433$24,609$21,232$18,267$15,677$13,531
15 years$26,263$22,480$19,170$16,291$13,804$11,765
16 years$24,367$20,625$17,380$14,587$12,200$10,266
17 years$22,696$18,995$15,815$13,106$10,817$8,985
18 years$21,211$17,552$14,437$11,811$9,618$7,884
19 years$19,885$16,267$13,217$10,673$8,573$6,933
20 years$18,693$15,116$12,130$9,666$7,657$6,109
21 years$17,615$14,080$11,157$8,773$6,853$5,392
22 years$16,637$13,144$10,283$7,976$6,142$4,765
23 years$15,746$12,293$9,494$7,264$5,514$4,217
24 years$14,930$11,518$8,781$6,625$4,956$3,736
25 years$14,180$10,809$8,133$6,051$4,459$3,314
26 years$13,489$10,158$7,543$5,532$4,017$2,941
27 years$12,850$9,560$7,004$5,064$3,622$2,613
28 years$12,258$9,009$6,511$4,640$3,268$2,322
29 years$11,708$8,499$6,059$4,255$2,951$2,066
30 years$11,196$8,026$5,644$3,905$2,666$1,838
31 years$10,717$7,587$5,262$3,586$2,411$1,636
32 years$10,269$7,179$4,909$3,296$2,180$1,458
33 years$9,850$6,799$4,584$3,031$1,973$1,299
34 years$9,456$6,444$4,283$2,789$1,787$1,157
35 years$9,085$6,112$4,004$2,567$1,618$1,032
36 years$8,735$5,801$3,746$2,364$1,466$920
37 years$8,405$5,510$3,506$2,178$1,329$821
38 years$8,094$5,236$3,283$2,008$1,205$732
39 years$7,799$4,979$3,076$1,851$1,092$653
40 years$7,519$4,737$2,883$1,708$991$583
41 years$7,254$4,509$2,703$1,575$899$521
42 years$7,002$4,294$2,536$1,454$816$465
43 years$6,763$4,092$2,380$1,342$740$415
44 years$6,535$3,900$2,234$1,239$672$370
45 years$6,318$3,719$2,097$1,144$610$331
46 years$6,110$3,548$1,970$1,057$554$295
47 years$5,913$3,386$1,851$977$503$264
48 years$5,724$3,232$1,739$902$457$236
49 years$5,543$3,087$1,635$834$415$210
50 years$5,370$2,949$1,537$771$377$188

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $5,500,000, adding $3,378 every year, while hoping to spend $22,310 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: 60/23/17 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,064,484$5,772,984$5,687,734$6,401,719
41$6,659,324$6,032,123$5,854,536$6,888,984
42$7,314,090$6,303,212$6,026,177$7,417,535
43$8,034,870$6,586,812$6,202,798$7,993,631
44$8,828,375$6,883,514$6,384,539$8,621,875
45$9,701,996$7,193,933$6,571,548$9,307,329
46$10,663,880$7,518,716$6,763,976$10,055,562
47$11,723,003$7,858,541$6,961,976$10,872,699
48$12,889,257$8,214,116$7,165,709$11,765,481
49$14,173,538$8,586,186$7,375,338$12,741,321
50$15,587,859$8,975,528$7,591,031$13,808,377
51$17,145,451$9,382,960$7,812,962$14,975,628
52$18,860,899$9,809,336$8,041,307$16,252,952
53$20,750,270$10,255,553$8,276,251$17,651,224
54$22,831,272$10,722,550$8,517,980$19,182,410
55$25,123,417$11,211,310$8,766,688$20,859,684
56$27,648,207$11,722,866$9,022,573$22,697,546
57$30,429,335$12,258,297$9,285,840$24,711,959
58$33,492,910$12,818,736$9,556,698$26,920,496
59$36,867,702$13,405,370$9,835,363$29,342,505
60$40,585,417$14,019,442$10,122,057$31,999,288
61$44,680,990$14,662,256$10,417,007$34,914,299
62$49,192,922$15,335,177$10,720,447$38,113,366
63$54,163,636$16,039,637$11,032,618$41,624,926
64$59,639,884$16,777,136$11,353,768$45,480,298
65$65,673,184$17,549,247$11,684,151$49,713,968
66$72,320,305$18,357,617$12,024,027$54,363,918
67$79,643,810$19,203,974$12,373,665$59,471,977
68$87,712,637$20,090,127$12,733,342$65,084,212
69$96,602,758$21,017,975$13,103,340$71,251,363
70$106,397,888$21,989,505$13,483,951$78,029,315
71$117,190,284$23,006,802$13,875,475$85,479,623
72$129,081,608$24,072,051$14,278,218$93,670,088
73$142,183,892$25,187,541$14,692,498$102,675,392
74$156,620,592$26,355,673$15,118,640$112,577,801
75$172,527,754$27,578,962$15,556,976$123,467,936
76$190,055,300$28,860,047$16,007,849$135,445,620
77$209,368,441$30,201,690$16,471,614$148,620,822
78$230,649,240$31,606,791$16,948,630$163,114,683
79$254,098,324$33,078,385$17,439,271$179,060,656
80$279,936,786$34,619,658$17,943,919$196,605,764
81$308,408,263$36,233,947$18,462,966$215,911,974
82$339,781,247$37,924,751$18,996,816$237,157,728
83$374,351,607$39,695,737$19,545,883$260,539,613
84$412,445,394$41,550,751$20,110,592$286,274,216
85$454,421,910$43,493,823$20,691,383$314,600,156
86$500,677,103$45,529,179$21,288,702$345,780,335
87$551,647,307$47,661,248$21,903,013$380,104,406
88$607,813,358$49,894,675$22,534,790$417,891,501
89$669,705,133$52,234,327$23,184,518$459,493,236
90$737,906,557$54,685,309$23,852,700$505,297,021
91$813,061,108$57,252,971$24,539,847$555,729,705
92$895,877,897$59,942,923$25,246,489$611,261,600
93$987,138,363$62,761,047$25,973,166$672,410,907
94$1,087,703,645$65,713,507$26,720,437$739,748,596
95$1,198,522,717$68,806,769$27,488,871$813,903,790
96$1,320,641,343$72,047,610$28,279,057$895,569,687
97$1,455,211,952$75,443,135$29,091,598$985,510,094
98$1,603,504,517$79,000,794$29,927,112$1,084,566,622
99$1,766,918,544$82,728,399$30,786,236$1,193,666,621
100$1,946,996,282$86,634,138$31,669,622$1,313,831,919