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%17.1%
1 years$454,185$450,139$446,192$442,340$438,578$425,904
2 years$224,844$220,656$216,598$212,663$208,847$196,179
3 years$148,407$144,201$140,153$136,255$132,501$120,236
4 years$110,196$106,003$101,996$98,164$94,501$82,733
5 years$87,275$83,108$79,153$75,400$71,838$60,599
6 years$72,000$67,864$63,967$60,298$56,843$46,143
7 years$61,093$56,992$53,157$49,574$46,229$36,068
8 years$52,917$48,853$45,081$41,586$38,351$28,724
9 years$46,561$42,535$38,829$35,422$32,297$23,193
10 years$41,479$37,493$33,852$30,534$27,519$18,926
11 years$37,324$33,377$29,802$26,574$23,667$15,572
12 years$33,864$29,958$26,449$23,309$20,509$12,895
13 years$30,938$27,073$23,630$20,578$17,885$10,734
14 years$28,433$24,609$21,232$18,267$15,677$8,974
15 years$26,263$22,480$19,170$16,291$13,804$7,528
16 years$24,367$20,625$17,380$14,587$12,200$6,333
17 years$22,696$18,995$15,815$13,106$10,817$5,340
18 years$21,211$17,552$14,437$11,811$9,618$4,512
19 years$19,885$16,267$13,217$10,673$8,573$3,819
20 years$18,693$15,116$12,130$9,666$7,657$3,236
21 years$17,615$14,080$11,157$8,773$6,853$2,746
22 years$16,637$13,144$10,283$7,976$6,142$2,332
23 years$15,746$12,293$9,494$7,264$5,514$1,982
24 years$14,930$11,518$8,781$6,625$4,956$1,686
25 years$14,180$10,809$8,133$6,051$4,459$1,435
26 years$13,489$10,158$7,543$5,532$4,017$1,222
27 years$12,850$9,560$7,004$5,064$3,622$1,041
28 years$12,258$9,009$6,511$4,640$3,268$887
29 years$11,708$8,499$6,059$4,255$2,951$756
30 years$11,196$8,026$5,644$3,905$2,666$645
31 years$10,717$7,587$5,262$3,586$2,411$550
32 years$10,269$7,179$4,909$3,296$2,180$469
33 years$9,850$6,799$4,584$3,031$1,973$400
34 years$9,456$6,444$4,283$2,789$1,787$342
35 years$9,085$6,112$4,004$2,567$1,618$291
36 years$8,735$5,801$3,746$2,364$1,466$249
37 years$8,405$5,510$3,506$2,178$1,329$212
38 years$8,094$5,236$3,283$2,008$1,205$181
39 years$7,799$4,979$3,076$1,851$1,092$155
40 years$7,519$4,737$2,883$1,708$991$132
41 years$7,254$4,509$2,703$1,575$899$113
42 years$7,002$4,294$2,536$1,454$816$96
43 years$6,763$4,092$2,380$1,342$740$82
44 years$6,535$3,900$2,234$1,239$672$70
45 years$6,318$3,719$2,097$1,144$610$60
46 years$6,110$3,548$1,970$1,057$554$51
47 years$5,913$3,386$1,851$977$503$44
48 years$5,724$3,232$1,739$902$457$37
49 years$5,543$3,087$1,635$834$415$32
50 years$5,370$2,949$1,537$771$377$27

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 $6,334 every year, while hoping to spend $30,808 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: 74/19/7 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,067,534$5,776,034$5,690,784$6,510,304
41$6,653,642$6,026,280$5,848,645$7,052,987
42$7,298,502$6,287,755$6,010,763$7,642,790
43$8,008,072$6,560,978$6,177,246$8,288,023
44$8,788,920$6,846,490$6,348,208$8,994,158
45$9,648,281$7,144,860$6,523,764$9,767,217
46$10,594,127$7,456,680$6,704,033$10,613,828
47$11,635,245$7,782,573$6,889,134$11,541,289
48$12,781,312$8,123,192$7,079,193$12,557,631
49$14,042,996$8,479,218$7,274,335$13,671,697
50$15,432,048$8,851,366$7,474,692$14,893,224
51$16,961,418$9,240,385$7,680,395$16,232,931
52$18,645,376$9,647,057$7,891,582$17,702,620
53$20,499,645$10,072,204$8,108,391$19,315,287
54$22,541,552$10,516,684$8,330,965$21,085,243
55$24,790,188$10,981,400$8,559,450$23,028,248
56$27,266,590$11,467,292$8,793,995$25,161,655
57$29,993,942$11,975,348$9,034,753$27,504,577
58$32,997,788$12,506,604$9,281,881$30,078,064
59$36,306,276$13,062,142$9,535,538$32,905,297
60$39,950,426$13,643,096$9,795,888$36,011,811
61$43,964,417$14,250,656$10,063,099$39,425,727
62$48,385,916$14,886,066$10,337,341$43,178,022
63$53,256,427$15,550,631$10,618,789$47,302,815
64$58,621,688$16,245,717$10,907,624$51,837,689
65$64,532,097$16,972,755$11,204,027$56,824,042
66$71,043,195$17,733,244$11,508,186$62,307,480
67$78,216,184$18,528,755$11,820,292$68,338,236
68$86,118,504$19,360,934$12,140,541$74,971,651
69$94,824,475$20,231,503$12,469,133$82,268,690
70$104,415,995$21,142,270$12,806,272$90,296,512
71$114,983,311$22,095,127$13,152,168$99,129,106
72$126,625,876$23,092,055$13,507,032$108,847,983
73$139,453,282$24,135,132$13,871,084$119,542,944
74$153,586,297$25,226,534$14,244,546$131,312,924
75$169,158,007$26,368,541$14,627,646$144,266,921
76$186,315,067$27,563,543$15,020,615$158,525,024
77$205,219,090$28,814,043$15,423,692$174,219,541
78$226,048,169$30,122,664$15,837,118$191,496,244
79$248,998,562$31,492,154$16,261,141$210,515,743
80$274,286,540$32,925,394$16,696,014$231,454,995
81$302,150,430$34,425,401$17,141,993$254,508,972
82$332,852,867$35,995,339$17,599,343$279,892,498
83$366,683,270$37,638,521$18,068,332$307,842,267
84$403,960,575$39,358,420$18,549,233$338,619,079
85$445,036,247$41,158,676$19,042,326$372,510,292
86$490,297,597$43,043,103$19,547,895$409,832,530
87$540,171,435$45,015,699$20,066,233$450,934,667
88$595,128,104$47,080,651$20,597,635$496,201,116
89$655,685,917$49,242,349$21,142,402$546,055,448
90$722,416,052$51,505,396$21,700,844$600,964,386
91$795,947,941$53,874,612$22,273,275$661,442,203
92$876,975,215$56,355,052$22,860,013$728,055,572
93$966,262,249$58,952,012$23,461,385$801,428,907
94$1,064,651,381$61,671,042$24,077,724$882,250,246
95$1,173,070,861$64,517,963$24,709,367$971,277,745
96$1,292,543,617$67,498,871$25,356,659$1,069,346,822
97$1,424,196,909$70,620,159$26,019,950$1,177,378,033
98$1,569,272,973$73,888,526$26,699,598$1,296,385,760
99$1,729,140,747$77,310,994$27,395,965$1,427,487,770
100$1,905,308,794$80,894,924$28,109,421$1,571,915,761