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%15%
1 years$454,185$450,139$446,192$442,340$438,578$429,547
2 years$224,844$220,656$216,598$212,663$208,847$199,789
3 years$148,407$144,201$140,153$136,255$132,501$123,700
4 years$110,196$106,003$101,996$98,164$94,501$86,023
5 years$87,275$83,108$79,153$75,400$71,838$63,708
6 years$72,000$67,864$63,967$60,298$56,843$49,070
7 years$61,093$56,992$53,157$49,574$46,229$38,814
8 years$52,917$48,853$45,081$41,586$38,351$31,293
9 years$46,561$42,535$38,829$35,422$32,297$25,590
10 years$41,479$37,493$33,852$30,534$27,519$21,156
11 years$37,324$33,377$29,802$26,574$23,667$17,641
12 years$33,864$29,958$26,449$23,309$20,509$14,811
13 years$30,938$27,073$23,630$20,578$17,885$12,504
14 years$28,433$24,609$21,232$18,267$15,677$10,605
15 years$26,263$22,480$19,170$16,291$13,804$9,028
16 years$24,367$20,625$17,380$14,587$12,200$7,709
17 years$22,696$18,995$15,815$13,106$10,817$6,601
18 years$21,211$17,552$14,437$11,811$9,618$5,664
19 years$19,885$16,267$13,217$10,673$8,573$4,869
20 years$18,693$15,116$12,130$9,666$7,657$4,193
21 years$17,615$14,080$11,157$8,773$6,853$3,615
22 years$16,637$13,144$10,283$7,976$6,142$3,121
23 years$15,746$12,293$9,494$7,264$5,514$2,697
24 years$14,930$11,518$8,781$6,625$4,956$2,332
25 years$14,180$10,809$8,133$6,051$4,459$2,019
26 years$13,489$10,158$7,543$5,532$4,017$1,748
27 years$12,850$9,560$7,004$5,064$3,622$1,515
28 years$12,258$9,009$6,511$4,640$3,268$1,313
29 years$11,708$8,499$6,059$4,255$2,951$1,139
30 years$11,196$8,026$5,644$3,905$2,666$988
31 years$10,717$7,587$5,262$3,586$2,411$857
32 years$10,269$7,179$4,909$3,296$2,180$744
33 years$9,850$6,799$4,584$3,031$1,973$646
34 years$9,456$6,444$4,283$2,789$1,787$561
35 years$9,085$6,112$4,004$2,567$1,618$487
36 years$8,735$5,801$3,746$2,364$1,466$423
37 years$8,405$5,510$3,506$2,178$1,329$368
38 years$8,094$5,236$3,283$2,008$1,205$320
39 years$7,799$4,979$3,076$1,851$1,092$278
40 years$7,519$4,737$2,883$1,708$991$241
41 years$7,254$4,509$2,703$1,575$899$210
42 years$7,002$4,294$2,536$1,454$816$182
43 years$6,763$4,092$2,380$1,342$740$159
44 years$6,535$3,900$2,234$1,239$672$138
45 years$6,318$3,719$2,097$1,144$610$120
46 years$6,110$3,548$1,970$1,057$554$104
47 years$5,913$3,386$1,851$977$503$91
48 years$5,724$3,232$1,739$902$457$79
49 years$5,543$3,087$1,635$834$415$68
50 years$5,370$2,949$1,537$771$377$60

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 $6,229 every year, while hoping to spend $52,074 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: 64/26/10 Blend
39$5,500,000$5,500,000$5,500,000$5,500,000
40$6,067,425$5,775,925$5,690,675$6,442,168
41$6,630,896$6,003,539$5,825,907$6,920,660
42$7,250,096$6,240,561$5,963,923$7,436,420
43$7,930,654$6,487,397$6,104,762$7,998,428
44$8,678,772$6,744,470$6,248,463$8,611,178
45$9,501,282$7,012,225$6,395,062$9,279,612
46$10,405,713$7,291,124$6,544,596$10,009,171
47$11,400,357$7,581,650$6,697,102$10,805,839
48$12,494,353$7,884,311$6,852,615$11,676,203
49$13,697,768$8,199,633$7,011,168$12,627,512
50$15,021,695$8,528,169$7,172,797$13,667,742
51$16,478,354$8,870,497$7,337,532$14,805,675
52$18,081,214$9,227,218$7,505,407$16,050,975
53$19,845,110$9,598,964$7,676,450$17,414,283
54$21,786,391$9,986,393$7,850,691$18,907,311
55$23,923,071$10,390,194$8,028,157$20,542,955
56$26,274,998$10,811,088$8,208,874$22,335,413
57$28,864,042$11,249,825$8,392,866$24,300,317
58$31,714,302$11,707,195$8,580,155$26,454,881
59$34,852,332$12,184,018$8,770,761$28,818,059
60$38,307,391$12,681,156$8,964,702$31,410,724
61$42,111,719$13,199,507$9,161,995$34,255,862
62$46,300,844$13,740,013$9,362,651$37,378,788
63$50,913,912$14,303,655$9,566,682$40,807,379
64$55,994,060$14,891,463$9,774,094$44,572,341
65$61,588,821$15,504,512$9,984,893$48,707,494
66$67,750,574$16,143,926$10,199,081$53,250,084
67$74,537,036$16,810,882$10,416,653$58,241,140
68$82,011,808$17,506,610$10,637,606$63,725,853
69$90,244,975$18,232,396$10,861,928$69,754,004
70$99,313,766$18,989,587$11,089,606$76,380,426
71$109,303,283$19,779,589$11,320,620$83,665,522
72$120,307,305$20,603,877$11,554,949$91,675,833
73$132,429,173$21,463,990$11,792,562$100,484,660
74$145,782,763$22,361,539$12,033,427$110,172,754
75$160,493,562$23,298,212$12,277,505$120,829,075
76$176,699,853$24,275,772$12,524,749$132,551,628
77$194,554,018$25,296,065$12,775,108$145,448,384
78$214,223,978$26,361,022$13,028,523$159,638,293
79$235,894,775$27,472,663$13,284,930$175,252,409
80$259,770,321$28,633,103$13,544,255$192,435,116
81$286,075,324$29,844,555$13,806,417$211,345,489
82$315,057,402$31,109,333$14,071,327$232,158,794
83$346,989,427$32,429,861$14,338,887$255,068,133
84$382,172,099$33,808,674$14,608,989$280,286,262
85$420,936,780$35,248,426$14,881,517$308,047,599
86$463,648,626$36,751,894$15,156,344$338,610,426
87$510,710,035$38,321,985$15,433,330$372,259,323
88$562,564,439$39,961,743$15,712,326$409,307,850
89$619,700,494$41,674,351$15,993,172$450,101,499
90$682,656,693$43,463,142$16,275,692$495,020,950
91$752,026,447$45,331,608$16,559,699$544,485,656
92$828,463,687$47,283,399$16,844,991$598,957,799
93$912,689,038$49,322,340$17,131,353$658,946,641
94$1,005,496,619$51,452,434$17,418,553$725,013,328
95$1,107,761,542$53,677,871$17,706,342$797,776,177
96$1,220,448,172$56,003,040$17,994,457$877,916,505
97$1,344,619,229$58,432,533$18,282,616$966,185,051
98$1,481,445,823$60,971,159$18,570,515$1,063,409,057
99$1,632,218,505$63,623,954$18,857,836$1,170,500,064
100$1,798,359,455$66,396,190$19,144,235$1,288,462,510