Can I retire at age 40 with 8,700,000?

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 $8,700,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.7%
1 years$718,438$712,038$705,795$699,701$693,750$688,801
2 years$355,662$349,038$342,619$336,395$330,357$325,366
3 years$234,753$228,100$221,697$215,531$209,592$204,715
4 years$174,310$167,678$161,339$155,278$149,483$144,756
5 years$138,054$131,462$125,205$119,269$113,635$109,072
6 years$113,891$107,348$101,185$95,380$89,915$85,523
7 years$96,638$90,151$84,085$78,417$73,125$68,906
8 years$83,705$77,276$71,311$65,782$60,664$56,618
9 years$73,651$67,283$61,420$56,032$51,088$47,213
10 years$65,612$59,306$53,547$48,300$43,530$39,824
11 years$59,040$52,797$47,142$42,035$37,437$33,898
12 years$53,566$47,388$41,837$36,871$32,442$29,067
13 years$48,939$42,825$37,379$32,551$28,290$25,075
14 years$44,976$38,926$33,585$28,895$24,799$21,740
15 years$41,544$35,560$30,323$25,770$21,835$18,928
16 years$38,544$32,626$27,492$23,074$19,298$16,538
17 years$35,900$30,047$25,017$20,732$17,111$14,495
18 years$33,553$27,765$22,837$18,683$15,214$12,736
19 years$31,454$25,732$20,906$16,882$13,561$11,217
20 years$29,569$23,911$19,187$15,290$12,113$9,897
21 years$27,864$22,273$17,648$13,877$10,839$8,748
22 years$26,317$20,791$16,265$12,617$9,716$7,744
23 years$24,907$19,445$15,018$11,491$8,722$6,864
24 years$23,616$18,219$13,889$10,480$7,839$6,090
25 years$22,430$17,097$12,864$9,571$7,054$5,410
26 years$21,337$16,069$11,931$8,751$6,354$4,809
27 years$20,327$15,123$11,079$8,010$5,729$4,279
28 years$19,390$14,250$10,299$7,339$5,169$3,809
29 years$18,520$13,443$9,584$6,730$4,668$3,394
30 years$17,709$12,696$8,928$6,177$4,217$3,025
31 years$16,953$12,002$8,323$5,673$3,813$2,697
32 years$16,244$11,356$7,765$5,213$3,449$2,406
33 years$15,580$10,754$7,251$4,794$3,121$2,148
34 years$14,957$10,193$6,775$4,411$2,826$1,917
35 years$14,370$9,668$6,334$4,061$2,560$1,712
36 years$13,818$9,176$5,925$3,740$2,319$1,529
37 years$13,296$8,715$5,546$3,446$2,102$1,367
38 years$12,803$8,282$5,193$3,176$1,906$1,221
39 years$12,336$7,876$4,866$2,928$1,728$1,092
40 years$11,894$7,493$4,561$2,701$1,567$976
41 years$11,475$7,133$4,276$2,492$1,422$873
42 years$11,076$6,793$4,011$2,300$1,290$780
43 years$10,697$6,472$3,764$2,123$1,171$698
44 years$10,337$6,169$3,533$1,960$1,063$624
45 years$9,993$5,883$3,318$1,810$965$558
46 years$9,665$5,612$3,116$1,672$876$499
47 years$9,353$5,356$2,927$1,545$796$447
48 years$9,054$5,113$2,751$1,428$723$400
49 years$8,768$4,883$2,586$1,319$656$358
50 years$8,494$4,664$2,431$1,219$596$320

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $8,700,000, adding $4,824 every year, while hoping to spend $37,368 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: 33/50/17 Blend
39$8,700,000$8,700,000$8,700,000$8,700,000
40$9,592,376$9,131,276$8,996,426$9,858,027
41$10,531,039$9,538,949$9,258,047$10,462,028
42$11,564,193$9,965,346$9,527,180$11,108,755
43$12,701,438$10,411,344$9,804,037$11,804,976
44$13,953,348$10,877,864$10,088,836$12,555,059
45$15,331,579$11,365,869$10,381,801$13,363,785
46$16,848,971$11,876,368$10,683,163$14,236,395
47$18,519,676$12,410,419$10,993,158$15,178,631
48$20,359,283$12,969,130$11,312,029$16,196,787
49$22,384,974$13,553,662$11,640,027$17,297,764
50$24,615,681$14,165,231$11,977,407$18,489,129
51$27,072,264$14,805,110$12,324,434$19,779,183
52$29,777,711$15,474,637$12,681,378$21,177,035
53$32,757,351$16,175,208$13,048,518$22,692,678
54$36,039,098$16,908,290$13,426,141$24,337,082
55$39,653,709$17,675,419$13,814,539$26,122,290
56$43,635,076$18,478,204$14,214,016$28,061,524
57$48,020,549$19,318,331$14,624,880$30,169,306
58$52,851,283$20,197,567$15,047,452$32,461,585
59$58,172,630$21,117,764$15,482,057$34,955,883
60$64,034,566$22,080,862$15,929,034$37,671,450
61$70,492,161$23,088,894$16,388,726$40,629,442
62$77,606,102$24,143,990$16,861,489$43,853,107
63$85,443,263$25,248,385$17,347,687$47,368,000
64$94,077,337$26,404,416$17,847,696$51,202,213
65$103,589,530$27,614,538$18,361,899$55,386,632
66$114,069,331$28,881,318$18,890,691$59,955,217
67$125,615,352$30,207,452$19,434,478$64,945,314
68$138,336,262$31,595,761$19,993,677$70,397,996
69$152,351,811$33,049,204$20,568,716$76,358,438
70$167,793,962$34,570,881$21,160,033$82,876,332
71$184,808,133$36,164,041$21,768,082$90,006,346
72$203,554,574$37,832,091$22,393,324$97,808,624
73$224,209,877$39,578,600$23,036,237$106,349,340
74$246,968,642$41,407,308$23,697,308$115,701,313
75$272,045,315$43,322,138$24,377,040$125,944,673
76$299,676,214$45,327,200$25,075,948$137,167,604
77$330,121,757$47,426,802$25,794,560$149,467,165
78$363,668,920$49,625,458$26,533,422$162,950,180
79$400,633,948$51,927,904$27,293,089$177,734,237
80$441,365,338$54,339,099$28,074,136$193,948,772
81$486,247,133$56,864,245$28,877,150$211,736,278
82$535,702,540$59,508,793$29,702,734$231,253,624
83$590,197,933$62,278,457$30,551,509$252,673,518
84$650,247,247$65,179,227$31,424,110$276,186,112
85$716,416,840$68,217,383$32,321,191$302,000,774
86$789,330,828$71,399,505$33,243,422$330,348,043
87$869,676,987$74,732,495$34,191,491$361,481,774
88$958,213,238$78,223,586$35,166,104$395,681,512
89$1,055,774,806$81,880,359$36,167,986$433,255,099
90$1,163,282,105$85,710,765$37,197,882$474,541,553
91$1,281,749,423$89,723,137$38,256,555$519,914,236
92$1,412,294,503$93,926,209$39,344,788$569,784,345
93$1,556,149,091$98,329,141$40,463,387$624,604,764
94$1,714,670,563$102,941,535$41,613,175$684,874,296
95$1,889,354,745$107,773,454$42,795,001$751,142,342
96$2,081,850,029$112,835,454$44,009,734$824,014,045
97$2,293,972,937$118,138,595$45,258,264$904,155,960
98$2,527,725,268$123,694,478$46,541,508$992,302,308
99$2,785,313,001$129,515,263$47,860,404$1,089,261,856
100$3,069,167,114$135,613,699$49,215,915$1,195,925,512