Can I retire at age 68 with 2,540,000?

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 $2,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$209,751$207,882$206,060$204,280$202,543$200,012
2 years$103,837$101,903$100,029$98,212$96,449$93,902
3 years$68,537$66,595$64,725$62,925$61,191$58,708
4 years$50,891$48,954$47,103$45,334$43,642$41,241
5 years$40,305$38,381$36,554$34,821$33,176$30,865
6 years$33,251$31,341$29,541$27,847$26,251$24,032
7 years$28,214$26,320$24,549$22,894$21,349$19,223
8 years$24,438$22,561$20,819$19,205$17,711$15,678
9 years$21,503$19,643$17,932$16,359$14,915$12,975
10 years$19,156$17,315$15,633$14,101$12,709$10,859
11 years$17,237$15,414$13,763$12,272$10,930$9,169
12 years$15,639$13,835$12,215$10,765$9,472$7,798
13 years$14,288$12,503$10,913$9,503$8,259$6,670
14 years$13,131$11,365$9,805$8,436$7,240$5,734
15 years$12,129$10,382$8,853$7,524$6,375$4,949
16 years$11,253$9,525$8,026$6,737$5,634$4,286
17 years$10,481$8,772$7,304$6,053$4,996$3,722
18 years$9,796$8,106$6,667$5,455$4,442$3,240
19 years$9,183$7,513$6,104$4,929$3,959$2,827
20 years$8,633$6,981$5,602$4,464$3,536$2,471
21 years$8,135$6,503$5,152$4,051$3,165$2,163
22 years$7,683$6,070$4,749$3,684$2,837$1,896
23 years$7,272$5,677$4,385$3,355$2,546$1,664
24 years$6,895$5,319$4,055$3,060$2,289$1,462
25 years$6,549$4,992$3,756$2,794$2,059$1,285
26 years$6,229$4,691$3,483$2,555$1,855$1,131
27 years$5,934$4,415$3,235$2,339$1,673$996
28 years$5,661$4,160$3,007$2,143$1,509$877
29 years$5,407$3,925$2,798$1,965$1,363$773
30 years$5,170$3,707$2,606$1,803$1,231$682
31 years$4,949$3,504$2,430$1,656$1,113$602
32 years$4,743$3,315$2,267$1,522$1,007$531
33 years$4,549$3,140$2,117$1,400$911$469
34 years$4,367$2,976$1,978$1,288$825$414
35 years$4,195$2,822$1,849$1,185$747$366
36 years$4,034$2,679$1,730$1,092$677$323
37 years$3,882$2,544$1,619$1,006$614$286
38 years$3,738$2,418$1,516$927$556$252
39 years$3,602$2,299$1,421$855$505$223
40 years$3,473$2,188$1,331$789$458$197
41 years$3,350$2,082$1,248$728$415$174
42 years$3,234$1,983$1,171$671$377$154
43 years$3,123$1,890$1,099$620$342$136
44 years$3,018$1,801$1,032$572$310$121
45 years$2,918$1,718$969$529$282$107
46 years$2,822$1,639$910$488$256$94
47 years$2,731$1,564$855$451$232$84
48 years$2,643$1,493$803$417$211$74
49 years$2,560$1,425$755$385$192$65
50 years$2,480$1,362$710$356$174$58

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 68 starting with $2,540,000, adding $4,420 every year, while hoping to spend $49,705 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: 56/31/13 Blend
67$2,540,000$2,540,000$2,540,000$2,540,000
68$2,803,639$2,669,019$2,629,649$2,951,077
69$3,036,725$2,746,915$2,664,857$3,129,384
70$3,291,919$2,826,963$2,699,578$3,317,693
71$3,571,425$2,909,214$2,733,744$3,521,651
72$3,877,668$2,993,723$2,767,282$3,742,763
73$4,213,319$3,080,544$2,800,115$3,982,685
74$4,581,320$3,169,734$2,832,162$4,243,240
75$4,984,913$3,261,349$2,863,337$4,526,435
76$5,427,665$3,355,446$2,893,550$4,834,479
77$5,913,509$3,452,085$2,922,705$5,169,804
78$6,446,773$3,551,323$2,950,702$5,535,089
79$7,032,228$3,653,222$2,977,435$5,933,282
80$7,675,128$3,757,843$3,002,792$6,367,631
81$8,381,260$3,865,246$3,026,654$6,841,711
82$9,157,001$3,975,496$3,048,900$7,359,462
83$10,009,374$4,088,654$3,069,397$7,925,222
84$10,946,117$4,204,785$3,088,009$8,543,768
85$11,975,756$4,323,955$3,104,592$9,220,362
86$13,107,682$4,446,227$3,118,994$9,960,803
87$14,352,241$4,571,668$3,131,057$10,771,475
88$15,720,835$4,700,344$3,140,612$11,659,412
89$17,226,021$4,832,323$3,147,484$12,632,365
90$18,881,639$4,967,670$3,151,488$13,698,869
91$20,702,935$5,106,455$3,152,432$14,868,330
92$22,706,708$5,248,744$3,150,111$16,151,110
93$24,911,465$5,394,606$3,144,313$17,558,624
94$27,337,601$5,544,108$3,134,814$19,103,450
95$30,007,585$5,697,318$3,121,379$20,799,445
96$32,946,176$5,854,304$3,103,763$22,661,879
97$36,180,655$6,015,134$3,081,708$24,707,573
98$39,741,081$6,179,875$3,054,945$26,955,063
99$43,660,576$6,348,593$3,023,189$29,424,775
100$47,975,635$6,521,354$2,986,146$32,139,211