Can I retire at age 54 with 1,200,000?

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 $1,200,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.6%
1 years$99,095$98,212$97,351$96,510$95,690$92,738
2 years$49,057$48,143$47,258$46,399$45,567$42,619
3 years$32,380$31,462$30,579$29,728$28,909$26,057
4 years$24,043$23,128$22,254$21,418$20,618$17,885
5 years$19,042$18,133$17,270$16,451$15,674$13,065
6 years$15,709$14,807$13,956$13,156$12,402$9,921
7 years$13,329$12,435$11,598$10,816$10,086$7,733
8 years$11,546$10,659$9,836$9,073$8,367$6,140
9 years$10,159$9,280$8,472$7,729$7,047$4,943
10 years$9,050$8,180$7,386$6,662$6,004$4,021
11 years$8,143$7,282$6,502$5,798$5,164$3,298
12 years$7,388$6,536$5,771$5,086$4,475$2,722
13 years$6,750$5,907$5,156$4,490$3,902$2,258
14 years$6,204$5,369$4,632$3,986$3,421$1,881
15 years$5,730$4,905$4,182$3,554$3,012$1,573
16 years$5,316$4,500$3,792$3,183$2,662$1,318
17 years$4,952$4,144$3,451$2,860$2,360$1,108
18 years$4,628$3,830$3,150$2,577$2,098$932
19 years$4,339$3,549$2,884$2,329$1,870$786
20 years$4,078$3,298$2,646$2,109$1,671$664
21 years$3,843$3,072$2,434$1,914$1,495$561
22 years$3,630$2,868$2,244$1,740$1,340$475
23 years$3,435$2,682$2,071$1,585$1,203$402
24 years$3,257$2,513$1,916$1,446$1,081$340
25 years$3,094$2,358$1,774$1,320$973$289
26 years$2,943$2,216$1,646$1,207$876$245
27 years$2,804$2,086$1,528$1,105$790$208
28 years$2,675$1,966$1,421$1,012$713$176
29 years$2,555$1,854$1,322$928$644$150
30 years$2,443$1,751$1,231$852$582$127
31 years$2,338$1,655$1,148$782$526$108
32 years$2,241$1,566$1,071$719$476$92
33 years$2,149$1,483$1,000$661$431$78
34 years$2,063$1,406$934$608$390$66
35 years$1,982$1,333$874$560$353$56
36 years$1,906$1,266$817$516$320$48
37 years$1,834$1,202$765$475$290$41
38 years$1,766$1,142$716$438$263$35
39 years$1,702$1,086$671$404$238$29
40 years$1,641$1,034$629$373$216$25
41 years$1,583$984$590$344$196$21
42 years$1,528$937$553$317$178$18
43 years$1,476$893$519$293$162$15
44 years$1,426$851$487$270$147$13
45 years$1,378$811$458$250$133$11
46 years$1,333$774$430$231$121$9
47 years$1,290$739$404$213$110$8
48 years$1,249$705$379$197$100$7
49 years$1,209$673$357$182$91$6
50 years$1,172$643$335$168$82$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 54 starting with $1,200,000, adding $2,873 every year, while hoping to spend $45,231 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: 55/31/14 Blend
53$1,200,000$1,200,000$1,200,000$1,200,000
54$1,325,363$1,261,763$1,243,163$1,393,264
55$1,412,425$1,275,464$1,236,684$1,453,432
56$1,506,851$1,288,321$1,228,472$1,513,771
57$1,609,345$1,300,243$1,218,420$1,578,434
58$1,720,680$1,311,137$1,206,419$1,647,843
59$1,841,708$1,320,901$1,192,353$1,722,464
60$1,973,364$1,329,427$1,176,098$1,802,812
61$2,116,679$1,336,601$1,157,529$1,889,456
62$2,272,786$1,342,300$1,136,512$1,983,023
63$2,442,932$1,346,395$1,112,908$2,084,208
64$2,628,490$1,348,748$1,086,570$2,193,777
65$2,830,972$1,349,212$1,057,345$2,312,576
66$3,052,039$1,347,632$1,025,074$2,441,538
67$3,293,523$1,343,842$989,590$2,581,697
68$3,557,439$1,337,666$950,718$2,734,191
69$3,846,005$1,328,920$908,275$2,900,278
70$4,161,665$1,317,404$862,069$3,081,347
71$4,507,108$1,302,910$811,902$3,278,932
72$4,885,297$1,285,217$757,564$3,494,725
73$5,299,493$1,264,087$698,838$3,730,596
74$5,753,287$1,239,274$635,495$3,988,608
75$6,250,635$1,210,511$567,297$4,271,038
76$6,795,894$1,177,520$493,996$4,580,399
77$7,393,862$1,140,006$415,332$4,919,467
78$8,049,823$1,097,653$331,033$5,291,303
79$8,769,599$1,050,132$240,816$5,699,287
80$9,559,601$997,091$144,386$6,147,149
81$10,426,891$938,160$41,434$6,639,004
82$11,379,250$872,945$0$7,179,393
83$12,425,246$801,033$0$7,783,550
84$13,574,322$721,984$0$8,454,050
85$14,836,877$635,335$0$9,190,852
86$16,224,369$540,597$0$10,000,738
87$17,749,420$437,252$0$10,891,193
88$19,425,937$324,753$0$11,870,465
89$21,269,240$202,523$0$12,947,653
90$23,296,208$69,952$0$14,132,788
91$25,525,438$0$0$15,436,934
92$27,977,419$0$0$16,897,394
93$30,674,728$0$0$18,530,351
94$33,642,235$0$0$20,327,017
95$36,907,346$0$0$22,303,999
96$40,500,258$0$0$24,479,598
97$44,454,240$0$0$26,873,977
98$48,805,951$0$0$29,509,352
99$53,595,784$0$0$32,410,204
100$58,868,246$0$0$35,603,506