Can I retire at age 55 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$85,882$85,117$84,371$83,642$82,931$82,271
2 years$42,516$41,724$40,957$40,213$39,491$38,825
3 years$28,062$27,267$26,502$25,765$25,055$24,404
4 years$20,837$20,044$19,286$18,562$17,869$17,239
5 years$16,503$15,715$14,967$14,257$13,584$12,976
6 years$13,615$12,832$12,096$11,402$10,748$10,163
7 years$11,552$10,777$10,052$9,374$8,741$8,180
8 years$10,006$9,238$8,524$7,864$7,252$6,713
9 years$8,804$8,043$7,342$6,698$6,107$5,592
10 years$7,843$7,089$6,401$5,774$5,204$4,711
11 years$7,058$6,311$5,635$5,025$4,475$4,005
12 years$6,403$5,665$5,001$4,408$3,878$3,430
13 years$5,850$5,119$4,468$3,891$3,382$2,955
14 years$5,376$4,653$4,015$3,454$2,964$2,559
15 years$4,966$4,251$3,625$3,081$2,610$2,225
16 years$4,608$3,900$3,286$2,758$2,307$1,941
17 years$4,292$3,592$2,991$2,478$2,045$1,699
18 years$4,011$3,319$2,730$2,233$1,819$1,491
19 years$3,760$3,076$2,499$2,018$1,621$1,311
20 years$3,535$2,858$2,294$1,828$1,448$1,155
21 years$3,331$2,662$2,110$1,659$1,296$1,019
22 years$3,146$2,485$1,944$1,508$1,161$901
23 years$2,977$2,324$1,795$1,374$1,043$797
24 years$2,823$2,178$1,660$1,253$937$707
25 years$2,681$2,044$1,538$1,144$843$627
26 years$2,551$1,921$1,426$1,046$760$556
27 years$2,430$1,808$1,324$958$685$494
28 years$2,318$1,703$1,231$877$618$439
29 years$2,214$1,607$1,146$805$558$391
30 years$2,117$1,518$1,067$738$504$348
31 years$2,027$1,435$995$678$456$309
32 years$1,942$1,357$928$623$412$276
33 years$1,862$1,286$867$573$373$246
34 years$1,788$1,218$810$527$338$219
35 years$1,718$1,156$757$485$306$195
36 years$1,652$1,097$708$447$277$174
37 years$1,589$1,042$663$412$251$155
38 years$1,530$990$621$380$228$138
39 years$1,475$941$582$350$207$124
40 years$1,422$896$545$323$187$110
41 years$1,372$853$511$298$170$98
42 years$1,324$812$480$275$154$88
43 years$1,279$774$450$254$140$78
44 years$1,236$738$422$234$127$70
45 years$1,195$703$397$216$115$63
46 years$1,155$671$372$200$105$56
47 years$1,118$640$350$185$95$50
48 years$1,082$611$329$171$86$45
49 years$1,048$584$309$158$78$40
50 years$1,015$558$291$146$71$36

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 55 starting with $1,040,000, adding $5,350 every year, while hoping to spend $56,843 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: 71/20/9 Blend
54$1,040,000$1,040,000$1,040,000$1,040,000
55$1,151,599$1,096,479$1,080,359$1,231,094
56$1,208,581$1,089,725$1,056,070$1,277,628
57$1,269,471$1,080,736$1,029,063$1,321,033
58$1,334,606$1,069,342$999,186$1,366,994
59$1,404,358$1,055,362$966,280$1,415,749
60$1,479,134$1,038,606$930,182$1,467,560
61$1,559,380$1,018,872$890,718$1,522,719
62$1,645,586$995,946$847,706$1,581,548
63$1,738,291$969,603$800,960$1,644,403
64$1,838,085$939,601$750,280$1,711,676
65$1,945,616$905,688$695,460$1,783,805
66$2,061,596$867,594$636,286$1,861,269
67$2,186,809$825,036$572,532$1,944,601
68$2,322,114$777,713$503,962$2,034,388
69$2,468,455$725,307$430,330$2,131,280
70$2,626,872$667,482$351,381$2,235,997
71$2,798,507$603,883$266,846$2,349,332
72$2,984,615$534,133$176,446$2,472,163
73$3,186,577$457,837$79,888$2,605,460
74$3,405,911$374,574$0$2,750,296
75$3,644,288$283,902$0$2,910,078
76$3,903,545$185,352$0$3,092,223
77$4,185,703$78,432$0$3,290,530
78$4,492,988$0$0$3,506,630
79$4,827,846$0$0$3,750,548
80$5,192,972$0$0$4,035,384
81$5,591,331$0$0$4,346,196
82$6,026,185$0$0$4,685,534
83$6,501,128$0$0$5,056,210
84$7,020,113$0$0$5,461,317
85$7,587,495$0$0$5,904,260
86$8,208,066$0$0$6,388,788
87$8,887,105$0$0$6,919,031
88$9,630,423$0$0$7,499,534
89$10,444,420$0$0$8,135,303
90$11,336,143$0$0$8,831,852
91$12,313,353$0$0$9,595,250
92$13,384,598$0$0$10,432,186
93$14,559,291$0$0$11,350,024
94$15,847,801$0$0$12,356,874
95$17,261,548$0$0$13,461,670
96$18,813,111$0$0$14,674,255
97$20,516,346$0$0$16,005,467
98$22,386,517$0$0$17,467,248
99$24,440,436$0$0$19,072,751
100$26,696,626$0$0$20,836,466