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%19.8%
1 years$85,882$85,117$84,371$83,642$82,931$79,672
2 years$42,516$41,724$40,957$40,213$39,491$36,248
3 years$28,062$27,267$26,502$25,765$25,055$21,929
4 years$20,837$20,044$19,286$18,562$17,869$14,885
5 years$16,503$15,715$14,967$14,257$13,584$10,749
6 years$13,615$12,832$12,096$11,402$10,748$8,064
7 years$11,552$10,777$10,052$9,374$8,741$6,207
8 years$10,006$9,238$8,524$7,864$7,252$4,865
9 years$8,804$8,043$7,342$6,698$6,107$3,864
10 years$7,843$7,089$6,401$5,774$5,204$3,100
11 years$7,058$6,311$5,635$5,025$4,475$2,506
12 years$6,403$5,665$5,001$4,408$3,878$2,038
13 years$5,850$5,119$4,468$3,891$3,382$1,666
14 years$5,376$4,653$4,015$3,454$2,964$1,367
15 years$4,966$4,251$3,625$3,081$2,610$1,125
16 years$4,608$3,900$3,286$2,758$2,307$928
17 years$4,292$3,592$2,991$2,478$2,045$767
18 years$4,011$3,319$2,730$2,233$1,819$635
19 years$3,760$3,076$2,499$2,018$1,621$527
20 years$3,535$2,858$2,294$1,828$1,448$437
21 years$3,331$2,662$2,110$1,659$1,296$363
22 years$3,146$2,485$1,944$1,508$1,161$302
23 years$2,977$2,324$1,795$1,374$1,043$251
24 years$2,823$2,178$1,660$1,253$937$209
25 years$2,681$2,044$1,538$1,144$843$174
26 years$2,551$1,921$1,426$1,046$760$145
27 years$2,430$1,808$1,324$958$685$121
28 years$2,318$1,703$1,231$877$618$101
29 years$2,214$1,607$1,146$805$558$84
30 years$2,117$1,518$1,067$738$504$70
31 years$2,027$1,435$995$678$456$59
32 years$1,942$1,357$928$623$412$49
33 years$1,862$1,286$867$573$373$41
34 years$1,788$1,218$810$527$338$34
35 years$1,718$1,156$757$485$306$28
36 years$1,652$1,097$708$447$277$24
37 years$1,589$1,042$663$412$251$20
38 years$1,530$990$621$380$228$16
39 years$1,475$941$582$350$207$14
40 years$1,422$896$545$323$187$11
41 years$1,372$853$511$298$170$10
42 years$1,324$812$480$275$154$8
43 years$1,279$774$450$254$140$7
44 years$1,236$738$422$234$127$6
45 years$1,195$703$397$216$115$5
46 years$1,155$671$372$200$105$4
47 years$1,118$640$350$185$95$3
48 years$1,082$611$329$171$86$3
49 years$1,048$584$309$158$78$2
50 years$1,015$558$291$146$71$2

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 $2,685 every year, while hoping to spend $35,188 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: 43/39/18 Blend
54$1,040,000$1,040,000$1,040,000$1,040,000
55$1,148,850$1,093,730$1,077,610$1,192,126
56$1,228,592$1,109,883$1,076,270$1,239,047
57$1,315,290$1,125,648$1,073,706$1,286,183
58$1,409,614$1,140,969$1,069,839$1,336,512
59$1,512,304$1,155,786$1,064,588$1,390,344
60$1,624,174$1,170,035$1,057,867$1,448,024
61$1,746,120$1,183,646$1,049,586$1,509,929
62$1,879,127$1,196,548$1,039,650$1,576,481
63$2,024,280$1,208,661$1,027,961$1,648,142
64$2,182,774$1,219,903$1,014,414$1,725,426
65$2,355,923$1,230,183$998,903$1,808,899
66$2,545,173$1,239,409$981,313$1,899,187
67$2,752,119$1,247,478$961,525$1,996,981
68$2,978,515$1,254,284$939,415$2,103,047
69$3,226,292$1,259,713$914,854$2,218,228
70$3,497,577$1,263,642$887,705$2,343,458
71$3,794,713$1,265,943$857,826$2,479,768
72$4,120,278$1,266,479$825,068$2,628,295
73$4,477,114$1,265,104$789,276$2,790,298
74$4,868,350$1,261,664$750,286$2,967,166
75$5,297,430$1,255,994$707,929$3,160,433
76$5,768,151$1,247,921$662,028$3,371,793
77$6,284,692$1,237,259$612,395$3,603,118
78$6,851,658$1,223,812$558,838$3,856,472
79$7,474,121$1,207,373$501,154$4,134,137
80$8,157,669$1,187,722$439,130$4,438,631
81$8,908,456$1,164,625$372,546$4,772,735
82$9,733,263$1,137,836$301,170$5,139,517
83$10,639,559$1,107,093$224,762$5,542,365
84$11,635,572$1,072,118$143,070$5,985,018
85$12,730,368$1,032,620$55,830$6,471,603
86$13,933,934$988,287$0$7,006,676
87$15,257,273$938,791$0$7,602,421
88$16,712,509$883,785$0$8,269,134
89$18,312,997$822,903$0$9,002,261
90$20,073,452$755,755$0$9,808,616
91$22,010,089$681,932$0$10,695,713
92$24,140,771$601,000$0$11,671,839
93$26,485,181$512,499$0$12,746,133
94$29,065,005$415,947$0$13,928,673
95$31,904,138$310,832$0$15,230,573
96$35,028,911$196,613$0$16,664,086
97$38,468,332$72,719$0$18,242,727
98$42,254,368$0$0$19,981,395
99$46,422,241$0$0$21,922,893
100$51,010,761$0$0$24,094,855