Can I retire at age 56 with 1,040,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%13.5%
1 years$85,882$85,117$84,371$83,642$82,931$81,725
2 years$42,516$41,724$40,957$40,213$39,491$38,279
3 years$28,062$27,267$26,502$25,765$25,055$23,874
4 years$20,837$20,044$19,286$18,562$17,869$16,729
5 years$16,503$15,715$14,967$14,257$13,584$12,487
6 years$13,615$12,832$12,096$11,402$10,748$9,696
7 years$11,552$10,777$10,052$9,374$8,741$7,735
8 years$10,006$9,238$8,524$7,864$7,252$6,290
9 years$8,804$8,043$7,342$6,698$6,107$5,190
10 years$7,843$7,089$6,401$5,774$5,204$4,330
11 years$7,058$6,311$5,635$5,025$4,475$3,645
12 years$6,403$5,665$5,001$4,408$3,878$3,090
13 years$5,850$5,119$4,468$3,891$3,382$2,635
14 years$5,376$4,653$4,015$3,454$2,964$2,257
15 years$4,966$4,251$3,625$3,081$2,610$1,942
16 years$4,608$3,900$3,286$2,758$2,307$1,676
17 years$4,292$3,592$2,991$2,478$2,045$1,450
18 years$4,011$3,319$2,730$2,233$1,819$1,258
19 years$3,760$3,076$2,499$2,018$1,621$1,093
20 years$3,535$2,858$2,294$1,828$1,448$952
21 years$3,331$2,662$2,110$1,659$1,296$830
22 years$3,146$2,485$1,944$1,508$1,161$725
23 years$2,977$2,324$1,795$1,374$1,043$634
24 years$2,823$2,178$1,660$1,253$937$555
25 years$2,681$2,044$1,538$1,144$843$486
26 years$2,551$1,921$1,426$1,046$760$426
27 years$2,430$1,808$1,324$958$685$373
28 years$2,318$1,703$1,231$877$618$328
29 years$2,214$1,607$1,146$805$558$288
30 years$2,117$1,518$1,067$738$504$253
31 years$2,027$1,435$995$678$456$222
32 years$1,942$1,357$928$623$412$195
33 years$1,862$1,286$867$573$373$172
34 years$1,788$1,218$810$527$338$151
35 years$1,718$1,156$757$485$306$133
36 years$1,652$1,097$708$447$277$117
37 years$1,589$1,042$663$412$251$103
38 years$1,530$990$621$380$228$90
39 years$1,475$941$582$350$207$80
40 years$1,422$896$545$323$187$70
41 years$1,372$853$511$298$170$62
42 years$1,324$812$480$275$154$54
43 years$1,279$774$450$254$140$48
44 years$1,236$738$422$234$127$42
45 years$1,195$703$397$216$115$37
46 years$1,155$671$372$200$105$33
47 years$1,118$640$350$185$95$29
48 years$1,082$611$329$171$86$25
49 years$1,048$584$309$158$78$22
50 years$1,015$558$291$146$71$20

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,040,000, adding $5,497 every year, while hoping to spend $51,469 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: 52/33/15 Blend
55$1,040,000$1,040,000$1,040,000$1,040,000
56$1,151,750$1,096,630$1,080,510$1,206,705
57$1,214,466$1,095,602$1,061,945$1,243,896
58$1,281,854$1,092,799$1,041,032$1,278,427
59$1,354,336$1,088,079$1,017,640$1,314,834
60$1,432,376$1,081,293$991,628$1,353,309
61$1,516,483$1,072,281$962,852$1,394,065
62$1,607,215$1,060,874$931,159$1,437,342
63$1,705,188$1,046,894$896,390$1,483,404
64$1,811,077$1,030,151$858,379$1,532,548
65$1,925,623$1,010,444$816,950$1,585,102
66$2,049,642$987,561$771,923$1,641,432
67$2,184,030$961,277$723,107$1,701,945
68$2,329,773$931,352$670,304$1,767,091
69$2,487,956$897,534$613,305$1,837,374
70$2,659,771$859,557$551,894$1,913,350
71$2,846,530$817,137$485,845$1,995,637
72$3,049,674$769,975$414,919$2,084,924
73$3,270,793$717,756$338,871$2,181,972
74$3,511,633$660,144$257,442$2,287,626
75$3,774,115$596,787$170,362$2,402,824
76$4,060,356$527,311$77,350$2,528,605
77$4,372,684$451,321$0$2,666,123
78$4,713,662$368,400$0$2,820,160
79$5,086,111$278,107$0$3,002,064
80$5,493,136$179,977$0$3,201,060
81$5,938,159$73,518$0$3,418,939
82$6,424,942$0$0$3,657,676
83$6,957,631$0$0$3,934,632
84$7,540,791$0$0$4,267,157
85$8,179,448$0$0$4,631,431
86$8,879,137$0$0$5,030,626
87$9,645,954$0$0$5,468,232
88$10,486,613$0$0$5,948,096
89$11,408,507$0$0$6,474,451
90$12,419,780$0$0$7,051,965
91$13,529,403$0$0$7,685,773
92$14,747,256$0$0$8,381,537
93$16,084,222$0$0$9,145,492
94$17,552,290$0$0$9,984,504
95$19,164,666$0$0$10,906,140
96$20,935,900$0$0$11,918,734
97$22,882,017$0$0$13,031,468
98$25,020,673$0$0$14,254,457
99$27,371,320$0$0$15,598,845
100$29,955,387$0$0$17,076,910