Can I retire at age 56 with 1,540,000?

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 $1,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$127,172$126,039$124,934$123,855$122,802$121,773
2 years$62,956$61,784$60,647$59,546$58,477$57,440
3 years$41,554$40,376$39,243$38,152$37,100$36,087
4 years$30,855$29,681$28,559$27,486$26,460$25,479
5 years$24,437$23,270$22,163$21,112$20,115$19,168
6 years$20,160$19,002$17,911$16,883$15,916$15,006
7 years$17,106$15,958$14,884$13,881$12,944$12,070
8 years$14,817$13,679$12,623$11,644$10,738$9,900
9 years$13,037$11,910$10,872$9,918$9,043$8,241
10 years$11,614$10,498$9,478$8,550$7,705$6,939
11 years$10,451$9,346$8,345$7,441$6,627$5,896
12 years$9,482$8,388$7,406$6,527$5,743$5,046
13 years$8,663$7,580$6,617$5,762$5,008$4,345
14 years$7,961$6,890$5,945$5,115$4,390$3,759
15 years$7,354$6,295$5,368$4,562$3,865$3,266
16 years$6,823$5,775$4,866$4,084$3,416$2,848
17 years$6,355$5,319$4,428$3,670$3,029$2,491
18 years$5,939$4,915$4,042$3,307$2,693$2,184
19 years$5,568$4,555$3,701$2,988$2,400$1,920
20 years$5,234$4,233$3,396$2,707$2,144$1,690
21 years$4,932$3,943$3,124$2,456$1,919$1,491
22 years$4,658$3,680$2,879$2,233$1,720$1,316
23 years$4,409$3,442$2,658$2,034$1,544$1,164
24 years$4,180$3,225$2,459$1,855$1,388$1,031
25 years$3,970$3,026$2,277$1,694$1,249$913
26 years$3,777$2,844$2,112$1,549$1,125$810
27 years$3,598$2,677$1,961$1,418$1,014$719
28 years$3,432$2,522$1,823$1,299$915$639
29 years$3,278$2,380$1,697$1,191$826$567
30 years$3,135$2,247$1,580$1,093$747$505
31 years$3,001$2,124$1,473$1,004$675$449
32 years$2,875$2,010$1,375$923$611$399
33 years$2,758$1,904$1,283$849$553$356
34 years$2,648$1,804$1,199$781$500$317
35 years$2,544$1,711$1,121$719$453$282
36 years$2,446$1,624$1,049$662$411$251
37 years$2,354$1,543$982$610$372$224
38 years$2,266$1,466$919$562$337$200
39 years$2,184$1,394$861$518$306$178
40 years$2,105$1,326$807$478$277$159
41 years$2,031$1,263$757$441$252$142
42 years$1,961$1,202$710$407$228$126
43 years$1,894$1,146$666$376$207$113
44 years$1,830$1,092$625$347$188$100
45 years$1,769$1,041$587$320$171$90
46 years$1,711$993$552$296$155$80
47 years$1,656$948$518$273$141$71
48 years$1,603$905$487$253$128$64
49 years$1,552$864$458$234$116$57
50 years$1,504$826$430$216$106$51

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,540,000, adding $6,537 every year, while hoping to spend $30,403 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: 78/6/16 Blend
55$1,540,000$1,540,000$1,540,000$1,540,000
56$1,703,823$1,622,203$1,598,333$1,830,347
57$1,845,264$1,669,342$1,619,529$1,961,831
58$2,000,114$1,717,773$1,640,415$2,101,525
59$2,169,707$1,767,525$1,660,950$2,253,920
60$2,355,514$1,818,631$1,681,090$2,420,274
61$2,559,155$1,871,122$1,700,785$2,601,975
62$2,782,414$1,925,033$1,719,986$2,800,550
63$3,027,256$1,980,395$1,738,641$3,017,679
64$3,295,844$2,037,242$1,756,694$3,255,218
65$3,590,562$2,095,609$1,774,085$3,515,207
66$3,914,036$2,155,530$1,790,753$3,799,894
67$4,269,156$2,217,040$1,806,632$4,111,757
68$4,659,110$2,280,174$1,821,654$4,453,525
69$5,087,405$2,344,969$1,835,745$4,828,205
70$5,557,908$2,411,460$1,848,831$5,239,109
71$6,074,878$2,479,684$1,860,829$5,689,887
72$6,643,005$2,549,679$1,871,657$6,184,561
73$7,267,459$2,621,480$1,881,225$6,727,560
74$7,953,933$2,695,126$1,889,439$7,323,767
75$8,708,701$2,770,655$1,896,202$7,978,559
76$9,538,675$2,848,103$1,901,412$8,697,864
77$10,451,469$2,927,510$1,904,958$9,488,211
78$11,455,474$3,008,912$1,906,729$10,356,796
79$12,559,933$3,092,349$1,906,605$11,311,547
80$13,775,030$3,177,859$1,904,460$12,361,201
81$15,111,988$3,265,479$1,900,165$13,515,384
82$16,583,170$3,355,247$1,893,580$14,784,703
83$18,202,201$3,447,201$1,884,562$16,180,848
84$19,984,091$3,541,379$1,872,960$17,716,698
85$21,945,379$3,637,817$1,858,615$19,406,447
86$24,104,290$3,736,553$1,841,361$21,265,736
87$26,480,905$3,837,622$1,821,024$23,311,798
88$29,097,351$3,941,059$1,797,423$25,563,625
89$31,978,010$4,046,900$1,770,365$28,042,145
90$35,149,747$4,155,178$1,739,652$30,770,422
91$38,642,165$4,265,926$1,705,075$33,773,867
92$42,487,886$4,379,176$1,666,414$37,080,486
93$46,722,852$4,494,957$1,623,441$40,721,140
94$51,386,673$4,613,300$1,575,917$44,729,837
95$56,522,994$4,734,232$1,523,590$49,144,054
96$62,179,908$4,857,778$1,466,199$54,005,087
97$68,410,411$4,983,962$1,403,469$59,358,448
98$75,272,903$5,112,806$1,335,116$65,254,288
99$82,831,735$5,244,329$1,260,838$71,747,872
100$91,157,819$5,378,549$1,180,323$78,900,104