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%11.3%
1 years$127,172$126,039$124,934$123,855$122,802$122,130
2 years$62,956$61,784$60,647$59,546$58,477$57,799
3 years$41,554$40,376$39,243$38,152$37,100$36,438
4 years$30,855$29,681$28,559$27,486$26,460$25,818
5 years$24,437$23,270$22,163$21,112$20,115$19,494
6 years$20,160$19,002$17,911$16,883$15,916$15,318
7 years$17,106$15,958$14,884$13,881$12,944$12,369
8 years$14,817$13,679$12,623$11,644$10,738$10,186
9 years$13,037$11,910$10,872$9,918$9,043$8,514
10 years$11,614$10,498$9,478$8,550$7,705$7,199
11 years$10,451$9,346$8,345$7,441$6,627$6,143
12 years$9,482$8,388$7,406$6,527$5,743$5,280
13 years$8,663$7,580$6,617$5,762$5,008$4,567
14 years$7,961$6,890$5,945$5,115$4,390$3,970
15 years$7,354$6,295$5,368$4,562$3,865$3,466
16 years$6,823$5,775$4,866$4,084$3,416$3,036
17 years$6,355$5,319$4,428$3,670$3,029$2,668
18 years$5,939$4,915$4,042$3,307$2,693$2,351
19 years$5,568$4,555$3,701$2,988$2,400$2,077
20 years$5,234$4,233$3,396$2,707$2,144$1,838
21 years$4,932$3,943$3,124$2,456$1,919$1,629
22 years$4,658$3,680$2,879$2,233$1,720$1,446
23 years$4,409$3,442$2,658$2,034$1,544$1,286
24 years$4,180$3,225$2,459$1,855$1,388$1,145
25 years$3,970$3,026$2,277$1,694$1,249$1,020
26 years$3,777$2,844$2,112$1,549$1,125$909
27 years$3,598$2,677$1,961$1,418$1,014$812
28 years$3,432$2,522$1,823$1,299$915$725
29 years$3,278$2,380$1,697$1,191$826$648
30 years$3,135$2,247$1,580$1,093$747$579
31 years$3,001$2,124$1,473$1,004$675$518
32 years$2,875$2,010$1,375$923$611$464
33 years$2,758$1,904$1,283$849$553$415
34 years$2,648$1,804$1,199$781$500$372
35 years$2,544$1,711$1,121$719$453$333
36 years$2,446$1,624$1,049$662$411$299
37 years$2,354$1,543$982$610$372$268
38 years$2,266$1,466$919$562$337$240
39 years$2,184$1,394$861$518$306$215
40 years$2,105$1,326$807$478$277$193
41 years$2,031$1,263$757$441$252$173
42 years$1,961$1,202$710$407$228$156
43 years$1,894$1,146$666$376$207$140
44 years$1,830$1,092$625$347$188$125
45 years$1,769$1,041$587$320$171$112
46 years$1,711$993$552$296$155$101
47 years$1,656$948$518$273$141$91
48 years$1,603$905$487$253$128$81
49 years$1,552$864$458$234$116$73
50 years$1,504$826$430$216$106$66

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 $5,456 every year, while hoping to spend $50,385 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: 78/15/7 Blend
55$1,540,000$1,540,000$1,540,000$1,540,000
56$1,702,708$1,621,088$1,597,218$1,833,706
57$1,822,775$1,646,912$1,597,115$1,946,254
58$1,953,400$1,672,313$1,595,321$2,062,552
59$2,095,607$1,697,216$1,591,724$2,188,601
60$2,250,522$1,721,543$1,586,210$2,325,350
61$2,419,386$1,745,209$1,578,659$2,473,841
62$2,603,561$1,768,122$1,568,942$2,635,224
63$2,804,551$1,790,187$1,556,928$2,810,765
64$3,024,007$1,811,298$1,542,477$3,001,859
65$3,263,750$1,831,346$1,525,444$3,210,042
66$3,525,783$1,850,212$1,505,677$3,437,006
67$3,812,310$1,867,770$1,483,014$3,684,616
68$4,125,760$1,883,885$1,457,290$3,954,926
69$4,468,808$1,898,415$1,428,329$4,250,199
70$4,844,395$1,911,207$1,395,948$4,572,928
71$5,255,766$1,922,098$1,359,954$4,925,861
72$5,706,489$1,930,917$1,320,148$5,312,025
73$6,200,498$1,937,478$1,276,319$5,734,756
74$6,742,121$1,941,587$1,228,248$6,197,731
75$7,336,129$1,943,036$1,175,706$6,704,998
76$7,987,774$1,941,605$1,118,453$7,261,023
77$8,702,844$1,937,060$1,056,237$7,870,724
78$9,487,710$1,929,152$988,797$8,539,520
79$10,349,394$1,917,618$915,859$9,273,387
80$11,295,628$1,902,178$837,137$10,078,905
81$12,334,932$1,882,535$752,331$10,963,331
82$13,476,691$1,858,374$661,129$11,934,658
83$14,731,242$1,829,363$563,206$13,001,698
84$16,109,975$1,795,148$458,220$14,174,161
85$17,625,437$1,755,355$345,815$15,462,746
86$19,291,452$1,709,588$225,620$16,879,249
87$21,123,250$1,657,428$97,248$18,436,665
88$23,137,609$1,598,429$0$20,149,318
89$25,353,016$1,532,123$0$22,035,964
90$27,789,839$1,458,013$0$24,118,975
91$30,470,519$1,375,571$0$26,410,287
92$33,419,780$1,284,243$0$28,931,066
93$36,664,866$1,183,439$0$31,704,635
94$40,235,794$1,072,539$0$34,756,699
95$44,165,635$950,884$0$38,115,581
96$48,490,834$817,781$0$41,812,498
97$53,251,542$672,495$0$45,881,847
98$58,492,003$514,252$0$50,361,537
99$64,260,969$342,232$0$55,293,344
100$70,612,157$155,570$0$60,723,305