Can I retire at age 56 with 1,950,000?

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 $1,950,000?

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$161,029$159,595$158,195$156,829$155,496$149,385
2 years$79,717$78,233$76,794$75,399$74,046$67,964
3 years$52,617$51,126$49,691$48,309$46,978$41,117
4 years$39,070$37,583$36,162$34,804$33,505$27,909
5 years$30,943$29,466$28,063$26,733$25,470$20,153
6 years$25,527$24,061$22,679$21,378$20,153$15,120
7 years$21,660$20,206$18,847$17,576$16,390$11,638
8 years$18,761$17,320$15,983$14,744$13,597$9,121
9 years$16,508$15,081$13,767$12,559$11,451$7,244
10 years$14,706$13,293$12,002$10,826$9,757$5,812
11 years$13,233$11,834$10,566$9,422$8,391$4,699
12 years$12,006$10,621$9,377$8,264$7,271$3,822
13 years$10,969$9,599$8,378$7,296$6,341$3,123
14 years$10,081$8,725$7,528$6,477$5,558$2,562
15 years$9,312$7,970$6,797$5,776$4,894$2,109
16 years$8,639$7,313$6,162$5,172$4,325$1,740
17 years$8,047$6,735$5,607$4,647$3,835$1,438
18 years$7,520$6,223$5,119$4,188$3,410$1,191
19 years$7,050$5,768$4,686$3,784$3,039$988
20 years$6,627$5,359$4,300$3,427$2,715$820
21 years$6,245$4,992$3,956$3,110$2,430$681
22 years$5,899$4,660$3,646$2,828$2,178$566
23 years$5,583$4,358$3,366$2,575$1,955$471
24 years$5,293$4,084$3,113$2,349$1,757$392
25 years$5,027$3,832$2,883$2,145$1,581$327
26 years$4,782$3,602$2,674$1,961$1,424$272
27 years$4,556$3,390$2,483$1,795$1,284$227
28 years$4,346$3,194$2,308$1,645$1,159$189
29 years$4,151$3,013$2,148$1,508$1,046$158
30 years$3,969$2,846$2,001$1,384$945$132
31 years$3,800$2,690$1,865$1,271$855$110
32 years$3,641$2,545$1,741$1,169$773$92
33 years$3,492$2,410$1,625$1,075$700$76
34 years$3,352$2,285$1,518$989$633$64
35 years$3,221$2,167$1,420$910$574$53
36 years$3,097$2,057$1,328$838$520$44
37 years$2,980$1,953$1,243$772$471$37
38 years$2,870$1,856$1,164$712$427$31
39 years$2,765$1,765$1,091$656$387$26
40 years$2,666$1,679$1,022$605$351$22
41 years$2,572$1,599$958$559$319$18
42 years$2,483$1,523$899$515$289$15
43 years$2,398$1,451$844$476$262$13
44 years$2,317$1,383$792$439$238$10
45 years$2,240$1,319$744$406$216$9
46 years$2,166$1,258$698$375$196$7
47 years$2,096$1,200$656$346$178$6
48 years$2,029$1,146$617$320$162$5
49 years$1,965$1,094$580$296$147$4
50 years$1,904$1,045$545$273$134$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,950,000, adding $2,821 every year, while hoping to spend $42,378 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: 73/16/11 Blend
55$1,950,000$1,950,000$1,950,000$1,950,000
56$2,151,810$2,048,460$2,018,235$2,304,051
57$2,326,205$2,103,745$2,040,756$2,460,311
58$2,516,967$2,160,318$2,062,611$2,625,874
59$2,725,723$2,218,198$2,083,733$2,806,052
60$2,954,260$2,277,403$2,104,052$3,002,278
61$3,204,549$2,337,951$2,123,492$3,216,132
62$3,478,760$2,399,857$2,141,976$3,449,353
63$3,779,282$2,463,138$2,159,420$3,703,858
64$4,108,746$2,527,809$2,175,738$3,981,755
65$4,470,050$2,593,885$2,190,838$4,285,369
66$4,866,388$2,661,377$2,204,624$4,617,258
67$5,301,274$2,730,300$2,216,993$4,980,242
68$5,778,582$2,800,662$2,227,840$5,377,427
69$6,302,577$2,872,475$2,237,053$5,812,232
70$6,877,960$2,945,746$2,244,514$6,288,427
71$7,509,905$3,020,481$2,250,099$6,810,164
72$8,204,117$3,096,686$2,253,678$7,382,015
73$8,966,876$3,174,363$2,255,116$8,009,019
74$9,805,104$3,253,513$2,254,269$8,696,729
75$10,726,425$3,334,135$2,250,987$9,451,260
76$11,739,239$3,416,226$2,245,113$10,279,352
77$12,852,799$3,499,779$2,236,482$11,188,429
78$14,077,301$3,584,784$2,224,921$12,186,672
79$15,423,978$3,671,231$2,210,248$13,283,095
80$16,905,206$3,759,104$2,192,274$14,487,631
81$18,534,620$3,848,384$2,170,799$15,811,222
82$20,327,246$3,939,048$2,145,614$17,265,929
83$22,299,635$4,031,072$2,116,502$18,865,037
84$24,470,026$4,124,423$2,083,234$20,623,190
85$26,858,516$4,219,067$2,045,569$22,556,520
86$29,487,247$4,314,964$2,003,259$24,682,805
87$32,380,617$4,412,068$1,956,039$27,021,636
88$35,565,510$4,510,329$1,903,636$29,594,599
89$39,071,547$4,609,690$1,845,763$32,425,482
90$42,931,368$4,710,088$1,782,119$35,540,499
91$47,180,938$4,811,453$1,712,391$38,968,534
92$51,859,887$4,913,708$1,636,249$42,741,418
93$57,011,884$5,016,768$1,553,352$46,894,229
94$62,685,046$5,120,540$1,463,339$51,465,618
95$68,932,397$5,224,922$1,365,837$56,498,181
96$75,812,362$5,329,803$1,260,452$62,038,857
97$83,389,322$5,435,063$1,146,777$68,139,371
98$91,734,221$5,540,569$1,024,382$74,856,725
99$100,925,234$5,646,180$892,822$82,253,732
100$111,048,506$5,751,740$751,629$90,399,614