Can I retire at age 56 with 1,980,000?

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 $1,980,000?

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$163,507$162,050$160,629$159,242$157,888$156,565
2 years$80,944$79,436$77,975$76,559$75,185$73,851
3 years$53,427$51,913$50,455$49,052$47,700$46,398
4 years$39,671$38,161$36,718$35,339$34,020$32,759
5 years$31,419$29,919$28,495$27,144$25,862$24,645
6 years$25,920$24,431$23,028$21,707$20,463$19,293
7 years$21,994$20,517$19,137$17,847$16,642$15,518
8 years$19,050$17,587$16,229$14,971$13,806$12,729
9 years$16,762$15,313$13,978$12,752$11,627$10,596
10 years$14,932$13,497$12,187$10,992$9,907$8,922
11 years$13,437$12,016$10,729$9,567$8,520$7,580
12 years$12,191$10,785$9,522$8,391$7,383$6,488
13 years$11,138$9,746$8,507$7,408$6,438$5,586
14 years$10,236$8,859$7,644$6,576$5,644$4,833
15 years$9,455$8,093$6,901$5,865$4,969$4,200
16 years$8,772$7,425$6,257$5,251$4,392$3,662
17 years$8,170$6,838$5,693$4,718$3,894$3,203
18 years$7,636$6,319$5,197$4,252$3,463$2,808
19 years$7,159$5,856$4,758$3,842$3,086$2,468
20 years$6,729$5,442$4,367$3,480$2,757$2,173
21 years$6,342$5,069$4,016$3,158$2,467$1,916
22 years$5,989$4,732$3,702$2,871$2,211$1,693
23 years$5,668$4,425$3,418$2,615$1,985$1,497
24 years$5,375$4,146$3,161$2,385$1,784$1,325
25 years$5,105$3,891$2,928$2,178$1,605$1,174
26 years$4,856$3,657$2,715$1,992$1,446$1,041
27 years$4,626$3,442$2,521$1,823$1,304$924
28 years$4,413$3,243$2,344$1,670$1,176$821
29 years$4,215$3,059$2,181$1,532$1,062$730
30 years$4,030$2,889$2,032$1,406$960$649
31 years$3,858$2,731$1,894$1,291$868$577
32 years$3,697$2,584$1,767$1,186$785$514
33 years$3,546$2,448$1,650$1,091$710$457
34 years$3,404$2,320$1,542$1,004$643$407
35 years$3,270$2,200$1,441$924$583$363
36 years$3,145$2,088$1,348$851$528$323
37 years$3,026$1,983$1,262$784$478$288
38 years$2,914$1,885$1,182$723$434$257
39 years$2,808$1,792$1,107$666$393$229
40 years$2,707$1,705$1,038$615$357$204
41 years$2,612$1,623$973$567$324$182
42 years$2,521$1,546$913$523$294$162
43 years$2,435$1,473$857$483$267$145
44 years$2,353$1,404$804$446$242$129
45 years$2,274$1,339$755$412$220$115
46 years$2,200$1,277$709$381$199$103
47 years$2,129$1,219$666$352$181$92
48 years$2,060$1,164$626$325$164$82
49 years$1,995$1,111$588$300$149$73
50 years$1,933$1,061$553$278$136$65

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,980,000, adding $2,847 every year, while hoping to spend $52,216 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: 73/7/20 Blend
55$1,980,000$1,980,000$1,980,000$1,980,000
56$2,184,897$2,079,957$2,049,267$2,333,728
57$2,352,199$2,126,317$2,062,360$2,479,375
58$2,534,816$2,173,199$2,074,141$2,632,308
59$2,734,254$2,220,573$2,084,512$2,798,524
60$2,952,173$2,268,407$2,093,369$2,979,332
61$3,190,399$2,316,663$2,100,601$3,176,176
62$3,450,944$2,365,303$2,106,095$3,390,648
63$3,736,020$2,414,283$2,109,729$3,624,501
64$4,048,065$2,463,554$2,111,376$3,879,666
65$4,389,765$2,513,066$2,110,905$4,158,272
66$4,764,076$2,562,761$2,108,175$4,462,665
67$5,174,253$2,612,577$2,103,040$4,795,428
68$5,623,881$2,662,448$2,095,346$5,159,409
69$6,116,910$2,712,301$2,084,933$5,557,748
70$6,657,689$2,762,057$2,071,632$5,993,902
71$7,251,008$2,811,633$2,055,267$6,471,682
72$7,902,144$2,860,936$2,035,651$6,995,289
73$8,616,909$2,909,868$2,012,592$7,569,352
74$9,401,705$2,958,324$1,985,886$8,198,970
75$10,263,586$3,006,188$1,955,320$8,889,767
76$11,210,320$3,053,340$1,920,671$9,647,936
77$12,250,467$3,099,648$1,881,708$10,480,305
78$13,393,454$3,144,970$1,838,184$11,394,400
79$14,649,669$3,189,156$1,789,847$12,398,512
80$16,030,556$3,232,046$1,736,427$13,501,781
81$17,548,722$3,273,465$1,677,646$14,714,278
82$19,218,057$3,313,230$1,613,213$16,047,104
83$21,053,864$3,351,143$1,542,820$17,512,493
84$23,073,003$3,386,995$1,466,150$19,123,926
85$25,294,052$3,420,560$1,382,869$20,896,263
86$27,737,477$3,451,599$1,292,626$22,845,880
87$30,425,829$3,479,857$1,195,059$24,990,823
88$33,383,956$3,505,062$1,089,786$27,350,985
89$36,639,235$3,526,926$976,409$29,948,284
90$40,221,831$3,545,139$854,513$32,806,880
91$44,164,981$3,559,374$723,663$35,953,397
92$48,505,310$3,569,284$583,406$39,417,179
93$53,283,170$3,574,497$433,268$43,230,564
94$58,543,027$3,574,621$272,756$47,429,192
95$64,333,876$3,569,238$101,354$52,052,340
96$70,709,704$3,557,904$0$57,143,297
97$77,730,001$3,540,148$0$62,767,173
98$85,460,317$3,515,472$0$68,983,353
99$93,972,884$3,483,345$0$75,828,251
100$103,347,295$3,443,205$0$83,365,856