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%11.4%
1 years$163,507$162,050$160,629$159,242$157,888$156,959
2 years$80,944$79,436$77,975$76,559$75,185$74,247
3 years$53,427$51,913$50,455$49,052$47,700$46,784
4 years$39,671$38,161$36,718$35,339$34,020$33,131
5 years$31,419$29,919$28,495$27,144$25,862$25,003
6 years$25,920$24,431$23,028$21,707$20,463$19,637
7 years$21,994$20,517$19,137$17,847$16,642$15,847
8 years$19,050$17,587$16,229$14,971$13,806$13,043
9 years$16,762$15,313$13,978$12,752$11,627$10,896
10 years$14,932$13,497$12,187$10,992$9,907$9,207
11 years$13,437$12,016$10,729$9,567$8,520$7,851
12 years$12,191$10,785$9,522$8,391$7,383$6,745
13 years$11,138$9,746$8,507$7,408$6,438$5,830
14 years$10,236$8,859$7,644$6,576$5,644$5,065
15 years$9,455$8,093$6,901$5,865$4,969$4,418
16 years$8,772$7,425$6,257$5,251$4,392$3,868
17 years$8,170$6,838$5,693$4,718$3,894$3,397
18 years$7,636$6,319$5,197$4,252$3,463$2,992
19 years$7,159$5,856$4,758$3,842$3,086$2,640
20 years$6,729$5,442$4,367$3,480$2,757$2,335
21 years$6,342$5,069$4,016$3,158$2,467$2,068
22 years$5,989$4,732$3,702$2,871$2,211$1,835
23 years$5,668$4,425$3,418$2,615$1,985$1,630
24 years$5,375$4,146$3,161$2,385$1,784$1,450
25 years$5,105$3,891$2,928$2,178$1,605$1,291
26 years$4,856$3,657$2,715$1,992$1,446$1,150
27 years$4,626$3,442$2,521$1,823$1,304$1,026
28 years$4,413$3,243$2,344$1,670$1,176$915
29 years$4,215$3,059$2,181$1,532$1,062$817
30 years$4,030$2,889$2,032$1,406$960$730
31 years$3,858$2,731$1,894$1,291$868$653
32 years$3,697$2,584$1,767$1,186$785$584
33 years$3,546$2,448$1,650$1,091$710$522
34 years$3,404$2,320$1,542$1,004$643$468
35 years$3,270$2,200$1,441$924$583$419
36 years$3,145$2,088$1,348$851$528$375
37 years$3,026$1,983$1,262$784$478$336
38 years$2,914$1,885$1,182$723$434$301
39 years$2,808$1,792$1,107$666$393$270
40 years$2,707$1,705$1,038$615$357$242
41 years$2,612$1,623$973$567$324$217
42 years$2,521$1,546$913$523$294$194
43 years$2,435$1,473$857$483$267$174
44 years$2,353$1,404$804$446$242$156
45 years$2,274$1,339$755$412$220$140
46 years$2,200$1,277$709$381$199$126
47 years$2,129$1,219$666$352$181$113
48 years$2,060$1,164$626$325$164$101
49 years$1,995$1,111$588$300$149$91
50 years$1,933$1,061$553$278$136$81

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 $5,394 every year, while hoping to spend $36,683 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: 31/46/23 Blend
55$1,980,000$1,980,000$1,980,000$1,980,000
56$2,187,524$2,082,584$2,051,894$2,239,633
57$2,371,621$2,145,600$2,081,602$2,342,753
58$2,573,266$2,210,475$2,111,076$2,450,026
59$2,794,211$2,277,260$2,140,269$2,564,749
60$3,036,385$2,346,009$2,169,131$2,687,597
61$3,301,911$2,416,778$2,197,612$2,819,308
62$3,593,128$2,489,623$2,225,654$2,960,696
63$3,912,614$2,564,601$2,253,201$3,112,656
64$4,263,207$2,641,773$2,280,189$3,276,170
65$4,648,032$2,721,198$2,306,554$3,452,322
66$5,070,534$2,802,940$2,332,226$3,642,300
67$5,534,506$2,887,061$2,357,133$3,847,415
68$6,044,127$2,973,628$2,381,198$4,069,108
69$6,603,999$3,062,708$2,404,340$4,308,964
70$7,219,195$3,154,368$2,426,473$4,568,729
71$7,895,301$3,248,680$2,447,508$4,850,323
72$8,638,471$3,345,715$2,467,349$5,155,862
73$9,455,488$3,445,547$2,485,897$5,487,674
74$10,353,820$3,548,252$2,503,048$5,848,323
75$11,341,700$3,653,906$2,518,690$6,240,632
76$12,428,194$3,762,589$2,532,707$6,667,709
77$13,623,295$3,874,380$2,544,978$7,132,977
78$14,938,009$3,989,364$2,555,373$7,640,207
79$16,384,467$4,107,623$2,563,759$8,193,550
80$17,976,031$4,229,245$2,569,993$8,797,579
81$19,727,425$4,354,317$2,573,927$9,457,333
82$21,654,874$4,482,930$2,575,404$10,178,360
83$23,776,252$4,615,175$2,574,262$10,966,773
84$26,111,258$4,751,146$2,570,327$11,829,304
85$28,681,593$4,890,940$2,563,421$12,773,372
86$31,511,174$5,034,653$2,553,353$13,807,149
87$34,626,349$5,182,386$2,539,925$14,939,637
88$38,056,154$5,334,241$2,522,931$16,180,757
89$41,832,584$5,490,321$2,502,151$17,541,435
90$45,990,893$5,650,733$2,477,359$19,033,713
91$50,569,928$5,815,583$2,448,315$20,670,858
92$55,612,496$5,984,981$2,414,768$22,467,486
93$61,165,765$6,159,040$2,376,457$24,439,702
94$67,281,713$6,337,873$2,333,108$26,605,254
95$74,017,614$6,521,595$2,284,434$28,983,696
96$81,436,582$6,710,324$2,230,134$31,596,573
97$89,608,163$6,904,180$2,169,893$34,467,627
98$98,608,995$7,103,284$2,103,384$37,623,020
99$108,523,527$7,307,759$2,030,262$41,091,580
100$119,444,818$7,517,731$1,950,167$44,905,072