Can I retire at age 56 with 2,040,000?

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 $2,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.7%
1 years$168,461$166,961$165,497$164,068$162,672$156,342
2 years$83,397$81,843$80,338$78,879$77,463$71,161
3 years$55,046$53,486$51,984$50,538$49,146$43,072
4 years$40,873$39,318$37,831$36,410$35,051$29,251
5 years$32,371$30,825$29,359$27,966$26,645$21,133
6 years$26,705$25,171$23,726$22,365$21,084$15,864
7 years$22,660$21,139$19,716$18,387$17,147$12,217
8 years$19,627$18,120$16,721$15,425$14,225$9,581
9 years$17,270$15,777$14,402$13,138$11,979$7,614
10 years$15,385$13,906$12,556$11,326$10,207$6,113
11 years$13,844$12,380$11,054$9,857$8,778$4,945
12 years$12,560$11,112$9,810$8,646$7,607$4,025
13 years$11,475$10,042$8,765$7,633$6,634$3,292
14 years$10,546$9,128$7,875$6,775$5,815$2,702
15 years$9,741$8,338$7,110$6,043$5,120$2,226
16 years$9,038$7,650$6,446$5,410$4,525$1,837
17 years$8,418$7,045$5,866$4,861$4,012$1,520
18 years$7,867$6,510$5,355$4,381$3,567$1,260
19 years$7,376$6,034$4,902$3,959$3,180$1,045
20 years$6,933$5,607$4,499$3,585$2,840$868
21 years$6,534$5,223$4,138$3,254$2,542$722
22 years$6,171$4,875$3,814$2,958$2,278$601
23 years$5,840$4,560$3,522$2,694$2,045$500
24 years$5,538$4,272$3,257$2,457$1,838$417
25 years$5,259$4,009$3,016$2,244$1,654$348
26 years$5,003$3,768$2,798$2,052$1,490$290
27 years$4,766$3,546$2,598$1,878$1,343$242
28 years$4,547$3,341$2,415$1,721$1,212$202
29 years$4,343$3,152$2,247$1,578$1,094$168
30 years$4,153$2,977$2,093$1,448$989$141
31 years$3,975$2,814$1,952$1,330$894$117
32 years$3,809$2,663$1,821$1,222$809$98
33 years$3,653$2,522$1,700$1,124$732$82
34 years$3,507$2,390$1,589$1,034$663$68
35 years$3,370$2,267$1,485$952$600$57
36 years$3,240$2,152$1,389$877$544$48
37 years$3,118$2,044$1,300$808$493$40
38 years$3,002$1,942$1,218$745$447$33
39 years$2,893$1,847$1,141$687$405$28
40 years$2,789$1,757$1,069$633$368$23
41 years$2,691$1,673$1,003$584$333$19
42 years$2,597$1,593$941$539$303$16
43 years$2,508$1,518$883$498$275$14
44 years$2,424$1,447$828$460$249$11
45 years$2,343$1,380$778$424$226$9
46 years$2,266$1,316$731$392$205$8
47 years$2,193$1,256$686$362$187$7
48 years$2,123$1,199$645$335$169$5
49 years$2,056$1,145$606$309$154$5
50 years$1,992$1,094$570$286$140$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,040,000, adding $4,729 every year, while hoping to spend $24,550 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: 44/26/30 Blend
55$2,040,000$2,040,000$2,040,000$2,040,000
56$2,252,958$2,144,838$2,113,218$2,332,271
57$2,456,639$2,223,814$2,157,890$2,468,519
58$2,680,272$2,305,837$2,203,235$2,613,441
59$2,925,867$2,391,031$2,249,251$2,770,085
60$3,195,638$2,479,523$2,295,933$2,939,560
61$3,492,022$2,571,449$2,343,276$3,123,082
62$3,817,705$2,666,947$2,391,273$3,321,990
63$4,175,648$2,766,164$2,439,917$3,537,757
64$4,569,109$2,869,252$2,489,200$3,772,002
65$5,001,682$2,976,368$2,539,111$4,026,507
66$5,477,322$3,087,679$2,589,640$4,303,232
67$6,000,390$3,203,356$2,640,774$4,604,335
68$6,575,689$3,323,580$2,692,499$4,932,188
69$7,208,510$3,448,537$2,744,799$5,289,406
70$7,904,686$3,578,423$2,797,658$5,678,862
71$8,670,641$3,713,442$2,851,056$6,103,723
72$9,513,452$3,853,807$2,904,972$6,567,471
73$10,440,920$3,999,739$2,959,385$7,073,943
74$11,461,639$4,151,471$3,014,269$7,627,360
75$12,585,076$4,309,243$3,069,597$8,232,373
76$13,821,667$4,473,309$3,125,341$8,894,099
77$15,182,906$4,643,930$3,181,470$9,618,174
78$16,681,462$4,821,382$3,237,948$10,410,807
79$18,331,292$5,005,951$3,294,741$11,278,831
80$20,147,777$5,197,936$3,351,808$12,229,774
81$22,147,864$5,397,649$3,409,107$13,271,926
82$24,350,228$5,605,416$3,466,594$14,414,415
83$26,775,447$5,821,576$3,524,221$15,667,299
84$29,446,195$6,046,486$3,581,935$17,041,652
85$32,387,459$6,280,515$3,639,681$18,549,674
86$35,626,770$6,524,051$3,697,401$20,204,802
87$39,194,469$6,777,498$3,755,032$22,021,838
88$43,123,986$7,041,277$3,812,508$24,017,088
89$47,452,163$7,315,830$3,869,756$26,208,511
90$52,219,594$7,601,615$3,926,703$28,615,894
91$57,471,012$7,899,115$3,983,268$31,261,035
92$63,255,714$8,208,830$4,039,366$34,167,946
93$69,628,019$8,531,285$4,094,907$37,363,081
94$76,647,786$8,867,027$4,149,795$40,875,584
95$84,380,977$9,216,628$4,203,930$44,737,564
96$92,900,280$9,580,686$4,257,205$48,984,396
97$102,285,794$9,959,825$4,309,507$53,655,053
98$112,625,785$10,354,697$4,360,715$58,792,475
99$124,017,521$10,765,982$4,410,705$64,443,971
100$136,568,187$11,194,394$4,459,342$70,661,668