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%11%
1 years$168,461$166,961$165,497$164,068$162,672$161,987
2 years$83,397$81,843$80,338$78,879$77,463$76,771
3 years$55,046$53,486$51,984$50,538$49,146$48,469
4 years$40,873$39,318$37,831$36,410$35,051$34,394
5 years$32,371$30,825$29,359$27,966$26,645$26,010
6 years$26,705$25,171$23,726$22,365$21,084$20,471
7 years$22,660$21,139$19,716$18,387$17,147$16,558
8 years$19,627$18,120$16,721$15,425$14,225$13,659
9 years$17,270$15,777$14,402$13,138$11,979$11,437
10 years$15,385$13,906$12,556$11,326$10,207$9,687
11 years$13,844$12,380$11,054$9,857$8,778$8,281
12 years$12,560$11,112$9,810$8,646$7,607$7,132
13 years$11,475$10,042$8,765$7,633$6,634$6,180
14 years$10,546$9,128$7,875$6,775$5,815$5,383
15 years$9,741$8,338$7,110$6,043$5,120$4,708
16 years$9,038$7,650$6,446$5,410$4,525$4,133
17 years$8,418$7,045$5,866$4,861$4,012$3,640
18 years$7,867$6,510$5,355$4,381$3,567$3,214
19 years$7,376$6,034$4,902$3,959$3,180$2,845
20 years$6,933$5,607$4,499$3,585$2,840$2,523
21 years$6,534$5,223$4,138$3,254$2,542$2,242
22 years$6,171$4,875$3,814$2,958$2,278$1,995
23 years$5,840$4,560$3,522$2,694$2,045$1,777
24 years$5,538$4,272$3,257$2,457$1,838$1,585
25 years$5,259$4,009$3,016$2,244$1,654$1,416
26 years$5,003$3,768$2,798$2,052$1,490$1,266
27 years$4,766$3,546$2,598$1,878$1,343$1,132
28 years$4,547$3,341$2,415$1,721$1,212$1,014
29 years$4,343$3,152$2,247$1,578$1,094$908
30 years$4,153$2,977$2,093$1,448$989$814
31 years$3,975$2,814$1,952$1,330$894$730
32 years$3,809$2,663$1,821$1,222$809$655
33 years$3,653$2,522$1,700$1,124$732$588
34 years$3,507$2,390$1,589$1,034$663$528
35 years$3,370$2,267$1,485$952$600$474
36 years$3,240$2,152$1,389$877$544$426
37 years$3,118$2,044$1,300$808$493$383
38 years$3,002$1,942$1,218$745$447$344
39 years$2,893$1,847$1,141$687$405$310
40 years$2,789$1,757$1,069$633$368$278
41 years$2,691$1,673$1,003$584$333$250
42 years$2,597$1,593$941$539$303$225
43 years$2,508$1,518$883$498$275$203
44 years$2,424$1,447$828$460$249$182
45 years$2,343$1,380$778$424$226$164
46 years$2,266$1,316$731$392$205$148
47 years$2,193$1,256$686$362$187$133
48 years$2,123$1,199$645$335$169$120
49 years$2,056$1,145$606$309$154$108
50 years$1,992$1,094$570$286$140$97

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 $5,396 every year, while hoping to spend $42,101 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: 52/19/29 Blend
55$2,040,000$2,040,000$2,040,000$2,040,000
56$2,253,646$2,145,526$2,113,906$2,352,222
57$2,438,723$2,205,862$2,139,927$2,481,732
58$2,641,266$2,267,743$2,165,408$2,617,870
59$2,863,014$2,331,200$2,190,288$2,765,150
60$3,105,878$2,396,266$2,214,499$2,924,654
61$3,371,966$2,462,972$2,237,973$3,097,575
62$3,663,597$2,531,348$2,260,636$3,285,227
63$3,983,328$2,601,427$2,282,411$3,489,058
64$4,333,971$2,673,241$2,303,215$3,710,661
65$4,718,626$2,746,820$2,322,963$3,951,794
66$5,140,708$2,822,196$2,341,564$4,214,393
67$5,603,977$2,899,400$2,358,923$4,500,589
68$6,112,575$2,978,463$2,374,940$4,812,733
69$6,671,065$3,059,416$2,389,508$5,153,414
70$7,284,474$3,142,288$2,402,517$5,525,486
71$7,958,339$3,227,109$2,413,850$5,932,092
72$8,698,760$3,313,907$2,423,384$6,376,698
73$9,512,457$3,402,712$2,430,991$6,863,120
74$10,406,834$3,493,551$2,436,536$7,395,567
75$11,390,046$3,586,451$2,439,875$7,978,676
76$12,471,080$3,681,436$2,440,860$8,617,557
77$13,659,836$3,778,532$2,439,334$9,317,839
78$14,967,221$3,877,762$2,435,134$10,085,731
79$16,405,253$3,979,148$2,428,086$10,928,071
80$17,987,173$4,082,710$2,418,011$11,852,397
81$19,727,569$4,188,467$2,404,719$12,867,015
82$21,642,515$4,296,435$2,388,011$13,981,081
83$23,749,721$4,406,631$2,367,679$15,204,685
84$26,068,702$4,519,065$2,343,506$16,548,946
85$28,620,960$4,633,749$2,315,263$18,026,119
86$31,430,185$4,750,690$2,282,711$19,649,711
87$34,522,482$4,869,892$2,245,600$21,434,607
88$37,926,616$4,991,357$2,203,669$23,397,211
89$41,674,281$5,115,084$2,156,642$25,555,604
90$45,800,400$5,241,066$2,104,232$27,929,712
91$50,343,458$5,369,295$2,046,141$30,541,495
92$55,345,857$5,499,757$1,982,053$33,415,156
93$60,854,323$5,632,433$1,911,640$36,577,368
94$66,920,342$5,767,301$1,834,559$40,057,528
95$73,600,651$5,904,332$1,750,450$43,888,036
96$80,957,765$6,043,493$1,658,938$48,104,595
97$89,060,575$6,184,742$1,559,631$52,746,559
98$97,984,994$6,328,034$1,452,118$57,857,296
99$107,814,670$6,473,315$1,335,971$63,484,601
100$118,641,782$6,620,523$1,210,742$69,681,151