Can I retire at age 56 with 2,420,000?

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 $2,420,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.6%
1 years$199,841$198,061$196,325$194,629$192,974$188,539
2 years$98,931$97,089$95,303$93,572$91,892$87,448
3 years$65,299$63,449$61,667$59,952$58,300$53,986
4 years$48,486$46,641$44,878$43,192$41,580$37,430
5 years$38,401$36,567$34,827$33,176$31,609$27,633
6 years$31,680$29,860$28,146$26,531$25,011$21,214
7 years$26,881$25,076$23,389$21,813$20,341$16,724
8 years$23,283$21,495$19,836$18,298$16,874$13,436
9 years$20,487$18,715$17,085$15,586$14,211$10,948
10 years$18,251$16,497$14,895$13,435$12,108$9,018
11 years$16,423$14,686$13,113$11,693$10,413$7,491
12 years$14,900$13,181$11,638$10,256$9,024$6,265
13 years$13,613$11,912$10,397$9,055$7,869$5,268
14 years$12,510$10,828$9,342$8,038$6,898$4,449
15 years$11,556$9,891$8,435$7,168$6,074$3,772
16 years$10,722$9,075$7,647$6,418$5,368$3,207
17 years$9,986$8,358$6,959$5,767$4,760$2,734
18 years$9,333$7,723$6,352$5,197$4,232$2,336
19 years$8,749$7,158$5,815$4,696$3,772$1,999
20 years$8,225$6,651$5,337$4,253$3,369$1,714
21 years$7,751$6,195$4,909$3,860$3,015$1,471
22 years$7,320$5,783$4,524$3,510$2,703$1,264
23 years$6,928$5,409$4,177$3,196$2,426$1,087
24 years$6,569$5,068$3,863$2,915$2,181$936
25 years$6,239$4,756$3,578$2,662$1,962$806
26 years$5,935$4,470$3,319$2,434$1,767$695
27 years$5,654$4,207$3,082$2,228$1,594$599
28 years$5,394$3,964$2,865$2,041$1,438$517
29 years$5,152$3,739$2,666$1,872$1,298$446
30 years$4,926$3,531$2,483$1,718$1,173$385
31 years$4,716$3,338$2,315$1,578$1,061$332
32 years$4,519$3,159$2,160$1,450$959$287
33 years$4,334$2,991$2,017$1,334$868$248
34 years$4,160$2,835$1,884$1,227$786$214
35 years$3,997$2,689$1,762$1,129$712$185
36 years$3,844$2,552$1,648$1,040$645$160
37 years$3,698$2,424$1,543$958$585$138
38 years$3,561$2,304$1,445$883$530$120
39 years$3,432$2,191$1,353$815$481$103
40 years$3,309$2,084$1,269$751$436$89
41 years$3,192$1,984$1,190$693$396$77
42 years$3,081$1,890$1,116$640$359$67
43 years$2,976$1,800$1,047$591$326$58
44 years$2,875$1,716$983$545$296$50
45 years$2,780$1,636$923$504$268$43
46 years$2,689$1,561$867$465$244$37
47 years$2,602$1,490$814$430$221$32
48 years$2,518$1,422$765$397$201$28
49 years$2,439$1,358$719$367$183$24
50 years$2,363$1,297$676$339$166$21

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,420,000, adding $2,101 every year, while hoping to spend $22,326 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: 81/13/6 Blend
55$2,420,000$2,420,000$2,420,000$2,420,000
56$2,669,007$2,540,747$2,503,237$2,883,919
57$2,917,491$2,641,489$2,563,341$3,125,545
58$3,190,572$2,746,419$2,624,710$3,387,486
59$3,490,736$2,855,719$2,687,363$3,674,278
60$3,820,720$2,969,578$2,751,319$3,988,394
61$4,183,541$3,088,195$2,816,596$4,332,554
62$4,582,523$3,211,777$2,883,212$4,709,754
63$5,021,327$3,340,541$2,951,187$5,123,294
64$5,503,988$3,474,714$3,020,537$5,576,806
65$6,034,951$3,614,530$3,091,281$6,074,292
66$6,619,113$3,760,239$3,163,436$6,620,159
67$7,261,870$3,912,099$3,237,019$7,219,259
68$7,969,168$4,070,379$3,312,046$7,876,937
69$8,747,559$4,235,362$3,388,534$8,599,081
70$9,604,259$4,407,344$3,466,500$9,392,176
71$10,547,222$4,586,634$3,545,957$10,263,363
72$11,585,213$4,773,553$3,626,920$11,220,510
73$12,727,888$4,968,440$3,709,405$12,272,284
74$13,985,886$5,171,647$3,793,424$13,428,232
75$15,370,932$5,383,543$3,878,989$14,698,869
76$16,895,946$5,604,515$3,966,114$16,095,782
77$18,575,161$5,834,966$4,054,808$17,631,733
78$20,424,266$6,075,317$4,145,082$19,320,782
79$22,460,544$6,326,010$4,236,945$21,178,418
80$24,703,041$6,587,507$4,330,405$23,221,707
81$27,172,747$6,860,290$4,425,469$25,469,449
82$29,892,787$7,144,865$4,522,142$27,942,357
83$32,888,647$7,441,759$4,620,429$30,663,251
84$36,188,408$7,751,524$4,720,333$33,657,274
85$39,823,017$8,074,740$4,821,855$36,952,128
86$43,826,572$8,412,009$4,924,994$40,578,333
87$48,236,650$8,763,966$5,029,750$44,569,517
88$53,094,659$9,131,271$5,136,117$48,962,731
89$58,446,228$9,514,617$5,244,091$53,798,799
90$64,341,639$9,914,728$5,353,663$59,122,701
91$70,836,299$10,332,363$5,464,823$64,984,000
92$77,991,266$10,768,313$5,577,560$71,437,304
93$85,873,824$11,223,410$5,691,857$78,542,784
94$94,558,118$11,698,521$5,807,698$86,366,740
95$104,125,853$12,194,555$5,925,063$94,982,228
96$114,667,065$12,712,463$6,043,927$104,469,744
97$126,280,973$13,253,241$6,164,266$114,917,986
98$139,076,911$13,817,929$6,286,048$126,424,691
99$153,175,367$14,407,619$6,409,242$139,097,553
100$168,709,113$15,023,450$6,533,810$153,055,241