Can I retire at age 56 with 2,500,000?

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 $2,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$206,448$204,609$202,815$201,063$199,354$196,051
2 years$102,202$100,298$98,454$96,665$94,930$91,613
3 years$67,458$65,546$63,706$61,934$60,228$56,998
4 years$50,089$48,183$46,362$44,620$42,955$39,838
5 years$39,671$37,776$35,979$34,273$32,654$29,659
6 years$32,727$30,847$29,076$27,408$25,838$22,969
7 years$27,770$25,905$24,162$22,534$21,013$18,270
8 years$24,053$22,206$20,492$18,903$17,432$14,816
9 years$21,164$19,334$17,649$16,101$14,680$12,188
10 years$18,854$17,042$15,387$13,879$12,509$10,138
11 years$16,965$15,172$13,547$12,079$10,758$8,507
12 years$15,393$13,617$12,022$10,595$9,322$7,189
13 years$14,063$12,306$10,741$9,354$8,129$6,110
14 years$12,924$11,186$9,651$8,303$7,126$5,217
15 years$11,938$10,218$8,713$7,405$6,274$4,472
16 years$11,076$9,375$7,900$6,630$5,545$3,846
17 years$10,316$8,634$7,189$5,957$4,917$3,316
18 years$9,642$7,978$6,562$5,369$4,372$2,866
19 years$9,039$7,394$6,008$4,851$3,897$2,483
20 years$8,497$6,871$5,513$4,394$3,481$2,154
21 years$8,007$6,400$5,071$3,988$3,115$1,871
22 years$7,562$5,974$4,674$3,626$2,792$1,628
23 years$7,157$5,588$4,316$3,302$2,506$1,418
24 years$6,786$5,235$3,991$3,012$2,253$1,236
25 years$6,445$4,913$3,697$2,750$2,027$1,078
26 years$6,131$4,617$3,428$2,515$1,826$941
27 years$5,841$4,346$3,184$2,302$1,646$822
28 years$5,572$4,095$2,960$2,109$1,485$718
29 years$5,322$3,863$2,754$1,934$1,341$628
30 years$5,089$3,648$2,565$1,775$1,212$549
31 years$4,871$3,449$2,392$1,630$1,096$481
32 years$4,668$3,263$2,231$1,498$991$421
33 years$4,477$3,090$2,084$1,378$897$368
34 years$4,298$2,929$1,947$1,268$812$323
35 years$4,129$2,778$1,820$1,167$736$283
36 years$3,971$2,637$1,703$1,075$666$248
37 years$3,821$2,504$1,594$990$604$217
38 years$3,679$2,380$1,492$913$548$190
39 years$3,545$2,263$1,398$841$497$167
40 years$3,418$2,153$1,310$776$450$146
41 years$3,297$2,050$1,229$716$409$128
42 years$3,183$1,952$1,153$661$371$112
43 years$3,074$1,860$1,082$610$337$98
44 years$2,970$1,773$1,015$563$305$86
45 years$2,872$1,691$953$520$277$76
46 years$2,777$1,613$895$481$252$66
47 years$2,688$1,539$841$444$229$58
48 years$2,602$1,469$791$410$208$51
49 years$2,519$1,403$743$379$189$45
50 years$2,441$1,340$699$350$171$39

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,500,000, adding $4,873 every year, while hoping to spend $48,368 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: 28/43/29 Blend
55$2,500,000$2,500,000$2,500,000$2,500,000
56$2,760,026$2,627,526$2,588,776$2,812,429
57$2,990,086$2,704,812$2,624,037$2,932,198
58$3,241,991$2,784,264$2,658,858$3,056,296
59$3,517,917$2,865,936$2,693,174$3,188,660
60$3,820,263$2,949,886$2,726,914$3,330,034
61$4,151,670$3,036,170$2,760,005$3,481,237
62$4,515,045$3,124,846$2,792,369$3,643,168
63$4,913,591$3,215,975$2,823,925$3,816,819
64$5,350,836$3,309,617$2,854,585$4,003,279
65$5,830,665$3,405,833$2,884,259$4,203,749
66$6,357,360$3,504,685$2,912,848$4,419,547
67$6,935,635$3,606,239$2,940,253$4,652,128
68$7,570,683$3,710,558$2,966,365$4,903,091
69$8,268,226$3,817,709$2,991,071$5,174,198
70$9,034,566$3,927,758$3,014,253$5,467,387
71$9,876,647$4,040,773$3,035,786$5,784,795
72$10,802,118$4,156,823$3,055,537$6,128,773
73$11,819,405$4,275,979$3,073,369$6,501,913
74$12,937,793$4,398,311$3,089,135$6,907,066
75$14,167,510$4,523,890$3,102,684$7,347,376
76$15,519,825$4,652,790$3,113,852$7,826,305
77$17,007,154$4,785,083$3,122,473$8,347,666
78$18,643,176$4,920,844$3,128,369$8,915,661
79$20,442,963$5,060,149$3,131,352$9,534,918
80$22,423,121$5,203,072$3,131,228$10,210,537
81$24,601,947$5,349,690$3,127,792$10,948,137
82$26,999,601$5,500,080$3,120,828$11,753,909
83$29,638,296$5,654,320$3,110,111$12,634,674
84$32,542,506$5,812,486$3,095,404$13,597,949
85$35,739,201$5,974,657$3,076,460$14,652,015
86$39,258,095$6,140,911$3,053,017$15,806,001
87$43,131,932$6,311,326$3,024,804$17,069,962
88$47,396,790$6,485,982$2,991,536$18,454,981
89$52,092,423$6,664,956$2,952,913$19,973,272
90$57,262,638$6,848,326$2,908,623$21,638,291
91$62,955,703$7,036,171$2,858,338$23,464,871
92$69,224,808$7,228,566$2,801,715$25,469,355
93$76,128,561$7,425,589$2,738,396$27,669,755
94$83,731,546$7,627,314$2,668,004$30,085,921
95$92,104,929$7,833,818$2,590,147$32,739,727
96$101,327,129$8,045,172$2,504,414$35,655,282
97$111,484,559$8,261,448$2,410,375$38,859,152
98$122,672,442$8,482,717$2,307,581$42,380,617
99$134,995,708$8,709,047$2,195,561$46,251,944
100$148,569,983$8,940,503$2,073,825$50,508,693