Can I retire at age 56 with 2,540,000?

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 $2,540,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.7%
1 years$209,751$207,882$206,060$204,280$202,543$198,616
2 years$103,837$101,903$100,029$98,212$96,449$92,509
3 years$68,537$66,595$64,725$62,925$61,191$57,360
4 years$50,891$48,954$47,103$45,334$43,642$39,950
5 years$40,305$38,381$36,554$34,821$33,176$29,633
6 years$33,251$31,341$29,541$27,847$26,251$22,862
7 years$28,214$26,320$24,549$22,894$21,349$18,114
8 years$24,438$22,561$20,819$19,205$17,711$14,629
9 years$21,503$19,643$17,932$16,359$14,915$11,985
10 years$19,156$17,315$15,633$14,101$12,709$9,927
11 years$17,237$15,414$13,763$12,272$10,930$8,293
12 years$15,639$13,835$12,215$10,765$9,472$6,976
13 years$14,288$12,503$10,913$9,503$8,259$5,901
14 years$13,131$11,365$9,805$8,436$7,240$5,015
15 years$12,129$10,382$8,853$7,524$6,375$4,278
16 years$11,253$9,525$8,026$6,737$5,634$3,661
17 years$10,481$8,772$7,304$6,053$4,996$3,141
18 years$9,796$8,106$6,667$5,455$4,442$2,702
19 years$9,183$7,513$6,104$4,929$3,959$2,328
20 years$8,633$6,981$5,602$4,464$3,536$2,009
21 years$8,135$6,503$5,152$4,051$3,165$1,736
22 years$7,683$6,070$4,749$3,684$2,837$1,502
23 years$7,272$5,677$4,385$3,355$2,546$1,301
24 years$6,895$5,319$4,055$3,060$2,289$1,128
25 years$6,549$4,992$3,756$2,794$2,059$979
26 years$6,229$4,691$3,483$2,555$1,855$849
27 years$5,934$4,415$3,235$2,339$1,673$738
28 years$5,661$4,160$3,007$2,143$1,509$641
29 years$5,407$3,925$2,798$1,965$1,363$557
30 years$5,170$3,707$2,606$1,803$1,231$485
31 years$4,949$3,504$2,430$1,656$1,113$422
32 years$4,743$3,315$2,267$1,522$1,007$367
33 years$4,549$3,140$2,117$1,400$911$319
34 years$4,367$2,976$1,978$1,288$825$278
35 years$4,195$2,822$1,849$1,185$747$242
36 years$4,034$2,679$1,730$1,092$677$211
37 years$3,882$2,544$1,619$1,006$614$184
38 years$3,738$2,418$1,516$927$556$160
39 years$3,602$2,299$1,421$855$505$139
40 years$3,473$2,188$1,331$789$458$122
41 years$3,350$2,082$1,248$728$415$106
42 years$3,234$1,983$1,171$671$377$92
43 years$3,123$1,890$1,099$620$342$80
44 years$3,018$1,801$1,032$572$310$70
45 years$2,918$1,718$969$529$282$61
46 years$2,822$1,639$910$488$256$53
47 years$2,731$1,564$855$451$232$46
48 years$2,643$1,493$803$417$211$40
49 years$2,560$1,425$755$385$192$35
50 years$2,480$1,362$710$356$174$31

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,540,000, adding $2,300 every year, while hoping to spend $20,585 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: 25/47/28 Blend
55$2,540,000$2,540,000$2,540,000$2,540,000
56$2,801,452$2,666,832$2,627,462$2,846,826
57$3,065,298$2,775,605$2,693,580$2,993,683
58$3,355,367$2,889,017$2,761,223$3,149,127
59$3,674,310$3,007,275$2,830,420$3,315,366
60$4,025,052$3,130,594$2,901,201$3,493,320
61$4,410,812$3,259,198$2,973,596$3,683,996
62$4,835,139$3,393,322$3,047,636$3,888,496
63$5,301,941$3,533,213$3,123,350$4,108,028
64$5,815,526$3,679,128$3,200,769$4,343,912
65$6,380,640$3,831,335$3,279,925$4,597,600
66$7,002,511$3,990,116$3,360,848$4,870,678
67$7,686,900$4,155,766$3,443,570$5,164,888
68$8,440,157$4,328,591$3,528,122$5,482,141
69$9,269,276$4,508,915$3,614,537$5,824,531
70$10,181,963$4,697,073$3,702,845$6,194,356
71$11,186,712$4,893,419$3,793,080$6,594,141
72$12,292,881$5,098,320$3,885,272$7,026,653
73$13,510,780$5,312,163$3,979,454$7,494,933
74$14,851,772$5,535,351$4,075,658$8,002,320
75$16,328,376$5,768,306$4,173,915$8,552,480
76$17,954,388$6,011,471$4,274,259$9,149,441
77$19,745,009$6,265,307$4,376,720$9,797,628
78$21,716,991$6,530,298$4,481,331$10,501,904
79$23,888,791$6,806,950$4,588,124$11,267,613
80$26,280,751$7,095,793$4,697,128$12,100,629
81$28,915,282$7,397,382$4,808,377$13,007,409
82$31,817,083$7,712,296$4,921,900$13,995,053
83$35,013,370$8,041,143$5,037,728$15,071,367
84$38,534,133$8,384,558$5,155,891$16,244,934
85$42,412,420$8,743,206$5,276,418$17,525,197
86$46,684,647$9,117,784$5,399,339$18,922,540
87$51,390,946$9,509,021$5,524,682$20,448,387
88$56,575,539$9,917,678$5,652,475$22,115,304
89$62,287,155$10,344,556$5,782,744$23,937,120
90$68,579,495$10,790,489$5,915,516$25,929,047
91$75,511,733$11,256,353$6,050,816$28,107,828
92$83,149,079$11,743,064$6,188,668$30,491,886
93$91,563,392$12,251,581$6,329,095$33,101,499
94$100,833,858$12,782,908$6,472,119$35,958,983
95$111,047,738$13,338,097$6,617,761$39,088,903
96$122,301,191$13,918,248$6,766,041$42,518,300
97$134,700,184$14,524,514$6,916,975$46,276,941
98$148,361,489$15,158,101$7,070,579$50,397,597
99$163,413,787$15,820,274$7,226,869$54,916,345
100$179,998,881$16,512,355$7,385,857$59,872,910