Can I retire at age 56 with 2,740,000?

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 $2,740,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$226,267$224,251$222,285$220,366$218,491$211,667
2 years$112,013$109,927$107,905$105,945$104,044$97,229
3 years$73,934$71,839$69,822$67,880$66,010$59,418
4 years$54,898$52,809$50,812$48,904$47,079$40,761
5 years$43,479$41,403$39,433$37,563$35,788$29,762
6 years$35,869$33,809$31,867$30,039$28,318$22,588
7 years$30,436$28,392$26,482$24,697$23,030$17,596
8 years$26,362$24,337$22,459$20,718$19,106$13,963
9 years$23,196$21,190$19,344$17,647$16,090$11,234
10 years$20,664$18,678$16,864$15,212$13,709$9,133
11 years$18,594$16,628$14,847$13,239$11,790$7,485
12 years$16,870$14,924$13,176$11,612$10,217$6,174
13 years$15,413$13,487$11,772$10,252$8,910$5,119
14 years$14,165$12,260$10,577$9,100$7,810$4,261
15 years$13,084$11,199$9,550$8,116$6,877$3,560
16 years$12,139$10,275$8,658$7,267$6,078$2,982
17 years$11,307$9,463$7,879$6,529$5,389$2,503
18 years$10,567$8,744$7,192$5,884$4,792$2,106
19 years$9,906$8,104$6,584$5,317$4,271$1,774
20 years$9,312$7,531$6,043$4,815$3,815$1,497
21 years$8,776$7,015$5,558$4,370$3,414$1,264
22 years$8,288$6,548$5,123$3,974$3,060$1,068
23 years$7,844$6,124$4,730$3,619$2,747$904
24 years$7,438$5,738$4,374$3,301$2,469$765
25 years$7,064$5,385$4,052$3,014$2,222$648
26 years$6,720$5,061$3,758$2,756$2,001$549
27 years$6,402$4,763$3,489$2,523$1,804$466
28 years$6,107$4,488$3,244$2,311$1,628$395
29 years$5,833$4,234$3,019$2,120$1,470$335
30 years$5,577$3,998$2,812$1,945$1,328$284
31 years$5,339$3,780$2,621$1,787$1,201$241
32 years$5,116$3,576$2,446$1,642$1,086$205
33 years$4,907$3,387$2,284$1,510$983$174
34 years$4,711$3,210$2,134$1,389$890$148
35 years$4,526$3,045$1,995$1,279$806$125
36 years$4,352$2,890$1,866$1,178$730$106
37 years$4,187$2,745$1,747$1,085$662$90
38 years$4,032$2,608$1,636$1,000$600$77
39 years$3,885$2,480$1,532$922$544$65
40 years$3,746$2,360$1,436$851$494$55
41 years$3,614$2,246$1,347$785$448$47
42 years$3,488$2,139$1,263$724$406$40
43 years$3,369$2,038$1,185$669$369$34
44 years$3,256$1,943$1,113$617$335$29
45 years$3,147$1,853$1,045$570$304$24
46 years$3,044$1,768$981$527$276$21
47 years$2,946$1,687$922$487$251$18
48 years$2,851$1,610$866$450$228$15
49 years$2,761$1,538$814$416$207$13
50 years$2,675$1,469$766$384$188$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,740,000, adding $3,950 every year, while hoping to spend $56,458 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: 47/39/14 Blend
55$2,740,000$2,740,000$2,740,000$2,740,000
56$3,023,554$2,878,334$2,835,864$3,153,604
57$3,271,886$2,959,302$2,870,795$3,325,006
58$3,543,655$3,042,345$2,905,004$3,504,825
59$3,841,193$3,127,505$2,938,406$3,698,744
60$4,167,067$3,214,824$2,970,915$3,908,099
61$4,524,103$3,304,345$3,002,435$4,134,355
62$4,915,414$3,396,111$3,032,870$4,379,131
63$5,344,429$3,490,164$3,062,114$4,644,203
64$5,814,925$3,586,546$3,090,059$4,931,529
65$6,331,060$3,685,299$3,116,589$5,243,264
66$6,897,416$3,786,467$3,141,582$5,581,782
67$7,519,039$3,890,090$3,164,912$5,949,693
68$8,201,487$3,996,211$3,186,442$6,349,876
69$8,950,883$4,104,870$3,206,032$6,785,497
70$9,773,972$4,216,107$3,223,534$7,260,046
71$10,678,185$4,329,964$3,238,789$7,777,364
72$11,671,706$4,446,478$3,251,635$8,341,683
73$12,763,553$4,565,689$3,261,898$8,957,666
74$13,963,660$4,687,632$3,269,396$9,630,446
75$15,282,973$4,812,346$3,273,940$10,365,679
76$16,733,548$4,939,863$3,275,329$11,169,597
77$18,328,672$5,070,217$3,273,354$12,049,064
78$20,082,979$5,203,440$3,267,794$13,011,640
79$22,012,596$5,339,562$3,258,419$14,065,659
80$24,135,290$5,478,611$3,244,985$15,220,298
81$26,470,638$5,620,611$3,227,240$16,485,671
82$29,040,208$5,765,585$3,204,918$17,872,921
83$31,867,765$5,913,555$3,177,739$19,394,324
84$34,979,495$6,064,537$3,145,411$21,063,408
85$38,404,250$6,218,546$3,107,628$22,895,079
86$42,173,821$6,375,592$3,064,071$24,905,761
87$46,323,236$6,535,681$3,014,403$27,113,550
88$50,891,094$6,698,817$2,958,273$29,538,390
89$55,919,924$6,864,998$2,895,314$32,202,254
90$61,456,590$7,034,217$2,825,141$35,129,357
91$67,552,730$7,206,461$2,747,351$38,346,381
92$74,265,245$7,381,714$2,661,524$41,882,730
93$81,656,833$7,559,952$2,567,218$45,770,805
94$89,796,585$7,741,144$2,463,975$50,046,312
95$98,760,630$7,925,253$2,351,311$54,748,596
96$108,632,858$8,112,235$2,228,724$59,921,019
97$119,505,712$8,302,036$2,095,688$65,611,360
98$131,481,053$8,494,595$1,951,653$71,872,275
99$144,671,131$8,689,841$1,796,043$78,761,790
100$159,199,636$8,887,692$1,628,260$86,343,849