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%17.3%
1 years$226,267$224,251$222,285$220,366$218,491$212,007
2 years$112,013$109,927$107,905$105,945$104,044$97,564
3 years$73,934$71,839$69,822$67,880$66,010$59,738
4 years$54,898$52,809$50,812$48,904$47,079$41,064
5 years$43,479$41,403$39,433$37,563$35,788$30,046
6 years$35,869$33,809$31,867$30,039$28,318$22,854
7 years$30,436$28,392$26,482$24,697$23,030$17,843
8 years$26,362$24,337$22,459$20,718$19,106$14,193
9 years$23,196$21,190$19,344$17,647$16,090$11,447
10 years$20,664$18,678$16,864$15,212$13,709$9,329
11 years$18,594$16,628$14,847$13,239$11,790$7,666
12 years$16,870$14,924$13,176$11,612$10,217$6,340
13 years$15,413$13,487$11,772$10,252$8,910$5,270
14 years$14,165$12,260$10,577$9,100$7,810$4,400
15 years$13,084$11,199$9,550$8,116$6,877$3,686
16 years$12,139$10,275$8,658$7,267$6,078$3,096
17 years$11,307$9,463$7,879$6,529$5,389$2,607
18 years$10,567$8,744$7,192$5,884$4,792$2,200
19 years$9,906$8,104$6,584$5,317$4,271$1,859
20 years$9,312$7,531$6,043$4,815$3,815$1,573
21 years$8,776$7,015$5,558$4,370$3,414$1,332
22 years$8,288$6,548$5,123$3,974$3,060$1,130
23 years$7,844$6,124$4,730$3,619$2,747$959
24 years$7,438$5,738$4,374$3,301$2,469$814
25 years$7,064$5,385$4,052$3,014$2,222$692
26 years$6,720$5,061$3,758$2,756$2,001$588
27 years$6,402$4,763$3,489$2,523$1,804$500
28 years$6,107$4,488$3,244$2,311$1,628$426
29 years$5,833$4,234$3,019$2,120$1,470$362
30 years$5,577$3,998$2,812$1,945$1,328$308
31 years$5,339$3,780$2,621$1,787$1,201$263
32 years$5,116$3,576$2,446$1,642$1,086$224
33 years$4,907$3,387$2,284$1,510$983$190
34 years$4,711$3,210$2,134$1,389$890$162
35 years$4,526$3,045$1,995$1,279$806$138
36 years$4,352$2,890$1,866$1,178$730$118
37 years$4,187$2,745$1,747$1,085$662$100
38 years$4,032$2,608$1,636$1,000$600$86
39 years$3,885$2,480$1,532$922$544$73
40 years$3,746$2,360$1,436$851$494$62
41 years$3,614$2,246$1,347$785$448$53
42 years$3,488$2,139$1,263$724$406$45
43 years$3,369$2,038$1,185$669$369$38
44 years$3,256$1,943$1,113$617$335$33
45 years$3,147$1,853$1,045$570$304$28
46 years$3,044$1,768$981$527$276$24
47 years$2,946$1,687$922$487$251$20
48 years$2,851$1,610$866$450$228$17
49 years$2,761$1,538$814$416$207$15
50 years$2,675$1,469$766$384$188$13

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 $3,421 every year, while hoping to spend $51,205 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: 56/30/14 Blend
55$2,740,000$2,740,000$2,740,000$2,740,000
56$3,023,009$2,877,789$2,835,319$3,181,172
57$3,276,874$2,964,319$2,875,820$3,375,366
58$3,554,917$3,053,372$2,915,962$3,580,917
59$3,859,551$3,145,020$2,955,679$3,803,636
60$4,193,431$3,239,331$2,994,900$4,045,174
61$4,559,483$3,336,381$3,033,552$4,307,351
62$4,960,930$3,436,243$3,071,555$4,592,166
63$5,401,320$3,538,995$3,108,828$4,901,821
64$5,884,563$3,644,714$3,145,282$5,238,743
65$6,414,964$3,753,480$3,180,825$5,605,599
66$6,997,267$3,865,378$3,215,359$6,005,329
67$7,636,696$3,980,489$3,248,781$6,441,168
68$8,339,007$4,098,900$3,280,983$6,916,680
69$9,110,539$4,220,700$3,311,849$7,435,790
70$9,958,278$4,345,978$3,341,260$8,002,817
71$10,889,918$4,474,827$3,369,088$8,622,522
72$11,913,935$4,607,339$3,395,198$9,300,146
73$13,039,670$4,743,612$3,419,451$10,041,463
74$14,277,411$4,883,743$3,441,697$10,852,831
75$15,638,494$5,027,834$3,461,780$11,741,256
76$17,135,408$5,175,985$3,479,538$12,714,454
77$18,781,913$5,328,302$3,494,796$13,780,924
78$20,593,171$5,484,892$3,507,374$14,950,030
79$22,585,886$5,645,863$3,517,083$16,232,088
80$24,778,462$5,811,326$3,523,721$17,638,462
81$27,191,178$5,981,394$3,527,079$19,181,672
82$29,846,379$6,156,184$3,526,937$20,875,512
83$32,768,684$6,335,811$3,523,063$22,735,178
84$35,985,221$6,520,396$3,515,217$24,777,415
85$39,525,879$6,710,061$3,503,142$27,020,670
86$43,423,595$6,904,930$3,486,573$29,485,269
87$47,714,659$7,105,129$3,465,231$32,193,608
88$52,439,060$7,310,786$3,438,822$35,170,363
89$57,640,861$7,522,032$3,407,040$38,442,722
90$63,368,616$7,738,999$3,369,563$42,040,646
91$69,675,827$7,961,822$3,326,055$45,997,144
92$76,621,446$8,190,636$3,276,163$50,348,591
93$84,270,438$8,425,581$3,219,518$55,135,066
94$92,694,385$8,666,797$3,155,735$60,400,735
95$101,972,168$8,914,426$3,084,408$66,194,263
96$112,190,708$9,168,612$3,005,114$72,569,274
97$123,445,787$9,429,500$2,917,412$79,584,860
98$135,842,950$9,697,238$2,820,838$87,306,135
99$149,498,502$9,971,975$2,714,908$95,804,851
100$164,540,608$10,253,860$2,599,116$105,160,074