Can I retire at age 56 with 395,000?

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 $395,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$32,619$32,328$32,045$31,768$31,498$30,862
2 years$16,148$15,847$15,556$15,273$14,999$14,361
3 years$10,658$10,356$10,066$9,786$9,516$8,896
4 years$7,914$7,613$7,325$7,050$6,787$6,190
5 years$6,268$5,969$5,685$5,415$5,159$4,586
6 years$5,171$4,874$4,594$4,330$4,082$3,534
7 years$4,388$4,093$3,818$3,560$3,320$2,797
8 years$3,800$3,509$3,238$2,987$2,754$2,257
9 years$3,344$3,055$2,789$2,544$2,320$1,846
10 years$2,979$2,693$2,431$2,193$1,976$1,527
11 years$2,681$2,397$2,140$1,909$1,700$1,274
12 years$2,432$2,152$1,900$1,674$1,473$1,071
13 years$2,222$1,944$1,697$1,478$1,284$905
14 years$2,042$1,767$1,525$1,312$1,126$768
15 years$1,886$1,615$1,377$1,170$991$654
16 years$1,750$1,481$1,248$1,048$876$559
17 years$1,630$1,364$1,136$941$777$479
18 years$1,523$1,261$1,037$848$691$411
19 years$1,428$1,168$949$766$616$354
20 years$1,342$1,086$871$694$550$305
21 years$1,265$1,011$801$630$492$263
22 years$1,195$944$738$573$441$227
23 years$1,131$883$682$522$396$197
24 years$1,072$827$631$476$356$170
25 years$1,018$776$584$435$320$147
26 years$969$730$542$397$288$128
27 years$923$687$503$364$260$111
28 years$880$647$468$333$235$96
29 years$841$610$435$306$212$83
30 years$804$576$405$280$191$72
31 years$770$545$378$258$173$63
32 years$738$516$353$237$157$55
33 years$707$488$329$218$142$47
34 years$679$463$308$200$128$41
35 years$652$439$288$184$116$36
36 years$627$417$269$170$105$31
37 years$604$396$252$156$95$27
38 years$581$376$236$144$87$24
39 years$560$358$221$133$78$21
40 years$540$340$207$123$71$18
41 years$521$324$194$113$65$16
42 years$503$308$182$104$59$14
43 years$486$294$171$96$53$12
44 years$469$280$160$89$48$10
45 years$454$267$151$82$44$9
46 years$439$255$141$76$40$8
47 years$425$243$133$70$36$7
48 years$411$232$125$65$33$6
49 years$398$222$117$60$30$5
50 years$386$212$110$55$27$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $395,000, adding $4,670 every year, while hoping to spend $26,539 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: 28/47/25 Blend
55$395,000$395,000$395,000$395,000
56$440,107$419,172$413,050$448,897
57$456,761$411,474$398,649$448,502
58$474,224$402,510$382,877$445,448
59$492,550$392,188$365,660$441,621
60$511,800$380,415$346,919$436,970
61$532,036$367,088$326,573$431,446
62$553,330$352,102$304,540$424,995
63$575,757$335,343$280,729$417,563
64$599,401$316,690$255,050$409,091
65$624,351$296,019$227,405$399,522
66$650,705$273,195$197,694$388,793
67$678,572$248,077$165,812$376,840
68$708,069$220,515$131,649$363,599
69$739,323$190,351$95,091$349,000
70$772,475$157,419$56,017$332,975
71$807,677$121,542$14,303$315,450
72$845,096$82,534$0$296,353
73$884,916$40,198$0$283,666
74$927,336$0$0$273,850
75$972,577$0$0$265,977
76$1,020,877$0$0$279,806
77$1,072,501$0$0$294,626
78$1,127,736$0$0$310,526
79$1,186,899$0$0$327,602
80$1,250,338$0$0$345,960
81$1,318,431$0$0$365,715
82$1,391,598$0$0$386,997
83$1,470,296$0$0$409,945
84$1,555,030$0$0$434,713
85$1,646,351$0$0$461,470
86$1,744,868$0$0$490,403
87$1,851,246$0$0$521,715
88$1,966,220$0$0$555,632
89$2,090,595$0$0$592,400
90$2,225,257$0$0$632,292
91$2,371,179$0$0$675,607
92$2,529,431$0$0$722,672
93$2,701,192$0$0$773,849
94$2,887,755$0$0$829,537
95$3,090,546$0$0$890,172
96$3,311,132$0$0$956,238
97$3,551,235$0$0$1,028,262
98$3,812,753$0$0$1,106,830
99$4,097,775$0$0$1,192,583
100$4,408,596$0$0$1,286,227