Can I retire at age 56 with 397,000?

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 $397,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.4%
1 years$32,784$32,492$32,207$31,929$31,657$30,461
2 years$16,230$15,927$15,634$15,350$15,075$13,884
3 years$10,712$10,409$10,117$9,835$9,564$8,416
4 years$7,954$7,652$7,362$7,086$6,821$5,724
5 years$6,300$5,999$5,713$5,442$5,185$4,142
6 years$5,197$4,899$4,617$4,352$4,103$3,114
7 years$4,410$4,114$3,837$3,578$3,337$2,403
8 years$3,820$3,526$3,254$3,002$2,768$1,888
9 years$3,361$3,070$2,803$2,557$2,331$1,503
10 years$2,994$2,706$2,443$2,204$1,986$1,209
11 years$2,694$2,409$2,151$1,918$1,708$980
12 years$2,444$2,162$1,909$1,682$1,480$799
13 years$2,233$1,954$1,706$1,485$1,291$655
14 years$2,052$1,776$1,533$1,319$1,132$539
15 years$1,896$1,623$1,384$1,176$996$445
16 years$1,759$1,489$1,255$1,053$881$368
17 years$1,638$1,371$1,142$946$781$305
18 years$1,531$1,267$1,042$853$694$253
19 years$1,435$1,174$954$770$619$211
20 years$1,349$1,091$876$698$553$175
21 years$1,272$1,016$805$633$495$146
22 years$1,201$949$742$576$443$122
23 years$1,137$887$685$524$398$102
24 years$1,078$831$634$478$358$85
25 years$1,024$780$587$437$322$71
26 years$974$733$544$399$290$59
27 years$928$690$506$366$261$50
28 years$885$650$470$335$236$42
29 years$845$613$437$307$213$35
30 years$808$579$407$282$192$29
31 years$774$548$380$259$174$24
32 years$741$518$354$238$157$20
33 years$711$491$331$219$142$17
34 years$683$465$309$201$129$14
35 years$656$441$289$185$117$12
36 years$631$419$270$171$106$10
37 years$607$398$253$157$96$8
38 years$584$378$237$145$87$7
39 years$563$359$222$134$79$6
40 years$543$342$208$123$72$5
41 years$524$325$195$114$65$4
42 years$505$310$183$105$59$3
43 years$488$295$172$97$53$3
44 years$472$282$161$89$49$2
45 years$456$268$151$83$44$2
46 years$441$256$142$76$40$2
47 years$427$244$134$70$36$1
48 years$413$233$126$65$33$1
49 years$400$223$118$60$30$1
50 years$388$213$111$56$27$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $397,000, adding $4,599 every year, while hoping to spend $24,485 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: 46/28/26 Blend
55$397,000$397,000$397,000$397,000
56$442,238$421,197$415,043$459,090
57$461,294$415,784$402,895$466,032
58$481,474$409,285$389,520$470,815
59$502,865$401,621$374,850$475,525
60$525,565$392,708$358,815$480,166
61$549,680$382,458$341,343$484,747
62$575,326$370,776$322,356$489,279
63$602,629$357,564$301,775$493,775
64$631,729$342,716$279,516$498,252
65$662,777$326,121$255,491$502,732
66$695,940$307,662$229,611$507,239
67$731,401$287,212$201,778$511,805
68$769,360$264,642$171,894$516,466
69$810,037$239,811$139,854$521,263
70$853,672$212,573$105,550$526,247
71$900,530$182,773$68,869$531,476
72$950,900$150,245$29,693$537,016
73$1,005,102$114,816$0$542,945
74$1,063,484$76,304$0$552,714
75$1,126,431$34,514$0$572,071
76$1,194,364$0$0$592,925
77$1,267,747$0$0$618,760
78$1,347,089$0$0$658,228
79$1,432,950$0$0$700,977
80$1,525,945$0$0$747,317
81$1,626,751$0$0$797,592
82$1,736,112$0$0$852,177
83$1,854,845$0$0$911,487
84$1,983,852$0$0$975,977
85$2,124,121$0$0$1,046,147
86$2,276,742$0$0$1,122,550
87$2,442,914$0$0$1,205,791
88$2,623,953$0$0$1,296,537
89$2,821,313$0$0$1,395,525
90$3,036,590$0$0$1,503,561
91$3,271,540$0$0$1,621,536
92$3,528,101$0$0$1,750,430
93$3,808,400$0$0$1,891,322
94$4,114,784$0$0$2,045,398
95$4,449,834$0$0$2,213,967
96$4,816,392$0$0$2,398,467
97$5,217,588$0$0$2,600,485
98$5,656,869$0$0$2,821,767
99$6,138,030$0$0$3,064,233
100$6,665,250$0$0$3,330,003