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%11.4%
1 years$32,784$32,492$32,207$31,929$31,657$31,471
2 years$16,230$15,927$15,634$15,350$15,075$14,887
3 years$10,712$10,409$10,117$9,835$9,564$9,380
4 years$7,954$7,652$7,362$7,086$6,821$6,643
5 years$6,300$5,999$5,713$5,442$5,185$5,013
6 years$5,197$4,899$4,617$4,352$4,103$3,937
7 years$4,410$4,114$3,837$3,578$3,337$3,177
8 years$3,820$3,526$3,254$3,002$2,768$2,615
9 years$3,361$3,070$2,803$2,557$2,331$2,185
10 years$2,994$2,706$2,443$2,204$1,986$1,846
11 years$2,694$2,409$2,151$1,918$1,708$1,574
12 years$2,444$2,162$1,909$1,682$1,480$1,352
13 years$2,233$1,954$1,706$1,485$1,291$1,169
14 years$2,052$1,776$1,533$1,319$1,132$1,015
15 years$1,896$1,623$1,384$1,176$996$886
16 years$1,759$1,489$1,255$1,053$881$776
17 years$1,638$1,371$1,142$946$781$681
18 years$1,531$1,267$1,042$853$694$600
19 years$1,435$1,174$954$770$619$529
20 years$1,349$1,091$876$698$553$468
21 years$1,272$1,016$805$633$495$415
22 years$1,201$949$742$576$443$368
23 years$1,137$887$685$524$398$327
24 years$1,078$831$634$478$358$291
25 years$1,024$780$587$437$322$259
26 years$974$733$544$399$290$231
27 years$928$690$506$366$261$206
28 years$885$650$470$335$236$184
29 years$845$613$437$307$213$164
30 years$808$579$407$282$192$146
31 years$774$548$380$259$174$131
32 years$741$518$354$238$157$117
33 years$711$491$331$219$142$105
34 years$683$465$309$201$129$94
35 years$656$441$289$185$117$84
36 years$631$419$270$171$106$75
37 years$607$398$253$157$96$67
38 years$584$378$237$145$87$60
39 years$563$359$222$134$79$54
40 years$543$342$208$123$72$48
41 years$524$325$195$114$65$43
42 years$505$310$183$105$59$39
43 years$488$295$172$97$53$35
44 years$472$282$161$89$49$31
45 years$456$268$151$83$44$28
46 years$441$256$142$76$40$25
47 years$427$244$134$70$36$23
48 years$413$233$126$65$33$20
49 years$400$223$118$60$30$18
50 years$388$213$111$56$27$16

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $397,000, adding $2,570 every year, while hoping to spend $25,049 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: 28/46/26 Blend
55$397,000$397,000$397,000$397,000
56$440,145$419,104$412,950$448,851
57$458,388$412,988$400,132$449,837
58$477,652$405,733$386,045$448,545
59$498,015$397,257$370,620$446,645
60$519,562$387,471$353,785$444,102
61$542,385$376,285$335,465$440,878
62$566,586$363,601$315,581$436,939
63$592,274$349,314$294,050$432,245
64$619,572$333,317$270,786$426,757
65$648,611$315,492$245,700$420,438
66$679,537$295,718$218,698$413,247
67$712,506$273,865$189,681$405,145
68$747,694$249,796$158,548$396,091
69$785,290$223,368$125,191$386,046
70$825,503$194,426$89,498$374,970
71$868,561$162,810$51,353$362,825
72$914,715$128,348$10,634$349,573
73$964,240$90,861$0$335,178
74$1,017,438$50,158$0$328,711
75$1,074,639$6,039$0$324,774
76$1,136,207$0$0$320,425
77$1,202,543$0$0$336,790
78$1,274,083$0$0$357,785
79$1,351,310$0$0$380,501
80$1,434,753$0$0$405,100
81$1,524,995$0$0$431,760
82$1,622,673$0$0$460,678
83$1,728,492$0$0$492,069
84$1,843,224$0$0$526,170
85$1,967,719$0$0$563,244
86$2,102,913$0$0$603,575
87$2,249,832$0$0$647,482
88$2,409,608$0$0$695,310
89$2,583,485$0$0$747,444
90$2,772,833$0$0$804,303
91$2,979,158$0$0$866,351
92$3,204,119$0$0$934,099
93$3,449,539$0$0$1,008,107
94$3,717,429$0$0$1,088,994
95$4,009,998$0$0$1,177,441
96$4,329,682$0$0$1,274,196
97$4,679,159$0$0$1,380,085
98$5,061,379$0$0$1,496,016
99$5,479,593$0$0$1,622,989
100$5,937,375$0$0$1,762,107