Can I retire at age 56 with 404,000?

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 $404,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.1%
1 years$33,362$33,065$32,775$32,492$32,216$31,285
2 years$16,516$16,208$15,910$15,621$15,341$14,410
3 years$10,901$10,592$10,295$10,009$9,733$8,832
4 years$8,094$7,786$7,492$7,211$6,942$6,077
5 years$6,411$6,105$5,814$5,538$5,277$4,451
6 years$5,289$4,985$4,699$4,429$4,175$3,389
7 years$4,488$4,186$3,905$3,641$3,396$2,649
8 years$3,887$3,588$3,311$3,055$2,817$2,110
9 years$3,420$3,124$2,852$2,602$2,372$1,704
10 years$3,047$2,754$2,487$2,243$2,021$1,390
11 years$2,742$2,452$2,189$1,952$1,738$1,144
12 years$2,487$2,201$1,943$1,712$1,507$947
13 years$2,273$1,989$1,736$1,512$1,314$788
14 years$2,089$1,808$1,560$1,342$1,152$659
15 years$1,929$1,651$1,408$1,197$1,014$553
16 years$1,790$1,515$1,277$1,071$896$465
17 years$1,667$1,395$1,162$963$795$392
18 years$1,558$1,289$1,060$868$706$331
19 years$1,461$1,195$971$784$630$281
20 years$1,373$1,110$891$710$562$238
21 years$1,294$1,034$820$644$503$202
22 years$1,222$965$755$586$451$171
23 years$1,157$903$697$534$405$146
24 years$1,097$846$645$487$364$124
25 years$1,042$794$597$444$328$105
26 years$991$746$554$406$295$90
27 years$944$702$514$372$266$76
28 years$900$662$478$341$240$65
29 years$860$624$445$313$217$56
30 years$822$590$415$287$196$47
31 years$787$557$386$263$177$40
32 years$754$527$361$242$160$34
33 years$724$499$337$223$145$29
34 years$695$473$315$205$131$25
35 years$667$449$294$189$119$21
36 years$642$426$275$174$108$18
37 years$617$405$258$160$98$16
38 years$595$385$241$147$88$13
39 years$573$366$226$136$80$11
40 years$552$348$212$125$73$10
41 years$533$331$199$116$66$8
42 years$514$315$186$107$60$7
43 years$497$301$175$99$54$6
44 years$480$286$164$91$49$5
45 years$464$273$154$84$45$4
46 years$449$261$145$78$41$4
47 years$434$249$136$72$37$3
48 years$420$237$128$66$34$3
49 years$407$227$120$61$30$2
50 years$394$217$113$57$28$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $404,000, adding $3,552 every year, while hoping to spend $31,022 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: 51/38/11 Blend
55$404,000$404,000$404,000$404,000
56$448,872$427,460$421,198$470,281
57$461,650$415,398$402,301$473,231
58$474,691$401,706$381,731$472,841
59$487,990$386,270$359,400$471,704
60$501,540$368,972$335,214$469,756
61$515,330$349,685$309,077$466,932
62$529,350$328,275$280,887$463,160
63$543,585$304,603$250,539$458,364
64$558,021$278,518$217,922$452,464
65$572,637$249,863$182,920$445,373
66$587,411$218,472$145,413$436,999
67$602,318$184,168$105,275$427,241
68$617,327$146,765$62,375$415,996
69$632,405$106,068$16,575$403,149
70$647,513$61,867$0$388,580
71$662,605$13,945$0$375,951
72$677,632$0$0$363,654
73$692,536$0$0$365,474
74$707,252$0$0$372,997
75$721,708$0$0$380,350
76$735,822$0$0$387,486
77$749,500$0$0$394,353
78$762,641$0$0$400,892
79$775,127$0$0$407,036
80$786,831$0$0$412,712
81$797,606$0$0$417,839
82$807,291$0$0$422,324
83$815,707$0$0$426,065
84$822,653$0$0$428,948
85$827,904$0$0$430,848
86$831,214$0$0$431,623
87$832,306$0$0$431,117
88$830,872$0$0$429,157
89$826,574$0$0$425,550
90$819,031$0$0$420,082
91$807,826$0$0$412,517
92$792,494$0$0$402,593
93$772,519$0$0$390,018
94$747,331$0$0$374,472
95$716,298$0$0$355,596
96$678,721$0$0$332,997
97$633,827$0$0$306,239
98$580,758$0$0$274,839
99$518,568$0$0$238,263
100$446,210$0$0$195,921