Can I retire at age 56 with 488,000?

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 $488,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.4%
1 years$40,299$39,940$39,589$39,248$38,914$37,896
2 years$19,950$19,578$19,218$18,869$18,530$17,512
3 years$13,168$12,795$12,435$12,090$11,756$10,769
4 years$9,777$9,405$9,050$8,710$8,385$7,436
5 years$7,744$7,374$7,023$6,690$6,374$5,467
6 years$6,388$6,021$5,676$5,350$5,044$4,179
7 years$5,421$5,057$4,716$4,399$4,102$3,279
8 years$4,695$4,335$4,000$3,690$3,403$2,622
9 years$4,131$3,774$3,445$3,143$2,866$2,127
10 years$3,680$3,327$3,004$2,709$2,442$1,743
11 years$3,312$2,961$2,644$2,358$2,100$1,440
12 years$3,005$2,658$2,347$2,068$1,820$1,198
13 years$2,745$2,402$2,097$1,826$1,587$1,002
14 years$2,523$2,183$1,884$1,621$1,391$842
15 years$2,330$1,995$1,701$1,445$1,225$710
16 years$2,162$1,830$1,542$1,294$1,082$600
17 years$2,014$1,685$1,403$1,163$960$509
18 years$1,882$1,557$1,281$1,048$853$432
19 years$1,764$1,443$1,173$947$761$368
20 years$1,659$1,341$1,076$858$679$313
21 years$1,563$1,249$990$778$608$267
22 years$1,476$1,166$912$708$545$228
23 years$1,397$1,091$842$645$489$195
24 years$1,325$1,022$779$588$440$167
25 years$1,258$959$722$537$396$143
26 years$1,197$901$669$491$356$122
27 years$1,140$848$621$449$321$105
28 years$1,088$799$578$412$290$90
29 years$1,039$754$538$378$262$77
30 years$993$712$501$346$237$66
31 years$951$673$467$318$214$57
32 years$911$637$436$292$193$49
33 years$874$603$407$269$175$42
34 years$839$572$380$247$159$36
35 years$806$542$355$228$144$31
36 years$775$515$332$210$130$26
37 years$746$489$311$193$118$23
38 years$718$465$291$178$107$19
39 years$692$442$273$164$97$17
40 years$667$420$256$152$88$14
41 years$644$400$240$140$80$12
42 years$621$381$225$129$72$11
43 years$600$363$211$119$66$9
44 years$580$346$198$110$60$8
45 years$561$330$186$102$54$7
46 years$542$315$175$94$49$6
47 years$525$300$164$87$45$5
48 years$508$287$154$80$41$4
49 years$492$274$145$74$37$4
50 years$476$262$136$68$33$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $488,000, adding $6,346 every year, while hoping to spend $30,932 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: 49/37/14 Blend
55$488,000$488,000$488,000$488,000
56$544,322$518,458$510,894$568,597
57$566,931$510,951$495,097$578,479
58$590,810$502,039$477,735$585,477
59$616,055$491,622$458,722$592,392
60$642,772$479,591$437,968$599,227
61$671,077$465,832$415,382$605,986
62$701,095$450,226$390,865$612,676
63$732,964$432,645$364,317$619,307
64$766,835$412,953$335,630$625,894
65$802,873$391,008$304,694$632,454
66$841,258$366,660$271,393$639,009
67$882,187$339,747$235,607$645,587
68$925,878$310,103$197,207$652,220
69$972,567$277,547$156,063$658,948
70$1,022,515$241,893$112,037$665,820
71$1,076,005$202,939$64,984$672,889
72$1,133,351$160,477$14,754$680,223
73$1,194,896$114,283$0$687,897
74$1,261,015$64,123$0$701,802
75$1,332,122$9,748$0$718,968
76$1,408,670$0$0$737,331
77$1,491,157$0$0$777,043
78$1,580,131$0$0$824,200
79$1,676,191$0$0$875,156
80$1,779,998$0$0$930,266
81$1,892,278$0$0$989,922
82$2,013,827$0$0$1,054,552
83$2,145,524$0$0$1,124,631
84$2,288,333$0$0$1,200,676
85$2,443,312$0$0$1,283,260
86$2,611,629$0$0$1,373,011
87$2,794,565$0$0$1,470,621
88$2,993,533$0$0$1,576,850
89$3,210,084$0$0$1,692,536
90$3,445,926$0$0$1,818,600
91$3,702,939$0$0$1,956,054
92$3,983,192$0$0$2,106,016
93$4,288,960$0$0$2,269,713
94$4,622,751$0$0$2,448,497
95$4,987,323$0$0$2,643,856
96$5,385,711$0$0$2,857,428
97$5,821,261$0$0$3,091,017
98$6,297,652$0$0$3,346,610
99$6,818,938$0$0$3,626,393
100$7,389,580$0$0$3,932,774