Can I retire at age 56 with 494,000?

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 $494,000?

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$40,794$40,431$40,076$39,730$39,392$38,254
2 years$20,195$19,819$19,454$19,101$18,758$17,620
3 years$13,330$12,952$12,588$12,238$11,901$10,799
4 years$9,898$9,521$9,161$8,817$8,488$7,431
5 years$7,839$7,465$7,109$6,772$6,452$5,443
6 years$6,467$6,095$5,745$5,416$5,106$4,144
7 years$5,487$5,119$4,774$4,453$4,152$3,240
8 years$4,753$4,388$4,049$3,735$3,445$2,580
9 years$4,182$3,820$3,488$3,182$2,901$2,083
10 years$3,726$3,368$3,040$2,743$2,472$1,700
11 years$3,352$2,998$2,677$2,387$2,126$1,399
12 years$3,042$2,691$2,376$2,094$1,842$1,158
13 years$2,779$2,432$2,122$1,848$1,606$964
14 years$2,554$2,210$1,907$1,641$1,408$806
15 years$2,359$2,019$1,722$1,463$1,240$676
16 years$2,189$1,853$1,561$1,310$1,096$569
17 years$2,038$1,706$1,420$1,177$972$480
18 years$1,905$1,577$1,297$1,061$864$405
19 years$1,786$1,461$1,187$959$770$343
20 years$1,679$1,358$1,089$868$688$291
21 years$1,582$1,265$1,002$788$615$247
22 years$1,494$1,181$924$716$552$209
23 years$1,414$1,104$853$652$495$178
24 years$1,341$1,034$789$595$445$151
25 years$1,274$971$730$543$401$129
26 years$1,212$912$677$497$361$110
27 years$1,154$859$629$455$325$93
28 years$1,101$809$585$417$294$80
29 years$1,052$763$544$382$265$68
30 years$1,006$721$507$351$239$58
31 years$963$681$473$322$217$49
32 years$922$645$441$296$196$42
33 years$885$611$412$272$177$36
34 years$849$579$385$250$160$31
35 years$816$549$360$231$145$26
36 years$785$521$336$212$132$22
37 years$755$495$315$196$119$19
38 years$727$470$295$180$108$16
39 years$700$447$276$166$98$14
40 years$675$425$259$153$89$12
41 years$652$405$243$141$81$10
42 years$629$386$228$131$73$9
43 years$607$368$214$121$66$7
44 years$587$350$201$111$60$6
45 years$567$334$188$103$55$5
46 years$549$319$177$95$50$5
47 years$531$304$166$88$45$4
48 years$514$290$156$81$41$3
49 years$498$277$147$75$37$3
50 years$482$265$138$69$34$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $494,000, adding $2,428 every year, while hoping to spend $23,756 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: 32/42/26 Blend
55$494,000$494,000$494,000$494,000
56$546,892$520,710$513,053$559,978
57$577,399$520,949$504,965$570,388
58$610,222$520,403$495,808$579,311
59$645,571$519,009$485,524$588,450
60$683,678$516,700$474,049$597,839
61$724,798$513,404$461,315$607,520
62$769,212$509,044$447,253$617,539
63$817,226$503,542$431,790$627,949
64$869,178$496,810$414,850$638,811
65$925,440$488,760$396,353$650,195
66$986,420$479,295$376,217$662,181
67$1,052,568$468,313$354,353$674,860
68$1,124,377$455,708$330,671$688,332
69$1,202,391$441,365$305,076$702,716
70$1,287,207$425,164$277,468$718,140
71$1,379,483$406,977$247,744$734,755
72$1,479,942$386,671$215,794$752,725
73$1,589,379$364,101$181,507$772,238
74$1,708,672$339,118$144,764$793,506
75$1,838,783$311,562$105,440$816,765
76$1,980,774$281,264$63,408$842,279
77$2,135,814$248,046$18,532$870,348
78$2,305,186$211,720$0$901,302
79$2,490,308$172,086$0$943,659
80$2,692,736$128,936$0$995,707
81$2,914,188$82,046$0$1,052,805
82$3,156,551$31,183$0$1,115,516
83$3,421,907$0$0$1,184,464
84$3,712,546$0$0$1,271,389
85$4,030,991$0$0$1,382,495
86$4,380,019$0$0$1,504,348
87$4,762,691$0$0$1,638,026
88$5,182,377$0$0$1,784,717
89$5,642,789$0$0$1,945,729
90$6,148,014$0$0$2,122,501
91$6,702,557$0$0$2,316,621
92$7,311,377$0$0$2,529,836
93$7,979,940$0$0$2,764,071
94$8,714,265$0$0$3,021,449
95$9,520,982$0$0$3,304,306
96$10,407,397$0$0$3,615,217
97$11,381,558$0$0$3,957,017
98$12,452,330$0$0$4,332,832
99$13,629,481$0$0$4,746,104
100$14,923,772$0$0$5,200,627