Can I retire at age 56 with 498,000?

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 $498,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.8%
1 years$41,124$40,758$40,401$40,052$39,711$39,086
2 years$20,359$19,979$19,612$19,256$18,910$18,281
3 years$13,438$13,057$12,690$12,337$11,997$11,385
4 years$9,978$9,598$9,235$8,888$8,557$7,966
5 years$7,902$7,525$7,167$6,827$6,505$5,936
6 years$6,519$6,145$5,792$5,460$5,147$4,602
7 years$5,532$5,160$4,813$4,489$4,186$3,665
8 years$4,791$4,423$4,082$3,765$3,473$2,975
9 years$4,216$3,851$3,516$3,207$2,924$2,451
10 years$3,756$3,395$3,065$2,765$2,492$2,041
11 years$3,380$3,022$2,698$2,406$2,143$1,715
12 years$3,066$2,713$2,395$2,111$1,857$1,451
13 years$2,801$2,451$2,140$1,863$1,619$1,235
14 years$2,574$2,228$1,922$1,654$1,420$1,056
15 years$2,378$2,036$1,736$1,475$1,250$906
16 years$2,206$1,868$1,574$1,321$1,105$780
17 years$2,055$1,720$1,432$1,187$979$674
18 years$1,921$1,589$1,307$1,069$871$583
19 years$1,800$1,473$1,197$966$776$506
20 years$1,693$1,369$1,098$875$693$440
21 years$1,595$1,275$1,010$794$620$383
22 years$1,506$1,190$931$722$556$333
23 years$1,426$1,113$860$658$499$291
24 years$1,352$1,043$795$600$449$254
25 years$1,284$979$736$548$404$222
26 years$1,221$920$683$501$364$194
27 years$1,164$866$634$459$328$170
28 years$1,110$816$590$420$296$148
29 years$1,060$770$549$385$267$130
30 years$1,014$727$511$354$241$114
31 years$970$687$476$325$218$100
32 years$930$650$445$298$197$88
33 years$892$616$415$274$179$77
34 years$856$583$388$252$162$67
35 years$823$553$363$232$147$59
36 years$791$525$339$214$133$52
37 years$761$499$317$197$120$46
38 years$733$474$297$182$109$40
39 years$706$451$279$168$99$35
40 years$681$429$261$155$90$31
41 years$657$408$245$143$81$27
42 years$634$389$230$132$74$24
43 years$612$370$215$122$67$21
44 years$592$353$202$112$61$18
45 years$572$337$190$104$55$16
46 years$553$321$178$96$50$14
47 years$535$307$168$88$46$12
48 years$518$293$157$82$41$11
49 years$502$279$148$76$38$10
50 years$486$267$139$70$34$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $498,000, adding $5,942 every year, while hoping to spend $31,042 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: 68/17/15 Blend
55$498,000$498,000$498,000$498,000
56$554,925$528,531$520,812$590,324
57$578,499$521,401$505,231$607,541
58$603,437$512,881$488,087$622,137
59$629,846$502,870$469,296$637,317
60$657,841$491,261$448,769$653,135
61$687,550$477,942$426,412$669,651
62$719,111$462,793$402,128$686,933
63$752,677$445,686$375,815$705,057
64$788,414$426,488$347,369$724,106
65$826,502$405,057$316,676$744,176
66$867,143$381,242$283,622$765,369
67$910,553$354,884$248,085$787,803
68$956,973$325,817$209,939$811,609
69$1,006,664$293,861$169,052$836,929
70$1,059,914$258,831$125,285$863,925
71$1,117,038$220,527$78,496$892,777
72$1,178,383$178,740$28,532$923,682
73$1,244,329$133,249$0$956,861
74$1,315,292$83,819$0$996,528
75$1,391,731$30,206$0$1,044,120
76$1,474,148$0$0$1,095,395
77$1,563,097$0$0$1,155,929
78$1,659,183$0$0$1,227,448
79$1,763,075$0$0$1,304,800
80$1,875,505$0$0$1,388,535
81$1,997,280$0$0$1,479,256
82$2,129,287$0$0$1,577,627
83$2,272,498$0$0$1,684,378
84$2,427,987$0$0$1,800,311
85$2,596,933$0$0$1,926,310
86$2,780,631$0$0$2,063,344
87$2,980,509$0$0$2,212,484
88$3,198,137$0$0$2,374,904
89$3,435,241$0$0$2,551,899
90$3,693,724$0$0$2,744,892
91$3,975,676$0$0$2,955,450
92$4,283,402$0$0$3,185,299
93$4,619,434$0$0$3,436,336
94$4,986,565$0$0$3,710,653
95$5,387,865$0$0$4,010,549
96$5,826,717$0$0$4,338,560
97$6,306,844$0$0$4,697,474
98$6,832,347$0$0$5,090,364
99$7,407,741$0$0$5,520,611
100$8,037,998$0$0$5,991,941