Can I retire at age 56 with 506,000?

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 $506,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.8%
1 years$41,785$41,413$41,050$40,695$40,349$38,918
2 years$20,686$20,300$19,927$19,565$19,214$17,787
3 years$13,653$13,267$12,894$12,535$12,190$10,812
4 years$10,138$9,752$9,384$9,031$8,694$7,376
5 years$8,029$7,646$7,282$6,937$6,609$5,355
6 years$6,624$6,243$5,885$5,547$5,230$4,039
7 years$5,621$5,243$4,890$4,561$4,253$3,127
8 years$4,868$4,494$4,147$3,826$3,528$2,465
9 years$4,284$3,913$3,572$3,259$2,971$1,970
10 years$3,816$3,449$3,114$2,809$2,532$1,591
11 years$3,434$3,071$2,742$2,445$2,177$1,294
12 years$3,115$2,756$2,433$2,144$1,887$1,060
13 years$2,846$2,491$2,174$1,893$1,645$872
14 years$2,616$2,264$1,953$1,681$1,442$721
15 years$2,416$2,068$1,764$1,499$1,270$597
16 years$2,242$1,898$1,599$1,342$1,122$496
17 years$2,088$1,748$1,455$1,206$995$413
18 years$1,951$1,615$1,328$1,087$885$345
19 years$1,829$1,497$1,216$982$789$288
20 years$1,720$1,391$1,116$889$704$241
21 years$1,621$1,295$1,026$807$630$202
22 years$1,531$1,209$946$734$565$169
23 years$1,449$1,131$873$668$507$142
24 years$1,374$1,060$808$610$456$119
25 years$1,305$994$748$557$410$100
26 years$1,241$935$694$509$370$84
27 years$1,182$880$644$466$333$71
28 years$1,128$829$599$427$301$59
29 years$1,077$782$557$391$271$50
30 years$1,030$738$519$359$245$42
31 years$986$698$484$330$222$35
32 years$945$660$452$303$201$30
33 years$906$625$422$279$182$25
34 years$870$593$394$257$164$21
35 years$836$562$368$236$149$18
36 years$804$534$345$218$135$15
37 years$773$507$323$200$122$12
38 years$745$482$302$185$111$11
39 years$717$458$283$170$101$9
40 years$692$436$265$157$91$7
41 years$667$415$249$145$83$6
42 years$644$395$233$134$75$5
43 years$622$376$219$123$68$4
44 years$601$359$205$114$62$4
45 years$581$342$193$105$56$3
46 years$562$326$181$97$51$3
47 years$544$312$170$90$46$2
48 years$527$297$160$83$42$2
49 years$510$284$150$77$38$2
50 years$494$271$141$71$35$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $506,000, adding $4,921 every year, while hoping to spend $20,051 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: 45/32/23 Blend
55$506,000$506,000$506,000$506,000
56$562,688$535,870$528,027$584,081
57$598,748$540,794$524,382$604,579
58$637,814$545,286$519,942$624,451
59$680,172$549,306$514,661$645,599
60$726,135$552,808$508,488$668,149
61$776,049$555,743$501,370$692,246
62$830,293$558,062$493,254$718,048
63$889,286$559,710$484,080$745,729
64$953,486$560,628$473,790$775,484
65$1,023,400$560,757$462,320$807,529
66$1,099,583$560,031$449,605$842,102
67$1,182,649$558,381$435,575$879,467
68$1,273,272$555,734$420,159$919,917
69$1,372,192$552,012$403,281$963,776
70$1,480,228$547,132$384,863$1,011,402
71$1,598,277$541,008$364,821$1,063,193
72$1,727,330$533,546$343,072$1,119,587
73$1,868,476$524,648$319,523$1,181,071
74$2,022,915$514,211$294,082$1,248,183
75$2,191,969$502,123$266,650$1,321,517
76$2,377,091$488,269$237,124$1,401,732
77$2,579,885$472,524$205,398$1,489,555
78$2,802,114$454,759$171,360$1,585,790
79$3,045,721$434,834$134,892$1,691,327
80$3,312,847$412,603$95,873$1,807,149
81$3,605,848$387,911$54,175$1,934,343
82$3,927,320$360,594$9,666$2,074,110
83$4,280,124$330,480$0$2,227,776
84$4,667,408$297,386$0$2,406,093
85$5,092,643$261,117$0$2,604,531
86$5,559,650$221,469$0$2,822,541
87$6,072,640$178,227$0$3,062,139
88$6,636,251$131,162$0$3,325,548
89$7,255,593$80,033$0$3,615,220
90$7,936,295$24,585$0$3,933,862
91$8,684,558$0$0$4,284,459
92$9,507,215$0$0$4,682,785
93$10,411,793$0$0$5,130,362
94$11,406,585$0$0$5,622,645
95$12,500,729$0$0$6,164,164
96$13,704,293$0$0$6,759,910
97$15,028,366$0$0$7,415,383
98$16,485,172$0$0$8,136,641
99$18,088,176$0$0$8,930,362
100$19,852,213$0$0$9,803,902