Can I retire at age 56 with 5,400,000?

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 $5,400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%11.9%
1 years$445,927$441,955$438,080$434,297$430,604$427,174
2 years$220,756$216,645$212,660$208,797$205,049$201,592
3 years$145,709$141,580$137,605$133,778$130,092$126,714
4 years$108,192$104,076$100,141$96,380$92,783$89,511
5 years$85,689$81,597$77,714$74,029$70,532$67,375
6 years$70,691$66,630$62,804$59,201$55,809$52,772
7 years$59,983$55,956$52,191$48,673$45,388$42,471
8 years$51,955$47,964$44,262$40,830$37,654$34,857
9 years$45,714$41,762$38,123$34,778$31,710$29,033
10 years$40,725$36,811$33,236$29,979$27,018$24,460
11 years$36,645$32,771$29,261$26,091$23,237$20,795
12 years$33,248$29,413$25,968$22,885$20,136$17,809
13 years$30,376$26,581$23,201$20,204$17,559$15,343
14 years$27,916$24,161$20,846$17,935$15,392$13,285
15 years$25,786$22,072$18,821$15,995$13,553$11,551
16 years$23,924$20,250$17,064$14,322$11,978$10,079
17 years$22,283$18,650$15,528$12,868$10,620$8,821
18 years$20,826$17,233$14,175$11,597$9,443$7,740
19 years$19,523$15,972$12,976$10,479$8,417$6,807
20 years$18,353$14,842$11,909$9,490$7,518$5,998
21 years$17,295$13,824$10,954$8,613$6,728$5,293
22 years$16,335$12,905$10,096$7,831$6,031$4,679
23 years$15,459$12,069$9,322$7,132$5,413$4,141
24 years$14,658$11,308$8,621$6,505$4,866$3,669
25 years$13,922$10,612$7,985$5,941$4,378$3,253
26 years$13,244$9,974$7,405$5,432$3,944$2,888
27 years$12,617$9,386$6,877$4,972$3,556$2,565
28 years$12,035$8,845$6,393$4,555$3,208$2,280
29 years$11,495$8,344$5,949$4,177$2,897$2,028
30 years$10,992$7,880$5,541$3,834$2,618$1,805
31 years$10,522$7,449$5,166$3,521$2,367$1,607
32 years$10,083$7,049$4,820$3,236$2,141$1,431
33 years$9,671$6,675$4,500$2,976$1,937$1,275
34 years$9,284$6,326$4,205$2,738$1,754$1,136
35 years$8,920$6,001$3,931$2,520$1,589$1,013
36 years$8,576$5,695$3,678$2,321$1,440$903
37 years$8,253$5,409$3,442$2,139$1,305$806
38 years$7,947$5,141$3,223$1,971$1,183$719
39 years$7,657$4,888$3,020$1,818$1,073$642
40 years$7,383$4,651$2,831$1,676$973$573
41 years$7,122$4,427$2,654$1,547$883$511
42 years$6,875$4,216$2,490$1,427$801$456
43 years$6,640$4,017$2,336$1,318$727$407
44 years$6,416$3,829$2,193$1,217$660$364
45 years$6,203$3,652$2,059$1,124$599$325
46 years$5,999$3,484$1,934$1,038$544$290
47 years$5,805$3,324$1,817$959$494$259
48 years$5,619$3,174$1,707$886$448$231
49 years$5,442$3,031$1,605$819$407$207
50 years$5,272$2,895$1,509$757$370$185

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $5,400,000, adding $5,134 every year, while hoping to spend $46,292 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: 27/48/25 Blend
55$5,400,000$5,400,000$5,400,000$5,400,000
56$5,956,096$5,669,896$5,586,196$6,070,101
57$6,514,363$5,898,466$5,724,079$6,390,166
58$7,128,022$6,136,685$5,865,030$6,729,212
59$7,802,674$6,384,977$6,009,102$7,092,288
60$8,544,490$6,643,783$6,156,350$7,481,465
61$9,360,268$6,913,569$6,306,828$7,899,015
62$10,257,499$7,194,818$6,460,590$8,347,424
63$11,244,436$7,488,036$6,617,692$8,829,418
64$12,330,172$7,793,753$6,778,188$9,347,981
65$13,524,725$8,112,522$6,942,133$9,906,389
66$14,839,134$8,444,923$7,109,581$10,508,231
67$16,285,562$8,791,560$7,280,588$11,157,446
68$17,877,409$9,153,066$7,455,208$11,858,353
69$19,629,443$9,530,105$7,633,496$12,615,695
70$21,557,933$9,923,367$7,815,505$13,434,673
71$23,680,807$10,333,577$8,001,289$14,321,002
72$26,017,820$10,761,492$8,190,902$15,280,954
73$28,590,737$11,207,904$8,384,397$16,321,419
74$31,423,543$11,673,643$8,581,825$17,449,962
75$34,542,666$12,159,573$8,783,238$18,674,899
76$37,977,229$12,666,603$8,988,688$20,005,362
77$41,759,321$13,195,681$9,198,223$21,451,392
78$45,924,300$13,747,798$9,411,892$23,024,020
79$50,511,132$14,323,994$9,629,744$24,735,376
80$55,562,751$14,925,353$9,851,824$26,598,794
81$61,126,469$15,553,013$10,078,177$28,628,934
82$67,254,420$16,208,162$10,308,848$30,841,919
83$74,004,054$16,892,044$10,543,876$33,255,479
84$81,438,675$17,605,962$10,783,304$35,889,117
85$89,628,043$18,351,277$11,027,168$38,764,283
86$98,649,029$19,129,415$11,275,503$41,904,579
87$108,586,341$19,941,868$11,528,344$45,335,968
88$119,533,326$20,790,198$11,785,722$49,087,019
89$131,592,845$21,676,037$12,047,663$53,189,166
90$144,878,250$22,601,097$12,314,194$57,677,005
91$159,514,448$23,567,168$12,585,337$62,588,609
92$175,639,084$24,576,122$12,861,108$67,965,879
93$193,403,840$25,629,921$13,141,525$73,854,939
94$212,975,863$26,730,618$13,426,596$80,306,558
95$234,539,343$27,880,361$13,716,330$87,376,625
96$258,297,257$29,081,400$14,010,728$95,126,667
97$284,473,278$30,336,089$14,309,788$103,624,420
98$313,313,888$31,646,893$14,613,502$112,944,462
99$345,090,707$33,016,393$14,921,857$123,168,908
100$380,103,054$34,447,291$15,234,834$134,388,172