Can I retire at age 56 with 542,000?

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 $542,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.9%
1 years$44,758$44,359$43,970$43,591$43,220$42,347
2 years$22,157$21,745$21,345$20,957$20,581$19,706
3 years$14,625$14,210$13,811$13,427$13,057$12,207
4 years$10,859$10,446$10,051$9,674$9,313$8,493
5 years$8,601$8,190$7,800$7,430$7,079$6,293
6 years$7,095$6,688$6,304$5,942$5,602$4,850
7 years$6,020$5,616$5,238$4,885$4,556$3,838
8 years$5,215$4,814$4,443$4,098$3,779$3,096
9 years$4,588$4,192$3,826$3,491$3,183$2,534
10 years$4,088$3,695$3,336$3,009$2,712$2,096
11 years$3,678$3,289$2,937$2,619$2,332$1,749
12 years$3,337$2,952$2,606$2,297$2,021$1,469
13 years$3,049$2,668$2,329$2,028$1,762$1,241
14 years$2,802$2,425$2,092$1,800$1,545$1,053
15 years$2,588$2,215$1,889$1,605$1,360$897
16 years$2,401$2,033$1,713$1,437$1,202$767
17 years$2,237$1,872$1,559$1,292$1,066$657
18 years$2,090$1,730$1,423$1,164$948$564
19 years$1,960$1,603$1,302$1,052$845$485
20 years$1,842$1,490$1,195$953$755$418
21 years$1,736$1,388$1,099$864$675$361
22 years$1,640$1,295$1,013$786$605$312
23 years$1,552$1,211$936$716$543$270
24 years$1,471$1,135$865$653$488$233
25 years$1,397$1,065$801$596$439$202
26 years$1,329$1,001$743$545$396$175
27 years$1,266$942$690$499$357$152
28 years$1,208$888$642$457$322$132
29 years$1,154$837$597$419$291$114
30 years$1,103$791$556$385$263$99
31 years$1,056$748$519$353$238$86
32 years$1,012$707$484$325$215$75
33 years$971$670$452$299$194$65
34 years$932$635$422$275$176$57
35 years$895$602$395$253$159$49
36 years$861$572$369$233$144$43
37 years$828$543$345$215$131$37
38 years$798$516$324$198$119$32
39 years$769$491$303$182$108$28
40 years$741$467$284$168$98$24
41 years$715$444$266$155$89$21
42 years$690$423$250$143$80$19
43 years$666$403$234$132$73$16
44 years$644$384$220$122$66$14
45 years$623$367$207$113$60$12
46 years$602$350$194$104$55$11
47 years$583$334$182$96$50$9
48 years$564$319$171$89$45$8
49 years$546$304$161$82$41$7
50 years$529$291$151$76$37$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $542,000, adding $6,345 every year, while hoping to spend $28,780 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: 54/21/25 Blend
55$542,000$542,000$542,000$542,000
56$603,829$575,103$566,702$631,955
57$634,798$572,661$555,065$649,580
58$667,961$569,135$542,073$665,252
59$703,512$564,442$527,651$681,721
60$741,662$558,492$511,720$699,073
61$782,646$551,192$494,196$717,403
62$826,717$542,442$474,994$736,821
63$874,158$532,137$454,022$757,446
64$925,275$520,165$431,185$779,413
65$980,409$506,409$406,385$802,872
66$1,039,929$490,741$379,517$827,990
67$1,104,246$473,031$350,475$854,952
68$1,173,807$453,138$319,144$883,966
69$1,249,107$430,914$285,407$915,263
70$1,330,688$406,201$249,141$949,099
71$1,419,147$378,833$210,216$985,760
72$1,515,140$348,636$168,497$1,025,562
73$1,619,388$315,422$123,846$1,068,857
74$1,732,684$278,997$76,114$1,116,038
75$1,855,903$239,153$25,148$1,167,538
76$1,990,005$195,671$0$1,223,840
77$2,136,045$148,319$0$1,293,278
78$2,295,189$96,854$0$1,376,313
79$2,468,715$41,017$0$1,466,933
80$2,658,032$0$0$1,565,916
81$2,864,692$0$0$1,678,620
82$3,090,400$0$0$1,812,112
83$3,337,035$0$0$1,958,032
84$3,606,667$0$0$2,117,609
85$3,901,574$0$0$2,292,200
86$4,224,262$0$0$2,483,294
87$4,577,493$0$0$2,692,535
88$4,964,307$0$0$2,921,730
89$5,388,054$0$0$3,172,872
90$5,852,421$0$0$3,448,154
91$6,361,469$0$0$3,749,991
92$6,919,672$0$0$4,081,045
93$7,531,954$0$0$4,444,246
94$8,203,744$0$0$4,842,822
95$8,941,018$0$0$5,280,328
96$9,750,358$0$0$5,760,681
97$10,639,019$0$0$6,288,196
98$11,614,987$0$0$6,867,625
99$12,687,064$0$0$7,504,203
100$13,864,945$0$0$8,203,700