Can I retire at age 56 with 550,000?

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 $550,000?

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$45,418$45,014$44,619$44,234$43,858$42,972
2 years$22,484$22,066$21,660$21,266$20,885$19,996
3 years$14,841$14,420$14,015$13,626$13,250$12,387
4 years$11,020$10,600$10,200$9,816$9,450$8,618
5 years$8,728$8,311$7,915$7,540$7,184$6,386
6 years$7,200$6,786$6,397$6,030$5,684$4,921
7 years$6,109$5,699$5,316$4,957$4,623$3,895
8 years$5,292$4,885$4,508$4,159$3,835$3,142
9 years$4,656$4,254$3,883$3,542$3,230$2,571
10 years$4,148$3,749$3,385$3,053$2,752$2,127
11 years$3,732$3,338$2,980$2,657$2,367$1,775
12 years$3,386$2,996$2,645$2,331$2,051$1,491
13 years$3,094$2,707$2,363$2,058$1,788$1,260
14 years$2,843$2,461$2,123$1,827$1,568$1,069
15 years$2,626$2,248$1,917$1,629$1,380$911
16 years$2,437$2,063$1,738$1,459$1,220$778
17 years$2,270$1,900$1,582$1,311$1,082$667
18 years$2,121$1,755$1,444$1,181$962$573
19 years$1,989$1,627$1,322$1,067$857$493
20 years$1,869$1,512$1,213$967$766$424
21 years$1,762$1,408$1,116$877$685$366
22 years$1,664$1,314$1,028$798$614$316
23 years$1,575$1,229$949$726$551$274
24 years$1,493$1,152$878$663$496$237
25 years$1,418$1,081$813$605$446$205
26 years$1,349$1,016$754$553$402$178
27 years$1,285$956$700$506$362$154
28 years$1,226$901$651$464$327$134
29 years$1,171$850$606$425$295$116
30 years$1,120$803$564$390$267$101
31 years$1,072$759$526$359$241$88
32 years$1,027$718$491$330$218$76
33 years$985$680$458$303$197$66
34 years$946$644$428$279$179$57
35 years$908$611$400$257$162$50
36 years$874$580$375$236$147$43
37 years$841$551$351$218$133$38
38 years$809$524$328$201$120$33
39 years$780$498$308$185$109$29
40 years$752$474$288$171$99$25
41 years$725$451$270$158$90$22
42 years$700$429$254$145$82$19
43 years$676$409$238$134$74$16
44 years$653$390$223$124$67$14
45 years$632$372$210$114$61$12
46 years$611$355$197$106$55$11
47 years$591$339$185$98$50$9
48 years$572$323$174$90$46$8
49 years$554$309$163$83$41$7
50 years$537$295$154$77$38$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $550,000, adding $3,930 every year, while hoping to spend $33,097 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: 36/41/23 Blend
55$550,000$550,000$550,000$550,000
56$610,154$581,004$572,479$627,764
57$637,175$574,258$556,442$634,303
58$665,842$566,072$538,758$638,024
59$696,290$556,342$519,338$641,376
60$728,662$544,954$498,088$644,345
61$763,120$531,790$474,907$646,922
62$799,836$516,726$449,695$649,097
63$839,002$499,628$422,342$650,864
64$880,827$480,357$392,737$652,217
65$925,540$458,763$360,763$653,156
66$973,392$434,689$326,295$653,684
67$1,024,658$407,969$289,206$653,809
68$1,079,641$378,427$249,362$653,543
69$1,138,671$345,877$206,623$652,904
70$1,202,114$310,123$160,843$651,917
71$1,270,367$270,957$111,869$650,615
72$1,343,870$228,160$59,542$649,040
73$1,423,104$181,498$3,696$647,245
74$1,508,598$130,729$0$645,291
75$1,600,933$75,593$0$656,975
76$1,700,747$15,816$0$670,528
77$1,808,743$0$0$685,197
78$1,925,691$0$0$723,213
79$2,052,441$0$0$772,214
80$2,189,925$0$0$825,432
81$2,339,168$0$0$883,274
82$2,501,299$0$0$946,186
83$2,677,559$0$0$1,014,659
84$2,869,313$0$0$1,089,232
85$3,078,062$0$0$1,170,502
86$3,305,461$0$0$1,259,121
87$3,553,328$0$0$1,355,809
88$3,823,665$0$0$1,461,360
89$4,118,674$0$0$1,576,646
90$4,440,782$0$0$1,702,628
91$4,792,659$0$0$1,840,362
92$5,177,242$0$0$1,991,013
93$5,597,768$0$0$2,155,863
94$6,057,801$0$0$2,336,323
95$6,561,261$0$0$2,533,947
96$7,112,471$0$0$2,750,449
97$7,716,185$0$0$2,987,711
98$8,377,643$0$0$3,247,811
99$9,102,613$0$0$3,533,034
100$9,897,450$0$0$3,845,900