Can I retire at age 56 with 725,000?

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 $725,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$59,870$59,337$58,816$58,308$57,813$56,761
2 years$29,639$29,087$28,552$28,033$27,530$26,475
3 years$19,563$19,008$18,475$17,961$17,466$16,440
4 years$14,526$13,973$13,445$12,940$12,457$11,467
5 years$11,504$10,955$10,434$9,939$9,470$8,519
6 years$9,491$8,946$8,432$7,948$7,493$6,583
7 years$8,053$7,513$7,007$6,535$6,094$5,225
8 years$6,975$6,440$5,943$5,482$5,055$4,227
9 years$6,138$5,607$5,118$4,669$4,257$3,469
10 years$5,468$4,942$4,462$4,025$3,627$2,879
11 years$4,920$4,400$3,929$3,503$3,120$2,410
12 years$4,464$3,949$3,486$3,073$2,704$2,031
13 years$4,078$3,569$3,115$2,713$2,358$1,721
14 years$3,748$3,244$2,799$2,408$2,067$1,466
15 years$3,462$2,963$2,527$2,147$1,820$1,253
16 years$3,212$2,719$2,291$1,923$1,608$1,075
17 years$2,992$2,504$2,085$1,728$1,426$924
18 years$2,796$2,314$1,903$1,557$1,268$796
19 years$2,621$2,144$1,742$1,407$1,130$688
20 years$2,464$1,993$1,599$1,274$1,009$595
21 years$2,322$1,856$1,471$1,156$903$515
22 years$2,193$1,733$1,355$1,051$810$447
23 years$2,076$1,620$1,252$958$727$388
24 years$1,968$1,518$1,157$873$653$337
25 years$1,869$1,425$1,072$798$588$293
26 years$1,778$1,339$994$729$530$255
27 years$1,694$1,260$923$668$477$222
28 years$1,616$1,188$858$612$431$193
29 years$1,543$1,120$799$561$389$169
30 years$1,476$1,058$744$515$351$147
31 years$1,413$1,000$694$473$318$128
32 years$1,354$946$647$434$287$112
33 years$1,298$896$604$400$260$98
34 years$1,246$849$565$368$236$85
35 years$1,198$806$528$338$213$74
36 years$1,151$765$494$312$193$65
37 years$1,108$726$462$287$175$57
38 years$1,067$690$433$265$159$50
39 years$1,028$656$405$244$144$43
40 years$991$624$380$225$131$38
41 years$956$594$356$208$119$33
42 years$923$566$334$192$108$29
43 years$891$539$314$177$98$25
44 years$861$514$294$163$89$22
45 years$833$490$276$151$80$19
46 years$805$468$260$139$73$17
47 years$779$446$244$129$66$15
48 years$754$426$229$119$60$13
49 years$731$407$215$110$55$11
50 years$708$389$203$102$50$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $725,000, adding $3,718 every year, while hoping to spend $32,356 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: 58/28/14 Blend
55$725,000$725,000$725,000$725,000
56$802,785$764,360$753,123$846,288
57$850,243$767,387$743,926$879,147
58$901,456$769,478$733,336$911,047
59$956,775$770,553$721,273$945,062
60$1,016,583$770,527$707,653$981,400
61$1,081,301$769,309$692,385$1,020,290
62$1,151,393$766,804$675,379$1,061,989
63$1,227,367$762,910$656,537$1,106,777
64$1,309,785$757,519$635,757$1,154,966
65$1,399,261$750,516$612,934$1,206,901
66$1,496,475$741,780$587,956$1,262,964
67$1,602,171$731,183$560,708$1,323,577
68$1,717,169$718,587$531,068$1,389,206
69$1,842,372$703,849$498,910$1,460,367
70$1,978,771$686,816$464,102$1,537,631
71$2,127,461$667,325$426,504$1,621,628
72$2,289,643$645,205$385,973$1,713,057
73$2,466,641$620,274$342,357$1,812,687
74$2,659,911$592,340$295,499$1,921,371
75$2,871,058$561,200$245,234$2,040,051
76$3,101,846$526,640$191,390$2,169,767
77$3,354,220$488,431$133,787$2,311,668
78$3,630,319$446,333$72,238$2,467,026
79$3,932,501$400,092$6,547$2,637,243
80$4,263,360$349,440$0$2,823,870
81$4,625,753$294,094$0$3,038,113
82$5,022,828$233,752$0$3,274,031
83$5,458,049$168,099$0$3,532,765
84$5,935,234$96,800$0$3,816,658
85$6,458,587$19,502$0$4,128,292
86$7,032,737$0$0$4,470,517
87$7,662,786$0$0$4,866,248
88$8,354,349$0$0$5,307,275
89$9,113,615$0$0$5,791,545
90$9,947,401$0$0$6,323,412
91$10,863,216$0$0$6,907,675
92$11,869,330$0$0$7,549,619
93$12,974,858$0$0$8,255,070
94$14,189,837$0$0$9,030,441
95$15,525,327$0$0$9,882,800
96$16,993,514$0$0$10,819,935
97$18,607,821$0$0$11,850,423
98$20,383,038$0$0$12,983,718
99$22,335,459$0$0$14,230,232
100$24,483,037$0$0$15,601,439