Can I retire at age 56 with 870,000?

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 $870,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.7%
1 years$71,844$71,204$70,579$69,970$69,375$68,030
2 years$35,566$34,904$34,262$33,639$33,036$31,686
3 years$23,475$22,810$22,170$21,553$20,959$19,647
4 years$17,431$16,768$16,134$15,528$14,948$13,684
5 years$13,805$13,146$12,521$11,927$11,363$10,150
6 years$11,389$10,735$10,118$9,538$8,992$7,831
7 years$9,664$9,015$8,408$7,842$7,313$6,204
8 years$8,371$7,728$7,131$6,578$6,066$5,011
9 years$7,365$6,728$6,142$5,603$5,109$4,105
10 years$6,561$5,931$5,355$4,830$4,353$3,400
11 years$5,904$5,280$4,714$4,204$3,744$2,841
12 years$5,357$4,739$4,184$3,687$3,244$2,389
13 years$4,894$4,282$3,738$3,255$2,829$2,021
14 years$4,498$3,893$3,359$2,890$2,480$1,718
15 years$4,154$3,556$3,032$2,577$2,183$1,465
16 years$3,854$3,263$2,749$2,307$1,930$1,254
17 years$3,590$3,005$2,502$2,073$1,711$1,076
18 years$3,355$2,776$2,284$1,868$1,521$925
19 years$3,145$2,573$2,091$1,688$1,356$797
20 years$2,957$2,391$1,919$1,529$1,211$688
21 years$2,786$2,227$1,765$1,388$1,084$595
22 years$2,632$2,079$1,627$1,262$972$515
23 years$2,491$1,945$1,502$1,149$872$446
24 years$2,362$1,822$1,389$1,048$784$386
25 years$2,243$1,710$1,286$957$705$335
26 years$2,134$1,607$1,193$875$635$291
27 years$2,033$1,512$1,108$801$573$253
28 years$1,939$1,425$1,030$734$517$220
29 years$1,852$1,344$958$673$467$191
30 years$1,771$1,270$893$618$422$166
31 years$1,695$1,200$832$567$381$144
32 years$1,624$1,136$777$521$345$126
33 years$1,558$1,075$725$479$312$109
34 years$1,496$1,019$677$441$283$95
35 years$1,437$967$633$406$256$83
36 years$1,382$918$593$374$232$72
37 years$1,330$872$555$345$210$63
38 years$1,280$828$519$318$191$55
39 years$1,234$788$487$293$173$48
40 years$1,189$749$456$270$157$42
41 years$1,147$713$428$249$142$36
42 years$1,108$679$401$230$129$32
43 years$1,070$647$376$212$117$28
44 years$1,034$617$353$196$106$24
45 years$999$588$332$181$97$21
46 years$967$561$312$167$88$18
47 years$935$536$293$154$80$16
48 years$905$511$275$143$72$14
49 years$877$488$259$132$66$12
50 years$849$466$243$122$60$11

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $870,000, adding $5,025 every year, while hoping to spend $41,080 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: 40/48/12 Blend
55$870,000$870,000$870,000$870,000
56$963,923$917,813$904,328$998,835
57$1,018,535$919,077$890,914$1,025,222
58$1,077,340$919,026$875,674$1,049,322
59$1,140,722$917,553$858,504$1,074,487
60$1,209,105$914,542$839,293$1,100,831
61$1,282,952$909,873$817,927$1,128,486
62$1,362,773$903,416$794,287$1,157,594
63$1,449,127$895,035$768,248$1,188,320
64$1,542,632$884,585$739,677$1,220,845
65$1,643,963$871,913$708,439$1,255,373
66$1,753,865$856,855$674,390$1,292,134
67$1,873,157$839,238$637,380$1,331,382
68$2,002,740$818,882$597,253$1,373,404
69$2,143,603$795,591$553,844$1,418,518
70$2,296,837$769,161$506,985$1,467,080
71$2,463,640$739,375$456,494$1,519,488
72$2,645,331$706,005$402,187$1,576,185
73$2,843,363$668,807$343,868$1,637,665
74$3,059,333$627,525$281,334$1,704,477
75$3,294,998$581,888$214,373$1,777,234
76$3,552,296$531,608$142,762$1,856,617
77$3,833,355$476,382$66,270$1,943,384
78$4,140,523$415,891$0$2,038,378
79$4,476,381$349,794$0$2,144,502
80$4,843,773$277,735$0$2,270,013
81$5,245,829$199,335$0$2,407,607
82$5,685,996$114,195$0$2,558,602
83$6,168,071$21,893$0$2,724,458
84$6,696,233$0$0$2,906,795
85$7,275,087$0$0$3,148,611
86$7,909,704$0$0$3,426,515
87$8,605,666$0$0$3,731,403
88$9,369,126$0$0$4,065,984
89$10,206,858$0$0$4,433,243
90$11,126,324$0$0$4,836,466
91$12,135,744$0$0$5,279,276
92$13,244,172$0$0$5,765,661
93$14,461,584$0$0$6,300,017
94$15,798,967$0$0$6,887,183
95$17,268,425$0$0$7,532,495
96$18,883,294$0$0$8,241,827
97$20,658,264$0$0$9,021,653
98$22,609,521$0$0$9,879,105
99$24,754,896$0$0$10,822,041
100$27,114,033$0$0$11,859,116