Can I retire at age 56 with 885,000?

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 $885,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.2%
1 years$73,082$72,431$71,796$71,176$70,571$69,921
2 years$36,179$35,506$34,853$34,219$33,605$32,951
3 years$23,880$23,203$22,552$21,925$21,321$20,681
4 years$17,732$17,057$16,412$15,796$15,206$14,587
5 years$14,043$13,373$12,736$12,132$11,559$10,963
6 years$11,585$10,920$10,293$9,702$9,147$8,573
7 years$9,830$9,171$8,553$7,977$7,439$6,888
8 years$8,515$7,861$7,254$6,692$6,171$5,643
9 years$7,492$6,844$6,248$5,700$5,197$4,692
10 years$6,674$6,033$5,447$4,913$4,428$3,946
11 years$6,006$5,371$4,795$4,276$3,808$3,349
12 years$5,449$4,820$4,256$3,751$3,300$2,862
13 years$4,978$4,356$3,802$3,311$2,878$2,461
14 years$4,575$3,960$3,416$2,939$2,523$2,127
15 years$4,226$3,617$3,085$2,621$2,221$1,846
16 years$3,921$3,319$2,797$2,347$1,963$1,607
17 years$3,652$3,057$2,545$2,109$1,741$1,404
18 years$3,413$2,824$2,323$1,901$1,548$1,229
19 years$3,200$2,618$2,127$1,717$1,379$1,078
20 years$3,008$2,432$1,952$1,555$1,232$948
21 years$2,834$2,266$1,795$1,412$1,103$835
22 years$2,677$2,115$1,655$1,283$988$736
23 years$2,534$1,978$1,528$1,169$887$650
24 years$2,402$1,853$1,413$1,066$797$575
25 years$2,282$1,739$1,309$974$718$509
26 years$2,170$1,635$1,214$890$646$450
27 years$2,068$1,538$1,127$815$583$399
28 years$1,972$1,450$1,048$747$526$354
29 years$1,884$1,368$975$685$475$314
30 years$1,801$1,291$908$628$429$279
31 years$1,724$1,221$847$577$388$248
32 years$1,652$1,155$790$530$351$220
33 years$1,585$1,094$738$488$318$195
34 years$1,521$1,037$689$449$287$174
35 years$1,462$983$644$413$260$155
36 years$1,406$933$603$380$236$137
37 years$1,353$887$564$351$214$122
38 years$1,302$843$528$323$194$109
39 years$1,255$801$495$298$176$97
40 years$1,210$762$464$275$159$86
41 years$1,167$726$435$253$145$77
42 years$1,127$691$408$234$131$68
43 years$1,088$658$383$216$119$61
44 years$1,052$628$359$199$108$54
45 years$1,017$598$337$184$98$48
46 years$983$571$317$170$89$43
47 years$951$545$298$157$81$38
48 years$921$520$280$145$73$34
49 years$892$497$263$134$67$30
50 years$864$474$247$124$61$27

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $885,000, adding $3,926 every year, while hoping to spend $34,126 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: 66/21/13 Blend
55$885,000$885,000$885,000$885,000
56$979,320$932,415$918,697$1,040,780
57$1,042,900$941,793$913,164$1,091,654
58$1,111,823$950,487$906,301$1,142,870
59$1,186,595$958,428$898,029$1,197,988
60$1,267,778$965,541$888,263$1,257,388
61$1,355,986$971,747$876,914$1,321,488
62$1,451,896$976,962$863,890$1,390,751
63$1,556,253$981,097$849,094$1,465,685
64$1,669,877$984,057$832,425$1,546,851
65$1,793,670$985,741$813,777$1,634,870
66$1,928,623$986,042$793,038$1,730,424
67$2,075,830$984,845$770,092$1,834,268
68$2,236,493$982,030$744,817$1,947,233
69$2,411,934$977,469$717,088$2,070,237
70$2,603,611$971,024$686,770$2,204,290
71$2,813,127$962,552$653,724$2,350,509
72$3,042,248$951,899$617,806$2,510,126
73$3,292,918$938,903$578,863$2,684,497
74$3,567,278$923,391$536,738$2,875,122
75$3,867,684$905,182$491,263$3,083,651
76$4,196,734$884,081$442,265$3,311,908
77$4,557,284$859,885$389,565$3,561,902
78$4,952,484$832,376$332,972$3,835,850
79$5,385,801$801,326$272,290$4,136,196
80$5,861,053$766,491$207,312$4,465,638
81$6,382,447$727,616$137,823$4,827,150
82$6,954,615$684,427$63,599$5,224,010
83$7,582,660$636,639$0$5,659,836
84$8,272,205$583,948$0$6,140,783
85$9,029,441$526,032$0$6,678,639
86$9,861,189$462,553$0$7,269,460
87$10,774,964$393,152$0$7,918,631
88$11,779,044$317,450$0$8,632,090
89$12,882,548$235,047$0$9,416,382
90$14,095,525$145,521$0$10,278,720
91$15,429,042$48,425$0$11,227,058
92$16,895,295$0$0$12,270,160
93$18,507,719$0$0$13,430,795
94$20,281,117$0$0$14,719,670
95$22,231,798$0$0$16,137,457
96$24,377,732$0$0$17,697,224
97$26,738,717$0$0$19,413,371
98$29,336,569$0$0$21,301,762
99$32,195,322$0$0$23,379,878
100$35,341,460$0$0$25,666,979