Can I retire at age 56 with 981,000?

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 $981,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14%
1 years$81,010$80,288$79,584$78,897$78,226$76,930
2 years$40,104$39,357$38,633$37,931$37,251$35,949
3 years$26,470$25,720$24,998$24,303$23,633$22,366
4 years$19,655$18,907$18,192$17,509$16,855$15,633
5 years$15,567$14,823$14,118$13,449$12,813$11,638
6 years$12,842$12,104$11,409$10,755$10,139$9,013
7 years$10,897$10,165$9,481$8,842$8,245$7,169
8 years$9,438$8,714$8,041$7,418$6,840$5,814
9 years$8,305$7,587$6,926$6,318$5,761$4,783
10 years$7,398$6,687$6,038$5,446$4,908$3,978
11 years$6,657$5,953$5,316$4,740$4,221$3,338
12 years$6,040$5,343$4,718$4,157$3,658$2,821
13 years$5,518$4,829$4,215$3,670$3,190$2,397
14 years$5,071$4,389$3,787$3,258$2,796$2,047
15 years$4,684$4,010$3,419$2,906$2,462$1,755
16 years$4,346$3,679$3,100$2,602$2,176$1,509
17 years$4,048$3,388$2,821$2,338$1,929$1,301
18 years$3,783$3,131$2,575$2,107$1,716$1,125
19 years$3,547$2,902$2,357$1,904$1,529$974
20 years$3,334$2,696$2,163$1,724$1,366$845
21 years$3,142$2,511$1,990$1,565$1,222$734
22 years$2,968$2,344$1,834$1,423$1,096$639
23 years$2,808$2,193$1,693$1,296$983$556
24 years$2,663$2,054$1,566$1,182$884$485
25 years$2,529$1,928$1,451$1,079$795$423
26 years$2,406$1,812$1,345$987$716$369
27 years$2,292$1,705$1,249$903$646$323
28 years$2,186$1,607$1,161$828$583$282
29 years$2,088$1,516$1,081$759$526$246
30 years$1,997$1,432$1,007$696$476$216
31 years$1,912$1,353$938$640$430$189
32 years$1,832$1,280$876$588$389$165
33 years$1,757$1,213$818$541$352$145
34 years$1,687$1,149$764$497$319$127
35 years$1,620$1,090$714$458$289$111
36 years$1,558$1,035$668$422$262$97
37 years$1,499$983$625$389$237$85
38 years$1,444$934$586$358$215$75
39 years$1,391$888$549$330$195$65
40 years$1,341$845$514$305$177$57
41 years$1,294$804$482$281$160$50
42 years$1,249$766$452$259$146$44
43 years$1,206$730$424$239$132$39
44 years$1,166$696$398$221$120$34
45 years$1,127$663$374$204$109$30
46 years$1,090$633$351$189$99$26
47 years$1,055$604$330$174$90$23
48 years$1,021$577$310$161$81$20
49 years$989$551$292$149$74$18
50 years$958$526$274$138$67$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $981,000, adding $2,464 every year, while hoping to spend $55,548 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: 62/33/5 Blend
55$981,000$981,000$981,000$981,000
56$1,083,604$1,031,611$1,016,405$1,149,791
57$1,135,029$1,023,057$991,352$1,185,669
58$1,189,837$1,012,222$963,598$1,218,083
59$1,248,316$998,936$932,994$1,252,013
60$1,310,778$983,019$899,383$1,287,603
61$1,377,569$964,278$862,604$1,325,014
62$1,449,064$942,511$822,485$1,364,426
63$1,525,678$917,503$778,847$1,406,036
64$1,607,864$889,028$731,506$1,450,067
65$1,696,120$856,844$680,265$1,496,766
66$1,790,993$820,697$624,922$1,546,407
67$1,893,080$780,318$565,263$1,599,296
68$2,003,043$735,422$501,067$1,655,773
69$2,121,602$685,707$432,102$1,716,217
70$2,249,554$630,854$358,126$1,781,046
71$2,387,770$570,528$278,885$1,850,729
72$2,537,211$504,372$194,116$1,925,784
73$2,698,930$432,010$103,542$2,006,787
74$2,874,086$353,044$6,876$2,094,378
75$3,063,954$267,054$0$2,189,267
76$3,269,935$173,597$0$2,297,378
77$3,493,570$72,205$0$2,415,174
78$3,736,554$0$0$2,543,275
79$4,000,751$0$0$2,696,434
80$4,288,213$0$0$2,891,673
81$4,601,197$0$0$3,104,313
82$4,942,186$0$0$3,336,049
83$5,313,914$0$0$3,588,747
84$5,719,388$0$0$3,864,463
85$6,161,920$0$0$4,165,455
86$6,645,152$0$0$4,494,214
87$7,173,099$0$0$4,853,478
88$7,750,175$0$0$5,246,265
89$8,381,243$0$0$5,675,894
90$9,071,658$0$0$6,146,022
91$9,827,315$0$0$6,660,675
92$10,654,704$0$0$7,224,288
93$11,560,975$0$0$7,841,742
94$12,553,999$0$0$8,518,415
95$13,642,446$0$0$9,260,228
96$14,835,866$0$0$10,073,704
97$16,144,773$0$0$10,966,025
98$17,580,752$0$0$11,945,104
99$19,156,562$0$0$13,019,657
100$20,886,254$0$0$14,199,283