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%16.9%
1 years$81,010$80,288$79,584$78,897$78,226$76,027
2 years$40,104$39,357$38,633$37,931$37,251$35,052
3 years$26,470$25,720$24,998$24,303$23,633$21,504
4 years$19,655$18,907$18,192$17,509$16,855$14,811
5 years$15,567$14,823$14,118$13,449$12,813$10,860
6 years$12,842$12,104$11,409$10,755$10,139$8,279
7 years$10,897$10,165$9,481$8,842$8,245$6,478
8 years$9,438$8,714$8,041$7,418$6,840$5,165
9 years$8,305$7,587$6,926$6,318$5,761$4,176
10 years$7,398$6,687$6,038$5,446$4,908$3,412
11 years$6,657$5,953$5,316$4,740$4,221$2,811
12 years$6,040$5,343$4,718$4,157$3,658$2,331
13 years$5,518$4,829$4,215$3,670$3,190$1,943
14 years$5,071$4,389$3,787$3,258$2,796$1,626
15 years$4,684$4,010$3,419$2,906$2,462$1,366
16 years$4,346$3,679$3,100$2,602$2,176$1,151
17 years$4,048$3,388$2,821$2,338$1,929$972
18 years$3,783$3,131$2,575$2,107$1,716$823
19 years$3,547$2,902$2,357$1,904$1,529$697
20 years$3,334$2,696$2,163$1,724$1,366$592
21 years$3,142$2,511$1,990$1,565$1,222$503
22 years$2,968$2,344$1,834$1,423$1,096$428
23 years$2,808$2,193$1,693$1,296$983$364
24 years$2,663$2,054$1,566$1,182$884$310
25 years$2,529$1,928$1,451$1,079$795$264
26 years$2,406$1,812$1,345$987$716$226
27 years$2,292$1,705$1,249$903$646$192
28 years$2,186$1,607$1,161$828$583$164
29 years$2,088$1,516$1,081$759$526$140
30 years$1,997$1,432$1,007$696$476$120
31 years$1,912$1,353$938$640$430$102
32 years$1,832$1,280$876$588$389$87
33 years$1,757$1,213$818$541$352$75
34 years$1,687$1,149$764$497$319$64
35 years$1,620$1,090$714$458$289$55
36 years$1,558$1,035$668$422$262$47
37 years$1,499$983$625$389$237$40
38 years$1,444$934$586$358$215$34
39 years$1,391$888$549$330$195$29
40 years$1,341$845$514$305$177$25
41 years$1,294$804$482$281$160$21
42 years$1,249$766$452$259$146$18
43 years$1,206$730$424$239$132$16
44 years$1,166$696$398$221$120$13
45 years$1,127$663$374$204$109$11
46 years$1,090$633$351$189$99$10
47 years$1,055$604$330$174$90$8
48 years$1,021$577$310$161$81$7
49 years$989$551$292$149$74$6
50 years$958$526$274$138$67$5

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $981,000, adding $5,604 every year, while hoping to spend $59,373 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: 51/37/12 Blend
55$981,000$981,000$981,000$981,000
56$1,086,843$1,034,850$1,019,644$1,138,511
57$1,134,528$1,022,385$990,630$1,161,989
58$1,185,088$1,007,319$958,653$1,180,739
59$1,238,752$989,463$923,553$1,199,768
60$1,295,772$968,614$885,160$1,219,118
61$1,356,425$944,560$843,297$1,238,840
62$1,421,011$917,075$797,778$1,258,993
63$1,489,861$885,919$748,411$1,279,645
64$1,563,338$850,839$694,993$1,300,878
65$1,641,836$811,568$637,314$1,322,783
66$1,725,791$767,823$575,151$1,345,468
67$1,815,679$719,303$508,276$1,369,056
68$1,912,021$665,693$436,447$1,393,688
69$2,015,392$606,656$359,412$1,419,525
70$2,126,420$541,840$276,910$1,446,749
71$2,245,794$470,869$188,666$1,475,571
72$2,374,272$393,349$94,394$1,506,227
73$2,512,687$308,862$0$1,538,985
74$2,661,951$216,967$0$1,574,945
75$2,823,069$117,197$0$1,626,605
76$2,997,143$9,061$0$1,682,294
77$3,185,386$0$0$1,742,492
78$3,389,129$0$0$1,851,690
79$3,609,837$0$0$1,974,061
80$3,849,120$0$0$2,106,818
81$4,108,750$0$0$2,250,957
82$4,390,673$0$0$2,407,568
83$4,697,031$0$0$2,577,855
84$5,030,180$0$0$2,763,140
85$5,392,714$0$0$2,964,877
86$5,787,484$0$0$3,184,669
87$6,217,628$0$0$3,424,276
88$6,686,602$0$0$3,685,639
89$7,198,207$0$0$3,970,892
90$7,756,627$0$0$4,282,384
91$8,366,468$0$0$4,622,701
92$9,032,800$0$0$4,994,692
93$9,761,207$0$0$5,401,490
94$10,557,834$0$0$5,846,549
95$11,429,447$0$0$6,333,667
96$12,383,499$0$0$6,867,031
97$13,428,194$0$0$7,451,249
98$14,572,567$0$0$8,091,396
99$15,826,569$0$0$8,793,062
100$17,201,159$0$0$9,562,403