Can I retire at age 56 with 986,000?

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 $986,000?

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$81,423$80,698$79,990$79,299$78,625$77,195
2 years$40,308$39,558$38,830$38,125$37,440$36,005
3 years$26,605$25,851$25,126$24,427$23,754$22,358
4 years$19,755$19,004$18,285$17,598$16,941$15,595
5 years$15,646$14,899$14,190$13,517$12,879$11,586
6 years$12,908$12,166$11,468$10,810$10,190$8,953
7 years$10,952$10,217$9,530$8,887$8,288$7,106
8 years$9,487$8,758$8,082$7,455$6,875$5,749
9 years$8,347$7,625$6,961$6,350$5,790$4,718
10 years$7,436$6,721$6,069$5,474$4,933$3,915
11 years$6,691$5,984$5,343$4,764$4,243$3,277
12 years$6,071$5,371$4,742$4,179$3,677$2,762
13 years$5,546$4,853$4,236$3,689$3,206$2,341
14 years$5,097$4,412$3,806$3,275$2,811$1,994
15 years$4,708$4,030$3,437$2,921$2,475$1,704
16 years$4,368$3,698$3,116$2,615$2,187$1,461
17 years$4,069$3,405$2,835$2,350$1,939$1,257
18 years$3,803$3,147$2,588$2,117$1,724$1,083
19 years$3,565$2,916$2,369$1,913$1,537$935
20 years$3,351$2,710$2,174$1,733$1,373$809
21 years$3,158$2,524$2,000$1,573$1,228$701
22 years$2,983$2,356$1,843$1,430$1,101$608
23 years$2,823$2,204$1,702$1,302$988$528
24 years$2,676$2,065$1,574$1,188$888$458
25 years$2,542$1,938$1,458$1,085$799$399
26 years$2,418$1,821$1,352$992$720$347
27 years$2,304$1,714$1,256$908$649$302
28 years$2,198$1,615$1,167$832$586$263
29 years$2,099$1,524$1,086$763$529$229
30 years$2,007$1,439$1,012$700$478$200
31 years$1,921$1,360$943$643$432$174
32 years$1,841$1,287$880$591$391$152
33 years$1,766$1,219$822$543$354$133
34 years$1,695$1,155$768$500$320$116
35 years$1,629$1,096$718$460$290$101
36 years$1,566$1,040$672$424$263$88
37 years$1,507$988$629$391$238$77
38 years$1,451$939$589$360$216$67
39 years$1,398$893$551$332$196$59
40 years$1,348$849$517$306$178$51
41 years$1,300$808$485$282$161$45
42 years$1,255$770$455$261$146$39
43 years$1,212$734$427$241$133$34
44 years$1,172$699$400$222$120$30
45 years$1,133$667$376$205$109$26
46 years$1,095$636$353$190$99$23
47 years$1,060$607$332$175$90$20
48 years$1,026$579$312$162$82$17
49 years$994$553$293$150$74$15
50 years$963$529$276$138$68$13

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $986,000, adding $6,776 every year, while hoping to spend $57,062 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: 70/6/24 Blend
55$986,000$986,000$986,000$986,000
56$1,093,561$1,041,303$1,026,020$1,163,031
57$1,144,391$1,031,614$999,679$1,200,675
58$1,198,493$1,019,537$970,542$1,234,580
59$1,256,141$1,004,895$938,456$1,270,331
60$1,317,633$987,502$903,261$1,308,110
61$1,383,299$967,157$864,788$1,348,114
62$1,453,498$943,650$822,860$1,390,565
63$1,528,624$916,758$777,295$1,435,706
64$1,609,110$886,244$727,900$1,483,810
65$1,695,428$851,860$674,474$1,535,176
66$1,788,100$813,339$616,807$1,590,137
67$1,887,696$770,403$554,680$1,649,061
68$1,994,843$722,755$487,864$1,712,357
69$2,110,229$670,082$416,120$1,780,477
70$2,234,610$612,053$339,197$1,853,921
71$2,368,816$548,319$256,836$1,933,242
72$2,513,758$478,509$168,762$2,019,054
73$2,670,438$402,234$74,693$2,112,035
74$2,839,959$319,079$0$2,212,935
75$3,023,531$228,610$0$2,329,164
76$3,222,485$130,366$0$2,475,899
77$3,438,285$23,860$0$2,635,093
78$3,672,540$0$0$2,807,952
79$3,927,021$0$0$3,001,845
80$4,203,675$0$0$3,214,391
81$4,504,645$0$0$3,445,667
82$4,832,288$0$0$3,697,491
83$5,189,199$0$0$3,971,862
84$5,578,230$0$0$4,270,982
85$6,002,524$0$0$4,597,272
86$6,465,539$0$0$4,953,400
87$6,971,080$0$0$5,342,300
88$7,523,337$0$0$5,767,202
89$8,126,923$0$0$6,231,665
90$8,786,914$0$0$6,739,603
91$9,508,903$0$0$7,295,328
92$10,299,044$0$0$7,903,588
93$11,164,118$0$0$8,569,611
94$12,111,588$0$0$9,299,154
95$13,149,675$0$0$10,098,557
96$14,287,431$0$0$10,974,802
97$15,534,829$0$0$11,935,579
98$16,902,849$0$0$12,989,358
99$18,403,586$0$0$14,145,467
100$20,050,362$0$0$15,414,182