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%15.8%
1 years$81,423$80,698$79,990$79,299$78,625$76,755
2 years$40,308$39,558$38,830$38,125$37,440$35,568
3 years$26,605$25,851$25,126$24,427$23,754$21,937
4 years$19,755$19,004$18,285$17,598$16,941$15,194
5 years$15,646$14,899$14,190$13,517$12,879$11,205
6 years$12,908$12,166$11,468$10,810$10,190$8,593
7 years$10,952$10,217$9,530$8,887$8,288$6,766
8 years$9,487$8,758$8,082$7,455$6,875$5,430
9 years$8,347$7,625$6,961$6,350$5,790$4,419
10 years$7,436$6,721$6,069$5,474$4,933$3,635
11 years$6,691$5,984$5,343$4,764$4,243$3,016
12 years$6,071$5,371$4,742$4,179$3,677$2,519
13 years$5,546$4,853$4,236$3,689$3,206$2,115
14 years$5,097$4,412$3,806$3,275$2,811$1,784
15 years$4,708$4,030$3,437$2,921$2,475$1,510
16 years$4,368$3,698$3,116$2,615$2,187$1,283
17 years$4,069$3,405$2,835$2,350$1,939$1,092
18 years$3,803$3,147$2,588$2,117$1,724$931
19 years$3,565$2,916$2,369$1,913$1,537$796
20 years$3,351$2,710$2,174$1,733$1,373$681
21 years$3,158$2,524$2,000$1,573$1,228$584
22 years$2,983$2,356$1,843$1,430$1,101$501
23 years$2,823$2,204$1,702$1,302$988$430
24 years$2,676$2,065$1,574$1,188$888$370
25 years$2,542$1,938$1,458$1,085$799$318
26 years$2,418$1,821$1,352$992$720$274
27 years$2,304$1,714$1,256$908$649$235
28 years$2,198$1,615$1,167$832$586$203
29 years$2,099$1,524$1,086$763$529$175
30 years$2,007$1,439$1,012$700$478$151
31 years$1,921$1,360$943$643$432$130
32 years$1,841$1,287$880$591$391$112
33 years$1,766$1,219$822$543$354$97
34 years$1,695$1,155$768$500$320$83
35 years$1,629$1,096$718$460$290$72
36 years$1,566$1,040$672$424$263$62
37 years$1,507$988$629$391$238$54
38 years$1,451$939$589$360$216$46
39 years$1,398$893$551$332$196$40
40 years$1,348$849$517$306$178$34
41 years$1,300$808$485$282$161$30
42 years$1,255$770$455$261$146$26
43 years$1,212$734$427$241$133$22
44 years$1,172$699$400$222$120$19
45 years$1,133$667$376$205$109$16
46 years$1,095$636$353$190$99$14
47 years$1,060$607$332$175$90$12
48 years$1,026$579$312$162$82$11
49 years$994$553$293$150$74$9
50 years$963$529$276$138$68$8

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $986,000, adding $4,392 every year, while hoping to spend $40,793 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: 42/50/8 Blend
55$986,000$986,000$986,000$986,000
56$1,091,102$1,038,844$1,023,561$1,134,191
57$1,158,991$1,046,344$1,014,447$1,172,149
58$1,232,438$1,052,845$1,003,661$1,208,756
59$1,311,966$1,058,253$991,102$1,247,462
60$1,398,150$1,062,472$976,669$1,288,473
61$1,491,626$1,065,397$960,251$1,332,019
62$1,593,088$1,066,917$941,735$1,378,354
63$1,703,302$1,066,916$921,003$1,427,763
64$1,823,111$1,065,267$897,929$1,480,558
65$1,953,443$1,061,839$872,384$1,537,090
66$2,095,316$1,056,491$844,230$1,597,744
67$2,249,852$1,049,074$813,327$1,662,951
68$2,418,287$1,039,428$779,523$1,733,186
69$2,601,979$1,027,387$742,664$1,808,978
70$2,802,425$1,012,772$702,586$1,890,911
71$3,021,269$995,395$659,120$1,979,637
72$3,260,325$975,056$612,087$2,075,873
73$3,521,588$951,544$561,302$2,180,416
74$3,807,254$924,633$506,569$2,294,151
75$4,119,741$894,087$447,687$2,418,056
76$4,461,712$859,656$384,442$2,553,213
77$4,836,101$821,072$316,614$2,700,822
78$5,246,134$778,056$243,972$2,862,212
79$5,695,369$730,310$166,274$3,038,852
80$6,187,720$677,519$83,268$3,232,370
81$6,727,501$619,351$0$3,444,565
82$7,319,462$555,455$0$3,677,883
83$7,968,834$485,459$0$3,941,688
84$8,681,380$408,972$0$4,231,326
85$9,463,447$325,577$0$4,549,518
86$10,322,027$234,839$0$4,899,269
87$11,264,821$136,293$0$5,283,902
88$12,300,313$29,452$0$5,707,087
89$13,437,850$0$0$6,172,880
90$14,687,726$0$0$6,733,187
91$16,061,286$0$0$7,366,882
92$17,571,024$0$0$8,063,541
93$19,230,707$0$0$8,829,534
94$21,055,503$0$0$9,671,879
95$23,062,120$0$0$10,598,308
96$25,268,969$0$0$11,617,340
97$27,696,334$0$0$12,738,360
98$30,366,563$0$0$13,971,709
99$33,304,279$0$0$15,328,783
100$36,536,613$0$0$16,822,134