Can I retire at age 56 with 988,000?

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 $988,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12%
1 years$81,588$80,861$80,152$79,460$78,785$78,124
2 years$40,390$39,638$38,909$38,202$37,516$36,851
3 years$26,659$25,904$25,177$24,476$23,802$23,152
4 years$19,795$19,042$18,322$17,634$16,976$16,346
5 years$15,678$14,929$14,219$13,545$12,905$12,298
6 years$12,934$12,191$11,491$10,832$10,211$9,627
7 years$10,975$10,238$9,549$8,905$8,304$7,744
8 years$9,506$8,776$8,098$7,470$6,889$6,352
9 years$8,364$7,641$6,975$6,363$5,802$5,287
10 years$7,451$6,735$6,081$5,485$4,943$4,452
11 years$6,705$5,996$5,354$4,774$4,251$3,782
12 years$6,083$5,382$4,751$4,187$3,684$3,237
13 years$5,558$4,863$4,245$3,697$3,213$2,787
14 years$5,108$4,421$3,814$3,281$2,816$2,412
15 years$4,718$4,038$3,444$2,926$2,480$2,096
16 years$4,377$3,705$3,122$2,620$2,192$1,827
17 years$4,077$3,412$2,841$2,354$1,943$1,598
18 years$3,810$3,153$2,593$2,122$1,728$1,401
19 years$3,572$2,922$2,374$1,917$1,540$1,231
20 years$3,358$2,715$2,179$1,736$1,376$1,084
21 years$3,164$2,529$2,004$1,576$1,231$956
22 years$2,989$2,361$1,847$1,433$1,103$845
23 years$2,829$2,208$1,706$1,305$990$747
24 years$2,682$2,069$1,577$1,190$890$661
25 years$2,547$1,942$1,461$1,087$801$586
26 years$2,423$1,825$1,355$994$722$520
27 years$2,308$1,717$1,258$910$651$461
28 years$2,202$1,618$1,170$833$587$410
29 years$2,103$1,527$1,088$764$530$364
30 years$2,011$1,442$1,014$701$479$324
31 years$1,925$1,363$945$644$433$288
32 years$1,845$1,290$882$592$392$256
33 years$1,769$1,221$823$544$354$228
34 years$1,699$1,158$769$501$321$203
35 years$1,632$1,098$719$461$291$181
36 years$1,569$1,042$673$425$263$161
37 years$1,510$990$630$391$239$144
38 years$1,454$941$590$361$216$128
39 years$1,401$894$553$333$196$114
40 years$1,351$851$518$307$178$102
41 years$1,303$810$486$283$161$91
42 years$1,258$771$456$261$147$81
43 years$1,215$735$427$241$133$72
44 years$1,174$701$401$223$121$64
45 years$1,135$668$377$206$110$58
46 years$1,098$637$354$190$100$51
47 years$1,062$608$332$175$90$46
48 years$1,028$581$312$162$82$41
49 years$996$554$294$150$75$36
50 years$965$530$276$138$68$33

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $988,000, adding $2,097 every year, while hoping to spend $59,842 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: 72/21/7 Blend
55$988,000$988,000$988,000$988,000
56$1,090,939$1,038,575$1,023,261$1,168,224
57$1,138,543$1,025,794$993,869$1,206,720
58$1,188,998$1,010,381$961,486$1,241,187
59$1,242,530$992,143$925,950$1,277,251
60$1,299,388$970,879$887,090$1,315,052
61$1,359,844$946,370$844,726$1,354,747
62$1,424,197$918,391$798,673$1,396,507
63$1,492,771$886,698$748,735$1,440,524
64$1,565,924$851,037$694,708$1,487,010
65$1,644,047$811,136$636,379$1,536,200
66$1,727,567$766,710$573,525$1,588,356
67$1,816,956$717,455$505,915$1,643,767
68$1,912,727$663,052$433,305$1,702,754
69$2,015,446$603,162$355,441$1,765,672
70$2,125,732$537,428$272,059$1,832,915
71$2,244,265$465,471$182,882$1,904,920
72$2,371,793$386,892$87,621$1,982,170
73$2,509,135$301,269$0$2,065,202
74$2,657,192$208,155$0$2,155,658
75$2,816,952$107,082$0$2,260,200
76$2,989,503$0$0$2,373,028
77$3,176,039$0$0$2,495,541
78$3,377,871$0$0$2,654,912
79$3,596,444$0$0$2,827,542
80$3,833,343$0$0$3,014,688
81$4,090,313$0$0$3,217,732
82$4,369,271$0$0$3,438,197
83$4,672,329$0$0$3,677,755
84$5,001,806$0$0$3,938,248
85$5,360,256$0$0$4,221,700
86$5,750,489$0$0$4,530,338
87$6,175,595$0$0$4,866,616
88$6,638,976$0$0$5,233,231
89$7,144,377$0$0$5,633,152
90$7,695,917$0$0$6,069,649
91$8,298,133$0$0$6,546,318
92$8,956,018$0$0$7,067,122
93$9,675,069$0$0$7,636,419
94$10,461,338$0$0$8,259,010
95$11,321,487$0$0$8,940,182
96$12,262,854$0$0$9,685,754
97$13,293,518$0$0$10,502,135
98$14,422,374$0$0$11,396,383
99$15,659,221$0$0$12,376,269
100$17,014,848$0$0$13,450,353