Can I retire at age 56 with 989,000?

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 $989,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.2%
1 years$81,671$80,943$80,233$79,541$78,864$76,248
2 years$40,431$39,678$38,948$38,241$37,554$34,944
3 years$26,686$25,930$25,202$24,501$23,826$21,304
4 years$19,815$19,061$18,341$17,652$16,993$14,578
5 years$15,694$14,944$14,233$13,558$12,918$10,616
6 years$12,947$12,203$11,502$10,843$10,221$8,035
7 years$10,986$10,248$9,559$8,914$8,313$6,241
8 years$9,515$8,785$8,106$7,478$6,896$4,938
9 years$8,373$7,649$6,982$6,370$5,808$3,961
10 years$7,459$6,742$6,087$5,491$4,948$3,210
11 years$6,712$6,002$5,359$4,779$4,256$2,622
12 years$6,089$5,387$4,756$4,191$3,688$2,156
13 years$5,563$4,868$4,249$3,700$3,216$1,781
14 years$5,113$4,425$3,818$3,285$2,819$1,478
15 years$4,723$4,042$3,447$2,929$2,482$1,230
16 years$4,382$3,709$3,125$2,623$2,194$1,027
17 years$4,081$3,416$2,844$2,357$1,945$859
18 years$3,814$3,156$2,596$2,124$1,730$720
19 years$3,576$2,925$2,377$1,919$1,542$604
20 years$3,361$2,718$2,181$1,738$1,377$508
21 years$3,168$2,532$2,006$1,577$1,232$427
22 years$2,992$2,363$1,849$1,434$1,104$360
23 years$2,831$2,210$1,707$1,306$991$303
24 years$2,685$2,071$1,579$1,191$891$256
25 years$2,550$1,944$1,462$1,088$802$216
26 years$2,426$1,827$1,356$995$722$182
27 years$2,311$1,719$1,259$911$651$154
28 years$2,204$1,620$1,171$834$588$130
29 years$2,105$1,528$1,090$765$531$110
30 years$2,013$1,443$1,015$702$479$93
31 years$1,927$1,364$946$645$433$78
32 years$1,847$1,291$883$593$392$66
33 years$1,771$1,223$824$545$355$56
34 years$1,700$1,159$770$501$321$47
35 years$1,634$1,099$720$462$291$40
36 years$1,571$1,043$674$425$264$34
37 years$1,511$991$630$392$239$29
38 years$1,455$942$590$361$217$24
39 years$1,402$895$553$333$196$20
40 years$1,352$852$518$307$178$17
41 years$1,304$811$486$283$162$15
42 years$1,259$772$456$261$147$12
43 years$1,216$736$428$241$133$10
44 years$1,175$701$402$223$121$9
45 years$1,136$669$377$206$110$7
46 years$1,099$638$354$190$100$6
47 years$1,063$609$333$176$90$5
48 years$1,029$581$313$162$82$5
49 years$997$555$294$150$75$4
50 years$966$530$276$139$68$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $989,000, adding $3,317 every year, while hoping to spend $47,355 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: 57/31/12 Blend
55$989,000$989,000$989,000$989,000
56$1,093,299$1,040,882$1,025,553$1,152,154
57$1,154,431$1,041,500$1,009,524$1,192,928
58$1,220,210$1,040,561$991,370$1,231,813
59$1,291,062$1,037,939$970,971$1,273,062
60$1,367,452$1,033,500$948,201$1,316,908
61$1,449,892$1,027,101$922,925$1,363,611
62$1,538,944$1,018,592$895,006$1,413,458
63$1,635,226$1,007,813$864,299$1,466,766
64$1,739,417$994,594$830,650$1,523,889
65$1,852,263$978,755$793,903$1,585,216
66$1,974,586$960,105$753,891$1,651,183
67$2,107,287$938,444$710,440$1,722,267
68$2,251,360$913,558$663,369$1,799,002
69$2,407,896$885,219$612,489$1,881,975
70$2,578,095$853,189$557,602$1,971,840
71$2,763,280$817,214$498,500$2,069,317
72$2,964,903$777,026$434,969$2,175,206
73$3,184,565$732,342$366,782$2,290,393
74$3,424,025$682,862$293,704$2,415,855
75$3,685,222$628,268$215,489$2,552,677
76$3,970,286$568,225$131,879$2,702,058
77$4,281,566$502,379$42,608$2,865,323
78$4,621,646$430,355$0$3,043,939
79$4,993,369$351,758$0$3,246,271
80$5,399,869$266,170$0$3,473,630
81$5,844,592$173,149$0$3,722,578
82$6,331,336$72,228$0$3,995,347
83$6,864,281$0$0$4,294,404
84$7,448,032$0$0$4,635,120
85$8,087,659$0$0$5,035,532
86$8,788,746$0$0$5,474,506
87$9,557,442$0$0$5,955,904
88$10,400,521$0$0$6,483,979
89$11,325,442$0$0$7,063,416
90$12,340,424$0$0$7,699,374
91$13,454,518$0$0$8,397,539
92$14,677,693$0$0$9,164,170
93$16,020,932$0$0$10,006,165
94$17,496,335$0$0$10,931,121
95$19,117,228$0$0$11,947,410
96$20,898,295$0$0$13,064,252
97$22,855,711$0$0$14,291,805
98$25,007,296$0$0$15,641,260
99$27,372,682$0$0$17,124,949
100$29,973,498$0$0$18,756,455