Can I retire at age 62 with 406,000?

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 $406,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.5%
1 years$33,527$33,228$32,937$32,653$32,375$31,516
2 years$16,598$16,288$15,989$15,698$15,417$14,557
3 years$10,955$10,645$10,346$10,058$9,781$8,948
4 years$8,134$7,825$7,529$7,246$6,976$6,175
5 years$6,443$6,135$5,843$5,566$5,303$4,538
6 years$5,315$5,010$4,722$4,451$4,196$3,467
7 years$4,510$4,207$3,924$3,659$3,413$2,719
8 years$3,906$3,606$3,328$3,070$2,831$2,173
9 years$3,437$3,140$2,866$2,615$2,384$1,761
10 years$3,062$2,768$2,499$2,254$2,031$1,442
11 years$2,755$2,464$2,200$1,962$1,747$1,191
12 years$2,500$2,211$1,952$1,721$1,514$990
13 years$2,284$1,998$1,744$1,519$1,320$828
14 years$2,099$1,817$1,567$1,348$1,157$695
15 years$1,939$1,659$1,415$1,203$1,019$585
16 years$1,799$1,523$1,283$1,077$901$495
17 years$1,675$1,402$1,167$967$799$419
18 years$1,566$1,296$1,066$872$710$356
19 years$1,468$1,201$976$788$633$302
20 years$1,380$1,116$895$714$565$257
21 years$1,300$1,039$824$648$506$219
22 years$1,228$970$759$589$453$187
23 years$1,162$907$701$536$407$160
24 years$1,102$850$648$489$366$137
25 years$1,047$798$600$447$329$117
26 years$996$750$557$408$297$100
27 years$949$706$517$374$267$86
28 years$905$665$481$342$241$73
29 years$864$627$447$314$218$63
30 years$826$592$417$288$197$54
31 years$791$560$388$265$178$46
32 years$758$530$362$243$161$40
33 years$727$502$338$224$146$34
34 years$698$476$316$206$132$29
35 years$671$451$296$189$119$25
36 years$645$428$277$175$108$21
37 years$620$407$259$161$98$18
38 years$597$387$242$148$89$16
39 years$576$368$227$137$81$14
40 years$555$350$213$126$73$12
41 years$535$333$200$116$66$10
42 years$517$317$187$107$60$9
43 years$499$302$176$99$55$7
44 years$482$288$165$91$50$6
45 years$466$275$155$84$45$5
46 years$451$262$145$78$41$5
47 years$436$250$137$72$37$4
48 years$423$239$128$67$34$3
49 years$409$228$121$62$31$3
50 years$396$218$113$57$28$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 62 starting with $406,000, adding $6,504 every year, while hoping to spend $34,175 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: 77/15/8 Blend
61$406,000$406,000$406,000$406,000
62$454,121$432,603$426,310$488,063
63$464,079$417,438$404,229$496,116
64$473,908$400,386$380,264$499,893
65$483,558$381,316$354,314$503,040
66$492,973$360,093$326,276$505,479
67$502,092$336,573$296,041$507,127
68$510,844$310,603$263,497$507,892
69$519,151$282,024$228,526$507,671
70$526,926$250,665$191,003$506,354
71$534,071$216,346$150,800$503,818
72$540,477$178,877$107,782$499,931
73$546,022$138,058$61,809$494,547
74$550,570$93,678$12,734$487,504
75$553,972$45,511$0$478,627
76$556,058$0$0$471,107
77$556,643$0$0$463,832
78$555,520$0$0$462,611
79$552,458$0$0$459,737
80$547,203$0$0$454,993
81$539,471$0$0$448,138
82$528,948$0$0$438,906
83$515,288$0$0$427,002
84$498,104$0$0$412,098
85$476,971$0$0$393,833
86$451,416$0$0$371,805
87$420,917$0$0$345,572
88$384,896$0$0$314,641
89$342,713$0$0$278,471
90$293,663$0$0$236,461
91$236,963$0$0$187,948
92$171,751$0$0$132,199
93$97,071$0$0$68,404
94$11,869$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0