Can I retire at age 62 with 406,000?

Use the below retirement simulation to view the chances of a successful retirement.
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%16.4%
1 years$33,527$33,228$32,937$32,653$32,375$31,528
2 years$16,598$16,288$15,989$15,698$15,417$14,570
3 years$10,955$10,645$10,346$10,058$9,781$8,960
4 years$8,134$7,825$7,529$7,246$6,976$6,187
5 years$6,443$6,135$5,843$5,566$5,303$4,548
6 years$5,315$5,010$4,722$4,451$4,196$3,477
7 years$4,510$4,207$3,924$3,659$3,413$2,728
8 years$3,906$3,606$3,328$3,070$2,831$2,182
9 years$3,437$3,140$2,866$2,615$2,384$1,769
10 years$3,062$2,768$2,499$2,254$2,031$1,450
11 years$2,755$2,464$2,200$1,962$1,747$1,198
12 years$2,500$2,211$1,952$1,721$1,514$997
13 years$2,284$1,998$1,744$1,519$1,320$834
14 years$2,099$1,817$1,567$1,348$1,157$700
15 years$1,939$1,659$1,415$1,203$1,019$590
16 years$1,799$1,523$1,283$1,077$901$499
17 years$1,675$1,402$1,167$967$799$423
18 years$1,566$1,296$1,066$872$710$359
19 years$1,468$1,201$976$788$633$306
20 years$1,380$1,116$895$714$565$261
21 years$1,300$1,039$824$648$506$222
22 years$1,228$970$759$589$453$190
23 years$1,162$907$701$536$407$162
24 years$1,102$850$648$489$366$139
25 years$1,047$798$600$447$329$119
26 years$996$750$557$408$297$102
27 years$949$706$517$374$267$87
28 years$905$665$481$342$241$75
29 years$864$627$447$314$218$64
30 years$826$592$417$288$197$55
31 years$791$560$388$265$178$47
32 years$758$530$362$243$161$40
33 years$727$502$338$224$146$35
34 years$698$476$316$206$132$30
35 years$671$451$296$189$119$26
36 years$645$428$277$175$108$22
37 years$620$407$259$161$98$19
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$8
44 years$482$288$165$91$50$6
45 years$466$275$155$84$45$6
46 years$451$262$145$78$41$5
47 years$436$250$137$72$37$4
48 years$423$239$128$67$34$4
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 $6,978 every year, while hoping to spend $27,114 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: 35/37/28 Blend
61$406,000$406,000$406,000$406,000
62$454,610$433,092$426,799$466,491
63$472,131$425,464$412,247$468,356
64$490,530$416,554$396,300$467,437
65$509,869$406,270$378,881$465,923
66$530,214$394,515$359,911$463,779
67$551,636$381,187$339,309$460,970
68$574,215$366,177$316,987$457,458
69$598,035$349,370$292,857$453,207
70$623,191$330,645$266,824$448,177
71$649,783$309,874$238,789$442,331
72$677,924$286,920$208,651$435,627
73$707,733$261,640$176,302$428,028
74$739,343$233,882$141,629$419,491
75$772,900$203,486$104,518$409,977
76$808,560$170,281$64,844$399,447
77$846,499$134,090$22,481$387,860
78$886,904$94,723$0$375,177
79$929,983$51,979$0$368,152
80$975,964$5,649$0$367,567
81$1,025,095$0$0$366,708
82$1,077,649$0$0$383,702
83$1,133,926$0$0$404,402
84$1,194,253$0$0$426,632
85$1,258,991$0$0$450,531
86$1,328,534$0$0$476,249
87$1,403,316$0$0$503,953
88$1,483,812$0$0$533,826
89$1,570,546$0$0$566,067
90$1,664,092$0$0$600,897
91$1,765,080$0$0$638,558
92$1,874,202$0$0$679,317
93$1,992,222$0$0$723,465
94$2,119,975$0$0$771,323
95$2,258,383$0$0$823,247
96$2,408,456$0$0$879,624
97$2,571,308$0$0$940,883
98$2,748,162$0$0$1,007,493
99$2,940,365$0$0$1,079,973
100$3,149,397$0$0$1,158,891