Can I retire at age 62 with 425,000?

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 $425,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%17.7%
1 years$35,096$34,783$34,478$34,181$33,890$32,832
2 years$17,374$17,051$16,737$16,433$16,138$15,081
3 years$11,468$11,143$10,830$10,529$10,239$9,216
4 years$8,515$8,191$7,881$7,585$7,302$6,322
5 years$6,744$6,422$6,116$5,826$5,551$4,616
6 years$5,564$5,244$4,943$4,659$4,392$3,504
7 years$4,721$4,404$4,108$3,831$3,572$2,729
8 years$4,089$3,775$3,484$3,213$2,963$2,166
9 years$3,598$3,287$3,000$2,737$2,496$1,742
10 years$3,205$2,897$2,616$2,359$2,126$1,417
11 years$2,884$2,579$2,303$2,053$1,829$1,161
12 years$2,617$2,315$2,044$1,801$1,585$958
13 years$2,391$2,092$1,826$1,590$1,382$794
14 years$2,197$1,902$1,641$1,412$1,211$661
15 years$2,029$1,737$1,481$1,259$1,067$552
16 years$1,883$1,594$1,343$1,127$943$462
17 years$1,754$1,468$1,222$1,013$836$388
18 years$1,639$1,356$1,116$913$743$327
19 years$1,537$1,257$1,021$825$662$275
20 years$1,444$1,168$937$747$592$232
21 years$1,361$1,088$862$678$530$196
22 years$1,286$1,016$795$616$475$166
23 years$1,217$950$734$561$426$140
24 years$1,154$890$679$512$383$119
25 years$1,096$835$628$468$345$101
26 years$1,042$785$583$428$310$85
27 years$993$739$541$391$280$72
28 years$947$696$503$359$253$61
29 years$905$657$468$329$228$52
30 years$865$620$436$302$206$44
31 years$828$586$407$277$186$37
32 years$794$555$379$255$168$32
33 years$761$525$354$234$152$27
34 years$731$498$331$215$138$23
35 years$702$472$309$198$125$19
36 years$675$448$289$183$113$17
37 years$650$426$271$168$103$14
38 years$625$405$254$155$93$12
39 years$603$385$238$143$84$10
40 years$581$366$223$132$77$9
41 years$561$348$209$122$69$7
42 years$541$332$196$112$63$6
43 years$523$316$184$104$57$5
44 years$505$301$173$96$52$4
45 years$488$287$162$88$47$4
46 years$472$274$152$82$43$3
47 years$457$262$143$75$39$3
48 years$442$250$134$70$35$2
49 years$428$239$126$64$32$2
50 years$415$228$119$60$29$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 62 starting with $425,000, adding $5,538 every year, while hoping to spend $23,596 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: 35/39/26 Blend
61$425,000$425,000$425,000$425,000
62$474,062$451,537$444,950$486,774
63$497,311$448,557$434,750$493,738
64$522,140$444,639$423,417$498,717
65$548,685$439,714$410,889$503,626
66$577,097$433,706$397,100$508,475
67$607,539$426,536$381,981$513,275
68$640,191$418,119$365,460$518,043
69$675,250$408,366$347,462$522,798
70$712,932$397,182$327,909$527,563
71$753,475$384,468$306,718$532,367
72$797,140$370,118$283,803$537,245
73$844,214$354,019$259,076$542,237
74$895,010$336,053$232,442$547,390
75$949,876$316,093$203,803$552,762
76$1,009,190$294,009$173,057$558,415
77$1,073,371$269,659$140,098$564,427
78$1,142,877$242,894$104,814$570,882
79$1,218,214$213,560$67,088$577,881
80$1,299,936$181,488$26,800$585,537
81$1,388,653$146,506$0$593,980
82$1,485,038$108,427$0$607,851
83$1,589,829$67,056$0$631,052
84$1,703,838$22,188$0$656,367
85$1,827,959$0$0$684,053
86$1,963,175$0$0$725,723
87$2,110,570$0$0$781,581
88$2,271,334$0$0$842,566
89$2,446,779$0$0$909,180
90$2,638,348$0$0$981,980
91$2,847,630$0$0$1,061,578
92$3,076,374$0$0$1,148,646
93$3,326,506$0$0$1,243,928
94$3,600,146$0$0$1,348,239
95$3,899,629$0$0$1,462,479
96$4,227,526$0$0$1,587,639
97$4,586,668$0$0$1,724,808
98$4,980,172$0$0$1,875,188
99$5,411,472$0$0$2,040,101
100$5,884,349$0$0$2,221,006