Can I retire at age 55 with 2,540,000?

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 $2,540,000?

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$209,751$207,882$206,060$204,280$202,543$200,846
2 years$103,837$101,903$100,029$98,212$96,449$94,739
3 years$68,537$66,595$64,725$62,925$61,191$59,521
4 years$50,891$48,954$47,103$45,334$43,642$42,024
5 years$40,305$38,381$36,554$34,821$33,176$31,615
6 years$33,251$31,341$29,541$27,847$26,251$24,749
7 years$28,214$26,320$24,549$22,894$21,349$19,907
8 years$24,438$22,561$20,819$19,205$17,711$16,329
9 years$21,503$19,643$17,932$16,359$14,915$13,593
10 years$19,156$17,315$15,633$14,101$12,709$11,445
11 years$17,237$15,414$13,763$12,272$10,930$9,724
12 years$15,639$13,835$12,215$10,765$9,472$8,322
13 years$14,288$12,503$10,913$9,503$8,259$7,166
14 years$13,131$11,365$9,805$8,436$7,240$6,200
15 years$12,129$10,382$8,853$7,524$6,375$5,388
16 years$11,253$9,525$8,026$6,737$5,634$4,698
17 years$10,481$8,772$7,304$6,053$4,996$4,109
18 years$9,796$8,106$6,667$5,455$4,442$3,603
19 years$9,183$7,513$6,104$4,929$3,959$3,166
20 years$8,633$6,981$5,602$4,464$3,536$2,787
21 years$8,135$6,503$5,152$4,051$3,165$2,458
22 years$7,683$6,070$4,749$3,684$2,837$2,171
23 years$7,272$5,677$4,385$3,355$2,546$1,920
24 years$6,895$5,319$4,055$3,060$2,289$1,700
25 years$6,549$4,992$3,756$2,794$2,059$1,506
26 years$6,229$4,691$3,483$2,555$1,855$1,336
27 years$5,934$4,415$3,235$2,339$1,673$1,186
28 years$5,661$4,160$3,007$2,143$1,509$1,053
29 years$5,407$3,925$2,798$1,965$1,363$936
30 years$5,170$3,707$2,606$1,803$1,231$832
31 years$4,949$3,504$2,430$1,656$1,113$740
32 years$4,743$3,315$2,267$1,522$1,007$659
33 years$4,549$3,140$2,117$1,400$911$587
34 years$4,367$2,976$1,978$1,288$825$522
35 years$4,195$2,822$1,849$1,185$747$465
36 years$4,034$2,679$1,730$1,092$677$415
37 years$3,882$2,544$1,619$1,006$614$369
38 years$3,738$2,418$1,516$927$556$329
39 years$3,602$2,299$1,421$855$505$294
40 years$3,473$2,188$1,331$789$458$262
41 years$3,350$2,082$1,248$728$415$234
42 years$3,234$1,983$1,171$671$377$208
43 years$3,123$1,890$1,099$620$342$186
44 years$3,018$1,801$1,032$572$310$166
45 years$2,918$1,718$969$529$282$148
46 years$2,822$1,639$910$488$256$132
47 years$2,731$1,564$855$451$232$118
48 years$2,643$1,493$803$417$211$105
49 years$2,560$1,425$755$385$192$94
50 years$2,480$1,362$710$356$174$84

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 55 starting with $2,540,000, adding $6,449 every year, while hoping to spend $46,594 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: 72/10/18 Blend
54$2,540,000$2,540,000$2,540,000$2,540,000
55$2,805,732$2,671,112$2,631,742$2,995,402
56$3,042,341$2,752,421$2,670,330$3,203,588
57$3,301,523$2,836,152$2,708,649$3,425,277
58$3,585,530$2,922,376$2,746,640$3,666,868
59$3,896,844$3,011,162$2,784,243$3,930,326
60$4,238,199$3,102,586$2,821,392$4,217,816
61$4,612,604$3,196,721$2,858,017$4,531,721
62$5,023,374$3,293,645$2,894,045$4,874,667
63$5,474,162$3,393,438$2,929,400$5,249,544
64$5,968,990$3,496,180$2,963,998$5,659,538
65$6,512,290$3,601,955$2,997,754$6,108,158
66$7,108,941$3,710,849$3,030,577$6,599,268
67$7,764,321$3,822,948$3,062,370$7,137,126
68$8,484,354$3,938,345$3,093,031$7,726,423
69$9,275,564$4,057,130$3,122,453$8,372,326
70$10,145,140$4,179,398$3,150,524$9,080,528
71$11,101,003$4,305,247$3,177,125$9,857,301
72$12,151,877$4,434,775$3,202,131$10,709,556
73$13,307,375$4,568,086$3,225,408$11,644,905
74$14,578,088$4,705,283$3,246,820$12,671,738
75$15,975,684$4,846,473$3,266,220$13,799,297
76$17,513,021$4,991,767$3,283,455$15,037,766
77$19,204,262$5,141,276$3,298,364$16,398,366
78$21,065,014$5,295,116$3,310,777$17,893,461
79$23,112,473$5,453,405$3,320,515$19,536,674
80$25,365,586$5,616,263$3,327,394$21,343,017
81$27,845,230$5,783,813$3,331,215$23,329,029
82$30,574,406$5,956,183$3,331,774$25,512,938
83$33,578,460$6,133,501$3,328,853$27,914,828
84$36,885,321$6,315,900$3,322,227$30,556,828
85$40,525,759$6,503,515$3,311,657$33,463,326
86$44,533,684$6,696,484$3,296,895$36,661,194
87$48,946,457$6,894,949$3,277,678$40,180,043
88$53,805,249$7,099,055$3,253,734$44,052,504
89$59,155,424$7,308,949$3,224,774$48,314,533
90$65,046,971$7,524,781$3,190,498$53,005,753
91$71,534,974$7,746,707$3,150,591$58,169,828
92$78,680,129$7,974,884$3,104,724$63,854,874
93$86,549,321$8,209,471$3,052,550$70,113,910
94$95,216,250$8,450,634$2,993,709$77,005,365
95$104,762,132$8,698,539$2,927,823$84,593,626
96$115,276,458$8,953,357$2,854,494$92,949,644
97$126,857,847$9,215,261$2,773,310$102,151,607
98$139,614,968$9,484,429$2,683,836$112,285,678
99$153,667,570$9,761,042$2,585,620$123,446,805
100$169,147,612$10,045,283$2,478,188$135,739,620