Can I retire at age 55 with 494,000?

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 $494,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.8%
1 years$40,794$40,431$40,076$39,730$39,392$38,300
2 years$20,195$19,819$19,454$19,101$18,758$17,666
3 years$13,330$12,952$12,588$12,238$11,901$10,843
4 years$9,898$9,521$9,161$8,817$8,488$7,472
5 years$7,839$7,465$7,109$6,772$6,452$5,482
6 years$6,467$6,095$5,745$5,416$5,106$4,181
7 years$5,487$5,119$4,774$4,453$4,152$3,274
8 years$4,753$4,388$4,049$3,735$3,445$2,612
9 years$4,182$3,820$3,488$3,182$2,901$2,113
10 years$3,726$3,368$3,040$2,743$2,472$1,727
11 years$3,352$2,998$2,677$2,387$2,126$1,424
12 years$3,042$2,691$2,376$2,094$1,842$1,181
13 years$2,779$2,432$2,122$1,848$1,606$985
14 years$2,554$2,210$1,907$1,641$1,408$826
15 years$2,359$2,019$1,722$1,463$1,240$694
16 years$2,189$1,853$1,561$1,310$1,096$585
17 years$2,038$1,706$1,420$1,177$972$494
18 years$1,905$1,577$1,297$1,061$864$419
19 years$1,786$1,461$1,187$959$770$355
20 years$1,679$1,358$1,089$868$688$302
21 years$1,582$1,265$1,002$788$615$257
22 years$1,494$1,181$924$716$552$218
23 years$1,414$1,104$853$652$495$186
24 years$1,341$1,034$789$595$445$159
25 years$1,274$971$730$543$401$135
26 years$1,212$912$677$497$361$116
27 years$1,154$859$629$455$325$99
28 years$1,101$809$585$417$294$84
29 years$1,052$763$544$382$265$72
30 years$1,006$721$507$351$239$62
31 years$963$681$473$322$217$53
32 years$922$645$441$296$196$45
33 years$885$611$412$272$177$39
34 years$849$579$385$250$160$33
35 years$816$549$360$231$145$28
36 years$785$521$336$212$132$24
37 years$755$495$315$196$119$21
38 years$727$470$295$180$108$18
39 years$700$447$276$166$98$15
40 years$675$425$259$153$89$13
41 years$652$405$243$141$81$11
42 years$629$386$228$131$73$9
43 years$607$368$214$121$66$8
44 years$587$350$201$111$60$7
45 years$567$334$188$103$55$6
46 years$549$319$177$95$50$5
47 years$531$304$166$88$45$4
48 years$514$290$156$81$41$4
49 years$498$277$147$75$37$3
50 years$482$265$138$69$34$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 55 starting with $494,000, adding $5,633 every year, while hoping to spend $26,453 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: 56/31/13 Blend
54$494,000$494,000$494,000$494,000
55$550,198$524,016$516,359$578,873
56$578,173$521,547$505,512$596,480
57$608,114$518,071$493,414$612,269
58$640,195$513,509$479,996$628,851
59$674,605$507,781$465,186$646,306
60$711,551$500,799$448,907$664,723
61$751,262$492,471$431,078$684,203
62$793,989$482,700$411,617$704,857
63$840,005$471,382$390,436$726,811
64$889,614$458,408$367,444$750,202
65$943,147$443,662$342,545$775,184
66$1,000,968$427,022$315,640$801,931
67$1,063,477$408,357$286,625$830,631
68$1,131,116$387,530$255,391$861,499
69$1,204,367$364,397$221,824$894,770
70$1,283,763$338,803$185,806$930,706
71$1,369,889$310,586$147,212$969,600
72$1,463,388$279,575$105,914$1,011,776
73$1,564,968$245,589$61,777$1,057,592
74$1,675,407$208,434$14,658$1,107,448
75$1,795,561$167,910$0$1,161,787
76$1,926,372$123,802$0$1,226,043
77$2,068,878$75,884$0$1,298,308
78$2,224,219$23,918$0$1,377,175
79$2,393,650$0$0$1,463,336
80$2,578,554$0$0$1,568,592
81$2,780,452$0$0$1,692,473
82$3,001,019$0$0$1,827,852
83$3,242,097$0$0$1,975,866
84$3,505,718$0$0$2,137,767
85$3,794,114$0$0$2,314,934
86$4,109,748$0$0$2,508,883
87$4,455,329$0$0$2,721,287
88$4,833,840$0$0$2,953,986
89$5,248,567$0$0$3,209,007
90$5,703,129$0$0$3,488,581
91$6,201,511$0$0$3,795,168
92$6,748,103$0$0$4,131,476
93$7,347,740$0$0$4,500,488
94$8,005,747$0$0$4,905,487
95$8,727,989$0$0$5,350,094
96$9,520,929$0$0$5,838,295
97$10,391,682$0$0$6,374,481
98$11,348,091$0$0$6,963,489
99$12,398,791$0$0$7,610,649
100$13,553,299$0$0$8,321,830