Can I retire at age 56 with 1,040,000?

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 $1,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.8%
1 years$85,882$85,117$84,371$83,642$82,931$81,290
2 years$42,516$41,724$40,957$40,213$39,491$37,844
3 years$28,062$27,267$26,502$25,765$25,055$23,454
4 years$20,837$20,044$19,286$18,562$17,869$16,327
5 years$16,503$15,715$14,967$14,257$13,584$12,104
6 years$13,615$12,832$12,096$11,402$10,748$9,333
7 years$11,552$10,777$10,052$9,374$8,741$7,391
8 years$10,006$9,238$8,524$7,864$7,252$5,966
9 years$8,804$8,043$7,342$6,698$6,107$4,884
10 years$7,843$7,089$6,401$5,774$5,204$4,043
11 years$7,058$6,311$5,635$5,025$4,475$3,376
12 years$6,403$5,665$5,001$4,408$3,878$2,838
13 years$5,850$5,119$4,468$3,891$3,382$2,399
14 years$5,376$4,653$4,015$3,454$2,964$2,037
15 years$4,966$4,251$3,625$3,081$2,610$1,737
16 years$4,608$3,900$3,286$2,758$2,307$1,485
17 years$4,292$3,592$2,991$2,478$2,045$1,273
18 years$4,011$3,319$2,730$2,233$1,819$1,094
19 years$3,760$3,076$2,499$2,018$1,621$942
20 years$3,535$2,858$2,294$1,828$1,448$813
21 years$3,331$2,662$2,110$1,659$1,296$702
22 years$3,146$2,485$1,944$1,508$1,161$607
23 years$2,977$2,324$1,795$1,374$1,043$525
24 years$2,823$2,178$1,660$1,253$937$455
25 years$2,681$2,044$1,538$1,144$843$394
26 years$2,551$1,921$1,426$1,046$760$342
27 years$2,430$1,808$1,324$958$685$297
28 years$2,318$1,703$1,231$877$618$258
29 years$2,214$1,607$1,146$805$558$224
30 years$2,117$1,518$1,067$738$504$195
31 years$2,027$1,435$995$678$456$169
32 years$1,942$1,357$928$623$412$147
33 years$1,862$1,286$867$573$373$128
34 years$1,788$1,218$810$527$338$111
35 years$1,718$1,156$757$485$306$97
36 years$1,652$1,097$708$447$277$84
37 years$1,589$1,042$663$412$251$73
38 years$1,530$990$621$380$228$64
39 years$1,475$941$582$350$207$56
40 years$1,422$896$545$323$187$48
41 years$1,372$853$511$298$170$42
42 years$1,324$812$480$275$154$37
43 years$1,279$774$450$254$140$32
44 years$1,236$738$422$234$127$28
45 years$1,195$703$397$216$115$24
46 years$1,155$671$372$200$105$21
47 years$1,118$640$350$185$95$18
48 years$1,082$611$329$171$86$16
49 years$1,048$584$309$158$78$14
50 years$1,015$558$291$146$71$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,040,000, adding $5,797 every year, while hoping to spend $20,485 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: 54/35/11 Blend
55$1,040,000$1,040,000$1,040,000$1,040,000
56$1,152,060$1,096,940$1,080,820$1,210,728
57$1,247,774$1,128,894$1,095,231$1,283,165
58$1,352,564$1,161,727$1,109,439$1,359,245
59$1,467,335$1,195,461$1,123,415$1,441,571
60$1,593,082$1,230,118$1,137,128$1,530,739
61$1,730,902$1,265,719$1,150,547$1,627,407
62$1,882,002$1,302,287$1,163,638$1,732,297
63$2,047,713$1,339,845$1,176,366$1,846,205
64$2,229,499$1,378,417$1,188,694$1,970,008
65$2,428,974$1,418,026$1,200,582$2,104,671
66$2,647,915$1,458,695$1,211,988$2,251,254
67$2,888,282$1,500,450$1,222,868$2,410,927
68$3,152,229$1,543,315$1,233,177$2,584,978
69$3,442,133$1,587,314$1,242,865$2,774,823
70$3,760,611$1,632,473$1,251,882$2,982,024
71$4,110,547$1,678,818$1,260,173$3,208,299
72$4,495,116$1,726,373$1,267,682$3,455,543
73$4,917,818$1,775,166$1,274,349$3,725,839
74$5,382,508$1,825,221$1,280,112$4,021,486
75$5,893,433$1,876,566$1,284,905$4,345,011
76$6,455,272$1,929,227$1,288,659$4,699,203
77$7,073,182$1,983,231$1,291,301$5,087,130
78$7,752,841$2,038,604$1,292,754$5,512,175
79$8,500,509$2,095,374$1,292,940$5,978,061
80$9,323,081$2,153,567$1,291,773$6,488,893
81$10,228,154$2,213,210$1,289,166$7,049,192
82$11,224,099$2,274,331$1,285,026$7,663,938
83$12,320,139$2,336,956$1,279,257$8,338,620
84$13,526,439$2,401,112$1,271,757$9,079,284
85$14,854,194$2,466,825$1,262,420$9,892,590
86$16,315,744$2,534,122$1,251,133$10,785,878
87$17,924,685$2,603,029$1,237,781$11,767,236
88$19,695,997$2,673,571$1,222,241$12,845,573
89$21,646,187$2,745,774$1,204,384$14,030,708
90$23,793,444$2,819,663$1,184,077$15,333,458
91$26,157,811$2,895,262$1,161,179$16,765,744
92$28,761,372$2,972,595$1,135,543$18,340,699
93$31,628,464$3,051,684$1,107,016$20,072,797
94$34,785,902$3,132,551$1,075,436$21,977,984
95$38,263,236$3,215,218$1,040,635$24,073,835
96$42,093,027$3,299,704$1,002,437$26,379,713
97$46,311,155$3,386,029$960,658$28,916,956
98$50,957,159$3,474,211$915,106$31,709,077
99$56,074,606$3,564,264$865,579$34,781,986
100$61,711,507$3,656,204$811,867$38,164,235