Can I retire at age 56 with 1,980,000?

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 $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.6%
1 years$163,507$162,050$160,629$159,242$157,888$153,635
2 years$80,944$79,436$77,975$76,559$75,185$70,930
3 years$53,427$51,913$50,455$49,052$47,700$43,578
4 years$39,671$38,161$36,718$35,339$34,020$30,061
5 years$31,419$29,919$28,495$27,144$25,862$22,077
6 years$25,920$24,431$23,028$21,707$20,463$16,856
7 years$21,994$20,517$19,137$17,847$16,642$13,213
8 years$19,050$17,587$16,229$14,971$13,806$10,554
9 years$16,762$15,313$13,978$12,752$11,627$8,548
10 years$14,932$13,497$12,187$10,992$9,907$6,997
11 years$13,437$12,016$10,729$9,567$8,520$5,775
12 years$12,191$10,785$9,522$8,391$7,383$4,798
13 years$11,138$9,746$8,507$7,408$6,438$4,008
14 years$10,236$8,859$7,644$6,576$5,644$3,362
15 years$9,455$8,093$6,901$5,865$4,969$2,830
16 years$8,772$7,425$6,257$5,251$4,392$2,390
17 years$8,170$6,838$5,693$4,718$3,894$2,022
18 years$7,636$6,319$5,197$4,252$3,463$1,715
19 years$7,159$5,856$4,758$3,842$3,086$1,457
20 years$6,729$5,442$4,367$3,480$2,757$1,239
21 years$6,342$5,069$4,016$3,158$2,467$1,056
22 years$5,989$4,732$3,702$2,871$2,211$900
23 years$5,668$4,425$3,418$2,615$1,985$768
24 years$5,375$4,146$3,161$2,385$1,784$656
25 years$5,105$3,891$2,928$2,178$1,605$561
26 years$4,856$3,657$2,715$1,992$1,446$479
27 years$4,626$3,442$2,521$1,823$1,304$410
28 years$4,413$3,243$2,344$1,670$1,176$351
29 years$4,215$3,059$2,181$1,532$1,062$300
30 years$4,030$2,889$2,032$1,406$960$257
31 years$3,858$2,731$1,894$1,291$868$220
32 years$3,697$2,584$1,767$1,186$785$189
33 years$3,546$2,448$1,650$1,091$710$162
34 years$3,404$2,320$1,542$1,004$643$138
35 years$3,270$2,200$1,441$924$583$119
36 years$3,145$2,088$1,348$851$528$102
37 years$3,026$1,983$1,262$784$478$87
38 years$2,914$1,885$1,182$723$434$75
39 years$2,808$1,792$1,107$666$393$64
40 years$2,707$1,705$1,038$615$357$55
41 years$2,612$1,623$973$567$324$47
42 years$2,521$1,546$913$523$294$40
43 years$2,435$1,473$857$483$267$35
44 years$2,353$1,404$804$446$242$30
45 years$2,274$1,339$755$412$220$25
46 years$2,200$1,277$709$381$199$22
47 years$2,129$1,219$666$352$181$19
48 years$2,060$1,164$626$325$164$16
49 years$1,995$1,111$588$300$149$14
50 years$1,933$1,061$553$278$136$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $1,980,000, adding $3,329 every year, while hoping to spend $38,675 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: 68/11/21 Blend
55$1,980,000$1,980,000$1,980,000$1,980,000
56$2,185,394$2,080,454$2,049,764$2,322,300
57$2,367,154$2,141,246$2,077,281$2,475,137
58$2,566,158$2,203,721$2,104,424$2,637,468
59$2,784,123$2,267,920$2,131,139$2,814,118
60$3,022,941$2,333,886$2,157,370$3,006,496
61$3,284,696$2,401,662$2,183,057$3,216,157
62$3,571,682$2,471,291$2,208,137$3,444,811
63$3,886,428$2,542,818$2,232,543$3,694,343
64$4,231,716$2,616,288$2,256,206$3,966,830
65$4,610,613$2,691,749$2,279,051$4,264,557
66$5,026,497$2,769,245$2,301,000$4,590,046
67$5,483,087$2,848,826$2,321,971$4,946,070
68$5,984,482$2,930,538$2,341,877$5,335,689
69$6,535,195$3,014,431$2,360,626$5,762,270
70$7,140,201$3,100,554$2,378,123$6,229,526
71$7,804,977$3,188,957$2,394,266$6,741,546
72$8,535,560$3,279,691$2,408,949$7,302,836
73$9,338,598$3,372,806$2,422,060$7,918,359
74$10,221,417$3,468,356$2,433,480$8,593,587
75$11,192,087$3,566,391$2,443,088$9,334,545
76$12,259,501$3,666,965$2,450,752$10,147,876
77$13,433,453$3,770,130$2,456,336$11,040,897
78$14,724,739$3,875,939$2,459,696$12,021,670
79$16,145,250$3,984,448$2,460,684$13,099,083
80$17,708,088$4,095,709$2,459,139$14,282,924
81$19,427,691$4,209,776$2,454,898$15,583,984
82$21,319,964$4,326,704$2,447,786$17,014,150
83$23,402,435$4,446,547$2,437,621$18,586,523
84$25,694,415$4,569,359$2,424,213$20,315,539
85$28,217,182$4,695,194$2,407,361$22,217,107
86$30,994,182$4,824,106$2,386,855$24,308,757
87$34,051,249$4,956,148$2,362,476$26,609,807
88$37,416,851$5,091,374$2,333,993$29,141,546
89$41,122,355$5,229,836$2,301,166$31,927,431
90$45,202,322$5,371,585$2,263,743$34,993,316
91$49,694,839$5,516,673$2,221,458$38,367,688
92$54,641,872$5,665,149$2,174,036$42,081,942
93$60,089,665$5,817,063$2,121,188$46,170,673
94$66,089,173$5,972,462$2,062,610$50,672,006
95$72,696,548$6,131,392$1,997,987$55,627,956
96$79,973,662$6,293,897$1,926,986$61,084,821
97$87,988,698$6,460,019$1,849,262$67,093,623
98$96,816,785$6,629,800$1,764,453$73,710,589
99$106,540,714$6,803,278$1,672,179$80,997,682
100$117,251,716$6,980,487$1,572,046$89,023,184