Can I retire at age 56 with 2,040,000?

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 $2,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.6%
1 years$168,461$166,961$165,497$164,068$162,672$157,026
2 years$83,397$81,843$80,338$78,879$77,463$71,832
3 years$55,046$53,486$51,984$50,538$49,146$43,708
4 years$40,873$39,318$37,831$36,410$35,051$29,848
5 years$32,371$30,825$29,359$27,966$26,645$21,691
6 years$26,705$25,171$23,726$22,365$21,084$16,381
7 years$22,660$21,139$19,716$18,387$17,147$12,695
8 years$19,627$18,120$16,721$15,425$14,225$10,021
9 years$17,270$15,777$14,402$13,138$11,979$8,018
10 years$15,385$13,906$12,556$11,326$10,207$6,482
11 years$13,844$12,380$11,054$9,857$8,778$5,281
12 years$12,560$11,112$9,810$8,646$7,607$4,330
13 years$11,475$10,042$8,765$7,633$6,634$3,568
14 years$10,546$9,128$7,875$6,775$5,815$2,952
15 years$9,741$8,338$7,110$6,043$5,120$2,450
16 years$9,038$7,650$6,446$5,410$4,525$2,039
17 years$8,418$7,045$5,866$4,861$4,012$1,701
18 years$7,867$6,510$5,355$4,381$3,567$1,421
19 years$7,376$6,034$4,902$3,959$3,180$1,189
20 years$6,933$5,607$4,499$3,585$2,840$996
21 years$6,534$5,223$4,138$3,254$2,542$836
22 years$6,171$4,875$3,814$2,958$2,278$701
23 years$5,840$4,560$3,522$2,694$2,045$589
24 years$5,538$4,272$3,257$2,457$1,838$495
25 years$5,259$4,009$3,016$2,244$1,654$416
26 years$5,003$3,768$2,798$2,052$1,490$350
27 years$4,766$3,546$2,598$1,878$1,343$295
28 years$4,547$3,341$2,415$1,721$1,212$248
29 years$4,343$3,152$2,247$1,578$1,094$209
30 years$4,153$2,977$2,093$1,448$989$176
31 years$3,975$2,814$1,952$1,330$894$148
32 years$3,809$2,663$1,821$1,222$809$125
33 years$3,653$2,522$1,700$1,124$732$105
34 years$3,507$2,390$1,589$1,034$663$89
35 years$3,370$2,267$1,485$952$600$75
36 years$3,240$2,152$1,389$877$544$63
37 years$3,118$2,044$1,300$808$493$53
38 years$3,002$1,942$1,218$745$447$45
39 years$2,893$1,847$1,141$687$405$38
40 years$2,789$1,757$1,069$633$368$32
41 years$2,691$1,673$1,003$584$333$27
42 years$2,597$1,593$941$539$303$23
43 years$2,508$1,518$883$498$275$19
44 years$2,424$1,447$828$460$249$16
45 years$2,343$1,380$778$424$226$14
46 years$2,266$1,316$731$392$205$11
47 years$2,193$1,256$686$362$187$10
48 years$2,123$1,199$645$335$169$8
49 years$2,056$1,145$606$309$154$7
50 years$1,992$1,094$570$286$140$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,040,000, adding $6,289 every year, while hoping to spend $56,549 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: 43/36/21 Blend
55$2,040,000$2,040,000$2,040,000$2,040,000
56$2,254,567$2,146,447$2,114,827$2,337,480
57$2,424,365$2,191,455$2,125,506$2,441,824
58$2,609,588$2,236,774$2,134,648$2,548,821
59$2,811,747$2,282,358$2,142,140$2,663,591
60$3,032,511$2,328,159$2,147,867$2,786,880
61$3,273,713$2,374,124$2,151,706$2,919,509
62$3,537,371$2,420,196$2,153,528$3,062,388
63$3,825,710$2,466,312$2,153,198$3,216,515
64$4,141,176$2,512,405$2,150,574$3,382,995
65$4,486,464$2,558,401$2,145,507$3,563,046
66$4,864,544$2,604,223$2,137,841$3,758,009
67$5,278,681$2,649,784$2,127,413$3,969,367
68$5,732,477$2,694,993$2,114,052$4,198,752
69$6,229,893$2,739,752$2,097,576$4,447,968
70$6,775,297$2,783,954$2,077,799$4,719,001
71$7,373,495$2,827,486$2,054,523$5,014,045
72$8,029,783$2,870,224$2,027,542$5,335,518
73$8,749,995$2,912,039$1,996,639$5,686,089
74$9,540,556$2,952,790$1,961,587$6,068,699
75$10,408,542$2,992,327$1,922,150$6,486,595
76$11,361,751$3,030,489$1,878,080$6,943,356
77$12,408,771$3,067,104$1,829,117$7,442,931
78$13,559,063$3,101,989$1,774,989$7,989,676
79$14,823,049$3,134,948$1,715,413$8,588,395
80$16,212,212$3,165,773$1,650,091$9,244,384
81$17,739,202$3,194,240$1,578,714$9,963,487
82$19,417,955$3,220,112$1,500,955$10,752,149
83$21,263,826$3,243,137$1,416,476$11,617,475
84$23,293,730$3,263,045$1,324,922$12,567,305
85$25,526,306$3,279,550$1,225,923$13,610,280
86$27,982,088$3,292,346$1,119,090$14,755,932
87$30,683,702$3,301,112$1,004,020$16,014,774
88$33,656,074$3,305,501$880,289$17,398,395
89$36,926,671$3,305,147$747,456$18,919,577
90$40,525,755$3,299,664$605,060$20,592,414
91$44,486,672$3,288,638$452,620$22,432,447
92$48,846,163$3,271,631$289,632$24,456,811
93$53,644,709$3,248,178$115,573$26,684,402
94$58,926,919$3,217,789$0$29,136,051
95$64,741,944$3,179,939$0$31,850,455
96$71,143,941$3,134,076$0$34,865,871
97$78,192,590$3,079,612$0$38,184,433
98$85,953,648$3,015,927$0$41,837,064
99$94,499,575$2,942,362$0$45,857,852
100$103,910,213$2,858,219$0$50,284,366