Can I retire at age 56 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%12.6%
1 years$209,751$207,882$206,060$204,280$202,543$200,345
2 years$103,837$101,903$100,029$98,212$96,449$94,235
3 years$68,537$66,595$64,725$62,925$61,191$59,031
4 years$50,891$48,954$47,103$45,334$43,642$41,552
5 years$40,305$38,381$36,554$34,821$33,176$31,163
6 years$33,251$31,341$29,541$27,847$26,251$24,316
7 years$28,214$26,320$24,549$22,894$21,349$19,494
8 years$24,438$22,561$20,819$19,205$17,711$15,936
9 years$21,503$19,643$17,932$16,359$14,915$13,219
10 years$19,156$17,315$15,633$14,101$12,709$11,090
11 years$17,237$15,414$13,763$12,272$10,930$9,387
12 years$15,639$13,835$12,215$10,765$9,472$8,004
13 years$14,288$12,503$10,913$9,503$8,259$6,865
14 years$13,131$11,365$9,805$8,436$7,240$5,916
15 years$12,129$10,382$8,853$7,524$6,375$5,120
16 years$11,253$9,525$8,026$6,737$5,634$4,446
17 years$10,481$8,772$7,304$6,053$4,996$3,872
18 years$9,796$8,106$6,667$5,455$4,442$3,381
19 years$9,183$7,513$6,104$4,929$3,959$2,958
20 years$8,633$6,981$5,602$4,464$3,536$2,593
21 years$8,135$6,503$5,152$4,051$3,165$2,277
22 years$7,683$6,070$4,749$3,684$2,837$2,002
23 years$7,272$5,677$4,385$3,355$2,546$1,762
24 years$6,895$5,319$4,055$3,060$2,289$1,553
25 years$6,549$4,992$3,756$2,794$2,059$1,370
26 years$6,229$4,691$3,483$2,555$1,855$1,209
27 years$5,934$4,415$3,235$2,339$1,673$1,068
28 years$5,661$4,160$3,007$2,143$1,509$944
29 years$5,407$3,925$2,798$1,965$1,363$835
30 years$5,170$3,707$2,606$1,803$1,231$739
31 years$4,949$3,504$2,430$1,656$1,113$654
32 years$4,743$3,315$2,267$1,522$1,007$579
33 years$4,549$3,140$2,117$1,400$911$513
34 years$4,367$2,976$1,978$1,288$825$455
35 years$4,195$2,822$1,849$1,185$747$403
36 years$4,034$2,679$1,730$1,092$677$357
37 years$3,882$2,544$1,619$1,006$614$317
38 years$3,738$2,418$1,516$927$556$281
39 years$3,602$2,299$1,421$855$505$249
40 years$3,473$2,188$1,331$789$458$221
41 years$3,350$2,082$1,248$728$415$196
42 years$3,234$1,983$1,171$671$377$174
43 years$3,123$1,890$1,099$620$342$154
44 years$3,018$1,801$1,032$572$310$137
45 years$2,918$1,718$969$529$282$122
46 years$2,822$1,639$910$488$256$108
47 years$2,731$1,564$855$451$232$96
48 years$2,643$1,493$803$417$211$85
49 years$2,560$1,425$755$385$192$76
50 years$2,480$1,362$710$356$174$67

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,540,000, adding $3,566 every year, while hoping to spend $45,552 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: 60/15/25 Blend
55$2,540,000$2,540,000$2,540,000$2,540,000
56$2,802,758$2,668,138$2,628,768$2,951,940
57$3,040,173$2,750,410$2,668,365$3,136,106
58$3,300,277$2,835,187$2,707,762$3,331,723
59$3,585,336$2,922,542$2,746,903$3,544,184
60$3,897,848$3,012,554$2,785,732$3,775,138
61$4,240,560$3,105,301$2,824,185$4,026,397
62$4,616,500$3,200,863$2,862,198$4,299,960
63$5,029,003$3,299,326$2,899,702$4,598,028
64$5,481,743$3,400,775$2,936,624$4,923,023
65$5,978,766$3,505,297$2,972,885$5,277,616
66$6,524,528$3,612,984$3,008,405$5,664,746
67$7,123,939$3,723,930$3,043,096$6,087,653
68$7,782,408$3,838,231$3,076,868$6,549,904
69$8,505,895$3,955,984$3,109,623$7,055,430
70$9,300,961$4,077,293$3,141,261$7,608,560
71$10,174,839$4,202,261$3,171,673$8,214,066
72$11,135,497$4,330,995$3,200,748$8,877,203
73$12,191,710$4,463,606$3,228,366$9,603,760
74$13,353,149$4,600,208$3,254,401$10,400,118
75$14,630,469$4,740,916$3,278,722$11,273,305
76$16,035,407$4,885,852$3,301,189$12,231,065
77$17,580,896$5,035,136$3,321,657$13,281,933
78$19,281,187$5,188,897$3,339,971$14,435,310
79$21,151,979$5,347,264$3,355,971$15,701,556
80$23,210,571$5,510,371$3,369,487$17,092,086
81$25,476,025$5,678,354$3,380,340$18,619,480
82$27,969,340$5,851,354$3,388,342$20,297,597
83$30,713,659$6,029,516$3,393,297$22,141,709
84$33,734,478$6,212,989$3,394,999$24,168,647
85$37,059,895$6,401,925$3,393,231$26,396,956
86$40,720,865$6,596,480$3,387,766$28,847,071
87$44,751,501$6,796,816$3,378,364$31,541,510
88$49,189,392$7,003,097$3,364,776$34,505,088
89$54,075,954$7,215,493$3,346,740$37,765,151
90$59,456,826$7,434,177$3,323,981$41,351,830
91$65,382,299$7,659,329$3,296,211$45,298,332
92$71,907,788$7,891,130$3,263,129$49,641,249
93$79,094,356$8,129,769$3,224,418$54,420,903
94$87,009,292$8,375,439$3,179,747$59,681,732
95$95,726,741$8,628,337$3,128,770$65,472,701
96$105,328,408$8,888,666$3,071,123$71,847,774
97$115,904,329$9,156,633$3,006,429$78,866,415
98$127,553,714$9,432,452$2,934,288$86,594,156
99$140,385,892$9,716,341$2,854,286$95,103,210
100$154,521,336$10,008,525$2,765,987$104,473,158