Can I retire at age 56 with 2,720,000?

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 $2,720,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$224,615$222,614$220,662$218,757$216,897$209,870
2 years$111,196$109,125$107,118$105,172$103,284$96,270
3 years$73,394$71,314$69,312$67,384$65,528$58,748
4 years$54,497$52,423$50,442$48,547$46,735$40,240
5 years$43,162$41,101$39,145$37,289$35,527$29,335
6 years$35,607$33,562$31,635$29,820$28,111$22,227
7 years$30,213$28,185$26,289$24,517$22,862$17,285
8 years$26,170$24,160$22,295$20,566$18,966$13,693
9 years$23,027$21,035$19,203$17,518$15,972$10,996
10 years$20,513$18,542$16,741$15,101$13,609$8,923
11 years$18,458$16,507$14,739$13,142$11,704$7,299
12 years$16,747$14,815$13,080$11,527$10,143$6,008
13 years$15,300$13,389$11,686$10,177$8,845$4,971
14 years$14,061$12,170$10,500$9,034$7,753$4,130
15 years$12,988$11,118$9,480$8,057$6,827$3,442
16 years$12,051$10,200$8,595$7,214$6,033$2,877
17 years$11,224$9,394$7,821$6,482$5,350$2,410
18 years$10,490$8,680$7,140$5,841$4,757$2,023
19 years$9,834$8,045$6,536$5,278$4,240$1,701
20 years$9,244$7,476$5,999$4,780$3,787$1,431
21 years$8,712$6,963$5,518$4,338$3,389$1,206
22 years$8,228$6,500$5,085$3,945$3,038$1,017
23 years$7,787$6,079$4,695$3,592$2,727$858
24 years$7,383$5,696$4,342$3,277$2,451$725
25 years$7,013$5,345$4,022$2,992$2,205$613
26 years$6,671$5,024$3,730$2,736$1,987$518
27 years$6,355$4,728$3,464$2,504$1,791$438
28 years$6,062$4,455$3,220$2,295$1,616$370
29 years$5,790$4,203$2,997$2,104$1,459$313
30 years$5,537$3,969$2,791$1,931$1,319$265
31 years$5,300$3,752$2,602$1,774$1,192$225
32 years$5,079$3,550$2,428$1,630$1,078$190
33 years$4,871$3,362$2,267$1,499$976$161
34 years$4,676$3,187$2,118$1,379$884$136
35 years$4,493$3,023$1,980$1,270$800$116
36 years$4,320$2,869$1,852$1,169$725$98
37 years$4,157$2,725$1,734$1,077$657$83
38 years$4,003$2,589$1,624$993$596$70
39 years$3,857$2,462$1,521$916$540$59
40 years$3,719$2,343$1,426$844$490$50
41 years$3,588$2,230$1,337$779$445$43
42 years$3,463$2,124$1,254$719$403$36
43 years$3,345$2,024$1,177$664$366$31
44 years$3,232$1,929$1,105$613$332$26
45 years$3,124$1,839$1,037$566$302$22
46 years$3,022$1,755$974$523$274$19
47 years$2,924$1,674$915$483$249$16
48 years$2,831$1,599$860$446$226$13
49 years$2,741$1,526$808$412$205$11
50 years$2,656$1,458$760$381$186$10

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $2,720,000, adding $6,734 every year, while hoping to spend $38,939 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: 67/16/17 Blend
55$2,720,000$2,720,000$2,720,000$2,720,000
56$3,004,386$2,860,226$2,818,066$3,192,870
57$3,269,403$2,958,946$2,871,041$3,418,380
58$3,560,146$3,061,199$2,924,485$3,659,706
59$3,879,199$3,167,116$2,978,373$3,922,631
60$4,229,406$3,276,834$3,032,678$4,209,273
61$4,613,903$3,390,496$3,087,369$4,521,965
62$5,036,141$3,508,249$3,142,416$4,863,277
63$5,499,923$3,630,249$3,197,782$5,236,034
64$6,009,438$3,756,655$3,253,432$5,643,352
65$6,569,303$3,887,633$3,309,324$6,088,659
66$7,184,602$4,023,357$3,365,416$6,575,730
67$7,860,935$4,164,006$3,421,661$7,108,724
68$8,604,475$4,309,767$3,478,012$7,692,220
69$9,422,021$4,460,834$3,534,414$8,331,262
70$10,321,062$4,617,411$3,590,812$9,031,404
71$11,309,853$4,779,706$3,647,147$9,798,765
72$12,397,486$4,947,939$3,703,354$10,640,084
73$13,593,979$5,122,338$3,759,366$11,562,785
74$14,910,371$5,303,138$3,815,111$12,575,045
75$16,358,823$5,490,587$3,870,512$13,685,872
76$17,952,737$5,684,940$3,925,488$14,905,188
77$19,706,878$5,886,463$3,979,953$16,243,926
78$21,637,515$6,095,435$4,033,817$17,714,128
79$23,762,573$6,312,143$4,086,981$19,329,061
80$26,101,805$6,536,887$4,139,345$21,103,342
81$28,676,975$6,769,981$4,190,799$23,053,074
82$31,512,065$7,011,749$4,241,230$25,195,999
83$34,633,501$7,262,530$4,290,516$27,551,662
84$38,070,401$7,522,677$4,338,531$30,141,601
85$41,854,849$7,792,555$4,385,139$32,989,542
86$46,022,200$8,072,547$4,430,198$36,121,630
87$50,611,414$8,363,051$4,473,558$39,566,669
88$55,665,418$8,664,480$4,515,062$43,356,397
89$61,231,517$8,977,266$4,554,544$47,525,785
90$67,361,838$9,301,858$4,591,826$52,113,364
91$74,113,819$9,638,723$4,626,727$57,161,590
92$81,550,756$9,988,348$4,659,050$62,717,245
93$89,742,397$10,351,241$4,688,591$68,831,876
94$98,765,599$10,727,929$4,715,137$75,562,280
95$108,705,056$11,118,964$4,738,460$82,971,045
96$119,654,097$11,524,918$4,758,324$91,127,133
97$131,715,566$11,946,390$4,774,478$100,106,533
98$145,002,792$12,384,002$4,786,662$109,992,983
99$159,640,660$12,838,401$4,794,599$120,878,749
100$175,766,791$13,310,266$4,798,000$132,865,504