Can I retire at age 56 with 400,000?

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 $400,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15%
1 years$33,032$32,737$32,450$32,170$31,897$31,240
2 years$16,352$16,048$15,753$15,466$15,189$14,530
3 years$10,793$10,487$10,193$9,909$9,636$8,996
4 years$8,014$7,709$7,418$7,139$6,873$6,256
5 years$6,347$6,044$5,757$5,484$5,225$4,633
6 years$5,236$4,936$4,652$4,385$4,134$3,569
7 years$4,443$4,145$3,866$3,605$3,362$2,823
8 years$3,849$3,553$3,279$3,024$2,789$2,276
9 years$3,386$3,093$2,824$2,576$2,349$1,861
10 years$3,017$2,727$2,462$2,221$2,001$1,539
11 years$2,714$2,427$2,167$1,933$1,721$1,283
12 years$2,463$2,179$1,924$1,695$1,492$1,077
13 years$2,250$1,969$1,719$1,497$1,301$909
14 years$2,068$1,790$1,544$1,329$1,140$771
15 years$1,910$1,635$1,394$1,185$1,004$657
16 years$1,772$1,500$1,264$1,061$887$561
17 years$1,651$1,381$1,150$953$787$480
18 years$1,543$1,277$1,050$859$699$412
19 years$1,446$1,183$961$776$623$354
20 years$1,359$1,099$882$703$557$305
21 years$1,281$1,024$811$638$498$263
22 years$1,210$956$748$580$447$227
23 years$1,145$894$690$528$401$196
24 years$1,086$838$639$482$360$170
25 years$1,031$786$591$440$324$147
26 years$981$739$549$402$292$127
27 years$935$695$509$368$263$110
28 years$892$655$474$337$238$96
29 years$852$618$441$309$215$83
30 years$814$584$410$284$194$72
31 years$779$552$383$261$175$62
32 years$747$522$357$240$159$54
33 years$716$494$333$220$144$47
34 years$688$469$311$203$130$41
35 years$661$444$291$187$118$35
36 years$635$422$272$172$107$31
37 years$611$401$255$158$97$27
38 years$589$381$239$146$88$23
39 years$567$362$224$135$79$20
40 years$547$345$210$124$72$18
41 years$528$328$197$115$65$15
42 years$509$312$184$106$59$13
43 years$492$298$173$98$54$12
44 years$475$284$162$90$49$10
45 years$459$270$153$83$44$9
46 years$444$258$143$77$40$8
47 years$430$246$135$71$37$7
48 years$416$235$126$66$33$6
49 years$403$224$119$61$30$5
50 years$391$214$112$56$27$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $400,000, adding $3,748 every year, while hoping to spend $26,215 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: 53/25/22 Blend
55$400,000$400,000$400,000$400,000
56$444,666$423,466$417,266$465,355
57$462,129$416,323$403,352$472,857
58$480,495$407,952$388,093$477,984
59$499,829$398,264$371,417$483,010
60$520,199$387,167$353,247$487,935
61$541,682$374,561$333,504$492,759
62$564,363$360,344$312,105$497,485
63$588,331$344,403$288,963$502,117
64$613,685$326,623$263,988$506,662
65$640,533$306,881$237,085$511,129
66$668,994$285,045$208,154$515,531
67$699,197$260,977$177,092$519,882
68$731,282$234,532$143,792$524,203
69$765,405$205,556$108,140$528,519
70$801,732$173,884$70,019$532,857
71$840,451$139,346$29,307$537,253
72$881,762$101,760$0$541,749
73$925,888$60,932$0$549,712
74$973,072$16,661$0$565,439
75$1,023,579$0$0$582,140
76$1,077,703$0$0$608,530
77$1,135,764$0$0$641,782
78$1,198,114$0$0$677,518
79$1,265,138$0$0$715,963
80$1,337,260$0$0$757,364
81$1,414,945$0$0$801,991
82$1,498,705$0$0$850,142
83$1,589,100$0$0$902,145
84$1,686,748$0$0$958,359
85$1,792,326$0$0$1,019,178
86$1,906,579$0$0$1,085,038
87$2,030,327$0$0$1,156,416
88$2,164,469$0$0$1,233,836
89$2,309,995$0$0$1,317,876
90$2,467,994$0$0$1,409,172
91$2,639,665$0$0$1,508,420
92$2,826,324$0$0$1,616,391
93$3,029,420$0$0$1,733,930
94$3,250,549$0$0$1,861,966
95$3,491,466$0$0$2,001,525
96$3,754,100$0$0$2,153,731
97$4,040,578$0$0$2,319,827
98$4,353,239$0$0$2,501,176
99$4,694,658$0$0$2,699,282
100$5,067,669$0$0$2,915,798