Can I retire at age 56 with 405,000?

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 $405,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16.7%
1 years$33,445$33,147$32,856$32,572$32,295$31,413
2 years$16,557$16,248$15,949$15,660$15,379$14,496
3 years$10,928$10,618$10,320$10,033$9,757$8,902
4 years$8,114$7,806$7,511$7,228$6,959$6,137
5 years$6,427$6,120$5,829$5,552$5,290$4,505
6 years$5,302$4,997$4,710$4,440$4,186$3,438
7 years$4,499$4,197$3,914$3,650$3,404$2,693
8 years$3,897$3,597$3,320$3,062$2,824$2,150
9 years$3,429$3,132$2,859$2,608$2,378$1,740
10 years$3,054$2,761$2,493$2,248$2,026$1,424
11 years$2,748$2,458$2,195$1,957$1,743$1,174
12 years$2,494$2,206$1,948$1,716$1,510$975
13 years$2,278$1,994$1,740$1,515$1,317$814
14 years$2,094$1,812$1,563$1,345$1,154$682
15 years$1,934$1,655$1,412$1,200$1,016$574
16 years$1,794$1,519$1,280$1,074$898$484
17 years$1,671$1,399$1,165$965$797$410
18 years$1,562$1,292$1,063$870$708$347
19 years$1,464$1,198$973$786$631$295
20 years$1,376$1,113$893$712$564$250
21 years$1,297$1,037$822$646$505$213
22 years$1,225$968$757$587$452$182
23 years$1,159$905$699$535$406$155
24 years$1,099$848$647$488$365$132
25 years$1,044$796$599$446$328$113
26 years$993$748$555$407$296$96
27 years$946$704$516$373$267$82
28 years$903$663$479$342$241$70
29 years$862$626$446$313$217$60
30 years$824$591$416$288$196$52
31 years$789$559$387$264$178$44
32 years$756$529$361$243$161$38
33 years$725$501$338$223$145$32
34 years$696$474$315$205$132$28
35 years$669$450$295$189$119$24
36 years$643$427$276$174$108$20
37 years$619$406$258$160$98$17
38 years$596$386$242$148$89$15
39 years$574$367$227$136$80$13
40 years$554$349$212$126$73$11
41 years$534$332$199$116$66$9
42 years$516$316$187$107$60$8
43 years$498$301$175$99$55$7
44 years$481$287$164$91$49$6
45 years$465$274$154$84$45$5
46 years$450$261$145$78$41$4
47 years$435$249$136$72$37$4
48 years$421$238$128$66$34$3
49 years$408$227$120$61$31$3
50 years$395$217$113$57$28$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $405,000, adding $2,509 every year, while hoping to spend $31,195 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: 51/35/14 Blend
55$405,000$405,000$405,000$405,000
56$448,898$427,433$421,156$469,968
57$461,494$415,186$402,073$472,432
58$474,330$401,293$381,306$471,618
59$487,397$385,642$358,764$470,033
60$500,683$368,110$334,355$467,614
61$514,178$348,573$307,981$464,294
62$527,865$326,894$279,540$459,999
63$541,728$302,932$248,925$454,653
64$555,745$276,537$216,024$448,173
65$569,893$247,549$180,723$440,470
66$584,144$215,801$142,900$431,449
67$598,467$181,115$102,427$421,010
68$612,825$143,304$59,172$409,044
69$627,176$102,169$12,998$395,435
70$641,475$57,502$0$380,059
71$655,667$9,082$0$368,203
72$669,693$0$0$356,731
73$683,485$0$0$360,255
74$696,966$0$0$367,080
75$710,052$0$0$373,658
76$722,644$0$0$379,935
77$734,636$0$0$385,849
78$745,908$0$0$391,332
79$756,323$0$0$396,308
80$765,733$0$0$400,690
81$773,968$0$0$404,384
82$780,843$0$0$407,284
83$786,149$0$0$409,272
84$789,654$0$0$410,216
85$791,102$0$0$409,972
86$790,205$0$0$408,377
87$786,647$0$0$405,252
88$780,075$0$0$400,397
89$770,099$0$0$393,592
90$756,283$0$0$384,592
91$738,150$0$0$373,127
92$715,165$0$0$358,894
93$686,741$0$0$341,563
94$652,223$0$0$320,765
95$610,892$0$0$296,094
96$561,947$0$0$267,097
97$504,505$0$0$233,279
98$437,589$0$0$194,087
99$360,118$0$0$148,914
100$270,900$0$0$97,087