Can I retire at age 56 with 425,000?

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 $425,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.4%
1 years$35,096$34,783$34,478$34,181$33,890$33,274
2 years$17,374$17,051$16,737$16,433$16,138$15,520
3 years$11,468$11,143$10,830$10,529$10,239$9,637
4 years$8,515$8,191$7,881$7,585$7,302$6,722
5 years$6,744$6,422$6,116$5,826$5,551$4,994
6 years$5,564$5,244$4,943$4,659$4,392$3,859
7 years$4,721$4,404$4,108$3,831$3,572$3,063
8 years$4,089$3,775$3,484$3,213$2,963$2,478
9 years$3,598$3,287$3,000$2,737$2,496$2,034
10 years$3,205$2,897$2,616$2,359$2,126$1,688
11 years$2,884$2,579$2,303$2,053$1,829$1,412
12 years$2,617$2,315$2,044$1,801$1,585$1,191
13 years$2,391$2,092$1,826$1,590$1,382$1,009
14 years$2,197$1,902$1,641$1,412$1,211$859
15 years$2,029$1,737$1,481$1,259$1,067$735
16 years$1,883$1,594$1,343$1,127$943$630
17 years$1,754$1,468$1,222$1,013$836$542
18 years$1,639$1,356$1,116$913$743$467
19 years$1,537$1,257$1,021$825$662$403
20 years$1,444$1,168$937$747$592$349
21 years$1,361$1,088$862$678$530$302
22 years$1,286$1,016$795$616$475$262
23 years$1,217$950$734$561$426$227
24 years$1,154$890$679$512$383$198
25 years$1,096$835$628$468$345$172
26 years$1,042$785$583$428$310$150
27 years$993$739$541$391$280$130
28 years$947$696$503$359$253$113
29 years$905$657$468$329$228$99
30 years$865$620$436$302$206$86
31 years$828$586$407$277$186$75
32 years$794$555$379$255$168$66
33 years$761$525$354$234$152$57
34 years$731$498$331$215$138$50
35 years$702$472$309$198$125$44
36 years$675$448$289$183$113$38
37 years$650$426$271$168$103$33
38 years$625$405$254$155$93$29
39 years$603$385$238$143$84$25
40 years$581$366$223$132$77$22
41 years$561$348$209$122$69$19
42 years$541$332$196$112$63$17
43 years$523$316$184$104$57$15
44 years$505$301$173$96$52$13
45 years$488$287$162$88$47$11
46 years$472$274$152$82$43$10
47 years$457$262$143$75$39$9
48 years$442$250$134$70$35$8
49 years$428$239$126$64$32$7
50 years$415$228$119$60$29$6

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $425,000, adding $5,294 every year, while hoping to spend $21,213 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: 56/37/7 Blend
55$425,000$425,000$425,000$425,000
56$473,811$451,286$444,698$499,304
57$499,569$450,828$437,025$516,642
58$527,244$449,637$428,384$532,688
59$557,008$447,655$418,720$549,645
60$589,051$444,819$407,976$567,600
61$623,583$441,063$396,092$586,653
62$660,832$436,319$383,004$606,915
63$701,050$430,512$368,648$628,506
64$744,514$423,564$352,955$651,563
65$791,528$415,392$335,853$676,236
66$842,426$405,909$317,266$702,691
67$897,576$395,021$297,117$731,115
68$957,382$382,630$275,323$761,712
69$1,022,288$368,632$251,800$794,709
70$1,092,783$352,916$226,457$830,360
71$1,169,404$335,367$199,200$868,943
72$1,252,744$315,859$169,933$910,770
73$1,343,451$294,264$138,554$956,184
74$1,442,243$270,443$104,956$1,005,565
75$1,549,908$244,251$69,027$1,059,334
76$1,667,311$215,532$30,652$1,117,960
77$1,795,408$184,124$0$1,181,959
78$1,935,249$149,856$0$1,252,672
79$2,087,990$112,544$0$1,332,457
80$2,254,904$71,998$0$1,419,733
81$2,437,393$28,014$0$1,515,286
82$2,636,998$0$0$1,619,986
83$2,855,420$0$0$1,742,781
84$3,094,528$0$0$1,889,730
85$3,356,382$0$0$2,050,697
86$3,643,252$0$0$2,227,081
87$3,957,635$0$0$2,420,424
88$4,302,281$0$0$2,632,422
89$4,680,223$0$0$2,864,945
90$5,094,796$0$0$3,120,052
91$5,549,677$0$0$3,400,011
92$6,048,915$0$0$3,707,319
93$6,596,971$0$0$4,044,729
94$7,198,756$0$0$4,415,272
95$7,859,684$0$0$4,822,286
96$8,585,717$0$0$5,269,451
97$9,383,421$0$0$5,760,817
98$10,260,033$0$0$6,300,851
99$11,223,524$0$0$6,894,470
100$12,282,676$0$0$7,547,092