Can I retire at age 56 with 500,000?

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 $500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$41,290$40,922$40,563$40,213$39,871$39,405
2 years$20,440$20,060$19,691$19,333$18,986$18,517
3 years$13,492$13,109$12,741$12,387$12,046$11,588
4 years$10,018$9,637$9,272$8,924$8,591$8,149
5 years$7,934$7,555$7,196$6,855$6,531$6,105
6 years$6,545$6,169$5,815$5,482$5,168$4,759
7 years$5,554$5,181$4,832$4,507$4,203$3,811
8 years$4,811$4,441$4,098$3,781$3,486$3,112
9 years$4,233$3,867$3,530$3,220$2,936$2,578
10 years$3,771$3,408$3,077$2,776$2,502$2,160
11 years$3,393$3,034$2,709$2,416$2,152$1,826
12 years$3,079$2,723$2,404$2,119$1,864$1,555
13 years$2,813$2,461$2,148$1,871$1,626$1,332
14 years$2,585$2,237$1,930$1,661$1,425$1,147
15 years$2,388$2,044$1,743$1,481$1,255$991
16 years$2,215$1,875$1,580$1,326$1,109$859
17 years$2,063$1,727$1,438$1,191$983$747
18 years$1,928$1,596$1,312$1,074$874$652
19 years$1,808$1,479$1,202$970$779$569
20 years$1,699$1,374$1,103$879$696$498
21 years$1,601$1,280$1,014$798$623$437
22 years$1,512$1,195$935$725$558$384
23 years$1,431$1,118$863$660$501$337
24 years$1,357$1,047$798$602$451$297
25 years$1,289$983$739$550$405$261
26 years$1,226$923$686$503$365$230
27 years$1,168$869$637$460$329$203
28 years$1,114$819$592$422$297$179
29 years$1,064$773$551$387$268$158
30 years$1,018$730$513$355$242$140
31 years$974$690$478$326$219$124
32 years$934$653$446$300$198$109
33 years$895$618$417$276$179$97
34 years$860$586$389$254$162$85
35 years$826$556$364$233$147$76
36 years$794$527$341$215$133$67
37 years$764$501$319$198$121$59
38 years$736$476$298$183$110$52
39 years$709$453$280$168$99$46
40 years$684$431$262$155$90$41
41 years$659$410$246$143$82$36
42 years$637$390$231$132$74$32
43 years$615$372$216$122$67$29
44 years$594$355$203$113$61$25
45 years$574$338$191$104$55$22
46 years$555$323$179$96$50$20
47 years$538$308$168$89$46$18
48 years$520$294$158$82$42$16
49 years$504$281$149$76$38$14
50 years$488$268$140$70$34$12

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $500,000, adding $6,710 every year, while hoping to spend $24,113 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: 50/43/7 Blend
55$500,000$500,000$500,000$500,000
56$557,921$531,421$523,671$584,493
57$589,173$531,805$515,558$603,723
58$622,805$531,399$506,365$621,466
59$659,033$530,140$496,031$640,174
60$698,097$527,959$484,490$659,944
61$740,258$524,784$471,676$680,881
62$785,805$520,539$457,517$703,106
63$835,053$515,142$441,941$726,752
64$888,352$508,508$424,869$751,964
65$946,083$500,544$406,221$778,907
66$1,008,667$491,154$385,913$807,763
67$1,076,566$480,235$363,856$838,734
68$1,150,288$467,679$339,958$872,045
69$1,230,394$453,372$314,123$907,945
70$1,317,498$437,191$286,250$946,711
71$1,412,277$419,007$256,233$988,651
72$1,515,476$398,685$223,964$1,034,105
73$1,627,914$376,081$189,326$1,083,452
74$1,750,494$351,041$152,201$1,137,112
75$1,884,207$323,405$112,463$1,195,549
76$2,030,147$293,003$69,981$1,259,280
77$2,189,516$259,654$24,619$1,328,876
78$2,363,637$223,168$0$1,404,971
79$2,553,969$183,344$0$1,490,043
80$2,762,116$139,970$0$1,585,171
81$2,989,845$92,821$0$1,689,385
82$3,239,101$41,661$0$1,803,652
83$3,512,026$0$0$1,929,038
84$3,810,979$0$0$2,073,236
85$4,138,559$0$0$2,252,894
86$4,497,626$0$0$2,449,875
87$4,891,331$0$0$2,665,914
88$5,323,144$0$0$2,902,924
89$5,796,889$0$0$3,163,008
90$6,316,776$0$0$3,448,487
91$6,887,442$0$0$3,761,914
92$7,513,996$0$0$4,106,104
93$8,202,066$0$0$4,484,156
94$8,957,851$0$0$4,899,485
95$9,788,179$0$0$5,355,853
96$10,700,575$0$0$5,857,404
97$11,703,327$0$0$6,408,703
98$12,805,565$0$0$7,014,782
99$14,017,348$0$0$7,681,181
100$15,349,761$0$0$8,414,005