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%16.8%
1 years$41,290$40,922$40,563$40,213$39,871$38,765
2 years$20,440$20,060$19,691$19,333$18,986$17,881
3 years$13,492$13,109$12,741$12,387$12,046$10,975
4 years$10,018$9,637$9,272$8,924$8,591$7,563
5 years$7,934$7,555$7,196$6,855$6,531$5,548
6 years$6,545$6,169$5,815$5,482$5,168$4,232
7 years$5,554$5,181$4,832$4,507$4,203$3,313
8 years$4,811$4,441$4,098$3,781$3,486$2,643
9 years$4,233$3,867$3,530$3,220$2,936$2,138
10 years$3,771$3,408$3,077$2,776$2,502$1,748
11 years$3,393$3,034$2,709$2,416$2,152$1,441
12 years$3,079$2,723$2,404$2,119$1,864$1,196
13 years$2,813$2,461$2,148$1,871$1,626$997
14 years$2,585$2,237$1,930$1,661$1,425$836
15 years$2,388$2,044$1,743$1,481$1,255$702
16 years$2,215$1,875$1,580$1,326$1,109$592
17 years$2,063$1,727$1,438$1,191$983$500
18 years$1,928$1,596$1,312$1,074$874$424
19 years$1,808$1,479$1,202$970$779$359
20 years$1,699$1,374$1,103$879$696$305
21 years$1,601$1,280$1,014$798$623$260
22 years$1,512$1,195$935$725$558$221
23 years$1,431$1,118$863$660$501$188
24 years$1,357$1,047$798$602$451$161
25 years$1,289$983$739$550$405$137
26 years$1,226$923$686$503$365$117
27 years$1,168$869$637$460$329$100
28 years$1,114$819$592$422$297$85
29 years$1,064$773$551$387$268$73
30 years$1,018$730$513$355$242$62
31 years$974$690$478$326$219$53
32 years$934$653$446$300$198$46
33 years$895$618$417$276$179$39
34 years$860$586$389$254$162$33
35 years$826$556$364$233$147$29
36 years$794$527$341$215$133$24
37 years$764$501$319$198$121$21
38 years$736$476$298$183$110$18
39 years$709$453$280$168$99$15
40 years$684$431$262$155$90$13
41 years$659$410$246$143$82$11
42 years$637$390$231$132$74$10
43 years$615$372$216$122$67$8
44 years$594$355$203$113$61$7
45 years$574$338$191$104$55$6
46 years$555$323$179$96$50$5
47 years$538$308$168$89$46$4
48 years$520$294$158$82$42$4
49 years$504$281$149$76$38$3
50 years$488$268$140$70$34$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 56 starting with $500,000, adding $6,185 every year, while hoping to spend $39,059 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: 69/25/6 Blend
55$500,000$500,000$500,000$500,000
56$557,380$530,880$523,130$594,943
57$572,674$515,334$499,096$605,063
58$588,219$497,718$472,948$610,753
59$604,000$477,889$444,574$615,906
60$619,997$455,694$413,857$620,463
61$636,189$430,976$380,673$624,357
62$652,551$403,564$344,896$627,516
63$669,053$373,281$306,392$629,864
64$685,661$339,936$265,021$631,316
65$702,337$303,332$220,638$631,782
66$719,037$263,256$173,090$631,163
67$735,708$219,486$122,219$629,353
68$752,296$171,785$67,858$626,237
69$768,734$119,907$9,835$621,689
70$784,949$63,586$0$615,573
71$800,859$2,547$0$611,077
72$816,371$0$0$605,596
73$831,381$0$0$615,809
74$845,771$0$0$626,236
75$859,411$0$0$636,076
76$872,155$0$0$645,218
77$883,839$0$0$653,537
78$894,281$0$0$660,893
79$903,276$0$0$667,132
80$910,600$0$0$672,079
81$915,998$0$0$675,544
82$919,192$0$0$677,312
83$919,869$0$0$677,146
84$917,683$0$0$674,781
85$912,249$0$0$669,925
86$903,142$0$0$662,252
87$889,888$0$0$651,403
88$871,962$0$0$636,977
89$848,784$0$0$618,533
90$819,711$0$0$595,580
91$784,028$0$0$567,575
92$740,949$0$0$533,918
93$689,600$0$0$493,944
94$629,014$0$0$446,918
95$558,125$0$0$392,027
96$475,751$0$0$328,372
97$380,587$0$0$254,959
98$271,189$0$0$170,691
99$145,965$0$0$74,354
100$3,152$0$0$0