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Home / Retirement savings / Age 45, $1,000 a month

Retirement Savings Starting at 45 With $1,000 a Month

What could $1,000 a month build between 45 and 65? The page assumes a 5.5 percent return and lets you edit it.

Deposits come to $240,000. Growth adds $195,627. The balance at 65 is $435,627.

years
years
$
$
%
Balance at retirement
$435,627
Total you put in
$240,000
Growth
$195,627
Years of saving
20
Year by year
YearTotal put inBalance
46$12,000$12,307
47$24,000$25,309
48$36,000$39,043
49$48,000$53,553
50$60,000$68,881
51$72,000$85,073
52$84,000$102,179
53$96,000$120,250
54$108,000$139,341
55$120,000$159,508
56$132,000$180,812
57$144,000$203,319
58$156,000$227,095
59$168,000$252,212
60$180,000$278,746
61$192,000$306,776
62$204,000$336,388
63$216,000$367,670
64$228,000$400,717
65$240,000$435,627
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How the balance is worked out

There is a direct way to work out growth with regular deposits. The starting balance grows by one plus the monthly rate raised to the power of 240. The deposits of $1,000 add up to the deposit times that growth factor minus one, divided by the monthly rate. Add the two parts to get the final balance. The monthly rate here is 0.4583 percent.

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Worked example

Save $1,000 a month from 45 to 65. That is 240 deposits and $240,000 in total. At 5.5 percent the balance reaches $435,627.

Out of $435,627, $240,000 comes from your pay. The remaining $195,627 comes from growth.

Questions about this calculator

What if returns averaged 4 percent instead of 5.5 percent for $1,000 a month from age 45 to 65?

The $1,000 a month would reach $366,775 by age 65. That is $68,853 less than the $435,627 shown at 5.5 percent.

What is $435,627 worth after 20 years of inflation?

At 2.5 percent a year prices rise by a factor of 1.64. The $435,627 would then buy about as much as $265,851 does at the start.

What if you retired 3 years earlier, at 62, when saving $1,000 a month from age 45 to 65 at 5.5 percent?

The balance would be $336,388 instead of $435,627. That is $99,239 less.

What if you worked 3 years longer, to 68, when saving $1,000 a month from age 45 to 65 at 5.5 percent?

The balance would reach $552,626 instead of $435,627. That is $116,998 more.

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This page is for education only and is not financial or tax advice.