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Home / Retirement savings / Age 45, $500 a month

Retirement Savings Starting at 45 With $500 a Month

What could $500 a month build between 45 and 65? The page assumes a 5.5 percent return and lets you edit it.

The balance at 65 on the starting figures is $217,814. Your deposits total $120,000.

years
years
$
$
%
Balance at retirement
$217,814
Total you put in
$120,000
Growth
$97,814
Years of saving
20
Year by year
YearTotal put inBalance
46$6,000$6,154
47$12,000$12,654
48$18,000$19,522
49$24,000$26,776
50$30,000$34,440
51$36,000$42,537
52$42,000$51,090
53$48,000$60,125
54$54,000$69,670
55$60,000$79,754
56$66,000$90,406
57$72,000$101,659
58$78,000$113,547
59$84,000$126,106
60$90,000$139,373
61$96,000$153,388
62$102,000$168,194
63$108,000$183,835
64$114,000$200,358
65$120,000$217,814
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How the balance is worked out

Picture a loop that repeats 240 times. Inside the loop the balance is multiplied by one plus the monthly rate of 0.4583 percent. Then the monthly deposit of $500 is added. When the loop ends the balance is your result.

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Worked example

Save $500 a month from 45 to 65. That is 240 deposits and $120,000 in total. At 5.5 percent the balance reaches $217,814.

Out of $217,814, $120,000 comes from your pay. The remaining $97,814 comes from growth.

Questions about this calculator

What if you retired 3 years earlier, at 62, when saving $500 a month from age 45 to 65 at 5.5 percent?

The balance would be $168,194 instead of $217,814. That is $49,620 less.

What if you worked 3 years longer, to 68, when saving $500 a month from age 45 to 65 at 5.5 percent?

The balance would reach $276,313 instead of $217,814. That is $58,499 more.

What would an extra $100 a month add when saving $500 a month from age 45 to 65 at 5.5 percent?

The balance at 65 would be $261,376 instead of $217,814. The extra deposits total $24,000.

How much does waiting 5 years cost when saving $500 a month from age 45 to 65 at 5.5 percent?

Starting at 50 with the same $500 ends at $139,373 instead of $217,814. That is $78,441 less.

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