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Home / Retirement savings / Age 55, $1,000 a month

Retirement Savings Starting at 55 With $1,000 a Month

This page looks at saving $1,000 a month for 10 years. Deposits begin at 55 and end at 65. The starting return is 5.5 percent.

On the starting figures the balance at 65 is $159,508. Growth accounts for 25 percent of it.

years
years
$
$
%
Balance at retirement
$159,508
Total you put in
$120,000
Growth
$39,508
Years of saving
10
Year by year
YearTotal put inBalance
56$12,000$12,307
57$24,000$25,309
58$36,000$39,043
59$48,000$53,553
60$60,000$68,881
61$72,000$85,073
62$84,000$102,179
63$96,000$120,250
64$108,000$139,341
65$120,000$159,508
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How the balance is worked out

Picture a loop that repeats 120 times. Inside the loop the balance is multiplied by one plus the monthly rate of 0.4583 percent. Then the monthly deposit of $1,000 is added. When the loop ends the balance is your result.

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Worked example

A saver who begins at 55 and keeps depositing $1,000 a month until 65 ends with $159,508 at 5.5 percent.

Growth supplies 25 percent of the final amount. That is $39,508 that you did not have to deposit.

Questions about this calculator

What is $159,508 worth after 10 years of inflation?

At 2.5 percent a year prices rise by a factor of 1.28. The $159,508 would then buy about as much as $124,607 does at the start.

What if you retired 3 years earlier, at 62, when saving $1,000 a month from age 55 to 65 at 5.5 percent?

The balance would be $102,179 instead of $159,508. That is $57,328 less.

What if you worked 3 years longer, to 68, when saving $1,000 a month from age 55 to 65 at 5.5 percent?

The balance would reach $227,095 instead of $159,508. That is $67,587 more.

What would an extra $100 a month add when saving $1,000 a month from age 55 to 65 at 5.5 percent?

The balance at 65 would be $175,458 instead of $159,508. The extra deposits total $12,000.

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