If you're in the process of planning and saving for retirement, you may be setting your sights on a $1 million nest egg. For years, that's been touted as a nice goal to achieve -- mainly because it sounds like a large, impressive number.

But before you set your retirement savings goal at $1 million, you may want to stop to consider what that means in terms of annual income. You may come to the realization that a $1 million nest egg will leave you short on cash as a retiree. And the sooner you have that voilà moment, the better off you'll be.

Ideally, your savings won't be your only source of income once retirement rolls around. Chances are you'll get some money out of Social Security -- even if benefit cuts are imposed. And you may be willing to work in some capacity, which could lend to additional income as well.

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Source Fool.com