Article content When you make a mistake planning your retirement, there is a good chance you will not discover the problem until it is too late. Saving and planning, after all, are lifelong efforts and you may not get a second chance with some decisions. Whether you are considering planning your own retirement or working with an advisor, there are a number of common pitfalls to consider. One easy mistake relates to how much you need to save to retire. If someone needs $50,000 per year and has saved $1 million for retirement, they may think their savings will only last 20 years. $1 million divided by $50,000 is, after all, 20. However, $1 million invested at a four per cent return will generate $40,000 in the first year, meaning a $50,000 withdrawal will reduce the account balance by just $10,000. Depending how the money is invested, the investment fees payable, and other factors, $1 million may support $50,000 of annual withdrawals for 30 years or more.