Do you need to be a millionaire to retire? Experts weigh in on the 15% rule.

Retiring comfortably often seems out of reach for those earning average salaries. A common recommendation is to save 15% of your income throughout your career, potentially leading to a million-dollar nest egg by retirement. However, experts advise that this guideline may not be universally applicable.

Kevin O'Leary, a multimillionaire investor, shared his "15% rule" on social media, suggesting that saving this amount of each paycheck, regardless of income source, would make one a millionaire by age 65 if started at 18. While this can serve as a useful benchmark, it may not suit everyone.

Wealth advisor Jeffrey Goodrich suggests considering several factors when planning retirement savings, such as the number of years until retirement, potential returns, and overall lifestyle. Goodrich emphasizes that your retirement standard of living should be based on your current income after covering essential expenses, debt payments, and other obligations.

For those with significant debt or lower incomes, saving 15% of their income each month might prove challenging. Moreover, unexpected life events like gaps in employment or starting to save later in life could further complicate reaching the desired savings goal.

Goodrich recommends tailoring retirement savings goals to individual circumstances, such as planned retirement age and desired lifestyle. Factors like healthcare expenses should also be considered, as they could significantly impact your retirement finances. While Social Security, employer contributions, and inheritances might supplement your savings, they are not guaranteed sources of income.

In conclusion, the 15% rule can provide a useful starting point for retirement savings, but careful consideration of personal financial situations, potential life events, and desired lifestyle is essential for setting realistic and achievable savings goals.