Dave Ramsey Says Retirees Should Never Do These 10 Things With Money

Retirement gives you flexibility, but it also gives you fewer "do-overs." That's why Dave Ramsey often focuses on the money moves retirees shouldn't make. These subtle missteps could shrink a nest egg faster than you expect. His warnings can feel blunt, but they resonate for a reason: retirees today face longer lifespans, higher living costs, and more unpredictable markets than past generations.

Below are some of the key money behaviors Ramsey urges retirees to avoid, and how his thinking lines up with traditional financial guidance. Here's how to avoid wasting your retirement savings.

Claiming Social Security before you absolutely need it

Ramsey regularly urges people to delay claiming Social Security until full retirement age if they can. His reasoning is simple: early benefits permanently reduce monthly income, and he sees that as giving up guaranteed purchasing power later in life.

Traditional financial planners agree delaying can increase long-term income, though they often emphasize that health, work ability, and personal longevity expectations should guide the timing. Ramsey is more rigid, but the underlying warning holds: claiming too early could lock you into a smaller benefit for the rest of your life.

Carrying any debt into retirement

If Ramsey had a megaphone, this would be the message he'd shout on repeat. He argues retirees shouldn't carry mortgages, car payments, credit card balances — anything. Debt payments, in his view, restrict cash flow and add stress at a stage of life when income typically slows down.

Taking on new debt (especially for kids or grandkids)

Ramsey warns retirees against taking parent loans, co-signing debt, or stretching finances for a child's needs. His reasoning: emotional spending often turns into financial strain. Retirees can't easily "earn their way" out of a mistake like they could in their 40s.

Supporting adult children financially might be appropriate in emergencies, but turning generosity into obligation could put your long-term stability at risk.

Taking too much investment risk to "catch up"

According to Ramsey, retirees shouldn't suddenly crank up risk just because market headlines look tempting. He argues that emotional investing leads people to chase returns instead of sticking to a steady plan. A big loss at 70 has a very different impact than a loss at 40.

Getting too conservative too quickly

This is one of Ramsey's less-talked-about warnings, but it's important. He often reminds retirees that going "all cash" or avoiding the stock market could cause their money to lose purchasing power over time. Inflation eats into ultra-safe portfolios slowly but meaningfully.

Ramsey's caution reflects a broader truth: avoiding all risk can create its own risks.

Dipping into retirement accounts without a plan

Ramsey cautions against withdrawing money sporadically without understanding how it affects long-term income. He believes retirees should have a structured withdrawal strategy to avoid draining accounts too fast.

Experts generally take the same approach, though they differ on specific strategies (4% rule, dynamic withdrawals, buckets, etc.). The shared message: without a plan, money might disappear more quickly than expected, especially during rocky market years.

Ignoring long-term care and health costs

Ramsey frequently warns that medical expenses can derail even strong retirements. He encourages retirees to plan for long-term care, consider insurance options, and budget realistically for rising health care needs.

Health-care planners overwhelmingly agree. The only difference is that many experts emphasize evaluating multiple long-term-care funding paths, while Ramsey often leans toward simpler, insurance-based solutions. Either way, not planning is the mistake.

Withdrawing Social Security to pay off debt

This one comes straight from Ramsey's philosophy: "Don't rob your retirement to fix today's problems." He argues retirees shouldn't burn long-term income streams just to eliminate short-term financial pressure.

Traditional advisors are split. Some say that paying off high-interest debt might free up cash quickly. Others emphasize preserving guaranteed retirement income. Ramsey's view is that Social Security should remain untouched until absolutely needed, not used as a debt-relief tool.

Believing you can "make up for lost time" with complex investments

Ramsey is famously skeptical of anything that sounds complicated: annuities with layers of fees, speculative investments, or products that promise steady returns with no downsides. His warning to retirees is straightforward: if you don't understand it, don't buy it.

Financial planners agree that complexity often hides risk, though they're more open to carefully vetted annuities or income products. Ramsey's approach is strict, but retirees often benefit from his simplicity.

Forgetting to re-evaluate the budget each year

Ramsey stresses that retirees should revisit their budget annually because spending patterns evolve. Travel might decrease, while health care costs rise. A static plan doesn't reflect the real world.

Most experts echo this. Retirement spending tends to change in "phases," so recalibrating regularly could prevent overspending or underspending. Ramsey's warning is less dramatic here, but still practical: failure to adjust could slowly wear down savings without you noticing.

Bottom line

Dave Ramsey's warnings for retirees all circle back to one theme: financial stability in retirement rarely comes from big, flashy moves. It comes from avoiding the slow leaks. Whether it's taking Social Security too early, carrying debt into your 60s and 70s, or dipping into retirement accounts without a strategy, these choices could quietly shrink the resources you spent decades building.

The key is paying attention early and often. According to the Employee Benefit Research Institute, nearly 40% of retirees say their health care expenses are higher than expected. Use Ramsey's guidance as a starting point to see how your retirement savings stacks up and make adjustments before surprises become setbacks.

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