Dave Ramsey's Blunt Warning about Social Security Nobody in Their 60s Wants to Hear

Millions of Americans count on Social Security as a major source of retirement income. But personal finance expert Dave Ramsey warns that relying too heavily on these benefits can be dangerous.

Find out why Ramsey has issued this blunt warning and learn what you can do to eliminate some stress living on Social Security.

Why Ramsey warns against relying on Social Security

Ramsey's core message for people nearing retirement is simple: Social Security was never meant to serve as a primary source of retirement income.

The Ramsey Solutions website uses a touch of humor to explain Ramsey's theory on Social Security: "It was always meant to supplement your retirement income — like how a side of french fries is meant to 'supplement' your cheeseburger."

The Social Security Administration (SSA) has echoed this sentiment, saying Social Security was never intended to be a retiree's sole source of income.

How counting on Social Security creates risk

Ramsey has several beefs with Social Security. First and foremost, he's somewhat skeptical that the program will continue to exist in its current form.

Social Security's shaky finances are well-known. Unless Congress comes up with a fix, the Old-Age and Survivors Insurance (OASI) trust fund is projected to run out of money by the end of 2032.

If that happens, payroll tax revenue would only fund about 78% of scheduled benefits. If you are in your 60s, a future benefit cut of 22% probably sounds frightening.

Ramsey believes the federal government is inept, and he is doubtful that it will get its act together in time to save Social Security.

As the Ramsey Solutions website puts it, "If by some miracle Social Security is around when you retire, you'll have some extra money to work with. But understand, it's your job to take care of you and your family, not Uncle Sam's."

More reasons not to depend on Social Security

Ramsey also has pointed out that Social Security payments tend to be relatively small.

The Ramsey Solutions website highlights the fact that the average Social Security benefit does not greatly exceed the national poverty level.

The website also notes that a typical retiree can only expect Social Security to cover a little over 40% of their pre-retirement income.

Is Ramsey right about Social Security?

Not everyone shares Ramsey's pessimism about Social Security. Many experts predict that the federal government will come together and solve the program's issues before the trust fund runs dry.

Congress certainly has options for fixing Social Security, and it still has a bit of time before the day of reckoning arrives.

But Ramsey's warning against relying too heavily on Social Security might be wise advice.

The best way to eliminate Social Security anxiety

The uncertainty facing the Social Security program is most likely to cause anxiety for those who depend on benefits simply to get by.

By contrast, those who have a large nest egg can largely ignore Social Security's woes. This is a much better place to be as you enter retirement.

As the Ramsey Solutions website frames it: "You don't have to depend on Social Security or the government for your retirement — you can do this."

Here are some of Ramsey's tips for getting your finances in order if you are in your 60s and retirement looms.

Pay off debt

Ramsey has long urged his followers to pay off all debt with the possible exception of a mortgage.

In his famous 7 Baby Steps to getting control of your money, Ramsey urges people to use the "snowball method" of paying off debt. With this approach, you completely pay off the smallest debt you have before moving on to the next-smallest debt.

Then, you repeat the process until all debt is gone.

As the Baby Steps say, "'Buy now, pay later' is a scam and keeps you broke. Get debt out of your life."

Keep an emergency fund

Maintaining an emergency fund is so important in Ramsey's eyes that it is the No. 1 item on the list of 7 Baby Steps.

Ramsey suggests starting with at least $1,000 in your emergency fund. That way, you will have cash on hand to pay for a broken window or flat tire instead of turning to credit cards to cover the expense.

Eventually, you should keep enough money in the fund to cover three to six months' worth of expenses.

Use catch-up contributions

The Ramsey Solutions website notes that making catch-up contributions to a retirement account is a great way to fortify your nest egg if you are in your 50s or 60s.

In 2026, those who are in their 50s can make a catch-up contribution of $8,000. That is on top of the standard $24,500 that all workers can put into retirement accounts.

And if you are between the ages of 60 and 63, you can make an additional catch-up contribution of $11,250.

All savers who are 50 or older also can make a $1,100 catch-up contribution to an IRA.

Plan early for health care and long-term care

Ramsey warns that too many people expect Medicare to cover all their health care expenses during retirement.

In reality, Medicare is more like a "bikini," Ramsey says, because it doesn't cover many things, including hearing aids, podiatry, and chiropractic services.

So, it's important to prepare for these expenses long before you retire.

Money experts have differing opinions about the wisdom of purchasing long-term care insurance. But Ramsey advocates doing so.

"If you want to protect your nest egg, take some of the burden off family members, and be more in control of how you spend your golden years, long-term care insurance is a must," according to the Ramsey Solutions website.

Bottom line

Relying too heavily on Social Security can create unnecessary anxiety throughout your golden years.

If you are in your 60s or younger, take charge of your finances so you won't have to depend on Social Security to get by.

Instead of assuming you will have access to full Social Security benefits, stress-test your budget against a possible reduction in benefits. Boosting savings can reduce your dependence on Social Security and lower your financial stress.

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