Dave Ramsey: 50% of Americans Make This Social Security Mistake — Fix It in 3 Steps

Understanding the Retirement Crisis in America

With over 30 years of experience in addressing financial concerns, Dave Ramsey has become a trusted voice for many Americans navigating their financial journeys. His insights, derived from extensive research and surveys, offer a clear picture of how individuals earn, save, and spend money across the country. One of his most notable findings comes from the 2023 "Today's Retirement Crisis" study, which revealed that 42% of Americans are not currently saving for retirement. This statistic is echoed in the Federal Reserve’s 2022 Survey of Consumer Finances, which found that only 54.4% of families had retirement accounts.

This lack of preparation raises serious concerns about the future financial stability of many Americans. According to Ramsey’s team, even among those who do save, few set aside enough to ensure a secure retirement. Only one in ten Americans saves 15% or more of their income — the amount recommended by financial experts to build adequate savings.

The Role of Social Security in Retirement Planning

Social Security plays a significant role in the retirement plans of many Americans. Nearly 60% of retired individuals rely on it as a major source of income, with AARP estimating that it accounts for at least half of retirement income for 40% of retirees. However, these benefits are designed to replace just 40% of pre-retirement income. For example, the average monthly Social Security benefit in May 2025 was $1,913.70, translating to an annual income of less than $23,000 — far below what is typically needed for a comfortable retirement.

Moreover, recent political developments have raised concerns about the long-term viability of Social Security. A survey by DepositAccounts found that about 59% of non-retired Americans worry that Social Security won’t be available when they retire. These fears highlight the need for alternative strategies to ensure financial security in retirement.

Steps to Build a Secure Retirement

To address these challenges, Ramsey suggests taking proactive steps to build a solid financial foundation. Here are three key strategies:

1. Create a Saving Benchmark

The first step in securing a comfortable retirement is to set a clear savings benchmark. Ramsey recommends setting aside 15% of gross income, assuming you already have an emergency fund and are debt-free. This approach can significantly boost your retirement savings over time. For instance, someone earning $100,000 annually who saves 15% and invests it in an asset that delivers 10% returns could accumulate roughly $1.5 million within 25 years.

For those looking for safe and reliable savings vehicles, platforms like SoFi offer high-yield checking and savings accounts with competitive interest rates. These accounts can help grow your savings without the risk associated with other investment options.

Another option is using automated investing platforms like Acorns, which rounds up purchases and invests the difference. This simple strategy allows you to build wealth without actively managing your investments.

2. Max Out Tax-Advantaged Accounts

Reducing tax liability is just as important as maximizing savings. Tax-advantaged accounts such as 401(k)s and Roth IRAs can provide significant benefits. Unfortunately, many Americans neglect these accounts. A Gallup survey found that about 40% of Americans don’t have a retirement savings account at all.

Maxing out contributions to these accounts can help you build a more substantial nest egg. Additionally, investing in precious metals through a Gold IRA can offer protection against economic uncertainty. Platforms like Thor Metals allow investors to hold physical gold within a retirement account, combining tax advantages with the potential for growth.

3. Go Beyond the Bare Minimum

Saving 15% of your income and maximizing tax-advantaged accounts are essential, but they may not be enough for those looking to retire earlier or enjoy a more luxurious lifestyle. Consider adding sources of passive income, such as rental properties or real estate crowdfunding.

Platforms like Homeshares and Arrived offer opportunities to invest in real estate without the hassle of property management. With minimum investments starting at $25,000 or even $100, these platforms make it easier for everyday investors to gain exposure to the real estate market.

Finally, exploring ways to increase income through salary negotiations or career changes can also contribute to a more secure retirement. Whether through investing, budgeting, or other strategies, there are always ways to improve your financial situation and increase your chances of a successful retirement.

By taking these steps, you can build a stronger financial foundation and better prepare for the future.