Dave Ramsey has never been shy about telling people they are doing retirement wrong, and this is a warning he comes back to again and again.
He argues that Social Security was designed as a supplement, a piece of the picture and not the whole of it. The people he worries about are the ones building an entire retirement around it, often without quite realizing that is what they have done.
The retirement income gap
Social Security replaces about 40% of an average worker’s pre-retirement income, and less than that for higher earners, according to Social Security Administration estimates. The average retired worker collects about $2,084 a month, roughly $25,000 a year, as of June.
For most people, that covers a fraction of the life they were living the month before they stopped working. The rest has to come from something you build yourself. Few feel ready for that: Only about a third of non-retirees said their retirement savings plan was on track in the Federal Reserve’s latest household survey.
Strategize early
If your employer matches your 401(k) contributions, putting in enough to capture the full match comes before anything else, because it is free money. Turn it down and you have effectively taken a pay cut.
From there, the choices get more personal. A Roth account trades a tax bill now for qualified tax-free withdrawals later, and a traditional account does the reverse. If you are 50 or older and feel behind, the catch-up limits are worth knowing.
In 2026, the standard 401(k) limit is $24,500, and workers 50 and up can add $8,000. There’s a larger super catch-up of $11,250 that replaces the $8,000 catch-up amount for anyone ages 60 to 63, bringing the total to $35,750 for that age group, per current IRS rules.
Once several accounts are in play, a fiduciary advisor, legally bound to act in your interest, may help you coordinate them into a single strategy. If you have over $100,000 in savings, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than five minutes.
Protect it for the future
Draw down a shrinking portfolio in a down market, and the money you pull out is money that never rides the recovery, a problem known as sequence-of-returns risk. Spreading money across different kinds of assets softens that swing.
Some savers like to keep part of their money outside the stock market, and gold is one option, held inside a retirement account through a gold IRA. It works best as one measured piece of a broader plan, not the plan itself.
Anthem Gold Group is committed to helping investors protect their wealth and retirement with physical precious metals. They offer gold, silver, platinum and palladium coins and bars delivered directly to your home. Plus, enjoy up to $25,000 in complimentary gold and silver, along with waived IRA storage fees for up to 10 years.
A high-yield savings account keeps your cash reserve earning something instead of sitting idle.
For example, SoFi offers a combined checking-and-savings account with no account fees. With eligible direct deposit or $5,000+ in qualifying deposits every 31 days, you can earn 3.10% APY on savings — many times the national average — plus 0.50% APY on checking. New members may also qualify for a limited-time APY boost that lifts savings up to 3.80% APY for up to six months. (APYs are variable and can change at any time.)
New members who set up qualifying direct deposit may also be eligible for a cash bonus of up to $400, based on the amount deposited. Terms apply — see details. Check out SoFi today.
Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account between 3/31/26 and 12/31/26, then within 60 days of account opening receive an eligible direct deposit OR $5,000 or more in qualifying deposits. You must maintain eligible direct deposit or $5,000 in qualifying deposits every 31 days to keep the Boost, for up to 6 months. Rates variable, subject to change.
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A fixed annuity pays a guaranteed rate for a set term and can later be turned into income, for a fixed number of years or for life depending on the contract, though the guarantee rests on the insurer’s financial strength and pulling money out early can trigger surrender charges.
Homeowners sitting on equity have other ways to raise cash, some without a monthly payment, though every option carries real costs and puts the home at the center of the deal, so the fine print earns a careful read.
If you’re 62 or older, a reverse mortgage could be your power move to supercharge your retirement strategy. Your home isn’t just a place to live — it’s a powerful asset waiting to be unleashed. Savvy retirees are discovering how to make their homes work for them.
Smaller sides to help trim costs
Trimming a fixed cost frees up cash every month without changing how you live. When was the last time you checked for lower-cost insurance? Insurers count on you being too busy to shop around. But Insurify has fixed that.
Unlike other sites that sell your data, Insurify lets you compare real-time quotes side by side without the spam. It’s fast, secure, and rated 4.7 stars on Trustpilot. It takes minutes to check, and it costs you nothing.
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Another way to cut costs is to take advantage of discounts. AARP membership can slash expenses on dining, travel, eyeglasses, prescriptions and more. Just $15/year with auto-renewal. Join now and save hundreds.
Ramsey’s fix is a mindset more than a maneuver: Treat Social Security as one line in the budget, then build the rest on purpose. He calls it being the CEO of your retirement. As for Social Security itself, Ramsey has described it as “how a side of french fries is meant to ‘supplement’ your cheeseburger.” Keep that in mind as you plan your retirement.
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