Dave Ramsey warns nearly 50% of Americans make 1 big Social Security mistake — here's how to fix it in 3 steps

Moneywise

Sat, Jun 7, 2025, 12:13 PM 6 min read

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With over 30 years of fielding listener calls and cultivating a devoted audience, Dave Ramsey has become one of the rare experts truly in tune with the nation’s financial heartbeat. His company's surveys and reports deliver unique insights into how Americans earn, save and spend their money.

Ramsey’s 2023 "Today's Retirement Crisis" study based on a 2016 survey highlights a surprising statistic — 42% of Americans are not currently saving for the future. This is also reflected in the Fed's 2022 Survey of Consumer Finances, which shows that only 54.4% of families had retirement accounts.

"Even among savers, few are setting aside enough to afford a truly secure retirement. In fact, only one-in-10 Americans save 15% or more of their income — the amount industry experts recommend individuals set aside in order to build adequate savings — for retirement," according to the Ramsey Solutions study.

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This “alarming” information could indicate that many people are facing dire retirement prospects.

“Instead of packing their bags for their dream vacations in their 60s and 70s, millions of Americans will be packing their lunch for another day at the office,” Ramsey’s team wrote in a March 2025 update on average retirement savings in the United States.

Nearly 60% of retired Americans say Social Security is a “major source” of their retirement income, according to Gallup. These benefits typically replace just 40% of pre-retirement income. What’s more, the estimated average monthly Social Security retirement benefit for Jan. 2025 was $1,976, which translates to an annual income of $23,712 — much less than what a comfortable retirement would usually require.

Here are the three steps you can take to start stitching together a safety net that can protect your golden years.

The first step for anyone looking to retire with a comfortable nest egg is to set a benchmark for minimum monthly savings to help secure your future.

As of Feb. 2025, the U.S. personal savings rate was just 4.6%, according to the Federal Reserve. This is the ratio of personal savings to disposable personal income, and it is simply too low to fund a robust retirement. Ramsey recommends setting the benchmark significantly higher at 15% of gross income. This also assumes you already have an emergency fund and you're out of debt.