Sick of Hearing Dave Ramsey Insist That Social Security Will Barely ‘Keep the Lights On’ in Your Retirement? Maybe You Should Listen

The average retired worker received $2,086 a month from Social Security in July 2026, according to the Social Security Administration. That works out to about $25,000 a year.

Ramsey Solutions says this is barely enough to keep the lights on and food on the table. Ramsey suggests Americans should save 15% of their income for retirement.

Do you know if you have saved enough for retirement? If you have over $100,000 in savings, consider getting advice from a pro. SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in under five minutes.

Your retirement income

Social Security was never intended to duplicate a paycheck. In a 2025 survey of older Social Security recipients, The Senior Citizens League found that 39% said the benefit provided all of their income. This suggests how heavily some older households depend on the program.

That dependence also makes the decision about when to claim Social Security more consequential. Claim early and the monthly payment is permanently smaller. Wait longer and the payment rises, but you need another way to cover the intervening years.

The funding problem is real

The 2026 trustees report projects that Social Security’s combined reserves will be depleted in the third quarter of 2034. Payroll taxes would continue coming in, but under current law they would cover about 83% of scheduled benefits at that point.

The retirement and survivors fund alone is projected to exhaust its reserves in late 2032, when continuing income would cover about 78% of scheduled benefits. Congress can change those numbers, and almost certainly will face pressure to do so, but nobody planning retirement today knows what the eventual compromise will look like.

Knowing is not enough

Gallup found that 48% of nonretirees expect a 401(k), IRA or similar account to be a major source of retirement income, while 36% expect Social Security to play a major role. Many expect to draw on several sources at once.

The problem is what happens between knowing you need other income and actually arriving at retirement with enough of it. Gallup found that 69% of nonretirees are worried about having enough money in retirement, including 64% of those who already have a retirement savings plan.

Another way to achieve net savings is by slashing expenses on dining, travel, eyeglasses, prescriptions and more. AARP membership is just $15/year with auto-renewal. Join now and save hundreds.

The 15% rule

Ramsey tells workers to save 15% of their income for retirement, not counting any employer match. The problem is that 15% says nothing about how much retirement income you actually need.

Someone who starts at 25 has decades to compound contributions. Someone starting at 55 has far less time to build the same balance. A pension can reduce how much your savings need to provide, while higher housing costs, an earlier retirement or heavier spending can increase it. Fifteen percent can be a useful savings goal, but whether it is enough depends on your retirement living costs.

Ramsey’s larger point is to build a retirement that does not depend on Social Security doing the heavy lifting. Treat the monthly benefit as an addition to your savings, pension or other income, not as the money expected to cover most of your retirement.