Dave Ramsey has blunt words on Social Security now

Many American workers looking for guidance on retirement planning are advised to consider how their future Social Security benefits will align with the retirement income they’ve put together through savings and investments during their careers.

Personal finance author and radio personality Dave Ramsey has a blunt warning, emphasizing the need for people to grasp the realistic significance of Social Security as a component of their retirement finances

He explains that it is of vital importance to compare Social Security benefits to the value of consistently contributing to 401(k) plans.

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The long-term stability of the federal Social Security program is a growing concern. Without intervention from lawmakers, projections indicate that Social Security’s trust funds could be depleted by 2033.

If this occurs, monthly benefits may be reduced to around 80% of what recipients currently anticipate.

Adjustments for the cost of living (COLA), which increase Social Security payments each month, don’t always keep up with inflation.

Additionally, broader economic uncertainty—especially during downturns or recessions—can make individuals worry about relying more heavily on Social Security than they originally intended.

Related: Dave Ramsey sends strong message to Americans on 401(k)s

On the whole, U.S. workers recognize the importance of retirement savings tools such as 401(k) plans even when markets are facing headwinds.

Participating in an employer-sponsored 401(k) plan is a reliable method for building retirement savings, especially when employers offer matching contributions.

With automatic deductions taken directly from paychecks, this approach ensures consistent saving without requiring additional action, making it both convenient and efficient.

The maximum contribution limit for 401(k) plans has increased to $23,500 in 2025, up from $23,000 in 2024. Workers aged 60 to 63 can now make higher catch-up contributions to 401(k) plans, up to $11,250, compared to $7,500 for workers aged 50 to 59.

Dave Ramsey bluntly explains the limits of Social Security

Ramsey explains his views on Social Security benefits with an emphasis on why people need to do more to prepare financially for retirement than simply expect that Social Security will be adequate to take care of their needs.

“I’ve never counted on Social Security and I’ve never taught people to count on Social Security to retire because it’s not enough, for one thing,” Ramsey told TheStreet in an exclusive interview. 

“And it was never meant to be the retirement plan,” he said. “It’s meant to be a supplement, or a net to catch the people who had absolutely nothing. But you don’t want to live on Social Security. That’s not a very good life.”

More on retirement:

• Dave Ramsey sends strong message to Americans on 401(k)s
• Shark Tank’s Kevin O’Leary warns Americans on Social Security
• Scott Galloway sounds the alarm on Social Security, boomers

Ramsey talked more about the importance of 401(k)s for retirement income.

“Even if it exists later,” Ramsey said about Social Security and its solvency worries, “you need to plan to do better than that. It’s a lot better to have a couple million bucks in your 401(k). The quality of your life is incredible compared to trying to live on 14 or 15 hundred bucks a month, or $3,000 a month.” 

“And so we don’t want to be there,” he added. “I’m not really counting on it one way or the other. I don’t know if it’ll be there. If it’s there, it’s not because of math, it’s because of politics.”

Related: Shark Tank’s Kevin O’Leary sends strong message on Social Security

Dave Ramsey urges having a plan beyond Social Security, 401(k)s

The key distinction between individuals who are on the path to a secure retirement and those who are struggling lies in whether they have a plan and have actively followed through on it, Ramsey explained.

People who successfully reach their retirement goals do so with a clear strategy in place, according to Ramsey. They approach their future with purpose, maintaining focus and determination. 

Rather than leaving things to chance, they thoughtfully envision the retirement they desire and commit to making it a reality, he clarifies. Their dedication and unwavering effort ensure that obstacles don’t derail their progress.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

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