This Social Security Strategy Is a ‘Recipe for Disaster’ — What To Do Instead

Social Security is on shaky ground — and it has been for a while. Though new worries abound as President Donald Trump’s administration, via Elon Musk’s Department of Government Efficiency (DOGE), has cut staff and closed offices within the Social Security Administration, the longstanding concern about Social Security is the fact that it’s running out of money. Without extraordinary measures taken, Social Security benefits will be payable in full only until 2035.

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Given that Social Security is in a precarious place — and the fact that there are no clear answers as to how, when or even if the government will act to stabilize it — financial experts, including Dave Ramsey, strongly advise prospective retirees against banking on Social Security.

Last September, the team at Ramsey Solutions, Dave Ramsey’s website, posted a blog wherein they asserted that making Social Security the main ingredient of your retirement income plan is “a recipe for disaster.”

Millions of people are following this recipe for disaster. In 2020, 40% of retirees relied solely on Social Security for their income. To live on Social Security alone in the U.S. is to live either just above, at or even below the poverty line. It’s a hard life and you deserve better after working your entire life.

So, what can you do? What’s the recipe for financial success in retirement? The Dave Ramsey team has several crucial tips.

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Both Ramsey and fellow financial expert Suze Orman insist that you set aside at least 15% of your income toward retirement.

“Why 15%? We’ve found the 15% goal is enough to make progress on your retirement goals while leaving you enough margin to work on other financial goals, like as funding college for your kids or paying off your home early,” the Ramsey team wrote in a recent blog post on Ramsey Solutions. “Once you’ve got an empty nest and a paid-for home, you can ramp up your retirement savings later if you need to.”

You have to consistently and aggressively invest in either your 401(k) plan or an IRA. This isn’t just something “average” people need to do; it’s a method that millionaires follow, too. The Ramsey team are proponents of Roth 401(k) plans, which allow your investments to grow tax-free and spare you from being taxed when you take out money in retirement. They’re also fans of Roth IRAs — though if you have the option to choose between a Roth IRA and a Roth 401(k), go for the latter as it has higher contribution limits.