As U.S. workers prepare for their retirement years, they understandably find themselves concerned about Social Security and its role in helping them live comfortably after their careers. 

Radio host and bestselling author Dave Ramsey has a warning for Americans about a key reality they will face as they begin to collect Social Security monthly benefits when they retire.

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Cuts in staffing that can lead to long wait times for assistance and inefficiencies in the federal program’s services worry many current and future Social Security recipients. 

Long-term solvency is also a concern. Without legislative action, Social Security’s trust funds are projected to run out of money in 2034. 

If this were to happen, monthly paychecks could be reduced to about 80% of people’s current expectations.

Related: Dave Ramsey sends strong message on 401(k)s, Roth IRAs

The cost of health care during retirement also causes people some anxiety. As people age, those expenses naturally increase — and while Medicare is an effective program, it does not cover all costs.

Cost of living adjustments (COLA) that increase the amount of money people receive every month from Social Security do not always keep pace with the inflation rate. 

And uncertainty about the economy in general, particularly during market downturns or even recessions, can make people fear they will depend more on Social Security than they had planned.

Ramsey discusses the financial insecurity many Americans feel and has a caution for people about which they would be wise to pay attention.

Dave Ramsey speaks with TheStreet about personal finance issues. The bestselling author explains a major fact about Social Security and retirement.

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Dave Ramsey has a warning about the average Social Security monthly benefit

In 2025, the average monthly Social Security paycheck was about $1,980, which works out to an annual total of $23,760. That is up only slightly from a monthly average of $1,907 ($22,900 yearly) in 2024.

“No matter how you slice it, that’s not a lot to live on,” Ramsey wrote.

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Ramsey explains his view that it is up to every individual worker to secure their own future by being sure that their 401(k) and Roth IRA (Individual Retirement Account) are their main source of income during retirement.

And he offers some encouraging words.

“If you feel behind, there’s still time to get back in the game. It’s never too late,” Ramsey wrote.

Related: Tony Robbins warns U.S. workers on Social Security, retirement certainty

Dave Ramsey explains a key way to avoid relying on Social Security

Ramsey recommends a strategy American workers can use to increase their retirement savings and investments so that they limit their dependence on Social Security monthly paychecks when they retire. 

First, the personal finance coach suggests people set aside a full 15% of their income by investing in an employer-sponsored 401(k) and a tax-advantaged Roth IRA. 

In the case of a 401(k), a worker contributes a percentage of their pre-tax salary to an account. Many companies make this easy as part of benefit packages they offer and match contributions up to a certain percentage.

It is important to take advantage of this opportunity, because an employer match is essentially a guaranteed 100% return on the investment. 

There are annual contribution limits to 401(k)s. In 2025, the limit is $23,500, but for people over 50 that limit rises to $31,000.

A Roth IRA is not tied to an employer. Contributions are made with after-tax dollars, which means that retirees can make withdrawals tax-free. 

The annual contribution limit for Roth IRAs is $7,000, and $8,500 for those over 50. 

Ramsey explains that, depending on investment performance, a 40-year-old making $55,000 per year who invests 15% of their income for 25 years could accumulate more than $1 million by age 65. 

And as people get older, they tend to make more money. People 45 to 54 have a typical household income of $97,000, according to the United States Census Bureau.

Ramsey explains that investing 15% of that annual salary amounts to putting away $14,550 every year for retirement savings. 

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