Social Security payments, as understood by most Americans, are made to recipients as they retire from the workforce.

Dave Ramsey, the personal finance bestselling author and radio host, has a few things to say about good news and bad news regarding Social Security that many people do not think about in the proper context.

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Ramsey bluntly states that some assumptions about Social Security are are, in his words, “a bunch of bull.” And, he wants you to consider the fact that some false ways of thinking about Social Security benefits do not have to define your financial experience with the federal benefit.

The personal finance coach makes one point clear when it comes to retirement planning. Social Security should not be the main thing a retiree depends on. It should be something thought out well before then: what a person has saved for before making the retirement move.

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Dave Ramsey makes a bold point on Social Security

Ramsey explains that many people have higher expectations than what they will in reality see from their Social Security monthly payments.

But he does say that there is good news for people’s expectations. Ramsey believes Americans are beginning to understand that they are there own boss when it comes to their financial maneuvers.

Here’s how Ramsey explains the financial realities about retirement. 

One, the personal finance coach focuses on your benefits when you choose to retire. The average monthly Social Security benefit, according the Social Security Administration in 2024 is $1,907, or $22,900 each year.

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With that significant amount in place, Ramsey focuses back on what you can do on your own to supplement your financial security.

Ramsey suggests saving 15% in your retirement income by using a 401(k) and a Roth IRA. He notes that those investments should be your primary source of retirement savings — not your Social Security income. 

He also emphasizes the point that it’s never too late.

Dave Ramsey says it’s never too late to invest in smart retirement planning

If a person feels that they are behind in saving for retirement, Ramsey says there is always time to adjust finances. It’s important to find a competent financial advisor to help.

An advisor will assist you in understanding when to start receiving Social Security benefits. The full retirement age is now between 66 years of age and 67. 

“In most cases, it actually makes more sense to take your retirement benefits sooner instead of waiting later,” Ramsey wrote. “Because your retirement payments die when you die . . . so you might as well take the money and make the most of it while you can.”

Ramsey emphasizes the point that, no matter what you feel like you can expect to receive from Social Security monthly payments, it’s important to save however you can for retirement immediately.

“Retirement isn’t an old people thing,” he wrote. “It’s a smart people thing.”

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