Dave Ramsey Says 35% of Americans Will ‘Learn the Hard Way’ About Social Security

Core Insights - Retirement income needs may be lower than during working years due to reduced expenses such as mortgage payments and commuting costs [1][2] - Many retirees still face significant expenses, including food, utilities, and healthcare, making heavy reliance on Social Security risky [3][6] - A significant portion of workers (35%) expect Social Security to be a major income source in retirement, which financial experts warn could lead to financial difficulties [4][6] Group 1 - Retirees may no longer have mortgage payments, freeing up budget space [1] - Commuting costs can be eliminated, and households may downsize vehicles, further reducing expenses [2] - Essential expenses like food and healthcare will still need to be covered in retirement [3] Group 2 - Financial expert Dave Ramsey warns against relying on Social Security, stating it will only replace about 40% of pre-retirement income for typical wage earners [6][7] - The expectation that Social Security will cover a significant portion of retirement income could lead to harsh realities for many [4][6] - A study suggests that adopting certain saving habits can significantly improve retirement savings [4]