Dave Ramsey: 5 Money Habits That Could Do Major Retirement Damage After 50
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Jamie Stone
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Zuri Anderson
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If you’re over 50 and still carrying debt, overspending or counting on Social Security to do the heavy lifting in retirement, Dave Ramsey has a message for you — and it isn’t gentle.
Here are the money habits the personal finance expert said could derail your retirement if you don’t address them now.
1. Carrying Debt Into Retirement
Ramsey calls debt “the single largest blocker” to building real wealth.
“They hang onto debt. Especially mortgages and car payments. Then they assume they’ll just ‘manage it’ in retirement,” Ramsey told Kiplinger. “The fix is simple. Attack that debt with intensity now, before you step into your golden years.”
Federal Reserve data shows debt among Americans ages 65 to 74 quadrupled between 1992 and 2022, making this a widespread and growing problem.
2. Not Having — or Ignoring — a Budget
Ramsey views budgeting as “permission to spend” rather than a punishment, according to Money. Once key expenses, debt payments and investments are covered, the remaining cash can go toward guilt-free spending. Without a budget, people routinely overspend on housing, cars and lifestyle expenses that quietly erode retirement savings year after year.
3. Retiring Too Early Without Being Truly Ready
“Don’t retire until you’re truly ready,” Ramsey said, according to Kiplinger. “That means zero debt, a fully funded nest egg, and a clear monthly budget.”
Retiring before Medicare kicks in at 65 means self-funding healthcare costs, which can run tens of thousands of dollars annually. And collecting Social Security at 62 instead of waiting until full retirement age can permanently reduce benefits by up to 30%.
4. Relying Too Heavily on Social Security
Social Security was never designed to be a retiree’s sole income source — and Ramsey said treating it like one is a serious mistake, per Money. A 2023 Ramsey Solutions study found 42% of Americans aren’t saving for the future at all, according to Moneywise — meaning millions are on track to enter retirement heavily dependent on a program that averages just $1,907 per month in 2024, per Social Security Administration.
5. Not Saving at Least 15% of Gross Income
Ramsey recommends saving a minimum of 15% of gross income for retirement.
“If you invest $100 a month from age 25 to age 65 in a decent growth stock mutual fund, it will be $1,176,000,” he said. “You retire a millionaire.”
After 50, with a shorter runway to build wealth, saving less than that threshold makes catching up exponentially harder.
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