Debt and Social Security Reliance Reduce Retirement Solvencyy
TM
Talia Monroe
Dave Ramsey · Apr 15, 2026
Source: DojiDoji Data Terminal
Retirement savings are eroded by overspending on housing, cars, and lifestyle expenses. This occurs when individuals lack a budget to cover key expenses, debt payments, and investments. Debt, specifically mortgages and car payments, acts as a blocker to wealth building. Federal Reserve data shows debt among Americans ages 65 to 74 quadrupled between 1992 and 2022.
Timing of retirement affects the total benefit amount and healthcare costs. Retiring before age 65 requires self-funding healthcare costs, which can run tens of thousands of dollars annually. Collecting Social Security at 62 instead of waiting until full retirement age permanently reduces benefits by up to 30%.
Reliance on Social Security as a sole income source is a risk. The average Social Security benefit in 2024 is $1,907 per month. A 2023 Ramsey Solutions study found 42% of Americans are not saving for the future. Saving less than 15% of 15% of gross income after age 50 makes catching up exponentially harder.
Dave Ramsey
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