Retirement Social Security

Dave Ramsey's Biggest Social Security Warning for 2025

Dave Ramsey is warning retirees about Social Security's future.

By Adam Palasciano

Edited by Calista Headrick

Updated Nov. 3, 2025

If you're preparing for retirement, you've definitely heard about Dave Ramsey, and this year he's issuing a sharp warning about Social Security that every retiree needs to know. Ramsey reminds retirees and future retirees that their retirement plan cannot rely solely on Social Security.

With demographic shifts, funding pressures, and policy uncertainty, he insists that proactive savings and strategy are non-negotiable. Below are the main words of caution and what you can do to protect your retirement savings.

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The Social Security trust fund could run out by 2035

Ramsey's loudest alarm centers on the long-term solvency of the Social Security trust funds. He notes that current projections suggest the combined funds could be exhausted by about 2034-2035 if no legislative action takes place, at which point only roughly 80% of scheduled benefits may be payable.

He emphasizes that this isn't speculation but an actuarial reality that requires every retiree to plan accordingly.

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Don't rely solely on Social Security as a primary source of retirement income

Ramsey repeatedly highlights that counting on Social Security to replace much of your working income is risky. He urges retirees to view it instead as a supplement to savings, investments, and other income sources.

"Any money you get from Social Security should be considered icing on the cake. But making Social Security the main ingredient of your retirement plan? That's a recipe for disaster," explained Ramsey.

Consider the taxes you may owe on your Social Security benefits

Even after you qualify for Social Security, you may still face taxes on your benefits, depending on your total income. The Ramsey team points out that up to 85% of benefits can be taxed if your combined income crosses certain thresholds.

For retirees, this means that your "net" benefit may be less than expected unless you plan for tax implications in your broader retirement strategy.

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Be strategic about deciding when to start claiming Social Security

Ramsey pushes retirees to actively decide when to claim benefits and to understand how timing affects total lifetime payout. While many advisers may default to waiting until age 70 to maximize monthly checks, Ramsey notes that taking benefits early might make sense in some cases, especially if you invest the money.

"Your retirement payments die when you die…so you might as well take the money and make the most of it while you can," said Ramsey.

Save at least 15% of your income toward retirement

Working longer or saving more is a central point in Ramsey's message. The Ramsey team recommends saving approximately 15% of your income for retirement once you're out of debt and have an emergency fund in place.

He argues that Social Security simply doesn't cover the full cost of retirement and that disciplined savings and investing are essential pillars of a realistic retirement plan.

Consider funding an HSA to pay for medical expenses

Ramsey also emphasizes the value of a health savings account (HSA) as a tool for planning retirement health expenses. By establishing and funding an HSA when eligible, retirees can build a tax-advantaged reserve to cover future medical costs, freeing up other savings and keeping Social Security benefits from being eaten up by health care expenses.

Health care can be one of the biggest unknowns in retirement, and using an HSA is a proactive way to build protection.

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Think long term

Ramsey acknowledges that the idea of shrinking Social Security benefits can be unnerving, particularly for those catching up on their retirement savings. Still, he stresses that reacting out of fear or panic does more harm than good.

"It's true that there's no magic formula that will instantly give you a multi-million-dollar nest egg, but with careful planning, disciplined budgeting, and a positive outlook, you can build a decent retirement fund that will keep you content," he explained.

His advice: stay focused, stick to the fundamentals, and avoid knee-jerk reactions. The goal isn't panic — it's thoughtful preparation.

Bottom line

Dave Ramsey's overarching warning for 2025 is crystal clear: Social Security is not a guarantee you can count on as your primary income in retirement. You must build your own foundation now. He points out that the trust fund shortfall, tax exposure, and timing decisions all raise the risk that expected benefits may be less than you assume.

Be ready to review your plan, diversify your income, and save more aggressively, so you can make the right moves and protect your retirement future.

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