Dave Ramsey Shares 6 Retirement Myths That Could Be Costly (If You Fall for Them)

Retirement myths are common — but the unfortunate reality is that listening to common retirement myths can derail your financial future and keep you from getting ahead financially.

We explore some common retirement myths that Ramsey Solutions has debunked to help you avoid a financial disaster.

Many people mistakenly assume that they'll spend less in retirement. Although that's an admirable goal, it's difficult for many to do so. 

Many people in their 40s and 50s assume that if they haven't saved much by now, there's no point in starting. Ramsey Solutions pushes back on this one, arguing that no matter how close you are to retirement, there's still time to grow your savings.

Consider this example: Someone who turns 40 this year and brings home about $4,000 a month could end up with a nest egg of close to $1.2 million by investing 15% of their income until retirement. Even at 50, investing 25% of your income until age 67 could leave you with around $592,000. Those projections assume average returns of about 11% a year, which aren't guaranteed.

You also don't have to retire at 65. Working a few extra years gives your investments more time to grow and shortens the number of years your savings need to last.

Medicare is a valuable way to tap into affordable health insurance coverage. When you are 65, you can tap into coverage for doctor visits, hospital stays, and medications. But you'll still have some out-of-pocket health expenses.

For starters, you'll be on the hook for deductibles. Medicare also doesn't cover assisted living at all. It does cover up to 100 days of skilled nursing facility care, but only partly after the first 20 days, and nothing after day 100.

If you want help covering long-term care expenses in retirement, consider purchasing long-term care insurance now.

It can be tempting to manage your retirement investing yourself, especially with so many online tools available. But Ramsey Solutions argues that going it alone can leave you guessing your way through important decisions and drifting off course.

Its advice is to work with an investment professional who can help you build a plan and keep your focus on the long term.

If you go this route, look for a professional who explains your options in plain language and is upfront about how they're paid. Ramsey Solutions' own referral service, SmartVestor, is one option, though the company is a paid promoter of the pros it lists.

Many retirees assume they can live entirely off their Social Security check. Unfortunately, the amount you think you'll receive in retirement from Social Security might be significantly less than what you'll get.

As of 2026, the average retiree receives $2,071 monthly from Social Security. That works out to about $24,800 per year, which is often not enough for retirees to get by on.

It's important to build retirement assets outside of your Social Security income. Otherwise, you could get stuck barely scraping by.

If you have an employer that offers a 401(k) match, maxing out that matching opportunity is a good place to start. But depending on your situation, simply hitting your employer's matching percentage might not be enough to build a substantial retirement account.

Instead of only looking at your employer match, take some time to determine how much you'll need in an investment account to afford a comfortable retirement. From there, build out an investment portfolio to suit your long-term goals.

Many prospective retirees plan to work beyond the traditional retirement age of 65. Working into your retirement years could allow you to cover your expenses and let your retirement nest egg grow for a few more years.

However, many reaching the traditional retirement age are unable or unwilling to work. In one survey, 61% of workers said they plan to work during retirement, but fewer people actually end up working once they retire.

Your employer might lay you off during an economic downturn, derailing your plans. Or you might not find a part-time job that suits your skills and retirement schedule. Or your health might not allow you to keep working.

Even if you want to work in retirement, it's a good idea to save enough that you can retire when you reach retirement age.

Saving for retirement is a significant financial journey. Although many myths surround the retirement savings process, it's important to block out the noise and stick to what works best.

Throughout your working years, do your best to increase your income, lower your expenses, and invest the difference into retirement accounts for a bright financial future.