6 Money Problems Dave Ramsey Says We Didn’t Have 50 Years Ago

It's true that inflation can shorten your retirement plan runway, but this isn't a new problem. Dave Ramsey actually has several concerns beyond the natural increase in costs, and these pressures may be unique to modern seniors.

Before you assume that Ramsey's advice doesn't apply to older adults, think again. Here are the six issues that can eat away at a nest egg. Knowing them may be the difference between a comfortable retirement and a stressful one.

The pension gap

With pensions not as common or as strong, workers now must build much more of their own retirement income. We still have access to 401(k)s, but those put the responsibility on the worker to save and invest.

The Bureau of Labor Statistics (BLS) shares that 70% of private-industry workers had access to a defined-contribution plan in March of 2025, compared to just 14% with access to a defined-benefit pension.

Ramsey suggests putting away 15% of household income for retirement in available employer plans and Roth IRAs, with investments in mutual funds. This way, even those without pensions can build a nest egg on their own terms, using catch-up contributions as an additional boost.

Identity theft risks

Identity theft is a particular type of fraud in which someone uses your information to open or access accounts. The Federal Trade Commission (FTC) found that adults 60 and older reported almost $2.4 billion in fraud losses in 2024, an increase from $600 million in 2020. While not all fraud is identity theft, this type of scam is common, especially for older adults.

Also, seniors are more likely to have accessible assets, and recovering from a large loss is harder after you're no longer earning employment income. Ramsey recommends that seniors reduce exposure to credit accounts and consider identity-theft protection services. Strong, unique passwords, as well as following the tips on the FTC website, can make it harder for scammers.

Rising health costs

Medicare is an important part of a health care plan, but it doesn't make health care free. Retirees still need to budget for premiums, deductibles, copays, prescriptions, and out-of-pocket costs like dental care and long-term care.

Fidelity found that a 65-year-old may need $185,500 in after-tax savings to cover the rest of their health care needs, not including long-term care or dental. Ramsey recommends a fully funded emergency fund to cover surprises and comparing health-plan deductibles and premiums every year. When possible, use an HSA before retirement to save up for these costs.

Credit card dependence

Credit cards normalize spending tomorrow's money today, a big reason Ramsey's not a fan. For near-retirees, the danger's even bigger, as interest payments can consume money that would otherwise support fixed income in retirement.

In 2025, baby boomers had an average balance of $6,795 while average APRs were around 22%. By following Ramsey's advice to stop using credit cards and save before buying, those entering retirement can whittle down this number and enter their post-employment days with one less budget item to worry about.

Higher living costs

Aside from inflation, which is a real concern, the costs of some big budget categories have recently gotten bigger. Retirees already face tighter margins if income doesn't rise alongside housing, food, transportation, property taxes, insurance, and medical costs.

So, a couple whose retirement projections covered their mortgage and groceries, but didn't account for higher insurance premiums or replacing a roof, may experience a cash flow crisis. It's not even because they are bad with money. Ramsey recommends reducing major recurring expenses, downsizing or relocating if necessary, and taking on additional work if health allows it.

The budgeting problem

While the budget is the number one tool recommended to fix a financial problem, it's becoming a bit of a lost habit. Electronic paychecks, credit cards, and recurring subscriptions make it harder to track when and where money goes.

But retirement is the best time to start a budget (or refresh an old one), and it's not a punishment for doing something wrong. This early-warning system is something Ramsey recommends for everyone, even the wealthy. If possible, a cash envelope system for some categories (like dining out or entertainment) can keep spending under control on a fixed income.

Bottom line

Some problems on this list, like identity theft or long-term care costs, aren't as controllable as others. However, Ramsey's most basic advice, such as maintaining a budget, building an emergency fund, and getting out of debt, can help seniors thrive even in uncertain times.

If it's been a while since you took a retirement stress test, add it to your annual calendar. Write out your bills, monthly income, debts, insurance costs, cash, and a trusted contact who can help spot fraud. One of the smart moves for seniors, this activity turns a broad financial weight into a repeatable check-in. It may even catch small issues before they set back your entire retirement plan.

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