He said: \u201cSocial Security will replace a chunk of the income you made throughout your career based on your lifetime earnings.\u201d<\/p>\n
\t\t\t\t\t\t\t\t\t<\/p>\n \t\t\t\t\t\t\t\t\t HELPING HAND<\/p>\n My ‘poor mindset’ got me into $50k of debt – but an expert says to side hustle<\/p>\n \t\t\t\t\t<\/a> \t\t\t\t\t\t\t\t\t BRAVE DAVE<\/p>\n Dave Ramsey reveals why now is ‘a great time to be in business’ for Americans<\/p>\n \t\t\t\t\t<\/a><\/p>\n According to the Social Security Administration (SSA), in January 2026 the estimated average monthly Social Security retirement benefit is $2,071.<\/p>\n The expert added: \u201cNo matter how you slice it, that\u2019s not a lot to live on (even with cost-of-living adjustments every year.\u201d<\/p>\n \u201cAmong the elderly, 12% of men and 15% of women rely on Social Security for 90% or more of their income.<\/p>\n \u201cFolks, these payments were always meant to replace some of your income in retirement \u2013 not all of it.\u201d<\/p>\n Giving out a key bit of advice, Ramsey urged Americans to make use of their 401k plans.<\/p>\n He strongly advised workers to take advantage of employer-sponsored 401(k) plans \u2013 if your company offers one. <\/p>\n Explaining the difference between the two main types of plans, he outlined the traditional 401k as well as the Roth 401k.<\/p>\n The former lets any American save for retirement using pre-tax cash.<\/p>\n The taxes will then be owed later on, both on what they contributed and on any investment gains or employer matches, when they take the funds out.<\/p>\n A Roth 401(k) works the opposite way, with users paying after\u2011tax money now, and in retirement.<\/p>\n But they can withdraw both their contributions and all the growth in their account completely tax\u2011free.<\/p>\n Ramsey said: \u201cMany employers will offer a company match \u2013 that\u2019s when your company offers to match a percentage of your retirement contributions in your 401(k).<\/p>\n \u201cTranslation? Free money!\u201d<\/p>\n As of January 2026, the maximum amount Americans can contribute to a 401(k) per year is $24,500.<\/p>\n Those who are 50 or older can make catch\u2011up contributions \u2013 with their total allowable contribution $32,500 instead.<\/p>\n Withdrawals from a 401(k) are generally not allowed until an account holder reaches 59-and-a-half years old.<\/p>\n Taking out cash before that age results in taxes and an early\u2011withdrawal penalty from the IRS. <\/p>\n Ramsey pointed to a few reasons why opening an IRA is a smart move.<\/p>\n \u201cIf you have money in a retirement plan with a former employer \u2014 like a 401(k) \u2014 you can roll that money into an IRA so you have more control over your investment options,\u201d Ramsey said. <\/p>\n \u201cIRAs are a great option for saving for retirement if you don\u2019t have access to a workplace retirement plan.\u201d<\/p>\n![](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/01\/SC-Dave-Ramsey-Comp-copy.jpg\"\/)
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