Ramsey Says Americans in Their 60s and 70s Won't Be Packing Bags for a Dream Vacation in Retirement—They'll Be Packing Lunch for Work Instead

Retirement isn't looking like the carefree, palm-tree-laden paradise many Americans were promised. Instead of sipping margaritas on a beach in their 60s and 70s, a growing number of retirees will be sipping lukewarm coffee at their desks—because they'll still be working. 

A post on "Ramsey Solutions" back in November put it bluntly: "Instead of packing their bags for their dream vacations in their 60s and 70s, millions of Americans will be packing their lunch for another day at the office."

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The Reality Check: Americans Aren't Saving Enough

According to Ramsey Solutions, only one in 10 Americans are investing 15% or more of their income for retirement—the amount Ramsey recommends. Even worse, half of Americans (50%) aren't investing anything at all. That's not just a gap—it's a full-blown retirement crisis.

Vanguard data backs it up. The average 401(k) balance across all age groups is $134,128. While that might sound like a decent chunk of change, it's nowhere near enough for a comfortable retirement, especially with rising healthcare costs and inflation.

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How Does Your Retirement Stack Up?

Here's what the average American has saved for retirement by age, according to Vanguard:

• 25-34: $37,240
• 35-44: $97,020
• 45-54: $179,200
• 55-64: $256,244
• 65+: $279,997

Even at the top end, these numbers don't scream "financial freedom." Many experts suggest retirees need at least 10 to 12 times their final salary saved to retire comfortably. For someone making $80,000 per year, that means aiming for $800,000 to $1 million—a far cry from these averages.

See Also: If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now

What Can You Do to Avoid Working Forever?

The good news? It's never too late to turn things around. Ramsey is big on taking action, and here are a few of his key strategies for getting on track—no matter your age:

• Take Advantage of Higher Catch-Up Contributions – If you're between ages 60 and 63, you're in luck. Thanks to the SECURE 2.0 Act of 2022, starting in 2025, you'll be able to contribute an extra $11,250 to your 401(k), compared to the normal $7,500 catch-up limit for those 50 and older. That's a great way to supercharge your savings in the final stretch before retirement.
• Live Below Your Means – Retirement planning isn't just about earning more—it's about keeping more. Scaling back now can mean more financial freedom later.
• Ditch Debt—Especially Your Mortgage – Ramsey has always been big on entering retirement completely debt-free. That means no credit cards, no car loans, and—yes—no mortgage. Your retirement savings will disappear faster than you think if you're still making payments. If possible, make sure your mortgage is fully paid off before you retire.
• Work a Little Longer If You Need To – If your savings are low, delaying retirement by just a few years can significantly boost your Social Security benefits and give your investments more time to grow. Even part-time work for a few extra years can make a big difference.
• Meet With a Financial Advisor – Ramsey Solutions explains that if you're over 65 and struggling to reach your goal, it's a good idea to meet with a trusted financial advisor regularly to map out your withdrawal strategy and ensure your money lasts. They can help you decide how much to withdraw each year, what accounts to tap first, and how to balance Social Security, investments, and other income sources. A solid plan can prevent costly mistakes and unnecessary taxes. 

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