Dave Ramsey put a number on something we have been saying for weeks—and this time, I agree with him.
His team's research found that 42% of Americans are not saving for the future in any meaningful way. Nearly half the country.
Here is the mistake hiding underneath that statistic. It is not simply that people forget to save. It is what they are quietly relying on instead: Social Security.
Social Security was never designed to replace an entire paycheck
Social Security benefits replace only a portion of pre-retirement earnings, and the share varies based on earnings history and other factors. For many workers, a rough benchmark often discussed is about 40%.
Forty percent. Not 100%. Not even 70%.
If you are not actively building income outside Social Security, you are not planning to replace your paycheck. You may be planning around a substantial income gap.