A recent study revealed that 35% of workers expect Social Security to be a major retirement income source, but financial expert Dave Ramsey warns against this. Ramsey advises saving independently due to Social Security’s shaky finances. One habit identified in the study doubled Americans’ retirement savings, making retirement dreams a reality.

Upon retirement, one may need less income due to lower expenses like mortgage payments and commuting costs. Downsizing to a single vehicle and lower utility costs can further reduce expenses. However, it’s important to plan for ongoing expenses like food, utilities, and healthcare in retirement.

Relying heavily on Social Security for retirement income may not be wise, as it only replaces about 40% of pre-retirement earnings. Benefit cuts are possible as the program faces financial strain, making it risky to depend on as a primary income source. Saving independently is crucial for financial stability in retirement.

Dave Ramsey cautions against relying too much on Social Security for retirement income, especially as benefit cuts loom. Saving through IRA or 401(k) contributions is advised to ensure financial stability in retirement. Using Social Security as supplemental income, rather than a primary source, is recommended for secure retirement.

Data reveals that one simple habit can double Americans’ retirement savings, boosting their financial security. Despite underestimating retirement needs, adopting this habit can significantly increase savings. It’s a straightforward and powerful practice that can make a substantial difference in retirement planning.

Read more at Yahoo Finance: Dave Ramsey Says 35% of Americans Will ‘Learn the Hard Way’ About Social Security