Dave Ramsey Says 'You Are the CEO of Your Retirement.' Here's What It Means

"Many seniors end up struggling to cover their expenses in retirement because they rely too heavily on Social Security. But if you ask financial expert Dave Ramsey, he'll tell you that Social Security should not be your primary source of retirement income - not even close. The problem with relying too heavily on Social Security The average retired senior on Social Security today collects about $2,000 a month."

"What this means is that if you retire on just Social Security, you'll be looking at a 60% pay cut. And while some of your costs might go down in retirement, the likelihood of them decreasing by 60% is pretty low. Of course, a big problem is that many people expect to get more from Social Security in retirement than what they're actually entitled to, according to Ramsey."

Many seniors rely too heavily on Social Security and struggle to cover expenses in retirement. The average retired senior collects about $2,000 per month, and Social Security typically replaces about 40% of an average salary. Relying solely on Social Security can result in roughly a 60% pay cut, which most people cannot absorb. Social Security benefits should be treated as supplemental rather than primary income. Individuals should act as the CEO of their retirement by saving independently. Starting early with retirement accounts gives investments time to grow and helps build the bulk of retirement income.

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