Finance
47-year-old couple with $182,000 saved worry they’ll never have enough to retire – Dave Ramsey tells them people end up richer than expected
In a recent call to The Ramsey ShowAngie from San Francisco shared concerns that resonate with many middle-aged couples. At 47, Angie and her husband are debt-free except for their mortgage, which they plan to pay off next year. Despite their progress, Angie wondered if they had started too late to secure a comfortable retirement.
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“We’ve saved 15% for retirement since we found you,” Angie told Dave Ramsey. “But is this really going to happen at our age? It’s hard to imagine.”
The couple has $20,000 saved in an emergency fund, $80,000 in a traditional IRA, $12,000 in a Roth IRA, and Angie’s husband has $90,000 in his retirement account. With a household income of about $200,000, they plan to increase their savings once the house is paid off.
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Angie explained that she uses pension calculators to do this tell her she needs $2 million to retire or more. This makes her feel hopeless as they are so far from their intended goal.
Ramsey assured her they were on the right track, but reminded her of the importance of managing expectations. “You’ll be fine,” he said, emphasizing that paying off the mortgage will allow them to save even more. “If you save $30,000 a year for fifteen years, plus what you’re already doing, you’ll be fine.”
According to recent data the average pension savings of households led by someone aged 45 to 54 costs approximately $313,220, with an average of $115,000. This suggests that Angie and her husband, who are in their late 40s and have nearly $200,000 saved, are on par with many of their peers but still have room to grow their retirement fund.
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People in their 40s are often advised to save 15% to 20% of their income to catch up, especially if they start late. With their $200,000 household income, continuing to save aggressively as they plan could significantly increase their savings over the next 15 to 20 years, potentially reaching or even exceeding the $1 million mark with disciplined saving and compound interest.
Ramsey then addressed the limitations of retirement calculators, which often use assumptions that may not reflect real-world scenarios. “What you don’t know is what assumptions the calculator is using,” he noted. He suggested focusing on consistent saving and wealth building, estimating that they could earn about a 10-12% return on their investments. He continued, explaining that some calculators build in inflation rates, but he prefers to just save money and build wealth.
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He acknowledged that planning for retirement comes with uncertainties, but reassured Angie that many people are in a better financial position than they initially expected.
“In our experience, after thirty years of working with people, they have become much richer than their calculator told them,” Ramsey told Angie.
The conversation shows that many people worry about whether they are doing enough, especially if they feel like they are starting too late. Angie and her husband’s story reminds us that while there may be uncertainties, continuing to focus on saving and paying off debt can get them into trouble. solid path to retirement.
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