At 61, many people are daydreaming about what their retirement will look like — morning coffee in the garden, long vacations, or maybe learning how to pickle things just because they can.
Ruth and her husband? They're just hoping retirement is even an option.
"We're wondering if it's too late for us," Ruth told Dave Ramsey on an episode of The Ramsey Show. She's 61, her husband's 60. And despite earning $130,000 a year, they've only managed to save $75,000 in their 401(k).
Don't Miss:
- Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!
- Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
That's not the only number working against them. They owe $137,000 on their house, another $10,000 on a car loan, and a couple thousand more on credit cards and bills.
Ramsey didn't waste time cutting to the chase. "He makes way too much money for you all to be this broke," he said. Ruth's husband has already accepted his backup plan: work until he drops. Not exactly the dream.
And Ramsey had a pretty bleak — and honestly gross — take on where they were headed. "If you keep spending like you've been spending and stay disorganized like you have been, you're going to retire on dog food," he warned.
That wasn't just a figure of speech. Without major changes, Ruth and her husband could be trading retirement for working forever — or living on whatever's cheapest at the grocery store.
Trending: Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
Today's Best Finance Deals
But it's not hopeless. Ramsey laid out a brutal but doable plan: stop spending, kill the car and credit card debt, build a $15,000 emergency fund, invest 15% of their income, and throw everything else at the mortgage.
"You guys are going to have to get very, very serious today," Ramsey said.
No more vacations. No more eating out — "unless you're working there," Ramsey joked.
It's worth mentioning this call took place back in 2014, when retirement savings benchmarks were much lower. At that time, Fidelity reported the average 401(k) balance was $91,300. So despite Ramsey's critical take, Ruth and her husband weren't quite the financial disaster he made them out to be. By 2014 standards — and considering wage levels back then — they were actually pretty much on par.
Of course, by today's standards, they'd be trailing badly. Fidelity's 2025 report shows the average balance for 60-64 year olds is $246,500.
If they stuck to the plan, Ramsey believed they could retire in seven to nine years with about $500,000 saved and no house payment.
That's a future worth fighting for. Because the alternative? Dog food.
Read Next:
- If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
- Donald Trump just announced a $500 billion AI infrastructure deal — here's how you can invest in the entertainment market's next big disruptor at $2.25 per share.
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
