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A new report from Dave Ramsey’s company shows that a significant number of Americans fear that a key financial safety net won’t be around by the time they retire.
While the Ramsey Solutions analysis suggested that Americans are feeling more optimistic about the future, one in three “do not believe Social Security will be around when they turn 65.”
These concerns are higher among prime working-age generations, with “almost half of millennials and Gen Xers (45% and 44%, respectively)” feeling unsure about their retirement prospects.
This skepticism rests against a broader decline of trust in the U.S. economy. In a press release about the report, George Kamel, personal finance expert and co-host of The Ramsey Show, noted that “a third of Americans are still in a full-blown money crisis.”
Kamel isn’t alone in this assessment.
Credit card debt is at an all-time high of $1.21 trillion in outstanding payments, according to the Federal Reserve Bank of New York. Meanwhile, the average personal savings rate for Americans was just 4.5% of personal disposable income in June, according to the U.S. Bureau of Economic Analysis.
Taken together, this suggests that many Americans are spending money they don’t have while barely being able to save for the future, including for retirement.
Social Security currently benefits nearly 69 million Americans each month. However, how long it will remain fully functional is in question.
The 90-year-old program — first signed into law by President Franklin D. Roosevelt — has long faced underfunding issues, but has been under attack in recent months.
“Agency staffing has been slashed,” reporting from PBS noted. “Administration officials, including the president, have falsely claimed that millions of dead people were receiving Social Security benefits.” While working under President Donald Trump, Elon Musk even called the program a “Ponzi scheme.”
The “go-broke date” when Social Security will no longer have enough funding to pay full benefits has recently been moved up a year from 2035 to 2034, as funding cuts affect the ever-shrinking timeline. After this, Social Security benefits will be reduced by about 23% for those receiving payments from the Old-Age and Survivors Insurance (OASI) Trust Fund, according to the Social Security Administration’s 2025 Trustees report.
A new survey from the Transamerica Center for Retirement Studies found that 32% of Americans expect Social Security to be their primary source of retirement income, which could leave them in a rough spot.
So what does this mean for you? Here’s how to prepare for a potential retirement without Social Security.
With the possibility that Social Security might not exist to support you in retirement, one of the best things you can do is focus on budgeting and saving now, so you can build up your own retirement safety net.
If you’re not currently debt-free, start by paying down your high-interest debt ASAP, and build out an emergency fund that can cover at least six months of expenses.
Once you have that in place, you’ve freed up extra cash flow that can be regularly invested in your 401 (k) and IRA for retirement.
Depending on your situation, reaching a place where you can regularly invest with ease can take time. If you’re not quite there yet, you can still find a way to build up your investment account without setting aside hundreds of dollars each paycheck.
Consider automating your savings habits through your everyday spending with a platform like Acorns, where you can automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs tailored to your risk tolerance.
How it works is simple: If you buy a coffee for $3.25, Acorns will round up the purchase to $4 and invest the difference. So that $3.25 purchase automatically becomes a 75-cent investment in your future.
Sign up today to receive a $20 bonus investment when you set up a recurring deposit.
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
Once you are debt-free and your emergency fund is in place, focus your extra cash on investing within your retirement accounts. The faster you max out your 401 (k) and IRA contributions, the more time this money will have in the market before you retire to compound. As the saying goes, time in the market always beats timing the market.
And don’t forget to take your employer up on 401 (k) matching, which can help ensure you are regularly investing. Ignoring this match is like being offered a raise and saying no.
If you’re looking for a diversification option for your IRA, gold has been having a record-breaking year, reaching a peak of $3,487.90 in early August.
Those curious about gold can consider opening a gold IRA with Priority Gold, which offers the significant tax advantages of an IRA alongside the inflation-resistant security of gold investing.
Since gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, they can be an appealing option for those looking to build up their own retirement funds while providing some insulation from market shocks.
To learn more, you can check out Priority Gold’s free information guide, where you can also learn how to get up to $10,000 in free silver on qualifying purchases.
As your investment knowledge increases, you’ll probably hear a lot more about alternative investments like private equity, crypto and real estate.
While these investments can present a notably higher financial risk than the average investor may want to take, they are often where the wealthiest make the biggest returns. As Future Standard notes, private equity consistently outperforms the S&P 500.
If you’re looking to diversify your investment plan, strategic and limited use of alternative investments might be worth considering, as diversity is the key to a robust investment plan.
Real estate investing is probably the most talked about alternative investment around, but being a landlord or an Airbnb host isn’t for everyone. That said, there are other ways to invest in real estate that don’t require you to ever set foot on the property.
With just a $100 initial investment, real estate platform Arrived offers access to shares of SEC-qualified investments in rental homes and vacation rentals, vetted for their income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their simplified process allows investors to take advantage of the real estate market without all the extra work.
Another option is commercial real estate. For years, direct access to the $22.5 trillion commercial real estate industry has been limited to only the wealthiest investors, but that is changing.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through commercial grocery chain properties, minus the hassle of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by international brands like Whole Foods, Kroger and Walmart. Thanks to triple net leases, accredited investors can invest in these properties without worrying about tenant costs eating into returns.
Just answer a few questions about your investing strategy to start browsing their full list of available properties.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.