Dave Ramsey: Skipping retirement planning is no excuse, even if you think the Rapture is coming

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Kate’s parents are in their late 70s. Her father built his career in ministry, and the couple never amassed much wealth. They live in a modest home, own two cars outright, and remain deeply devoted to their faith. They also give regularly to Christian ministries.

Still, they have told their children they do not have enough money to retire.

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When Kate from Sioux Falls, South Dakota, called into The Ramsey Show, she said her parents expect to be raptured before they die and are effectively treating the Second Coming as their retirement strategy. Because they are private and embarrassed about money, talking to them directly has been difficult.

Dave Ramsey, who is also Christian, said he agreed with the theology in principle but not with using it as a financial plan.

He said scripture makes it “very clear” that no one knows the date or time of the Rapture. “Given that, we have to plan as if we’re going to be here. That plan works if we’re not here or if we’re here. Their plan only works if we’re not here.”

Ramsey then explained why he thought they were hiding their financial situation.

“They’re ashamed,” he said. “They know they haven’t done a good job with money. And it bothers them.”

In his view, the expectation of the Rapture has become a convenient emotional cover for a basic failure to plan.

“We didn’t do a good job ... blame it on The Rapture.”

Ramsey’s recommendation

Rather than trying for a major financial intervention that is unlikely to succeed, cohost Rachel Cruze estimated the odds of changing a 78-year-old’s money mindset at about 2%.

Ramsey suggested a quieter approach centered on making sure basic needs are met. He advised Kate and her siblings to check in regularly without putting their parents on the defensive. Make sure the property taxes are paid, the refrigerator has food and the utilities are on. Bring groceries by saying you had extra. Share part of a bulk meat purchase. Drop off eggs from a friend with chickens.

“Subtly poke around without getting them on a full plan like they actually should be,” he said.

In Kate’s case, one positive is that her parents own their home and vehicles free and clear, which removes two major expenses and makes everyday finances more manageable.

Kate also worried about their continued donations. Ramsey said there is probably not much anyone can do unless the parents ask for help directly.

“I just don’t think there’s much we can do about that,” he said.

If they do ask, he suggested gently reviewing whether the charities they support use donations responsibly, while still prioritizing their own basic needs first.

A situation far more common than it seems

Although Kate’s parents may sound unusual, the underlying issue is familiar: People often delay financial planning because there is always a reason to deal with it later.

According to the latest AARP Financial Security Trends Survey, 60% of Americans over 50 are somewhat or very worried about being financially secure during retirement, 69% say prices are rising faster than their income, and 36% are concerned they will have enough money for essentials like food, housing and transportation.

Among respondents who have not retired yet, 38% said they have less than $50,000 in retirement savings. Yet only 6% said they believe $50,000 would be enough to stay financially secure in retirement.

Meanwhile, a Northwestern Mutual survey found that 46% of Americans do not think they will be financially prepared for retirement, underscoring the value of having a plan well before retirement arrives.

Starting as early as possible can make a real difference.

A good first step is to review debt. For example, baby boomers ages 61 to 79 carried an average debt balance of $92,619 as of June 2025, according to Experian. If you are paying high-interest credit card debt or other non-mortgage debt, reducing it can free up money for savings later.

Build an emergency fund

Once debt is under control, consider building an emergency fund that covers three to six months of essential expenses. Dave Ramsey counts that among his core “Baby Steps” toward financial stability.

Other experts, including Suze Orman, recommend an even larger cushion. Orman advises retirees to keep three to five years of living expenses available, which can offer more protection during downturns or surprise costs.

A high-yield account can also be a useful place to keep cash you are not investing. It can provide interest while still keeping money easy to access when needed.

One example is a Wealthfront Cash Account, which offers a base rate APY of 3.55% through program banks. With a new client boost and direct deposit incentive, referred clients can earn up to 4.55% APY.

That is 10 times the national deposit savings rate, according to the FDIC’s August report.

With no minimum balance or account fees, plus 24/7 withdrawals and free domestic wire transfers, the money remains accessible. You also get access to up to $8 million in FDIC insurance eligibility through program banks.

Get into the habit of saving

Fear-driven spending is not limited to Kate’s parents. Nearly 1 in 5 Americans reported doom spending in 2025, meaning impulsive purchases motivated by anxiety or pessimism about the future.

The downside is that spending heavily today can leave fewer choices tomorrow. Americans are already saving a smaller share of income than they used to. The personal saving rate averaged around 10% between 1970 and 2000.

By the middle of 2026, it had dropped to just 3%.

Put simply: if all your money goes out the door now, there is little left to help you later.

Start investing small

If you are nearing retirement with less saved than you would like, that does not mean giving up. The key is to start with what you can afford and keep it consistent.

Even small contributions can add up over time through compound growth. For example, investing $500 a month could grow to nearly $100,000 over 10 years, assuming a 10% annual return.

Apps like Acorns let users automatically invest spare change from everyday purchases, helping them build wealth without having to follow every market move.

After linking your cards, Acorns rounds up each purchase to the nearest dollar and invests the difference into a diversified portfolio of ETFs managed by experts at firms such as Vanguard and BlackRock.

Over a lifetime, consistency can make a meaningful difference.

If you choose the Acorns Gold plan, you can also access Acorns Later, a retirement account that offers a 3% match on new contributions for the first year. The Acorns Silver plan offers a 1% match in the first year.

With Acorns, you can start investing in an ETF with as little as $5, and new sign-ups can receive a $20 bonus.

Utilize your government benefits

Your own savings are not the only source of retirement income. After decades of work and payroll contributions, Social Security can become an important part of the picture.

As retirement approaches, it makes sense to think about how to use the benefits you have paid into for years. The Social Security Administration says the estimated average monthly retirement benefit for retired workers is about $2,087. That will not replace a full paycheck for most people, but it can provide a steady income stream in retirement.

The important part is understanding how those benefits fit into the rest of your plan.

If you want more guidance on incorporating government benefits into retirement planning, AARP offers tools and information that can help with Social Security strategy. It can also help with Medicare choices and other benefits that may make retirement easier.

Members also get access to discounts on prescriptions, dental care, travel, leisure and insurance products.

Sign up with AARP today to get 25% off your first year.

Plan for healthcare expenses

Healthcare is one retirement cost that is easy to overlook but hard to escape. Fidelity Investments says a 65-year-old retiring in 2026 can expect to spend an average of $185,500 on healthcare and medical expenses throughout retirement.

That is a major figure to leave out of your calculations. Planning ahead can help prevent one medical bill from upsetting your retirement budget.

Platforms like HealthCare.com can help shoppers compare coverage by connecting them with Medicare plan options in their area. More than 5 million customers have used the service to help find health insurance coverage.

Enter your ZIP code to browse options. If you need help comparing coverage and prices, you can speak with a licensed insurance agent who can answer questions and help you find a plan that fits your needs and budget.

After choosing coverage, HealthCare.com lets you enroll online or over the phone.

Feeling overwhelmed? Consult an expert

Retirement planning is more than choosing a savings target. It can involve investments, Social Security, taxes, insurance, healthcare costs and withdrawals.

If that feels overwhelming, professional help may be useful. A financial advisor can help build a retirement strategy and show how different income sources and savings fit together.

Research from Envestnet found that clients working with advisors who focus on planning, asset selection and allocation, investment selection, systematic rebalancing and tax management saw 3% higher average returns.

For those seeking help, Advisor.com can connect you with a financial professional who can tailor a strategy to your goals.

Here is how it works: enter a few details about your finances, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert suited to your needs. Its network also includes fiduciaries, who are legally required to act in your best interests.

Finding the right advisor can take some work, which is why Advisor.com offers a free initial consultation with no obligation to hire.

- With files from Emma Caplan-Fisher.

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Article sources

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@TheRamseyShow (1); AARP (2); Northwestern Mutual (3); Experian (4); Ramsey Solutions (5); Suze Orman Media (6); CNBC (7); The Economist (8); Federal Reserve Bank of St. Louis (9); Acorns (10); Social Security Administration (11); Fidelity Investments (12); Envestnet (13)