Tony Robbins has some blunt advice for Americans regarding Social Security and retirement planning. He warns that relying solely on Social Security is a “recipe for disaster.”
Social Security was never designed to replace income completely. This becomes even more relevant as life expectancy rises, leading to longer retirements.
Robbins offers several strategies to help people manage the financial and emotional stresses of retirement planning. He emphasizes that 80% of wealth management is psychological, while only 20% is the mechanics of managing money. “Money has no power by itself, only the power you give it,” Robbins says.
That’s why mindset – your ability to focus and the state you put yourself in – is crucial. Robbins also stresses the importance of self-discipline in personal finance. Mastering money requires embracing delayed gratification.
This involves mastering one’s mind first, which leads to better financial decisions and long-term planning. “Mastering money is a long game, which takes patience, strategy, a willingness to fail, and a desire to learn from those failures,” he adds. “Master your own mind, and you’ll put yourself in a position to master the game of money.”
Robbins’ blunt advice underscores the need for Americans to take a proactive approach to their retirement planning.
Financial confidence and strategic planning can significantly improve retirement security. Another personal finance expert, Dave Ramsey, has also been vocal about Social Security’s limitations. He doesn’t advise abandoning it altogether but urges Americans to take control of their financial futures.
Ramsey points out that the average monthly Social Security check in 2025 is estimated at $1,976, or about $23,700 annually. While helpful, this is far from enough for most retirees to live on. Relying on the government to take care of you in retirement is dumb with a capital D,” Ramsey wrote.
He encourages individuals to take charge by saving 15% of their household income for retirement once they are debt-free and have an emergency fund. Ramsey also brings attention to Social Security’s uncertain long-term stability. The program’s trust funds are projected to run out of money in 2035 if nothing changes, resulting in a 25% reduction in funds for recipients.
Taking charge of financial futures
“We can’t depend on Washington to take care of us in retirement,” Ramsey emphasized. Do you really want to put your retirement dreams in the hands of the government?
Heck no!”
One of Ramsey’s more controversial recommendations is to take Social Security benefits at age 62, but only if you plan to invest the money. He argues that investing your early benefits could result in more money in the long run. However, this strategy isn’t for everyone.
Many retirees need their benefits immediately to cover basic living expenses. Financial experts often recommend delaying benefits if you expect to live a long life, as this results in higher monthly payments. While Ramsey criticizes Social Security, his underlying message is clear: take charge of your financial future.
Whether you claim benefits early or delay them, having a robust retirement savings plan is crucial. Robbins also has specific tips for retirees to avoid financial disaster. First, he recommends planning for retirement now, regardless of how far off it may seem.
Start by calculating the cost of maintaining your current lifestyle and multiplying that total by 20. “It’s important to be conservative with your numbers instead of overly optimistic,” Robbins advised. The number you come up with may seem massive — but don’t be afraid to dream big.
With the right mindset and relentless focus, you can go beyond ‘How much do I need for retirement?’ and start asking ‘How much do I want for retirement?'”
Next, Robbins urges everyone to build what he calls the “money machine.” This involves harnessing the power of compounding to create an income stream for the rest of your life. Automate your savings in a tax-efficient manner and utilize an investment strategy that will keep earning in any season. Finally, Robbins recommends coordinating your retirement planning with tax planning.
Understanding how much of your retirement plan will go to taxes each year helps you plan accordingly and avoid surprise tax bills. “Don’t be blindsided by the hit taxes can take against your nest egg,” warned Robbins. Protect your nest egg and protect your road to retirement.
Ultimately, you’re protecting your financial future — and nothing is more important than that.”
Retirees can better secure their financial future by planning early, building a money machine, and understanding tax implications. These tips from Tony Robbins and Dave Ramsey can help ensure that retirees do not fall into financial disaster.
Featured Image Credit: Photo by Mido Makasardi ©️; Pexels
