Dave Ramsey suggests how retiree, 66, with little pension savings can get by in retirement


    Becky explained to the American finance personality that she doesn’t know what to do as her and her husband are both retired, and they don’t have a lot of savings. She said: “The future is scary for me because my husband and I are both retired, and we don’t have a lot in savings.

    However, her husband, who is 70, retired in 2019 and she is also retired.

    They have no money saved for retirement but have $100,000 (around £74,377.10) in the bank and $8,000 (around £5,950) in savings.

    She said she gets a “small pension”, but to live on this would “be really right”.

    Becky continued: “I was wondering if now would be a good time to put $14,000 (around £10,412) into a ROTH IRA (American tax free pension vehicle) because of our age.


    “Everything is paid for, but we don’t have that much in savings.

    “I know how fast this money is going to go because we don’t have that much in social security.”

    The money guru responded: “You’re going to have to, otherwise the $100,000 is not going to last 10 minutes.

    “You have to adjust your outgoings, or your income.”

    Becky explained her husband could probably drive a couple days a week for somebody. However, at age 70 he gets tired.

    Dave suggested the couple try and come up with ideas that can earn them income without them getting tired.

    He said: “You have an income issue.

    “You cannot tear into this savings unless you’ve solved your income issue. You have to make more, or budget more to live off what is already coming in, then yes I would do the ROTH. If you burn through the budget, it will not serve any purpose because you will burn through it too.”

    He explained that she should not put $14,000 into the ROTH IRA unless she can get her budget balanced.

    She needs to learn to live on the pension, the social security and whatever extra money they may have coming in before putting that amount into a ROTH IRA.

    “You don’t have a choice, you have to balance this budget, then I’d get a ROTH”, he concluded.

    Previous articleOriginal Gerber Baby marks 95th birthday
    Next articleOle Gunnar Solskjaer responds to question about Man Utd future after Watford drubbing


    Please enter your comment!
    Please enter your name here