Is 57 Too Late to Start Saving for Retirement? Dave Ramsey Says No – Here's the Math

Markets closed out a volatile week mostly flat as Intel's earnings miss weighed on sentiment and gold hit fresh records

The quick scan: US stocks finished Friday's session with mixed results, ending a whipsical week dominated by Greenland tariff drama and tech earnings. The S&P 500 barely budged while the Dow slipped and the NASDAQ posted modest gains. Small caps broke their historic winning streak, pulling back sharply after 14 consecutive days of outperformance.

S&P 500: +0.03% to 6,915.61 – the benchmark added just 2 points, essentially treading water to cap a second straight week of modest losses
Dow Jones: -0.58% to 49,098.71 – industrial stocks shed 285 points as Goldman Sachs slid nearly 4%, weighing heavily on the 30-stock index
NASDAQ: +0.28% to 23,501.24 – tech stocks showed relative strength with Nvidia (+1.5%) and AMD (+2%) providing support, though Intel's 17% plunge on disappointing guidance cast a shadow.

What's driving it: Intel's weaker-than-expected forecast triggered concerns about chip sector demand, though semiconductor peers largely shrugged off the news. Gold touched a fresh record above $4,900 as the dollar weakened against major currencies, signaling persistent market nervousness despite the week's recovery from Tuesday's selloff. Small caps finally pulled back, with the Russell 2000 dropping 1.82% after 14 consecutive sessions of outperformance – the longest such streak since June 2008. Consumer sentiment data improved slightly, with the University of Michigan survey showing inflation expectations easing to 4% for the year ahead.

Bottom line: Friday's tentative close capped a week that felt longer than five trading days. For L-Plate Retirees, the lesson remains consistent: volatility tests emotional discipline, but the investors who maintained perspective through Tuesday's panic and Wednesday's relief rally are better positioned than those who made reactive decisions at either extreme.

"I Never Thought About Retirement" – The 57-Year-Old's Wake-Up Call (And Why It's Not Too Late)

The scoop: When Susan, a 57-year-old from Florida, called into The Ramsey Show, she admitted something millions of Americans quietly feel but rarely say out loud: "I never thought about retirement. It was just something not in my vocabulary."

After spending her 20s and 30s enjoying life without much thought to the future, then losing her catering business and $4,000 monthly income during the pandemic, she found herself with $57,000 in an IRA, a $50,000 annual salary, and a sinking feeling that she'd run out of time.

"Is it too late for me to think about retirement?" she asked.

Dave Ramsey laughed – not unkindly, but with the certainty of someone who's run these numbers countless times. "Of course not! But you've got to get busy."

The answer wasn't whether she should have started earlier. That ship sailed decades ago. The question was what she could do right now, today, with the years she still has ahead.

The math that makes late starts possible

Susan's situation isn't hopeless – it's just honest. With $57,000 already saved and 20 years until she's 77, Ramsey recommended she save 15% of her income – $7,500 annually – in a Roth IRA invested in growth stock mutual funds.

Co-host John Delony ran the numbers: contributing $7,500 per year for 20 years, assuming average market returns, should put her just over $1 million by age 77. If she can increase her earnings by rebuilding her catering business and applies more aggressive savings, she might hit that milestone by 67.

These projections assume consistent contributions and market returns averaging around 10% annually – the S&P 500's historical performance with dividends reinvested. Past performance doesn't guarantee future results, but the math demonstrates that starting late doesn't mean starting from zero. Even modest, consistent savings can grow significantly over 10-20 years through the power of compounding.

Compare that to doing nothing. Twenty years from now at 77, Susan would still have just her original $57,000 (likely eroded by inflation), plus Social Security. With the savings plan, she'd have over $1 million in today's dollars, a paid-off house if she's strategic, and significantly more financial freedom.

The difference between action and inaction compounds dramatically over two decades.

Why so many believe they've missed the window

The median retirement savings for Americans aged 55-64 sits at $185,000 according to Federal Reserve data analyzed by Kiplinger – far below what many financial advisors recommend for comfortable retirement. Susan's $57,000 puts her behind that median, but here's the uncomfortable truth: she's ahead of millions.

About 28% of non-retired adults have no retirement savings at all, according to the Federal Reserve. The reasons vary – job loss, medical debt, divorce, caregiving responsibilities, or simply never earning enough to save aggressively. Life happens. Emergencies drain accounts. Priorities shift. Years pass faster than anticipated.

What matters isn't why the savings didn't happen earlier. What matters is whether the next 10, 15, or 20 years get wasted wallowing in regret or spent taking action.

For Susan, retirement won't look like glossy magazine spreads. The average monthly Social Security benefit as of December 2024 is $1,975. For someone without decades of high earnings to maximize benefits, that number could be lower. Combined with projected savings, she could potentially have modest but livable retirement income if she makes the right moves now.

Notice what's missing from that picture: retiring at 62, traveling the world, living a life of leisure. For late starters, retirement might mean working part-time until 70, living modestly, and relying more heavily on Social Security. That's not failure – it's reality adjusted for decisions made (or not made) decades earlier.

The prescription for late starters

Ramsey's advice for Susan included several non-negotiables: clear all debts, get serious about rebuilding business income, consider homeownership again when financially stable, automate savings so they happen without willpower, and increase contributions if income rises.

"If you come into 70 years old with a pile of money in your Roth IRA and a paid-for house, you're going to be in really good shape," Ramsey told her.

The Employee Benefit Research Institute's 2019 retirement security analysis found that having access to a workplace pension makes enormous difference, even for late starters. Individuals ages 35-39 with no future years of eligibility in a defined contribution plan face an average retirement deficit of $78,046 per person. Those with at least 20 years of future eligibility have an average deficit of just $14,638.

Consistent saving over two decades, even starting in late 30s or early 40s, dramatically improves retirement outcomes. For someone starting at 57, the runway is shorter but the principle holds: consistent action over the remaining years beats perfect planning that never gets executed.

What "catching up" actually requires

The challenge for late starters isn't just mathematical – it's psychological. At 57, aggressive saving means lifestyle sacrifices during years when peers might be enjoying peak earning spending. It means driving older cars, delaying vacations, saying no to adult children requesting financial help.

It requires letting go of the retirement that could have been and accepting the retirement that's actually achievable given current circumstances. That's harder than it sounds. The emotional work of releasing resentment about past choices while maintaining discipline for future ones demands constant recommitment.

But the alternative is worse. Reaching 70 with no savings, no plan, and nothing but Social Security creates a retirement defined entirely by limitation rather than choice. At least with a plan – even an imperfect, late-start plan – some agency remains.

The dangerous trap worse than late starting

The most dangerous trap for late starters isn't lack of money. It's giving up entirely.

When retirement feels like a luxury for "those who did it right," the temptation is to stop trying. To accept poverty in old age as inevitable. To rationalize that Social Security will somehow be enough, despite all evidence to the contrary.

But for anyone feeling like Susan – that retirement is something other people get to plan for – the message is clear: it's rarely too late to start. It is too late to rely on wishful thinking or lottery-ticket hopes. It's too late for perfect outcomes. But it's not too late for better outcomes than doing nothing.

The math might not deliver dream retirements. But it's infinitely better than zero.

Actionable takeaways for L-Plate Retirees:

• Run your actual numbers right now, not theoretical scenarios: Open a retirement calculator and input real current savings, real annual income, real contribution amounts possible. Seeing concrete projections – even disappointing ones – creates clarity that vague anxiety doesn't. Know exactly what the next 10, 15, or 20 years of disciplined saving could actually produce.

• Automate retirement contributions before they can be spent elsewhere: Set up automatic transfers from each paycheck directly to retirement accounts. Money that never touches checking accounts doesn't get spent on impulse purchases or "just this once" exceptions. Automation removes willpower from the equation entirely.

• Calculate the Social Security benefit realistically, not optimistically: Create an account on ssa.gov and review the actual projected benefit based on current earnings history. Many late starters overestimate what Social Security will provide. Knowing the real number prevents planning based on fantasy.

• Eliminate every dollar of non-mortgage debt before retirement: Credit card balances, car loans, personal loans – all of it needs to go. Entering retirement with debt payments dramatically reduces already-limited income flexibility. Attack debt with the same intensity as building savings, because eliminating $500 monthly debt payments has the same effect as having $150,000 more in savings using the 4% rule.

• Consider delaying Social Security until 70 if health permits: Every year of delay between full retirement age and 70 increases benefits by roughly 8%. For someone with modest savings, that increase in guaranteed inflation-adjusted lifetime income might matter more than accessing benefits earlier. Run scenarios comparing claiming at 62, 67, and 70 to see the dramatic differences.

• Accept that late-start retirement looks different and that's okay: Stop comparing retirement outcomes to people who saved for 40 years. They had different circumstances, made different choices, and will have different retirements. The only comparison that matters is current trajectory versus what's actually achievable with remaining time. Resentment changes nothing. Action changes everything.

Your Turn:
If completely honest about current retirement savings and trajectory, what does the math actually say about what's achievable – not what's hoped for, but what the numbers support?
What would have to change about current spending to free up an additional $500 or $1,000 monthly for retirement contributions, and which of those changes are actually possible versus theoretical?
Looking at the next 10-15 years, would working longer with aggressive saving create better outcomes than retiring earlier with minimal savings – and if so, what makes accepting that trade-off so difficult?

👉 Hit reply and share your thoughts – your answers could inspire fellow readers in future issues.

☕ If Susan's story hit close to home – the wake-up call arriving later than ideal but still early enough to matter – consider supporting L-Plate Retiree on Ko-fi. Contributions help keep these honest, no-BS personal finance conversations coming, the kind that acknowledge where we actually are rather than where we wish we were. Every coffee matters.

Resources:

Super Investors’ Club (SIC) – monthly membership subscription that aims to
make learning about investing more hands-on and accessible to individuals on a mission to become financially free. Join here.

* * * * *

The IRIS Stock Sniper Masterclass is a complete, systematic education for the stock market. It’s built on a foundation of proprietary analysis methods that help you filter out noise and spot only the best setups.

Inside, you’ll learn advanced charting techniques, position sizing for risk control , and a rule-based approach to trading that eliminates emotion. This is the definition of structured trading education designed for consistency.

See exactly how this program can transform your approach to stocks. See what’s included:
👉 Explore the Stock Sniper webinar

* * * * *

The Next Level Options (NLOMBA) course is a solid, all-in-one roadmap for mastering options investing. You’ll learn what options really are, how to invest in different market conditions, and how to pick strong companies using Buffett-inspired fundamentals.

Inside, the lessons walk you step-by-step through strategies like BOSS and Strategy X, so you’re not guessing – you’re following a proven structure that helps you invest with clarity and confidence.

What to see everything that’s included?
👉 Check out the Options Workshop