Dave Ramsey suggests how woman 64, with ‘virtually nothing’ can get by in retirement


On a video posted on The Ramsey Show – Highlights YouTube channel in 2019, Dave Ramsey offered Katie guidance on how she could get by in retirement without a big pension pot, and a lot of debt. Katie had recently been laid off from her job, so she was not currently working. She did not know whether to carry on paying her husband’s life insurance as things were tight for them.

Her husband has term life insurance which is $210 (around £158.60) a month.

Their home is paid for, however they have “virtually nothing” in their retirement fund due to bad decisions when they were younger.

Katie has $60,000 (around £45,313.50) in her retirement fund; however, she has $15,000 (around £11,328.37) worth of credit card debt to pay off.

She followed Dave’s every dollar programme as a way to help her budget and pay off the debt.

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She said that by sticking to the programme, she will be able to pay on the debt within a year.

Dave said: “Once you have done this, you should move on and get your emergency fund in place and stack up everything you can into retirement, as fast as you can.”

To be able to fund herself for the years ahead, she told the money guru that she is looking for another job to support her, but it is hard due to her age.

She said: “Hopefully I can get another job, I’m still looking.

“When they see 64 on the application it kind of gets tossed.

“Maybe I can do something on my own, we’ll see.”

Katie’s house is worth $100,000 (around £75,531.50), and her husband had around $200,000 (around £151,063.00) saved with life insurance, but Katie has no insurance.

The money guru suggested that Katie and her husband should keep paying the life insurance.

He said: “I’d keep the insurance in place because it’s there to replace his income if something happens to him and you would still need that because you don’t have any money.

“You have a paid for house and you will be debt free soon but you don’t have any money so I would keep it for a while.

“But as soon as you have $200,000 (around £151,063.00) or $300,000 (around £226,594.50) saved which you should have in a few years, you may want to look at dropping it at that point.”

Dave explained to Katie that she would only need to keep paying the life insurance if she believes that she wouldn’t have anything if her husband died.

If she has a house paid for things will be more manageable he explained. 

With $300,000 (around £226,594.50), she might be okay and will be able to get by if her husband dies.

He concluded: “You’re going to be playing catch up here.

“You need to get on the horse and kick him hard.”

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