A retired factory worker has issued a stark warning about relying on Social Security for retirement, echoing concerns raised by many US financial experts. Created nearly a century ago to combat widespread poverty and provide a financial backstop for older Americans, today Social Security faces existential threats.
Dave Ramsey's Warning
Dave Ramsey has called depending on Social Security as your primary retirement plan a 'recipe for disaster.' Ramsey says the program was never designed to fully fund retirement, but instead to act as a supplement - the 'cherry on top' of a broader financial plan.
Buzz Baxter's Experience
Buzz Baxter, 66, says his own experience proves the point. Speaking to the Daily Mail, he said many Americans underestimate how quickly basic costs can outpace fixed retirement income. 'Costs for items like property taxes can increase faster than inflation,' said Baxter. 'If you're a homeowner, you may have expenses on water heaters, electric, roofing, HVAC, and appliances. Even tree removal has become a large expense.'
Baxter retired in 2023 after working as an operations manager at an automotive manufacturing plant that supplied major car brands. He and his wife entered retirement debt-free, with their home and car paid off - but less than $200,000 in savings. 'We had no credit card debt, and we made sure to replace appliances and the roof before retiring,' he said.
Even so, their financial position highlights a growing reality: Many retirees do not have nest eggs that are large enough to last through a long retirement. Today, the couple rely primarily on a combined $3,986 a month in Social Security income.
Living on Social Security
In videos posted to his YouTube channel, Baxter documents how they attempt to live within that limit - treating retirement almost like a financial experiment. 'If me and Mrs. Baxter can keep our expenses below our income on Social Security - and that's all we have - then we can make this work,' he said in a recent video.
To prepare, he spent months tracking every expense before retiring - something he now strongly recommends. When it comes to everyday spending, Buzz Baxter tries to strike a balance between cost and convenience. 'Anytime I spend money, I enter it right away so I don't forget… you want every dollar accounted for,' Baxter explained on YouTube.
'Food, medical insurance and property taxes are three of the top expenditures,' he told this website. However, he added that they have taken steps to keep some of these costs under control. For example, the couple has maintained a universal life insurance policy since they were young - something Baxter says provides added security, particularly as around half their Social Security income would disappear when one spouse passes away.
They have also worked to reduce other fixed expenses where possible. Auto insurance costs are kept low through a safe-driving app, while Medicare expenses remain predictable and the couple shop around each year for the most affordable prescription drug plan.
When it comes to everyday spending, Baxter says they try to strike a balance between cost and convenience. They continue to pay for cable, internet and phone services, acknowledging that while cable can be expensive, it is simpler than managing multiple streaming platforms.
Variable Expenses and Budgeting
Groceries and dining out remain their biggest variable expenses. In a recent month, grocery bills were higher than usual due to restocking, with the couple shopping at wholesale retailers such as Costco and Sam's Club in an effort to manage costs. In one recent month, the couple spent $3,250 - leaving a surplus of $736. But that cushion is fragile. 'Some years we ran deficits, pulling from savings. This year we're ahead… but this is still an experiment,' Baxter said in his video.
While cutting back on groceries or subscriptions is possible, Baxter warns the real financial pressure comes from unavoidable costs. 'You shouldn't just sit still - you need to make changes if you can… because costs keep rising,' he said on YouTube. He added in his interview that rising property taxes, insurance and home repairs can quickly derail even careful budgets.
Broader Concerns and Advice
Baxter's experience reflects a broader concern among financial experts. Dave Ramsey has repeatedly warned that Social Security typically replaces only a portion of income - not enough to sustain most lifestyles - and that future benefits could even be reduced if funding issues are not addressed. That means retirees who depend on it entirely could face significant shortfalls.
Like many Americans, Baxter does not have a pension - something he says is increasingly common. 'Pensions are a dinosaur in the US,' he said. '401(k)s are what most people should be into.' Without that additional layer of income, retirees must rely more heavily on savings and Social Security - increasing financial pressure.
Baxter believes younger people have more tools than ever to avoid these challenges - but must act early. 'Young people have the ability to invest money with a click on their phone,' he said. 'Invest even a few dollars from every paycheck into a low-cost index fund - set it and forget it.'
Even with careful planning, Baxter acknowledges Social Security alone may not be enough long term. 'You should have some savings or work a part-time job if you have no savings,' he said.
It's a reality many retirees are now facing. From rising bills to uncertain future benefits, Baxter says the risks of relying solely on Social Security are clear. His experience - backed by warnings from experts like Ramsey - highlights a simple but crucial message: Plan ahead, build savings, and don't depend on a single income stream. As he puts it: 'It's simple math.'
