Personal Finance

Dave Ramsey Says $1M, Suze Orman Says $10M, Who Is Right?

Christy Bieber

Published: March 2, 2025 5:07 pm

How much do you need to have saved for retirement? This is a more difficult question than you’d think to answer, and even financial experts disagree.

Dave Ramsey, for example, believes $1 million is enough while Suze Orman has advised that you need closer to $10 million in order to be comfortable leaving the workforce and relying on your savings to support you. 

So, who is right, Ramsey or Orman?

Is $1 million or $10 million the right retirement target?

While there is a wide gap between Ramsey’s $1 million suggestion and Orman’s advice that you need $10 million, the reality is that both financial gurus are right. That’s because the amount that each individual person must have invested is going to depend on many factors including:

• The withdrawal rate that you choose
• The amount of income that you need to live on during your retirement
• What you are investing your portfolio in
• Your risk tolerance
• The amount of your Social Security benefit
• Other sources of income that you may have available to you, such as a pension
• Your retirement timeline

If you have money coming in from a pension plan and low spending needs, then you may not even need that full $1 million Ramsey said. If you are decades away from retirement, have no other income sources, and want to retire at 50 to spend lavishly on vacations, then even Orman’s $10 million may not cut it — especially once you factor in the impact that inflation is going to have on your buying power. 

The wide gap between what Orman and Ramsey suggest is a perfect illustration of why you must set your own individualized, personalized financial goals rather than relying on what experts who don’t know your situation might say. 

How can you set your retirement savings target?

The single best way to set your retirement savings goals is to consider your spending plans, your asset mix, and your risk tolerance. If you know exactly how much you want to spend as well as the withdrawal rate that you feel is safe, you can determine how big your nest egg must be.

Say, for example, you have done the math and you need $80,000 in income from your savings to cover your costs when you retire in the future. If you plan to follow the 4% rule, which says your money should last 30 years at a 4% withdrawal rate, you’d multiply $80K by 25 to find out you need $2 million invested– more than Ramsey said, but less than Orman. 

Of course, not everyone knows how to do the math or choose the right withdrawal rate. If you aren’t confident in making these decisions, then your best bet is to talk with a financial advisor. Your advisor will help you to assess your planned lifestyle, retirement timeline, and other factors to set a personalized goal.  This way, you can ensure you don’t run short of funds and can enjoy the retirement you deserve.

Sure, it may seem easier to just follow Ramsey or Orman’s advice, or even to use rules of thumb like assuming you need 10 times your final salary.  Unfortunately, if your plan doesn’t take your unique circumstances into account, you could end up in financial trouble as a retiree when you can least afford it. Instead of leaving your retirement up to chance and hoping generic advice is right, get the help you need to make informed choices and create a secure future. You’ll be very glad you did when retirement comes and you have no financial concerns.