General Discussion
In reply to the discussion: Social security is designed to provide a minimum degree of security upon which a worker builds. [View all]Honeycombe8
(37,648 posts)Which have since recovered their value. Also, if they retired, they transferred their 401ks to a private account, where they no longer have to pay those high fees.
So they have SS, Medicare, 401k, and other savings = they should be able to get by on that. They won't be traveling all over the world with tons of cash in their pockets, but they should be fairly secure.
BUT if they didn't contribute to their 401ks (as most people don't), then they will be missing that leg of the stool. Employer contributions to 401ks aren't enuf.
I started a new job last year. I asked several people how much the employer contributes to the 401k (although they won't contribute for ME for a year). NO ONE KNEW! They barely participated in the 401k, if at all. One employee contributed $40 a month, which is almost nothing, although better than nothing.
When you're really poor, you can't contribute to a 401k or have personal savings. But for a lot of the middle class, and esp where I work, they choose to spend their money instead of save it.