Here are a couple of things to consider:
*If they were wiped out in the 2008 recession, they were too heavily invested in stocks for their age. No reasonable 401(k) system would have been “wiped out.” If the people were greedy, they would have gotten beaten up.
*Their homes were foreclosed. At near retirement age no one should be over extended on their home. Again, bad planning.
* Living on $1000 a month? That’s social security for someone that hardly paid into the system. I doubt that umber is accurate.
People make choices. To end up like this story describes, these folks made one bad decision after another.
I agree with your observations re people not adequately preparing for retirement.
But I sympathize in particular with those who have been set back financially because of serious health problems—disease or accidents.
I have a hard time sympathizing with anyone who used their home as an ATM and took out second and third mortgages to pay for vacations, a swimming pool, a fancy truck etc. I know A LOT of people at work in their 50’s and early 60’s who did this and they’re wringing their hands now because they can’t retire until they’re 67 or older.