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.
Even a hospital financial person would not suggest you use your home as a cash pump.
I will admit to pulling money out of my 401 that was not making but 2-4% a year to pay off some credit cards that were sucking 12-19% a year. It was a thought out proposition. And the money spent (including the penalty) paid off our debt (except for the mortgage) and we are living like paupers and stashing away thousands a month.
Its all about being able to maintain a life style. You can have a large retirement fund, but if you are paying for that big screen TV at 15% or higher per month...you are not going to be living like that for long.
People need to do some basic math. And they don’t. They think someone will come rescue them. And they are wrong.