The problem with that line of thinking is that an average retirement is close to 20 years. Often much longer than that. So they actually do have time to gain it all back (while beating inflation).
I have a MIL who retired at 62 and she's almost 90 today. Her biggest regret was getting out of the stock market and converting her nest egg to an annuity - which today scarcely meets her needs. She is literally running out of money which is a nightmare scenario for an aging retiree with no option of going back to work. Had she stayed in the stock market with what she had back in 1995 (the year she retired), she would easily be a millionaire today.
So annnuities don’t get adjusted for infltion?
Wow!
That is a tragic story for you MIL.
The market (under normal conditions) always comes back and with a vengeance.
My MIL is going to have to go back to work to make ends meet. She’s 75. I know she’s not the only one in that scenario.