No, most of them did not invest enough.
1. They were ignorant of the need and had no idea what is required for retirement.
2. They were actually sold a bill of goods because the “deal” they got with the 401 in almost all cases was a reduction in cost for employers and a pay cut for employees. Most could never make up the difference by saving.
3. They don’t understand risk in investing and most everyone else doesn’t either.
4. You imply spending the 401 is a bad choice because of unemployment? Guess you’ve never been faced with that choice.
Not many states are broke, most are and can’t fund their long term obligations. Obamacare will just make that worse.
I do know that the 401 has been a boondogle for the financial community since they make money on all sides of trades, are dealing with unsophisticated investors, have destroyed bargaining power present with large retirement funds etc.
I really don’t get your drift from your comments. I’m not advocating any of the alternatives you suggest.