4. The Reality of Personal Savings Gaps

Despite decades of warnings from financial experts, the mathematical reality is that saving for retirement is incredibly difficult. Stagnant wages, unexpected medical emergencies, and the high cost of raising a family leave many workers unable to max out their 401(k)s. When Americans transition into retirement, their actual savings balances often fall drastically short of what they mathematically need.

If you reach age 65 with $150,000 in your retirement accounts, applying the standard 4% withdrawal rule yields just $6,000 a year in income. That is nowhere near enough to survive. Enter Social Security. Because personal retirement income sources are frequently inadequate, the bulk of the heavy lifting falls directly onto these monthly government benefits.