The entire 90% is not so poor that they can't save 10% of their income. It may be true at certain levels but not the entire 90%. It's about choices and so many people choose to pay for frivolous things like a cable or cell phone bill instead of saving.
I'm convinced so many people have fooled themselves into believing the government will cover their retirement shortfall. The problem is ultimately they are probably right but government doesn't have capital to cover the shortfall (not even actual social security obligations it seems)... so they are likely going to take it from the ones that have managed to save for their retirement, wait and see.
>government doesn't have capital to cover the shortfall (not even actual social security obligations it seems)...
If we eliminated the cap on how much salary is taxable for Social Security payroll contributions, all projected obligations and shortfalls would be covered. Social Security is being choked to death for ideological reasons, not starving naturally.
I'm convinced so many people have fooled themselves into believing the government will cover their retirement shortfall. The problem is ultimately they are probably right but government doesn't have capital to cover the shortfall (not even actual social security obligations it seems)... so they are likely going to take it from the ones that have managed to save for their retirement, wait and see.