Most people are caught in the trap of not understanding the economy, not understanding business, and not understand personal finances.  These are the people that live paycheck to paycheck -- even if they ARE saving for retirement, it's a flawed strategy to exchange your time for small amounts of money because there is no leverage.  They work for 50 years making their boss rich, making their banker rich, and making the government rich -- instead of using the idea of creating value = creating wealth.

These people may otherwise be very intelligent -- I have known many accountants like this believe it or not, heck even CEOs that are like this.  Good corporate employees, trying hard to work their way up the corporate ladder instead of owning it.

They believe this flawed strategy because it is what they were taught by their parents and grandparents, to go to college to get that all-important degree, then get a safe, secure job with a big company.

The reason these people focus ALL-OUT on retirement and don't have any sort of balance with enjoying life now, is because in their subconscious they SUSPECT SOMETHING IS UP!  They know something isn't quite right, but they can't put their finger on it.  Since they don't see the flaw in their own worldview but deep down they know it is there, they work their flipping ASSES of for retirement because they're not sure something isn't going to take that away from them.

And truth be told, there IS no guarantee that something won't take it away, if they aren't smart.  If they're still locked up in a 401(k) when the baby boomers start retiring (next year), and they continue and continue...  just because the stock market goes up on average 4% per year over the last 90 years does not mean that it won't take a huge nosedive right before you retire.  Did you know that by law you are required to start withdrawing from 401(k)s at the age of 70 and a half?  What do you think is going to happen to the stock market when 90 million baby boomers start doing this a few years from now?

These people know that there is a game, they just won't admit to themselves that they're playing it.  They know inflation isn't at 2% -- are you kidding?  They know how much they pay in gas, how much they pay in food.  I really think that deep down they know they are pawns, and that is why they work so obsessively for retirement -- because it's the only plan they have.

I really feel sorry for those of my generation (20s and younger) that STILL haven't figured out another way.  At some point we went from the Industrial Age to the Information Age...  and, well, a lot of people got left behind.